Thursday, May 7, 2009

Alternative Investment Body Supports Investment Advisers Registration

Speaking in front of the House Financial Services Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises, Richard H. Baker, the Managed Funds Association (MFA) President and CEO, stated that hedge funds have an "aligned interest with other market participants, including retail investors and policy makers, in reestablishing a sound financial system". As part of his testimony, Baker voiced his support for regulation of all private investment firms and shared his view "that mandatory SEC registration for advisers of private pools of capital is one of the key regulatory reform proposals being considered by policy makers."

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Update: TALF Picks Up Steam

According to a statement released by the Federal Reserve Bank of New York ("Federal Reserve") on Tuesday, May 5th, prospective borrowers requested approximately $10.6 billion in loans during the May 5th operation of the Term Asset-Backed Securities Loan Facility ("TALF"). This figure represents a large increase over the $4.7 billion and $1.7 billion in loans that were requested during the first and second operations of the TALF, respectively.

In related news, the Federal Reserve Board released a statement on Friday, May 1st, announcing that, starting in June, commercial mortgage-backed securities and securities backed by insurance premium finance loans will be eligible collateral under the TALF.

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