Increased Hazards of Financial Regulation - May Lead to Lower Diligence Standards

APRIL 7, 2009

The Washington Post published an article today, "Expanding financial oversight may add risks - White House regulation plan could increase hazards it's mean to prevent."

It reads in part: "The government is going to be more hands-on,and that's going to imply to people the government is vetting the risks relevant to a hedge fund," said Jason Scharfman, managing director of Corgentum, a firm that evaluates whether hedge funds have proper safe internal procedures. "It exposes investors to a false sense of security that they don't need to perform adequate due diligence on the hedge funds they're investing with."

The full article is available on WashingtonPost.com or on MSNBC.

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