Posts Tagged ‘treasury department’

Here is a thought provoking article from PiOnline.

“Proposed registration, reporting and disclosure laws for alternatives managers — likely to be passed by Congress before year end — could force a swath of smaller managers to close and could have a devastating impact on hedge funds of funds, sources say.

Hedge fund, private equity and venture capital managers and their lobbyists want to strike a deal with legislators to lessen the administrative burden of reporting all investment and trading positions, trading practices, assets and on- and off-balance sheet risks, as is now proposed by the Treasury Department.

“The proposal’s required administrative tasks would be very burdensome for venture capital firms, which tend to be small companies. The chief financial officers in these firms already tend to be very stretched with the existing job of running the firm. I think this proposal … could drive many smaller venture capital firms out of business,” said Emily Mendell, a spokeswoman for the National Venture Capital Association, Washington.

“Smaller hedge fund, private equity and venture capital managers will be disproportionately impacted by the reporting regulations,” agreed Daniel Celeghin, director, Casey Quirk & Associates LLC, Darien, Conn.

“The real panic I’m hearing is from hedge funds of funds, whose executives say the reporting requirements will be a huge problem because they don’t get this level of detail from their underlying managers in order to be able to pass it on to the SEC. They’ve said `What’s coming could sink us,’ ” Mr. Celeghin said.

The new investment manager requirements are part of the Obama administration’s financial reform package first floated in June and designed to increase oversight of systemic risk and to control it.”

Read the full article here.

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Here is some scary news reported by AP.

“The Treasury Department said Monday it will need to borrow $361 billion in the current April-June quarter, a record amount for that period. It’s the third straight quarter the government’s borrowing needs have set records for those periods.”

The bad news continues…

“Treasury also estimated it will need to borrow $515 billion in the July-September quarter, down slightly from the $530 billion borrowed during the year-ago period. The all-time high of $569 billion was set in the October-December period.”

“To cover the government’s heavy borrowing needs, Congress in February boosted the limit for the national debt to $12.1 trillion as part of the legislation that enacted President Barack Obama‘s $787 billion economic stimulus program. The national debt now stands at $11.1 trillion.”

One may only hope that the problems are to be solved…

Go to RealClearPolitics to read more on this story.

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