As anticipated, Congress is taking the first steps toward regulation of private investment funds. On January 29, 2009, Senators Grassley and Levin introduced Senate Bill 344, the “Hedge Fund Transparency Act.” A similar bill was introduced by Sen. Grassley in the last Congress but was never taken up by the Banking Committee. In this economic climate with well-publicized “blow ups” and scandals involving hedge funds, it is likely that Congress has both the desire and will to pass legislation.

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