Larger hedge funds must now register with the Securities and Exchange Commission.
Despite popular impressions, hedge funds are a stabilizing factor in market trading, but a mostly inept media never gets this point across. Thus, politicians are able to pin blame for market problems on the wrong parties. Besides, the SEC has had a rather poor record in checking out fraud in the past.
Hedge funds tend to work off the extremes of the market. This keeps prices in line. Dodd-Frank however, did nothing but exaggerate the too-big-to-fail problem. (See the Earl J Weinreb NewsHole® comments.)
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