Hedge fund execs advocate new public exchanges - WKOW 27: Madison, WI Breaking News, Weather and Sports

Hedge fund execs advocate new public exchanges

WASHINGTON (AP) -- Several prominent hedge fund managers are telling Congress they support a new central exchange to open the murky world of credit default swaps, complex investments partly blamed for the global financial crisis.

  The managers are testifying at a House hearing examining the role of hedge funds in the crisis, and the risks that critics say they pose to the financial system.

  Hedge funds, holding an estimated $2 trillion in assets, operate mostly outside of government supervision.

  The fund executives, including Citadel Investment Group CEO Kenneth Griffin, and Philip Falcone, senior managing director of Harbinger Capital Partners Funds, say they support the creation of public exchanges or clearinghouses to provide transparency for credit default swaps.

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