Hedge funds are spreading misinformation by claiming they have the backing of the largest US unions in their ‘fight’ against new financial regulations, according to a report by The Financial Times.
Following the collapse of Archegos Capital Management, the Securities and Exchange Commission (SEC) has proposed a raft of new rules and measures aimed at increasing transparency in stock markets including stopping investors – including hedge funds – from using swaps to secretly build up holdings in public companies without disclosing their positions, and halving the amount of time investors have to reveal large stock holdings.
The report says that the AFL-CIO trade union federation and 11 unions have now written to the SEC lto “clear up any misunderstandings” and express their strong support for the regulator’s plans.
