Reuters ahead of competition on news that hedge funds may escape US Federal Reserve scrutiny

Reuters exclusively reported on Dec 20 that the U.S. Federal Reserve did not believe that a single hedge fund could threaten the financial system, and therefore hedge funds could escape tough new capital rules from the central bank.The Feds view should carry considerable weight with the Financial Stability Oversight Council, which was created by the Dodd-Frank legislation to monitor risks to the financial system in the aftermath of the 2007-2009 credit crisis. The Council is in the early stages of determining which non-bank firms pose a threat to the financial system. The indication that hedge funds might not be considered systemically important` is sure to send a huge sigh of relief through the $1.7 trillion industry, which has long avoided the tighter controls like the ones imposed on mutual funds. The Reuters story was widely cited and picked up by CNBC, the New York Times and Yahoo Finance among other publications.