LOS ANGELES, April 27 (Reuters) - Kenneth Griffin, who runs of the world’s biggest and most powerful hedge funds, said on Monday that uncertainty about future regulation for banks was harming the U.S. economy’s recovery.
The U.S. government must stop cobbling together "one-off solutions for Citi C.N or Bank of America BAC.N" and instead create an overall regulatory framework that would allow bankers to plan with more certainty, Griffin said at the 2009 Milken Institute Global Conference.
Griffin runs Chicago-based Citadel Investment Group, which manages roughly $8 billion.
The hedge fund manager addressed the hot button issue of regulation at a time many Americans are demanding new and stricter oversight for banks, hedge funds and others after blaming them for accelerating the economic crisis.
But Griffin said it would be a mistake to throw out all current regulations and begin anew. Instead he said the laws that are in place must be enforced better.
“Overall, the regulatory frameworks are solid, but there was a lack of will around enforcement,” Griffin said. “This is not the time to rewrite it in the next 12 months.”
Griffin’s own industry -- the $1.3 trillion hedge fund business -- has also come under increasing scrutiny, with critics pushing for more transparency as well as other restrictions. Griffin testified before Congress about the matter last year. (Reporting by Svea Herbst; Editing by Lisa Von Ahn)
Our Standards: The Thomson Reuters Trust Principles.