Registering with the SEC should not be a requirement of hedge funds, at least not in the mind of Federal Reserve Chairman Alan Greenspan.

Calling hedge funds helpful to the "internal flexibility of our financial system," Greenspan intimated that as long as lower- and middle-income families do not invest in hedge funds, the SEC should not be as stringent with these investment vehicles as it is with lower-shelf investments. The SEC has proposed that hedge funds be required to register with the commission just like mutual funds.

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