After examining hedge funds for over a year now, the Securities and Exchange Commission staff is ready to recommend all hedge fund managers be required to register with the regulatory agency, according to sources, Bloomberg reports.

The hedge fund industry, which is estimated to be between $600 billion and $700 billion, is largely unregulated. While it is still held to anti-fraud laws in the securities industry, many regulators, including SEC Chairman William Donaldson have felt that the industry is too large for the government to know so little about it, especially in light of some well-publicized fund blow-ups.

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