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THE OBAMA administration has called for a sweeping overhaul of financial regulation that would bring hedge funds, private equity firms and derivative markets under federal government supervision for the first time.

Treasury secretary Timothy Geithner told the House financial services committee that regulatory changes were essential to restore confidence to the financial markets. “We need much stronger standards for openness, transparency, and plain, common sense language throughout the financial system. And we need strong and uniform supervision for all financial products marketed to consumers and investors, and tough enforcement of the rules to ensure full accountability for those who violate the public trust.”