Regulators from the U.S. and the U.K. will sit down in a few weeks with some of Wall Street’s most hedge fund-active securities firms to determine whether they may be getting themselves into hot water with their heavy HF lending activity. “Several of these firms are major players in prime brokerage, lending securities and capital to funds to allow execution of strategies,” Annette Nazareth, a commissioner on the Securities and Exchange Commission, said at a meeting of CPAs that her agency, as well as the Federal Reserve and the U.K.’s Financial Services Authority would be in attendance, though she did not identify the firms by name. Nazareth said the meeting is just the kick-off of the regulator’s desire to rein in the banks somewhat. Following the first round of meetings, Nazareth said, the regulators intend to monitor the securities forms to make sure they are actually moving toward limiting their risk to a hedge fund collapse, a la Amaranth Advisors. Also addressing the CPA conference in New York was Timothy Geithner, president of the Federal Reserve Bank of New York, who said financial markets in general are “allocating risk better” thanks in part to the growth of derivatives. He also called for greater global cooperation in managing financial risks around the world.