Europe is about the future of hedge funds

Hedge funds try to regulate

In brief: The European Union considers it necessary to begin regulating the activities of all regional hedge funds.

EU finance ministers agreed on the regulation of hedge funds. In particular, the heads of financial institutions in favor of more stringent restrictions on the activities of hedge funds and private equity firms. An appropriate statement was made today by the Minister of Finance of Spain, Elena Salgado, the meeting with colleagues in Brussels. “I believe that we have reached a definite agreement on this issue,” – said EA Salgado.

She clarified that the agreement provides “an overall strategy for the introduction of more stringent limitations” (regulating the activities of hedge funds and private equity businesses). Recall that the EU finance ministers have repeatedly raised questions about the new rules for monitoring hedge funds. However, no specific agreement on this issue was not reached. The opaque business of hedge funds are often referred to as “shadow” industry of finance. Many experts have placed on such structures of the blame for global financial crisis. Restructuring of the system of financial regulation in the European Union headed by European Commissioner for Internal Market Frenchman Michel Barnier. Suggested measures include limiting them to pay for bankers, more stringent capital requirements and reserves to cover possible losses. Meanwhile, U.S. Treasury Secretary Timothy Geithner has already expressed concern about the intentions of the EU to tighten controls on hedge funds. According to T. Geithner, these reforms could unfairly affect American companies.

Ukrainian Globalist
2010-05-18 14:15, Economics.

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