Euro Fall Prompts New Hedge Fund Criticism

Feb 11 2010 | 9:06am ET

With the euro facing pressure from short-sellers, European lawmakers are turning to their favorite scapegoats: hedge fund managers.

Several European Union lawmakers and finance ministers are demanding severe restrictions on speculators and short-sellers in the wake of the euro’s decline, which many blame on hedge funds. Those rules would go above and beyond those already on the table, which would impose strict reporting and custody requirements on hedge fund and private equity managers, as well as possible leverage limits.

“I am going to try to introduce a ban on naked short-selling for alternative investment funds,” Jean Paul Gauzes, a conservative member of the European Parliament and a close ally of newly-minted EU internal markets commissioner Michel Barnier, said. “I am in favor of asking the commission to come up with proposals, but there is nothing to stop us doing it already.”

Short-sellers have been all over the euro in recent days, concerned by debt problems on the parts of Greece, Portugal and Spain.

Barnier is also set to face pressure from the French and German finance ministers at a meeting of EU finance ministers next week.


In Depth

Q&A: Sancus Capital And The Disruption Of The CLO Market

Oct 5 2017 | 6:28pm ET

Traditional collateralized loan obligation (CLO) funds in the U.S. market can offer...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Finding Success as Alternatives Converge

Oct 9 2017 | 4:00pm ET

Rising interest among institutional investors over the past several years has led...

 

From the current issue of