Euro Fall Prompts New Hedge Fund Criticism

Feb 11 2010 | 8:06am 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

Related-Company Fees: Normal Industry Practice or Conflicted Compensation?

Nov 11 2015 | 4:23pm ET

Regulatory agencies as well as investors are increasingly exploring whether certain...


Ferrari Roars in Wall Street Debut

Oct 21 2015 | 4:28pm ET

Shares of supercar maker Ferrari jumped as much as 15 percent to a high of nearly...

Guest Contributor

Private Debt - What is the Opportunity?

Nov 11 2015 | 3:28pm ET

In this contributed article, Rob Allard, founding partner of Firebreak Capital...


Editor's Note

    Oct 21 2015 | 10:41am ET

    One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…