German Fin. Min. Warns Of Hedge Fund Spy Plan

Mar 18 2010 | 8:46am ET

Germany may deploy its spies to gather information about hedge funds and other currency speculators, its finance minister said.

Wolfgang Schaeuble told the German Parliament on Tuesday that the country may direct “intelligence agencies to set up surveillance of who is getting together with whom for which kinds of speculative processes,” Bloomberg News reports.

The information gathered, he told the Bundestag, would be used to protect the euro, which has been battered amidst widespread short-selling by hedge funds and by Greece’s debt troubles, which have also been blamed on short-selling hedge funds.

Schaeuble’s comments come the same week that German Chancellor Angela Merkel used the podium of the Bundestag to blast British intransigence over the European Union’s proposed alternative investment regulation. They also follow a report last month in El País, the largest newspaper in Spain, that the country’s secret service was probing “attacks” on Spain by investors.

Reaction to Schaeuble’s comments was swift.

“I find it sinister and silly,” the Centre for European Reform’s Philip Whyte told Bloomberg. “It is a complete overreaction. There is a certain school of thought in continental Europe that everything is always the fault of hedge funds.”

“Hedge funds are very nice targets because they are particularly based in London and New York,” Jacob Schmidt of hedge fund advisory Schmidt Research Partners said. “He is not going to say this about German banks.”


In Depth

Fitch Says Alternative Asset Managers 'Stable' Despite Dry Powder

Nov 20 2014 | 9:30am ET

Ratings agency Fitch says the outlook for seven publicly traded alternative asset...

Lifestyle

Cohen Buys $101 Million Sculpture

Nov 12 2014 | 9:17am ET

Steven Cohen was the sole bidder for a rare Alberto Giacometti sculpture at Sotheby...

Guest Contributor

Why The Big Money Is Going To Europe

Nov 14 2014 | 6:03am ET

Peer-to-peer lending was invented with the individual investor in mind. But despite...

 

Sponsored Content

    For Hedge Funds, Mastering Data Is Key To Success

    Nov 4 2014 | 9:45am ET

    Data management is important to every business, but for hedge funds, it is critical. FINalternatives recently asked Peter Sanchez, CEO of Northern Trust Hedge Fund Services, how fund managers can deal with the demands of managing data while at the same time remain transparent and abide by operational best practices. Read more…

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

November 2014 Cover

Building a better market

Reg NMS created a huge bifurcation in equity markets and while much of what has followed has been positive, in terms of lower fees and greater liquidity, many traders would like to see the market come...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.