Monday, 20 October 2014
Last updated 8 min ago
Mar 24 2010 | 12:59pm ET
Turnabout is fair play, according to Sen. Charles Schumer (D-N.Y.)
The third-highest ranking Democrat in the U.S. Senate is threatening to block European alternative investment funds from marketing or raising money in the U.S. if the European Union adopts new regulations that have a similar effect on American funds in Europe.
In a letter to U.S. Treasury Sec. Timothy Geithner, Schumer blasted the proposed Alternative Investment Fund Managers directive as “protectionist rules that discriminate against U.S. firms and activities.” The EU rules would impose strict new reporting and custody requirements, as well as possible leverage limits. A draft of the legislation being hammered out by EU finance ministers would make it extremely difficult for foreign alternative investment funds to serve European clients; a version of the rules under consideration in the European Parliament would be somewhat less onerous.
Schumer’s own proposed legislation would mirror the EU, barring funds from outside the U.S. from marketing or raising money in the country, and mandating the use of U.S. banks for custody.
“Just as EU-based funds and custodian banks currently have full access to our market, U.S.-based funds and custodian banks should similarly not arbitrarily be denied access to the European market,” Schumer wrote.
EU officials have previously warned that they will not be bullied by Washington, and it is unclear what effect, if any, Schumer’s threat would have. The vast majority of European hedge funds and private equity firms are based in the U.K., which already opposes the proposed rules.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...