EU To Formulate Common Hedge Fund Proposal

Apr 23 2007 | 9:31am ET

Another weekend of high-level regulatory meetings has produced more mixed messages for hedge funds.

At a meeting of European Union finance chiefs, Germany’s Peer Steinbrück took aim at the U.S.’s hands-off approach, saying it is “not working.” But speaking to reporters at the same meetings in Berlin, the EU’s internal markets commissioner, Charlie McCreevy, said that there was “no market failure” requiring regulatory action.

McCreevy said that hedge funds are “big boys who know what they’re doing.” As for the collapse of Amaranth Advisors, the most recent hedge fund blowup to produce calls for stricter oversight, McCreevy noted, “if they lost US$6 billion, someone must have made US$6 billion on the other side.”

Steinbrück, however, was having none of it, as he worked to convince his fellow European finance ministers to support Germany’s proposal of a code of conduct for hedge funds. The ministers agreed to try to formulate a joint proposal when they meet again in Brussels on May 8, ahead of a meeting of G8 finance ministers in Potsdam, Germany, the following week, when Steinbrück and his supporters will again have to deal directly with the skeptical Americans.

“We need to see what kinds of benchmarks are developed to ensure these practices are implemented,” Steinbrück said. He added that his proposal would be a success if roughly 15 of the largest hedge funds could be convinced to sign it.


In Depth

Israeli Hedge Fund Harnesses Big Data

Jul 28 2014 | 8:10am ET

Apica Green is a multi-million dollar Israeli hedge fund that is based in Tel Aviv...

Lifestyle

David Yarrow On Growing His Hedge Fund And Shooting The Animals And People Of Africa - As A Photographer

Jul 23 2014 | 6:44am ET

While he’s always been a photographer, recent expeditions to Iceland, Ethiopia...

Guest Contributor

The Truth About Track Record Portability

Jul 24 2014 | 5:55am ET

The number of private funds converting to mutual funds has increased significantly...

 

Sponsored Content

    Northern Trust Helps Hedge Funds Navigate Derivatives Regulations

    Jul 8 2014 | 10:48am ET

    The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…

Publisher's Note