WEST PALM BEACH, FL (www.hedgeco.net) – Rolf Breuer, the outgoing chairman of the Frankfurt stock exchange said yesterday that Germany should find ways to regulate the Hedge fund industry. Accordingto him, Germany should look for new laws to help it curb the activities of hedge fund managers.
Mr. Breuer is the outgoing chairman of Deutsche B�rse. The chief executive, Werner Seifert, is also leaving following the revolt by shareholders, led by hedge funds according to news reports. Mr. Breuer said, “It is dangerous when hedge funds take over and impose their view on stability oriented shareholders. I fear it can happen to anyone now. It heralds a new world for company boards in Germany and rips into the heart of the German economy.”
Mr. Breuer and Mr. Seifert were forced out at an emergency supervisory board meeting after the rebel shareholders threatened a vote to fire Mr. Breuer and other board members at the company’s annual meeting on 25 May. Mr. Seifert quit with immediate effect, while Mr. Breuer, who has been charged with the task of finding his successor, is due to leave by the end of the year according to published reports.
Breuer suggested that Germany should impose stricter regulations for hedge funds, he criticized the managing partner of TCI Investments Christopher Hohn, for his bitter disputes with Mr. Seifert. Hedge fund managers have blamed the Deutsche B�rse for not maximizing shareholder value.
According to news reports, Mr. Hohn set up TCI Hedge Funds at the end of 2003. The offices for TCI are located in Mayfair, while the fund is domiciled in Cayman Islands. Hedge funds were recently approved for the German markets a few years ago. No decisions have been made regarding the establishment of tighter regulations for the German hedge fund Industry.
Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: Editor@hedgeco.net
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