WEST PALM BEACH, FL (www.hedgeco.net) – Hedge Fund managers believe that calls from German government officials for control of hedge funds are simply political hype prior to a planned election.Recently German government officials, including the German Chancellor, Gerhard Schroeder have been calling for international regulation of the hedge fund industry; hedge fund managers don�t thinksuch calls have immediate consequences for the financial markets.
Schroeder said he plans to argue in the upcoming G8 meeting in Scotland that the international community should organize minimum cross-border standards for the global hedge fund industry. Hedge fund managers don�t believe that additional hedge fund regulation is needed now.
Jochen Wermuth founder of the Irish-listed, Greater Europe Fund said, “They may as well … revert to a socialist command economy, it reminds me of … the old Soviet system.” It is unlikely that the international community will consider such proposals with seriousness, already the U.S. Securities and Exchange Commission said, that there is no reason for additional hedge fund regulations beyond the existing laws.
European Union officials also spoke out last week against such plans; EU authorities recently said it has no plans for such regulations. Germany has been very critical of hedge funds following the removal of the head of the German Stock market, following investor revolt that was spearheaded by hedge fund investors.
One hedge fund analyst said, “I’m ignoring everything that comes out of Germany, it’s probably just political propaganda ahead of an election.� The analyst added, “There is a growing consensus that Germany is not going to be a great place to do business — any kind of business.�
Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: Editor@hedgeco.net
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