New York (HedgeCo.Net) – With so many eyes focused on Greece and their ongoing debt problems, the country is waging war against hedge fund managers. With the debt negotiations between Greece and the European Central Bank being so tumultuous, hedge fund managers are looking to profit, but apparently Greek regulators don’t appreciate the methods being used.

According to a recent Financial Times article, as many as 20 hedge funds have been fined for performing short sells on Greek banks. The issue the regulators have with the trades are because they contend these are naked short sells, a practice that is widely banned across the globe. The article went on to say that the fines totaled over €1m, but none of them have been paid as of yet.

The hedge funds have called on the Alternative Investment Management Association (AIMA) to aid in its appeal to the European Securities and Markets Authority arguing that Greece is trying to change the rules to fit their needs. Until a deal is authorized or Greece is officially bankrupt, you should expect these little battles to be ongoing.

Rick Pendergraft
Research Analyst
HedgeCoVest