WEST PALM BEACH, FL (www.hedgeco.net) – The German Chancellor, Gerhard Schroeder has defended plans to subject hedge funds to tighter controls. Mr. Schroeder made his remarks during a speech on aGerman regional radio station. He argued that the tactics used by hedge funds which he referred to as �stripping of assets� was totally unacceptable.
Schroeder said some hedge fund managers and private equity firms were employing such tactics. He said, “When they buy, make tough cuts, then sell the company on to a second person, who then strips the company even further in order to sell just a little bit more, then I think it is justified to look more closely at what is going on.”
A few months ago, Schroeder made a proposal to subject the hedge fund industry to some strict international regulations. His proposals however failed to win the support of both the United States and the United Kingdom at the G8 meeting held in Scotland.
This time the German Chancellor is suggesting a more organized, diplomatic debate on the question of hedge fund regulations. But political analysts predict that Mr. Schroeder may lose in the coming presidential elections in Germany, such loss will also take away his plans for tighter controls for the hedge fund industry.
Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: Editor@hedgeco.net
HedgeCo.Net is the most popular hedge fund database and community in the world. Membership on HedgeCo.Net is free and easy. We also offer free listings for Hedge Funds!
Be sure to check out our sister sites. www.hedgefundlounge.com, www.hedgefundtools.com, and www.hedgefundemployment.com.
