BusinessWeek – European Central Bank council member Christian Noyer called for greater regulation of credit- default swaps, saying hedge funds are exploiting low interest rates to increase speculation with the securities, according to an interview in L’Agefi newspaper.
“Is it normal that hedge funds can take such large positions using significant leverage financed by central banks with particularly low interest rates? Obviously not,” Noyer was quoted as saying in the interview confirmed by his office. “We the central banks aren’t keeping rates low to permit hedge funds to take speculative positions in sovereign CDSs.”
