The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Opinion

Hedge funds: Scores to settle

Regulators see a chance to hammer hedge funds and are determined to take it.

Once again, regulators and legislators have proved that they know very little about the role of hedge funds in financial markets. Toings and froings about new regulation from both camps are simply a waste of time that could be spent in much more worthwhile pursuits.

European Central Bank president Jean-Claude Trichet’s statement that "the current crisis is a loud and clear call for extending regulation and oversight to all systemically important institutions – notably hedge funds and credit rating agencies" is misplaced.

Think back just a few months to when Dick Fuld railed against the malign influence of hedge funds that were supposedly dragging down Lehman Brothers’ share price. The sellers of Lehman stock, short or otherwise, were right. The bank went bust. As trillions of dollars of losses pile up in the banking system, those that blamed hedge funds really ought to offer up an apology.

Perhaps Trichet can explain exactly what he thinks hedge funds have to do with the banking crisis. If he cannot, perhaps Mike Castle and Mike Capuano of the US House of Representatives can. In the second half of February they introduced a bill to force hedge funds to register, file an annual disclosure form, comply with SEC record-keeping and cooperate with SEC investigations.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree