That stock News

Christine Lagarde, the Minister of French finance, wrote to Treasury Secretary Timothy Geithner on the revision of European proposals that would have strict controls placed on hedge funds in the block of 27 members, in the wake of the financial crisis.

In the letter, she has pushed back the French critical U.S. demands for new EU rules have been protectionist and penalised for foreign funds operating in Europe.Toutefois, a change in policy Ms. Lagarde said foreign funds are now allowed for a pan-European licence if the schema has been progressively and new licences have been issued by a new EU regulatory agency.

Development represents a change in policy for Paris.Mme LaGarde already argued that issue a foreign funds EU licence would an error because the controls on these operators were unlikely to be quite difficult.This has led to a rear response from Mr Geithner last week, warning against placing restrictions on foreign funds.

According to the proposals, the new European watchdog would have the power to request information on how the funds invest, and borrow money from it may also intervene in limiting the trade, including a ban on selling short.

The Bill would also impose a code of loose payroll on the hedge fund managers requiring them to stagger gains over several years to reduce the incentive for operators to take large one-time additional risks.

Governments and regulators across Europe remain divided on the issue, with many supporting the existing system, requires funds to apply for permission to sell to investors on a country by country basis.

It remains uncertain whether Britain would accept this system, which would give a EU watchdog more power the weakening of the importance of London is the capital of Europe for the block of the police, hedge funds hedge funds.

The France was sensitive to criticism of Mr. Geithner so close to his chairmanship of the Group of 20 diplomats pays.Les and legislators are now hoping to negotiate an agreement on the regulation of hedge funds in time for vote to the European Parliament, following which is due to give its seal of approval on the law of this month.

View the original article here