Merkel drafting hedge fund code of conduct: report
Angela Merkel is working with French and British counterparts to create a set of non-binding rulesBERLIN, December 18, 2007 - German Chancellor Angela Merkel is working
with French and British counterparts to create a set of non-binding rules for
hedge fund operators, a press report said Tuesday.
"We are working on a self-regulation project for the hedge fund sector. I
will present a set of proposals with British Prime Minister Gordon Brown and
French President Nicolas Sarkozy before the spring," Merkel told Capital
magazine in an interview due to be published on Thursday.
"There is no doubt that we need to find a new balance on the financial
markets between liberty and regulation," she added.
Merkel has repeatedly called for a code of conduct to govern hedge funds in
the wake of widespread turmoil on credit markets caused by a crisis in
speculative investments in risky US home loans.
But the call has found little favour with Berlin's partners in the Group of
Eight most industrialised nations, notably in Anglo-Saxon countries where a
large number of the funds are based.