Germany Resists Locust Funds, Strikes a Raw Nerve

4 de may de 2007

<body><div id="article"><tr><td height="28" valign="middle" width="184"></td><td valign="middle" width="185"></td></tr><h1>Germany Resists Locust Funds, Strikes a Raw Nerve</h1><p>May 4 (EIRNS) - The economic-financial press of Europe, led by the <em>Financial Times</em> , "forecasted" today that no concrete steps towards transparency or regulation of hedge funds will result from next Tuesday's meeting of the 27 European Union finance ministers. However, Germany, maybe followed by a couple of other EU member states, is taking steps, and cautious as they may still be, the fact that the same, afore-mentioned press has sounded the alarm over the German Government, indicates that its steps seem to strike a raw nerve. Concretely, the German ministry of finance wants to upgrade the powers of the financial watchdog agency BAFIN, to enable it to monitor regularly up to 400 banks and funds, the functioning of which is seen as crucial for the German financial sector. The new powers for BAFIN are at the expense of the monetarist-dominated German central bank, and although the finance ministry rushed to play down the issue, fears have been voiced in the economic media over the past days, that a clandestine re-regulation is taking place.</p></div></body>