European Tribune - Community, Politics & Progress.

Anglo What..?

by afew
Thu Mar 11th, 2010 at 05:58:45 AM EST

The US considers EU plans to regulate hedge funds and private equity companies as contrary to its interests.

FT.com / Global Economy - Geithner warns of rift over regulation

A letter sent by Mr Geithner this month to Michel Barnier, Europe’s internal market commissioner, makes it clear that the European Union is heading for a clash with Washington if it pushes ahead with what the US – and Britain – fear could be a protectionist law.

Note the presence of Airstrip One shoulder to shoulder with -------a.

The draft EU directive would impose tighter restrictions on hedge funds, private equity and other alternative investment funds. It has caused alarm in the City of London, where some in the industry say it is a thinly veiled attempt by France and Germany to undermine the UK’s dominance of financial services.

Is there likely to be conflict over naked CDS trading also? French PM Fillon, in Berlin for talks with Angela Merkel yesterday, said there was a strong wish to deal with extreme speculation, and the two signed a letter to Commission president Barroso to express it. The question will probably be brought up at the next G20.

FT.com / Europe - Call for ban on CDS speculation

The Franco-German initiative, backed by Luxembourg and Greece, also calls for regulators to be given “unlimited access” to a register of derivatives trading in order to identify who is trading and what they are doing.
It proposes that derivatives transactions should only be allowed on exchanges, electronic platforms and through centralised clearing houses.

Oooh, that sounds dreadfully "protectionist" to me. But I'm paranoid.

Right?

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Anglo What..? | 16 comments (16 topical, 0 editorial, 0 hidden)

Re: Anglo What..? (4.00 / 6)

A Financial Times editorial says a ban on naked CDSs would be "silly".

Quite right, of course. The pro-regulation lot are hidebound conservatives opposed to the bright, brave new world financial innovation has...

Well, you know what I mean.

by afew (afew(a in a circle)eurotrib_dot_com) on Thu Mar 11th, 2010 at 06:04:45 AM EST

Re: Anglo What..? (4.00 / 3)

Though, to be fair, they do say:

FT.com / Comment / Editorial - Europe's sovereign credit default flop

plans to require derivatives to be traded on exchange and centrally cleared will in any case do a lot to make derivatives markets more transparent and efficient. These reforms must be seen through

by afew (afew(a in a circle)eurotrib_dot_com) on Thu Mar 11th, 2010 at 06:07:32 AM EST
[ Parent ]

Re: Anglo What..? (none / 0)

This is misconceived, IMHO.

As I said a while ago, contracts should certainly be registered, which opens up the way to both transparency and the 'netting' of obligations. But central counterparties are essentially single points of failure, and the clearing of OTC risk in this way is to be avoided, I think.

Modern conservatives engage in one of man's oldest exercises in moral philosophy: the search for a superior moral justification for selfishness.Galbraith

by ChrisCook (cojockathotmaildotcom) on Thu Mar 11th, 2010 at 07:16:47 PM EST
[ Parent ]

Re: Anglo What..? (4.00 / 2)

Tish - now you're just being unserious.

by ThatBritGuy (thatbritguy (at) googlemail.com) on Thu Mar 11th, 2010 at 06:55:04 AM EST
[ Parent ]

Re: Anglo What..? (4.00 / 8)

You could also say that the legal requirement of a driving licence is 'protectionist'. Of course it is 'protectionist', it protects innocent people from harm caused by selfish lunatics.

You can't be me, I'm taken

by Sven Triloqvist on Thu Mar 11th, 2010 at 06:07:33 AM EST

Re: Anglo What..? (none / 1)

Of course, don't forget licensing of doctors.

If an individual wants to enter the medical field, what right does the state have to require that they demonstrate competence?

That is the role of the market.

The trail of corpses left by bad doctors will send a simple message, caveat emptor.

And I'll give my consent to any government that does not deny a man a living wage-Billy Bragg

by ManfromMiddletown (manfrommiddletown at lycos dot com) on Thu Mar 11th, 2010 at 03:19:47 PM EST
[ Parent ]

Re: Anglo What..? (none / 1)

Fillon also said, as In Wales posted in the Salon:

France24 - French PM calls for 'rapid' consideration of an IMF for the eurozone

AFP - The idea of a European-style International Monetary Fund to help debt-stricken eurozone members should be examined "rapidly," French Prime Minister Francois Fillon said on Wednesday.
"We think this is an idea that should be looked at by experts rapidly in order to create the means with which the eurozone and its members can have at their disposal to respond to financial tensions that threaten monetary stability," Fillon said in a speech at Berlin's Humboldt University.
"But this form of support is only acceptable if the states confronted by financial difficulties make in parallel all necessary efforts to fix their structural problems and balance their books."

So what was that all about?... was the FT wishful thinking again?

*Traitor*, n.
A benighted individual who perceives an illusory distinction between serving his nation and abetting the criminals who govern it.

by DoDo on Thu Mar 11th, 2010 at 06:44:14 AM EST

Re: Anglo What..? (none / 0)

Not to mention the Guardian...

*Traitor*, n.
A benighted individual who perceives an illusory distinction between serving his nation and abetting the criminals who govern it.

by DoDo on Thu Mar 11th, 2010 at 06:45:21 AM EST
[ Parent ]

Re: Anglo What..? (none / 1)

There are contradictory signals coming out of both Germany and France on the EMF idea, this is not just a narrative of the UK press. Fillon is more positive here, but how much enthusiasm there will be for new treaty provisions remains to be seen. As a "long term project" it seems to be backed, (by Jean-Claude Juncker for example), but that may just be kicking the can down the road...

Re: Anglo What..? (none / 1)

There are contradictory signals coming out of both Germany and France on the EMF idea, this is not just a narrative of the UK press.

The narrative in the UK press is not about contradictory signals, but a uniformly negative reception outside Germany and especially France.

*Traitor*, n.
A benighted individual who perceives an illusory distinction between serving his nation and abetting the criminals who govern it.

by DoDo on Thu Mar 11th, 2010 at 08:19:42 AM EST
[ Parent ]

Re: Anglo What..? (none / 1)

As I pointed out elsewhere, Jean Quatremer gives a rundown on French views in his blog, citing Le Monde and Le Figaro as considering the French attitude was less than enthusiastic.

Fillon has now given a more positive appreciation. We'll see what the UK press makes of it.

by afew (afew(a in a circle)eurotrib_dot_com) on Thu Mar 11th, 2010 at 08:44:23 AM EST
[ Parent ]

Re: Anglo What..? (4.00 / 3)

European Monetary Fund, Arriving Soon - By Simon Johnson

American officials are annoyed and deeply skeptical - not thinking that this will amount to anything. But the future has finally arrived - or perhaps its arrival has just been announced - in the form of the European Monetary Fund.
Such an institution would represent a major reshaping of global financial architecture, undermining the traditional basis of power for the United States - which would prefer to keep the International Monetary Fund (IMF) paramount. This is a good thing for the world, but also for the IMF and - believe it or not - for the US.
...
Will the EMF include only euro countries or cover the whole European Union? This probably depends on how involved France and Germany would like to be with Britain's problems. My guess is that they'll stay away, at least initially - so the "euro members only" sign will go up.

"Ce qui vient au monde pour ne rien troubler ne mérite ni égards ni patience." René Char

by Melanchthon on Thu Mar 11th, 2010 at 05:47:11 PM EST
[ Parent ]

please o please (4.00 / 4)

may your governments have the stones to finally not do what the US demands. while you're at it, stop enabling us on the imperial ventures as well.

by wu ming on Thu Mar 11th, 2010 at 08:12:15 AM EST

Wait a minute ... haven't we ... (none / 1)

... in Oceania always been at war with you in Westasia?

Thank goodness for Airstrip1 ... if it wasn't for our noble leader's foresight in having them join Westasia as a third columnist, Westasia would have over-run us and our noble allies in Eastasia by now.

Utsukushikereba sore de ii

by BruceMcF (agila61 at netscape dot net) on Thu Mar 11th, 2010 at 04:52:33 PM EST

Re: Anglo What..? (4.00 / 3)

EU hits back at Geithner on regulation - FT.com

Top European Union officials hit back on Thursday at criticism from Tim Geithner, US Treasury secretary, who has accused Brussels of pushing ahead with rules to regulate managers of hedge funds and other alternative investment funds that could be protectionist.
A spokesman for Michel Barnier, the new EU internal market commissioner who is responsible for financial services regulation and to whom Mr Geithner addressed his concerns, said that the EU decision to act on hedge funds was in line with a G20 decision to reinforce transparency in the financial system.
He added that the new commissioner wanted to "work closely" with the US, to ensure "robust standards" in financial services. Mr Barnier is due to visit the US shortly, although no final date has been set.
...
Alistair Darling, UK chancellor... has sided with Mr Geithner in opposing provisions that would require US hedge funds - or funds operating from London but registered for tax outside Europe - to seek approval in each European jurisdiction.
...
However, Spain, which holds the rotating EU presidency, is understood to be anxious to take a text to a scheduled meeting of EU finance ministers next Tuesday. Further negotiation and efforts at finessing the text are expected to continue over the weekend.

"Ce qui vient au monde pour ne rien troubler ne mérite ni égards ni patience." René Char

by Melanchthon on Thu Mar 11th, 2010 at 05:17:02 PM EST

Re: Anglo What..? (none / 0)

As a general rule I'm against regulation; just let the bastards go bust.
In the specific however, if Tiny Timme is against it, I'm for it.

by bilejones on Thu Mar 11th, 2010 at 05:28:39 PM EST

Anglo What..? | 16 comments (16 topical, 0 editorial, 0 hidden)

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