Vote on hedge funds threatens EU-US rift

[FarCenter]

European countries led by France and Germany plan to push through controversial hedge fund regulations next week after turning down British pleas to defer a vote in Brussels.

The refusal by Paris and Berlin to delay a decision on the new rules, which are opposed by the UK, has set up a bruising early confrontation with David Cameron’s new government.

The directive has also caused concern in the US. Tim Geithner, Treasury secretary, wrote to EU officials in March warning that, if unchanged, the new regulations could trigger a transatlantic rift by unfairly locking US funds out of European markets.

“The Americans are going absolutely ape,” said a person involved in the negotiations. “There’s this overwhelming belief now in Europe that if we legislate first, then the US will follow what we do.”

British diplomats tried on Wednesday to persuade Paris and Berlin that Mr Cameron’s coalition – including George Osborne, his chancellor of the exchequer – needed more time to prepare for Tuesday’s meeting of European Union finance ministers.

But Nicolas Sarkozy, French president, and Angela Merkel, German chancellor, are determined to settle a regulatory framework on hedge funds and the private equity sector, which they claim were partly to blame for the financial crash.

Elena Salgado, finance minister of Spain, which holds the rotating EU presidency, said other ministers would not agree to a further delay.

<SNIP>http://www.ft.com/cms/s/0/e21b02ce-5edd-11df-af86-00144feab49a.html

[Me.]

1. Thank God Somebody Is Doing Something

[PM Martin]

2. Germany and France are going to lead the way on these matters.

[lib2DaBone]

3. +1 Exactly... Congress should have outlawed Credit Swaps years ago

"Tim Geithner, Treasury secretary, wrote to EU officials in March warning that, if unchanged, the new regulations could trigger a transatlantic rift by unfairly locking US funds out of European markets."
--------------------------------------------

Excuse me.. but BS Timmy Geithner!

The best comparison, to use an analogy, would be that of calling the bank and stopping payment on $1.5 Quadrillion (that's one thousand five hundred trillion dollars) of bad checks.

Instead, CONgress and the boys on Wall Street, want to let these bogus checks get cashed... with you an I picking up the tab... out of our Social Security and Medicare accounts. (I know.. you are shocked...that the bankser would do this)

Mr. Obama should let Timmy Geithner and his Goldman Sachs buddies take the fall for these bad checks.. and use what little money we have left in the account for an emergency job-works program.

[eridani]

4. Well, yay for Germany and France!

Friends don't let friends maintain destructive non-regulation.

[Ghost Dog]

5. "The Americans are going ape."

Lovely expression. :)

[Greyhound]

6. K&R. Another small step...