France on Friday will press for tighter controls on hedge funds, urging other industrialised nations to strengthen regulation of the industry and compel banks that lend them money to hold more capital. Paris wants the EU, and eventually all key economies, to beef up indirect regulation of hedge funds via their prime brokers. Under plans to be outlined by France to G7 finance ministers on Friday night in Rome, banks could face higher capital requirements to reflect the riskiness of their hedge fund clients.

This entry was posted by Gwen Robinson on Friday, February 13th, 2009 at 5:04 and is filed under Capital markets, Hedge funds. Edit this entry.