It seems that Europeans can just not agree on what to do with the hedge funds. France’s finance minister, Christine Lagarde, is expected to say no to a plan by the E.U. to create a license or passport for hedge funds at this week’s meeting in Brussels of European finance ministers – wreaking havoc on the potential for regulation.Read the story here.
It looks like her actions, which according to Reuters, are supported by Germany, mean that there will not be any new hedge fund regulation in place anytime soon throughout theEuropean Union. The debate, discussion and drafting of hedge fund regulation has been going on since the credit crisis started.
The E.U. had hoped to have the rules finalized this summer but that hope was dashed earlier this year when agreement on the passport / license could not be reached. It was believed by many, that at this week’s meeting, the regulation would be finalized. However, now it looks like it is back to square one.
Stay tuned…