Tue, Oct 6, 2015
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

French banks fear that parliament may decide to forbid them to work with hedge funds – Le Figaro

Monday, January 21, 2013

Karine Berger
Benedicte Gravrand, Opalesque Geneva: - Paris’ financial district is very concerned, French daily newspaper Le Figaro reported yesterday. The French finance minister Pierre Moscovici proposed rules last month that speculative activity be segregated away from banking activity. However, large French banks such as BNP Paribas, Société Générale and Crédit Agricole fear that the French parliament, under the counsel of Member of Parliament and economist Karine Berger, who is looking into the proposals, might toughen the rules.

Several sources told Le Figaro that Ms. Berger is looking into two different aspects of the proposal at the moment. The first one would consist in monitoring the relationship between banks and hedge funds ("fonds alternatifs"). There is a rumour that says the economist would like to forbid banks to work with hedge funds via a parent company, and restrain such operations to a separate (specially created under the new law) subsidiary. The second one would further restrain high frequency trading (HFT).

According to the paper, financiers are happy to discuss HFT, but are unhappy about any restraint in their business dealings with hedge funds, which many banks deem as essential. Bankers do not see hedge funds as hazards, but as investors who are useful to the economy, who often take long-term risks on non-plain vanilla assets. One banker told Le Figaro that when French companies recently issued convertible bonds, half of those were bought by h......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Performance - Hedge fund moguls Einhorn, Loeb, Rosenstein lose money in September, Risky strategy sinks small hedge fund[more]

    Hedge fund moguls Einhorn, Loeb, Rosenstein lose money in September From Reuters.com: Billionaire stock pickers David Einhorn, Daniel Loeb and Barry Rosenstein on Wednesday told their wealthy investors they lost money in September as market turmoil inflicted more pain on some of America'

  2. Opalesque Exclusive: IRAs represent billions of untapped capital for hedge funds[more]

    Benedicte Gravrand, Opalesque Geneva: Retirement accounts might not be the first source that comes to mind for those looking to raise funds, but they may represent billions of untapped capital. Unlike traditional retirement accounts,

  3. Opalesque TV: One way to access market hedge funds in the EU under the AIFMD radar[more]

    Benedicte Gravrand, Opalesque Geneva: While the Cayman Islands, the US and Hong Kong await the pan-European marketing passport to be extended to alternative investment fund

  4. U.S. hedge funds prepare for worst finish this year since 2008[more]

    Komfie Manalo, Opalesque Asia: U.S.-focused hedge funds are preparing for their worst year since the 2008 global financial crisis, following a series of letdown including the market sell-off in August and the sell-off in healthcare and biotechnology sectors last month, reported

  5. Vilas’ equity long bias hedge fund generates market-beating results[more]

    Komfie Manalo, Opalesque Asia: The Vilas Fund, an equity long bias fund managed by Chicago, Illinois-based Vilas Capital Management, posted five-year annualized returns, net of fees, of 23.47% vs. 15.87% for the S&P 500 Index, including divid