Mon, Sep 1, 2014
A A A
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

amb
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. Study shows what resonates with investors: 'Unwavering', 'passionate' beats 'committed', 'dedicated' and more surprises[more]

    Komfie Manalo, Opalesque Asia: A new study by Pershing Square, a unit of BNY Mellon company, showed that an effective value proposition strengthens audience connections and fosters growth, yet many advisors have had little objective guidance in formulating such statements until now. In the

  2. Comment – Why you should avoid the hottest hedge fund hands, Swedroe attacks Hussman over risk management, relative value strategy[more]

    Why you should avoid the hottest hedge fund hands FromCNBC/Yahoo.com: Investors who don't have money with Pershing Square Capital Management are likely salivating at the hedge fund's industry-leading 26 percent return from January through July. But investing with Bill Ackman and other to

  3. Hedge fund assets decline in July - eVestment[more]

    Bailey McCann, Opalesque New York: Total assets in hedge funds declined in July and dropped 0.49%, marking the industry's second monthly asset decline in 2014, according to the latest asset flows data from eVestment. Despite the asset decline, total industry AUM remained above the $3 trillion

  4. AIMA makes 'the case for hedge funds'[more]

    Bailey McCann, Opalesque New York: The Alternative Investment Management Association (AIMA), the global hedge fund industry body,

  5. Managed futures' global diversification is important in next phase of economic recovery[more]

    Komfie Manalo, Opalesque Asia: The global diversification provided by managed futures may prove to be extremely valuable as the markets enter the next phase of the economic recovery, said Campbell & Company, a pioneer in absolute return invest