Mon, Jun 18, 2018
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. Lyxor recommends stockpicking strategies, L/S equity hedge funds well equipped for turbulent markets[more]

    Matthias Knab, Opalesque: Market developments in May saw some trend reversals across the fixed income and commodity space. On the one hand, the unfolding of the Italian political crisis coincided with a rebound of U.S. Treasuries during the second half of May. On the other hand, the rising likeli

  2. North America - George Soros: 'Everything that could go wrong has gone wrong'[more]

    From Marketwatch.com: George Soros, tell us how you really feel. 'Everything that could go wrong has gone wrong. [Trump] is willing to destroy the world.' The 87-year-old billionaire clearly isn't shy about expressing his generally liberal views and distaste for Trump's "America First" platform,

  3. Paper: The performance of stocks actively pitched by hedge funds[more]

    Using a novel dataset drawn from investment conferences from 2008 to 2013, I show that hedge funds take advantage of the publicity of these conferences to strategically release their book information to drive market demand. Specifically, hedge funds sell pitched stocks after the conferences to ta

  4. North America - US fundraising for special purpose acquisition vehicles hits record this year[more]

    From AFR.com: Special purpose acquisition vehicles (spacs) are hitting the US market at the fastest rate on record, attracting the likes of Goldman Sachs and hedge fund investor Daniel Loeb for the two largest such deals in 2018. Spacs have raised $US4.5bn so far in 2018, the largest amount fo

  5. Investing - Man Group and AQR try to take aim at private equity industry, Hedge funds poised to be winners in AT&T-Time Warner deal[more]

    Man Group and AQR try to take aim at private equity industry From FT.com: The popularity of private equity investments has prompted asset managers such as Man Group and AQR to devise strategies that aim to replicate PE returns but at a much lower cost to investors. Both companies a