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German Alternative Investment Association (Bundesverband Alternative Investments e.V., BAI) condemns supposed market manipulations by hedge funds during financial crisis – regulatory precautions in Germany are sufficient safeguards

Bundesverband Alternative Investments e.V. (BAI), the German lobby association for the alternative investment industry (i.a. hedge funds and private equity), condemns market manipulations by “short and distort” tactics in the US, UK and Ireland. Counteracting market malpractice is a statutory duty of the association.

The financial supervisory authorities in the US, UK and Ireland are currently investigating against several market participants, including hedge funds. Authorities suppose that these players have adversely impaired the prices of bank-stocks by spreading false rumours in order to profit from falling prices. The BAI warns nevertheless not to blame the whole alternative investments industry for misconduct just because of investigations against some of its members. The BAI expects that the investigations now going on in the US, UK and Ireland will result in the crucial clarification of facts and lead, if necessary, to the consequences provided by law right up to the exclusion of players from the market.

Short selling represents an integral part of finding a market price and is permitted and regulated by applicable laws in the US, UK and in Germany as well. Markets were highly volatile due to the heated a......................

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