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Opalesque Exclusive: Update - French banking system`s `policeman` recommends less investments in hedge funds The French Bank Committee (la Commission bancaire) recognised the French banks’ resilience in the midst of the credit crisis but recommended less risk-taking, reports French paper Le Figaro. Late last week, Christian Noyer, president of the Bank Committee and governor of the Banque de France, asked banks to limit their exposure to hedge funds. The danger lies in banks being exposed to volatile markets such as raw materials, directly or through hedge funds, he said. The other risk to be aware of is liquidity management since markets are still under pressure.

Boursorama.com further reported that Mr. Noyer said that the increase in counterparty risk on hedge funds remained a possibility. He is well aware that hedge funds are now indispensible revenue for banks but they have exposure to volatile markets.

Opalesque Exclusive: EU French presidency to encourage greater focus on the topic of hedge fund transparency French State Secretary to European Affairs Jean-Pierre Jouyet told Agefi.fr last week, ahead of the French presidency of the European Union, that the directive ‘Solvency II’ will be a priority for the French EU presidency. He also told the paper that France will encourage greater focus on the topic of transparency within the debate of regulation and self-regulation – so as to reach a new regulation. Self-regulation is not enou......................

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