BRUSSELS - The U.S. has pressed the European Union on draft rules to regulate hedge funds, but should respect Europe's right to decide its own legislation, a top EU finance official said Thursday.
Amadeu Altafaj Tardio, a spokesman for EU Finance Commissioner Michel Barnier, says U.S. Treasury Secretary Tim Geithner wrote the EU executive about hedge fund rules that were proposed last year and will be finalized in coming months.
He didn't give details on the content of the letter but said that Barnier was "convinced that the American treasury secretary would share his concern to respect" that EU governments and lawmakers are still discussing the text.
It’s the statement of a confident man, and at 82, former Federal Reserve chairman Paul Volcker, something of a legend in his own time in the world of finance, is plenty confident.
After lawmakers scaled back proposals for a Consumer Financial Protection Agency by removing the requirement to offer a “plain vanilla” product and other concessions, the fight is now focused on whether rules of the new federal agency should preempt state regulations or not.
The Group of 20 Summit in Pittsburgh last week saw government leaders agree on important regulatory measures concerning bank capital and compensation, resolution of cross-border institutions and trading of over-the-counter derivatives, a top U.S. official said in congressional testimony this week.
The SEC once again tackled naked short selling issues as a
panel of experts at its “roundtable” on short selling looked at a possible
requirement to pre-borrow shares before selling them short, a procedure also
known as “hard-locate.”
The Obama administration moved a step closer to reversing what is now seen by many as a significant mistake by completing draft legislation to regulate derivatives trading.
While the administration has proposed to create a category of “Tier 1 Financial Holding Companies” that are systemically important financial institutions (SIFIs), a Federal Reserve economist suggests there may be a need for more categories.
Facing possible punitive action by the SEC, State Street Bank said its reserves to settle litigation related to its investments in subprime mortgages may not be sufficient.
The Treasury held its position that the government should not regulate methodologies or ratings of credit rating agencies. Standard & Poor’s, Moody’s and other agencies have come under fire for misleading investors by assigning top ratings to mortgage-backed securities.
