Ed Balls, the Economic Secretary to the Treasury in England, wants a global system to monitor investment banks’ exposure to hedge funds.
Balls dangled this plan at a speech given at a Financial Services Authority (FSA) conference on regulation. Although Balls inserted this info into his speech at the last minute, FSA chief John Tiner fully supports Balls, who is juggling several regulatory initiatives in his reform agenda. Balls plans to be in the face of G8 finance ministers regarding hedge fund regulation.
Few economic secretaries in politics are as cold as Balls when pushing ideas on top brass, and Balls is not shrinking from domestic anti-regulatory pressure, considering that 90% of European hedge fund business is conducted in London. UK-based hedge funds have shown little desire to constrict Balls in his efforts thus far, primarily because Balls doesn’t want increased scrutiny of hedge funds or managers, but wants to focus prime brokering or “the part of investment banks that liaise with hedge funds.”
Many New Labour politicians have teased Balls for his origins in the Fabian Society, which hangs slightly farther to the left on many New Labour reforms. Fortunately, this involvement has not been a cancer to Balls, who expects to hang around at least as long as Labour remains in power.
Tighter scrutiny of banks' fund exposure urged – [Telegraph]
U.K. Signals Willingness To Deal On Hedge Funds – [FINalternatives]
Posted by anon, Apr 24, 2007 12:04PM
Bravo! Well-played.