I have been one of Geithners staunchest supporters. But as time goes on I am upset of his advice to the President. They are simply too cozy with investment bankers and the movers of capital. Europe is being justifiably more tough on them than we are. It is time that we move and if the bankers respond by slowing the economy, nationalize the whole darn thing and sell relative parts to responsible private entities.
EU hits back at Geithner on regulation
By Nikki Tait in Brussels
Published: March 11 2010 15:29 | Last updated: March 11 2010 19:44
Top European Union officials hit back on Thursday at criticism from Tim Geithner, US Treasury secretary, who has accused Brussels of pushing ahead with rules to regulate managers of hedge funds and other alternative investment funds that could be protectionist.
A spokesman for Michel Barnier, the new EU internal market commissioner who is responsible for financial services regulation and to whom Mr Geithner addressed his concerns, said that the EU decision to act on hedge funds was in line with a G20 decision to reinforce transparency in the financial system.
He added that the new commissioner wanted to “work closely” with the US, to ensure “robust standards” in financial services. Mr Barnier is due to visit the US shortly, although no final date has been set.
The spat comes at a sensitive time. Diplomats from the 27 EU member states again failed on Thursday to agree a compromise package for regulating hedge funds and private equity funds on a pan-EU basis.
Britain, by far Europe’s biggest centre for hedge funds, is leading opposition to aspects of the directive, which it fears could impede the operations of funds based in London.
Alistair Darling, UK chancellor, has argued that hedge funds authorised by regulators to operate in one EU country should be allowed to operate under a “passport” in all other countries.
FT.com / Brussels / Business regulation – EU hits back at Geithner on regulation
