There is no case for emergency action to crack down on naked selling of credit default swaps, as called for by France and Germany, British authorities said on 10 March. At the same time, the US warned that EU plans to regulate hedge funds could cause a transatlantic rift.
Greece, Germany, France and Luxembourg have called for speedy action to limit or even ban naked credit default swap (CDS) contracts, whereby the buyer has no stake in the underlying asset being insured against default. Greece has blamed naked CDS contracts on its sovereign debt for amplifying its bond market woes as it grapples with a huge budget deficit. "We need to think about it and think about it clearly but, given that, it is not the key driver of what has gone on with perceptions of Greek risk," Britain's Financial Services Authority chairman, Adair Turner, told reporters. European Union finance ministers will discuss possible action in the CDS market on 16 March after the bloc's executive said on Tuesday it would consider a ban on naked selling.
Note EU-Digest: Has Mr. Adair Turner suddenly forgotten which role Goldman Sachs has played in the Greek Financial drama? Its high time to ban the Wall Steet bandits from the EU. If the Commission does not act the EU Parliament should.
For more: UK, US lash out at France, Germany over hedge fund regulation | EurActiv
Greece, Germany, France and Luxembourg have called for speedy action to limit or even ban naked credit default swap (CDS) contracts, whereby the buyer has no stake in the underlying asset being insured against default. Greece has blamed naked CDS contracts on its sovereign debt for amplifying its bond market woes as it grapples with a huge budget deficit. "We need to think about it and think about it clearly but, given that, it is not the key driver of what has gone on with perceptions of Greek risk," Britain's Financial Services Authority chairman, Adair Turner, told reporters. European Union finance ministers will discuss possible action in the CDS market on 16 March after the bloc's executive said on Tuesday it would consider a ban on naked selling.
Note EU-Digest: Has Mr. Adair Turner suddenly forgotten which role Goldman Sachs has played in the Greek Financial drama? Its high time to ban the Wall Steet bandits from the EU. If the Commission does not act the EU Parliament should.
For more: UK, US lash out at France, Germany over hedge fund regulation | EurActiv
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