German Fin Min worried about hedge-fund risks in EU bank plans
BERLIN Jan 30 (Reuters) - German Finance Minister Wolfgang Schaeuble said on Thursday he was worried that European Commission proposals on isolating hedge fund risks do not go far enough.
"I am a bit worried that the Commission's proposals on the isolation of high-risk trades at hedge funds don't go as far as our German rules. This is a point we must look at," Schaeuble told the Bundestag lower house of parliament.
However, he broadly welcomed the EU proposals on splitting banks' highly-speculative business from their normal retail business, an effort by Brussels to tackle some of the risks exposed by the 2007-2009 financial crisis.
In its proposals, the commission also suggested tighter controls on so-called shadow banking to make it harder for banks to use such schemes for certain high-risk trading.
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