German Fin Min worried about hedge-fund risks in EU bank plans

BERLIN Thu Jan 30, 2014 6:34am EST

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.

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.