BERLIN Jan 30 German Finance Minister Wolfgang
Schaeuble said on Thursday he was worried that European
Commission proposals on isolating hedge fund risks do not go far
"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.