WASHINGTON (AFP) — The International Monetary Fund Wednesday rejected calls for regulation of hedge funds, a campaign that is being pushed by Germany in the G7 forum of the world's richest economies.
IMF chief economist Simon Johnson said "sensible, responsible macroeconomic policies" by governments were the best protection against instability in the financial markets.
"Obviously there are some particular concerns about whether hedge funds are taking extremely large leveraged bets that could have adverse consequences on banks who might be lending to them," he told a news conference.
"But we don't see anything in this current situation that would merit a heavy-handed, big increase in regulation across the board of any kind," Johnson said, ahead of the latest meeting of Group of Seven finance ministers Friday.
Calls for tougher regulation of hedge funds have mounted in recent months with Germany leading the charge for controls on the ...
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