07 OCT 2010
By Harry Banks | City AM
US TREASURY secretary Tim Geithner has warned the French economy minister Christine Lagarde that curbing foreign hedge funds in Europe could cause a rift between the continent at the US government.
In a letter, sent late on Tuesday and seen by journalists, Geithner increases pressure on Paris to allow concessions on new European controls for private equity and hedge funds.
Officials familiar with US thinking said France’s position had antagonised Washington, which is worried that American hedge funds will be blocked from Europe, and that the row could undermine France’s upcoming presidency of the Group of 20 countries.
France joined European diplomats and lawmakers yesterday in the latest attempt to break the impasse on the shape of the new EU rules, entitled Alternative Investment Fund Managers Directive.
But negotiations remain difficult after Lagarde warned last week she would stand her ground in opposing part of the law that would make it easy for foreign funds to work in the EU.
Read entire article