Hedge funds given further stay of execution

Despite the fact that the European Union has been looking to put together a new package of regulations for hedge funds for almost a year, today's negotiations have been called off and the situation will be addressed over the next few weeks. This is a welcome relief for Gordon Brown and the UK government because with 80% of European hedge funds operations situated in the City of London, the UK has much to lose and very little to gain.

It is unclear what will happen in the future with regards to hedge funds but one thing is certain, the European Union is looking to bring in various regulations which will effectively take away control of the hedge fund sector from the UK government and the City of London regulators. This is a bitter blow for the UK government in the longer term but one which looks almost inevitable as the European Union and its many members seek to grab the power and the glory from London.

London has been a central financial market for hundreds of years although the Lisbon Treaty has all but handed control to the European Union with the UK authorities almost powerless to resist in the longer term. The position of London at the top table of the world financial markets is at risk!