EU commission told to re-evaluate hedge fund directive
The EU commission is coming under serious pressure from hedge fund and private equity companies to rein in the hedge fund directive which has the potential to add billions of pounds to the cost base of an industry which is vital to the long-term financial growth of the worldwide economy. It appears to many as though the EU commission has jumped on the bandwagon and attacked hedge funds and private equity companies, who have and continue to make big money, using this as a means to increase taxes and increase income for the European Union.
However, for every large profit a hedge fund of private company reports there will be many more companies making significant losses after taking potentially large risks with some of their investments. However, we need to appreciate that without hedge funds and private equity investment the liquidity in the worldwide money markets would be impacted and indeed companies may in many cases struggle to raise finance they require to continue to grow.
Hedge funds and private companies are always painted as the "big bad giants" but in many ways they play a central role in business development and business growth. Adding potentially billions of pounds to the cost base of this particular industry will not only reduce the funds available for investment but might also push companies to take larger and larger risks which could have a detrimental effect on the worldwide economy as a whole.
Share this..
Related stories
Saving for a wedding? Read this!
09/02/2015 Valentines Day is fast approaching, and while love is in the air, we decided to have a look at how we could help couples out as they decide to spend the rest of their lives together, and get married. Valentines is the second most popular day of the year for Brits to get down on one knee and pop the question, second only to Christmas Eve. It’s also a very popular day to have your...
Read MoreBarclays Decides To Shore Up Balance Sheet
News that Barclays Bank has sold off its life insurance portfolio to Swiss Re for £753 million will be welcomed by shareholders as a further strengthening of the group's core financial ratios and balance sheet. Unlike Royal Bank of Scotland (RBS), which is currently struggling to sell off its insurance division for any where near the original £7 billion price tag, Barclays has completed the muc...
Read MoreUK consumers predict house price increases in 2010
Despite the fact that more and more analysts are becoming concerned about the fragile nature of the UK economic upturn, over 50% of UK consumers believe that property prices will increase in 2010. This prompts the question as to whether this possibly "unjust" optimism could backfire and push us back into recession or could this be the catalyst for a strong recovery in the UK economy? The truth...
Read MoreMervyn King insists UK savers have not been abandoned
The Gov of the Bank of England, Mervyn King, has this evening suggested that UK savers have not been abandoned even though UK base rates have now been slashed to 1%. With more and more UK savings accounts offering 0% interest on deposits there has been a substantial increase in the pressure felt by many who depended upon their interest payments to live. More and more people are now being forced to...
Read MoreCould a Bernard Madoff fraud happen in the UK?
As the Madoff situation continues to roll on there is concern that a similar type of fraud could happen in the UK market. Weaknesses in the regulatory environment have been highlighted since the banking sector began to crumble and many people believe there are a number of potential frauds and criminal activities waiting to be discovered. Only recently we saw a massive mortgage fraud which resulted...
Read More