Schumer Threatens Retaliation in EU Hedge-Fund Dispute

Discussion in 'Professional Trading' started by ASusilovic, Mar 24, 2010.

  1. A U.S. senator threatened retaliation if European Union proposals curbing access of American fund managers to the European market become law.

    In a sign that a European effort to increase regulation of hedge funds and other alternative-investment vehicles could escalate into a broader trans-Atlantic dispute, Sen. Charles Schumer (D., N.Y.) described the European proposals as "protectionist rules that discriminate against U.S. firms and activities."

    In a letter to Treasury Secretary Timothy Geithner, Mr. Schumer said he stands ready to call on Congress to pass legislation that would prohibit funds not based in the U.S. from marketing and raising money in the U.S. It also would require funds operating in the U.S. to use custodian banks based in the U.S.