Geithner urges Europe to revise hedge-fund rule plan
Treasury Secretary Timothy F. Geithner said European policy makers shouldn’t block U.S. investment funds from their markets and praised recent delays to a planned set of hedge-fund regulations. “As you consider how to design this important set of reforms, I hope you will keep in mind our shared commitment to create regulatory reform that does not discriminate against foreign firms,” Geithner said in a letter to four European finance ministers released today by the U.S. Treasury. Europe’s Alternative Investment Fund Management Directive, proposed a year ago, will limit hedge funds’ borrowing, require registration of funds with more than 100 million euros ($134 million) under management and impose limits on pay. One clause would prevent European funds from investing in pools based outside the region.