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To: Ahda who wrote (40330)	9/15/1999 2:05:00 PM
From: long-gone	Read Replies (1) \| Respond to of 117029

Maybe, but I can't seem to find a way to barter this poverty for much.

To: Ahda who wrote (40330)	9/15/1999 2:26:00 PM
From: Alex	Respond to of 117029

G7 Group Says Won't Recommend Direct Regulation of Hedge Fund <Picture> Sep. 15-MAR-- [B] G7 group says won't recommend direct regulation of hedge fund By Liz Alderman, Bridge News Paris--Sep 15--The Financial Stability Forum, a body of the Group of Seven industrialized nations charged with creating rules to strengthen the global financial architecture, has said it would not immediately propose direct regulation of hedge funds. "It is very difficult to do this," said Andrew Crockett, of the Bank of International Settlements (the G7 central banks' club), at a briefing on the body's findings. * * * Crockett, who heads the Financial Stability Forum, said there are proposals for governmental regulations of hedge funds, but there was "no agreement on how they would work." He added that offshore financial centers, considered another cause of financial instability, are a "weak link" and said existing regulations must be strengthened. Crockett said that while there would be no proposals for direct regulation of hedge funds in the near term the idea would be kept on the table. When the group meets again next April to deliver its final recommendations, it may propose a list of off-shore centers and a list of supervisory bodies to regulate them. "We must make sure offshore centers are well supervised, well structured" and have a greater degree of transparency, he said. Crockett said that he sensed a "high level of political commitment" among central bankers participating in today's meeting to implementing strict standards for offshore centers. He said there was an expectation that market-based sanctions, such as "name-and-shame publicity" and market-induced financial penalties, would go a long way to keeping illicit activity in check. However he said concrete financial sanctions imposed by supervisors "would not be excluded." Crockett said the group today also discussed capital flows and would probably recommend the development of principles for liquidity and risk management at its next meeting in April, to be held in Singapore. The FSF would develop recommendations aimed at preventing undesirable short-term capital flows, he added. During the discussion, the central bankers gave the impression that world markets are "more resilient" to shocks now than they were a year ago, Crockett said. The experience of the 1998 financial crisis appears to have caused a number of institutions to reduce their degree of leverage, he commented. Crockett said the group's key priority from here forward will be the implementation of standards to be proposed at the April meeting. End Bridge News, Tel: +331-44-88-44-50 Send comments to Internet address gennews@bridge.com The Bridge ID for this story is ZMDNLT (c) Copyright 1999 FWN futuresource.com