Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : The Naked Truth - Big Kahuna a Myth -- Ignore unavailable to you. Want to Upgrade?

To: Joseph G. who wrote (7069)	9/27/1998 5:39:00 PM
From: Joseph G.	Read Replies (1) \| Respond to of 86076

<<VIENNA, Sept 27 (Reuters) - Bundesbank President Hans Tietmeyer sought to allay fears that the world's financial system was fragile but said hedge funds must be scrutinised more closely after the near collapse of U.S. fund LTCM. At a weekend meeting of European Union finance ministers and central bankers, Tietmeyer said financial leaders would discuss ways to improve the supervision of hedge funds at the annual meeting of the International Monetary Fund and World Bank next month. Extending transparency rules to cover such funds would take time but one initial solution was for them to improve their disclosure voluntarily, the German central bank chief said. He welcomed the fact that Long-Term Capital Management had been rescued by its creditor banks and without the use of public money. ''One cannot assume that the entire financial system is rotten. It is pleasing that this was dealt with at the own initiative of those involved.'' Tietmeyer said EU finance ministers and central bank governors agreed there was no need for a new global financial architecture to stave off crises such as those now afflicting Asia, Russia and Latin America. ''We should use what we have, and we have a lot. The IMF should not wait for something new but use what it has.'' Tietmeyer accepted that the IMF needed fresh funding but reiterated that IMF money should only be used alongside private sector funds to help stricken economies. Existing structures had worked in the past, Tietmeyer said. Private sector creditors had been involved successfully in managing the Latin American debt crisis during the 1980s but had been virtually absent in the Mexican bailout of 1994. ..................... Tietmeyer said IMF Managing Director Michel Camdessus had presented five action points at the Vienna meeting. Camdessus said financial markets, banks and public policy must be made more transparent and surveillance mechanisms needed to be improved. In addition, market liberalisation must not be reversed by reintroducing controls, the private sector must be incorporated more heavily into bailouts and international codes of conduct needed to be extended to cover accounting procedures and market valuations. >> In other words, adopt the Japanese "convoy" system ...