High-level conference on private equity and hedge funds: extracts from the opening speech by Charlie McCreevy

Type: Speech - summary   Reference: I-060701   Duration: 10:41:47  Lieu:
End production: 26/02/2009   First transmission: 26/02/2009
Opening on 26/02/2009 in Brussels, a two-day conference on private equity and hedge funds organised by the European Commission. Charlie McCreevy, Member of the EC in charge of Internal Market and Services, said regulatory and supervisory oversight of private equity and hedge funds hat operate in the European Union would be inevitable. Altough regulatory action should distinguish between the two sectors, added Charlie McCreevy, addressing a number of experts from the banking and financial sector. Next week the European Commission will present outline proposals on a range of measures to tackle flaws uncovered in regulation by financial crisis.

Only the original language version is authentic and it prevails in the event of its differing from the translated versions.
PDF version

TIME DESCRIPTION DURATION
10:38:47 Title 00:00:04
10:38:52 Exterior view of the National Bank of Belgium 00:00:05
10:38:57 Arrival of Charlie McCreevy, Member of the EC in charge of Internal Market and Services (2 shots) 00:00:11
10:39:08 General view of the press room 00:00:04
10:39:12 Charlie McCreevy saying (in ENGLISH) that any action should make the necessary distinctions between hedge funds, private equity and other forms of alternative investment. When people worry about hedge funds, they worry about the impacts of hedge fund activity on financial stability and the efficiency of their financial markets. When people worry about private equity, their concerns centre on over-gearing of some portfolio companies, and the way private equity manages its relations with other stakeholders in those companies. These are very different issues and call for suitably differentiated responses. Any policy intervention needs to be clear about which problems it is trying to fix. 00:00:45
10:39:57 Cutaways (2 shots) 00:00:09
10:40:06 Charlie McCreevy saying (in ENGLISH) that any action should recognise that the first line of defence against undesirable levels of leverage in hedge funds, or excessive lending to private equity managed companies is to limit the flow of credit at source. Not by turning off the tap. But by ensuring that lending institutions manage their exposures to the hedge fund and private equity sector. Smoothly. Much of the present difficulty encountered by hedge funds and private equity portfolio company, stems from the sudden tightening in cash and securities lending. 00:00:37
10:40:43 Cutaways (2 shots) 00:00:10
10:40:53 Charlie McCreevy saying (in ENGLISH) that the financial crisis has thrown some issues into sharper relief. It has profoundly altered the economic and political context in which decisions on the regulation of hedge funds and private equity will be made. The ground has shifted in this debate. Closer, direct regulatory and supervisory oversight of hedge funds and private equity is inevitable. As he said earlier, they need to be careful in designing regulation that is effective, not counterproductive. It would be wrong to take from today's conference that the Commission's response to the financial crisis is all about hedge funds and private equity. Because it is not. Next week the Commission will be adopting a Communication for the Spring European Council which will cover the economic, financial and social aspects of today's crisis. 00:00:54
10:41:47 Cutaways (2 shots) 00:00:09
Audiovisual Services
European Commission
ec.europa.eu/avservices
 
Conditions of use
© European Union, 2015