Merkel calls for more transparency over source of hedge fund capital
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German Chancellor Angela Merkel has called for a crack down on hedge funds and rating agencies following the latest ructions on world stock markets. “In the case of hedge funds, we need to know where the capital comes from and how high the credit risks are.
“For the rating agencies it should be made clearer what basis they use for rating companies.
“There can’t be some black box from which something comes out and which no one understands. At the end of the day, we all risk paying the price of the opaqueness often associated with the selling on of loans,'’ she said.
French President Nicolas Sarkozy has also demanded a probe of “speculators'’ thought to be manipulating the global markets.
Calling for a “moralization of the market'’, he proposed G7 action to establish the exact role of the banks and the rating agencies in causing the current credit crisis.
Filed by Egor Ouzikov under Global Financial Crises