Geithner warns of rift over regulation
Author: Martin Arnold, Sam Jones and Nikki Tait, Financial Times
Mar 11, 2010
"Tim Geithner, US Treasury secretary, has delivered a blunt warning to the European Commission that its plans to regulate the hedge fund and private equity industries could cause a transatlantic rift by discriminating against US groups.
A letter sent by Mr Geithner this month to Michel Barnier, Europe’s internal market commissioner, makes it clear that the European Union is heading for a clash with Washington if it pushes ahead with what the US – and Britain – fear could be a protectionist law.
The debate over the shape of future financial regulation has reached a critical point in Brussels. Diplomats were on Wednesday night moving closer to a compromise on the sweeping overhaul that has angered the industry and worried institutional investors."
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Did You Know?
The effect of the financial crisis on potential U.S. output over the long term is estimated to be -2.4% per year.
Source: Organisation for Economic Co-operation and Development
