From the Wall Street Journal:
U.S. Treasury Secretary Timothy Geithner has warned the European Commission that its proposals for more restrictive regulation of alternative fund managers could affect cross-border investment, demonstrating how the controversial European Union directive could have transatlantic ramifications.
The regulation in question is this one, it is in draft stage:
I haven’t read all of it yet, however, from the WSJ article I find the following paragraph very telling:
Simon Walker, chief executive of the BVCA, said: “The likelihood is the third country [part of the EC’s AIFM directive] will stay in. That’s what we ask the UK government to stave off“.
The UK government becoming an agent of the fund managers’ interests? I can understand Geithners missive, for he is US Treasury Secretary, however I wonder what the legal basis for the intervention of the fund managers’ intervention is. How is it permissible, that foreign private entities lobby and petition in a EU legislative process? They are not even EU-citizens, and just having a financial interest in the EU is not enough in my view.
UPDATE: This is the Geithner letter in question: