Hedge Fund Reader : German Chancellor strikes again at the Hedge Funds, now on the oil prices issue

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September 03, 2005

German Chancellor strikes again at the Hedge Funds, now on the oil prices issue

The German Chancellor, Mr. Gerhard Schroeder is back in the news on his fight against the Hedge Funds. This time it is against the hedge funds and speculators who have been bloating oil futures to record levels. According to the German Economy and Labor Minister Mr. Wolfgang Clement these players have artificially jacked up the oil prices at least $18 per barrel. And as per Mr. Schroeder this calls for urgent need for stringent regulation at an international level. However, this is not the first time the German Chancellor has raised his voice against the hedge funds. It all started when Germany’s Stock Exchange, Deutsche Bourse’s Chief, Mr. Werner Seifert was asked to tender his resignation, when it was discovered that hedge fund has foiled a bid for an international exchange takeover. He had later tried to create a buzz during the G8 meeting in Scotland, but did not draw convincing attention for an international regulation drafted for the regulation of the hedge funds. There are rumors that the Mr. Schroeder has made a constant effort to be in news to be re-elected in the September 18, German elections. However, the German sentiment is strong against him and believed the opposition candidate, Ms. Angela Merkel might win the election. Ms. Merkel had not taken a strict stand against the hedge funds regulation issue. HedgeCo.Net Reports:

The German Economy and Labor Minister Wolfgang Clement said, ``Like other experts, we think that at least $18 per barrel of the oil price is due to speculation and hedge funds play a role in it.'' Clement further said, ``We will look into the matter although it only makes sense if that happens on an international level.''

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September 3, 2005 in Regulation | Permalink