Det nya arbetarpartiets och alliansens verkliga avsikter!

Hedge Fund Market Day, Grand Hotel, Stockholm 19 juni 2007
Mats Odell, Kommun- och finansmarknadsminister

Macroeconomics and the Nordic way forward

Check against delivery.

Thank you Mr chairman Kaj Rönnlund.
I am as pleased, as I am sure you are, that this important conference is taking place at a time when mother nature helps us native Swedes to give friends from abroad a very warm welcome. On top of that I see this event as yet another indication that Stockholm is becoming an important financial centre in the North.
In spite of the fabulous growth in the size of and in the number of hedge funds during the last few decades the general public - my clientele as a politician - still looks upon them and their managers as exotic members of the financial family. The general public probably sees you as the people who can turn silver into gold and gold into dust.

I expect that there are both heroes and villains in your industry as I am sure there are in my profession. But let me say from the beginning that I am convinced that the hedge fund industry by and large plays an important and fruitful role in the world as well as in our Swedish economy.

It is our duty as politicians and regulators to look out for pitfalls and regulate when it seems necessary. But we should always remember that one of the pitfalls we fall into is the one labeled excessive regulation.

I don't know who is the present Godfather of the industry. The first one, I know, did not come from Sicily but from Australia. Alfred Winslow Jones moved to the US at the age of four. He sailed the world, even worked as a journalist before founding the first hedge fund in 1949.

I presume that you all have heard the American expression: If you are so darn smart why aren't you rich? Well Alfred Winslow Jones had an answer. He became rich and gave us - or you - a rich heritage.

His basic idea was to sell short some stock while buying other stock thereby hedging most of the market risk. He aimed to benefit both from a rising and a falling market. This basic idea has been refined using mathematical tools developed by highbrows - some of whom have gained recognition both as Nobel laureates and as engineers behind Long Term Capital (LTCM).

Despite what happened to LTCM in 1998 the industry has continued to grow rapidly. Still there is no exact legal or industry-wide definition of the term hedge fund. The industry is heterogeneous. It includes not only funds that hedge their positions but also funds which - seen from an outsider's perspective - take highly aggressive speculative bets. Thus the industry includes funds with lower risk than the average mutual fund as well as funds with very high levels of risk. Thus when I look for transparency I don't mean that managers should reveal their positions in the market. What I hope to see is that hedge funds in a clear and explicit way inform investors of the kinds of risk they are taking.

How many hedge funds are there world wide? I have seen different figures. Some say there are 7 000, others claim 10 000 managing total assets of between one and 1.4 trillion US dollars.

Since hedge funds typically use leverage to invest, the positions they can take in the financial markets are larger - and sometimes much larger - than their assets under management. Around 1,350 hedge funds were registered in Europe last year managing assets of some USD 400 billion. Approximately 90 percent of the EU hedge funds are managed by managers who are obliged to register with their local regulator and most of these are located in the UK.

This is an important difference between the US and the EU. In the US, there is currently no requirement for hedge fund managers to be registered with the relevant authorities. However, it is important to note that many hedge fund managers in the US choose to register voluntarily with the SEC (Security and Exchange Commission)

There are, as you know, a number of structural changes taking place in the industry. The investor base is increasingly incorporating institutional investors, including pension funds, whereas the traditional investor base of the industry has been well-to-do individuals. Banks have started to acquire equity participations in hedge funds or have otherwise started to expand their hedge funds business. Large funds have been growing faster than smaller ones.

In Sweden, all domiciled hedge funds register with the Swedish Financial Supervisory Authority. Hedge funds fall within the classification of special funds, which means that there is no special legislation governing them. In practice this means that hedge funds must follow the bulk of legislation governing investment funds, but can obtain exemptions from some rules. These exemptions are decided by the Swedish Financial Supervisory Authority (Finansinspektionen) on a case by case basis and allow hedge funds to employ more aggressive trading strategies through, among other things, the use of derivatives and leverage.

In recent months you may have noticed an active discussion on the EU-level and in the US about the pros and cons of hedge funds as well as the possible need for legislative or industry-driven initiatives to increase the transparency of hedge funds.. The fact that hedge funds contribute to market efficiency by exploiting and thereby addressing examples of poor pricing is widely recognized. If it is true that hedge funds on the whole contribute to a more correct pricing an improved resource allocation will follow. I think this is important. Hedge funds also provide the markets with liquidity, which is central to new and complex markets.

I understand that hedge funds prevented a major global recession when, in 2000, they put an end to the ever-expanding technology bubble by going short on greatly overvalued shares in the middle of a stock market euphoria. Without this intervention, one could argue, the bubble would have grown to unmanageable proportions before it eventually would have burst, with disastrous consequences for the real economy. Then, while the general mood was still one of panic, hedge funds started covering their shorts because they realized that equity prices had returned to fair value, and thus helped to stabilize the market.

On the other hand, there are a number of risks associated with the activities of hedge funds. I have already mentioned the 1998 collapse of Long-term Capital Management. I don't think all the facts of how it happened are in yet but it awakened regulators, legislators and other market participants to the systemic risks that the activities of hedge funds may give rise to. It led to an increased focus on managing counterparty and creditor risk, especially the risks that banks expose themselves to in their dealings with the hedge fund industry. The collapse last year of Amaranth, which lost approximately USD 6 billion, seemingly did not have any effect on the financial markets. This would indicate that financial markets and the banks providing financing have become more resilient and more able to manage the risks associated with for example hedge funds.

The resilience of the financial markets should in no way lull market participants into complacency. The need for all market participants to remain vigilant about the potential risks related to the activities of hedge funds is just as important today. Financial regulators still need to ensure that the counterparties to hedge funds have proper risk management systems. This is especially important given the fact that competition between prime brokers could tempt some to lower their requirements for information on risk. It is vital for investors and creditors to demand and receive the information required for their risk management systems. In absence of such transparency, creditors should tighten their credit provision and investors should be wary of investing. Vigilance and market discipline are the main tools to guard against systemic risk and to enhance investor protection.

The debate in the EU has focused on the systemic risk implications of the activities of hedge funds. It has also dealt with consumer protection in the light of greater retail investor participation in the industry, either directly through investments in funds of funds or indirectly as a result of investments in hedge funds by pension funds. The question raised was whether the current situation warrants any legislative or industry-led initiative to increase the transparency within the sector. It has been agreed that before the merits of any such initiative can be properly judged, the characteristics and typology of the industry need to be investigated.

The Commission has asked different bodies in the EU to chart the characteristics of the hedge funds in Europe. In addition, it is imperative to consider the kind of information that regulators could use effectively. Requiring regulators to collect information which does not make regulation more effective can do more harm than good. It could give investors, especially retail investors, false security and induce them to make investments that they may otherwise have avoided. The conclusion of all the discussions in the EU is to stay the course of "indirect" regulation of hedge funds, that is to monitor the risks of their counterparties. This, which is also our view, has proven to be effective so far.

I am pleased to note that the industry itself has taken a number of initiatives to increase transparency. For example, in May this year AIMA (Alternative investment management association) issued revised sound practices recommendations for hedge funds managers.

We are happy that most Swedish hedge funds operate onshore in Sweden. Some, however, do not and this number is growing. I understand that the main explanation for this is a tax issue that I think we should be able to resolve.
We think that our environment is by and large, agreeable to the industry and we are open for discussion about any problems that may arise. But when our countries and our different jurisdictions compete with each other for Hedge Fund business it must be done in an orderly fashion.

Before the recent G8 meeting American Democrats wrote to President Bush and European socialists to chancellor Angela Merkel urging tighter regulation of hedge funds and private equity. The letter from the European socialists was signed by Poul Nyrup Rasmussen and the letter to the White house was signed by Barney Frank (chairman of the House financial services committee). This move was backed by the European Trade Union Confederation. The unions in Europe have at other times also criticized hedge funds and private equity.

As recent developments in the Swedish market have illustrated, we must remain aware of the risk of insider trading or other forms of market abuse also in relation to hedge funds.

Hedge funds frequently deal in instruments that are listed in the open market, and for which rules against market abuse apply. It appears that one fund concerned (Cevian) has been aware of the risks involved as it has strict rules on place against private trading. However, adequate rules and systems at the fund level must be complemented with effective market surveillance by the stock exchange and, from the first of November this year, by the Financial Supervisory Authority.

Institutional investors are well placed to observe the basic portfolio principles. What might limit the attractiveness of hedge funds to such investors are prescriptions delaying or postponing the selling of fund shares, but these rules are in the hands of the hedge funds themselves and part of the contract with the investors. From a regulator's perspective, given that risks are measured and managed appropriately, there are no particular reasons to treat investments in hedge funds any different from investments in other financial instruments. Therefore, what remains is the need for consumer protection in relation to hedge fund investments by individuals. We need to improve the conditions for sound decision-making on financial issues by individuals through appropriate information and education. As a first step, the Financial Supervisory Authority has been given the task of rating the level of financial literacy. We intend to build on the results of this study and take further steps to improve what the British have labeled financial capability by the general public. This will for example increase the awareness of the proper use of hedge funds as an investment tool.

The Swedish financial sector is well adapted to the needs of a growing economy. Even so we have ambitions to further strengthen and consolidate the position of Stockholm as a financial centre in the Nordic-Baltic area. As I have already mentioned - the fact that this conference is taking place here is a case in point.

Let me finish by telling you a little about our strengths. The stock exchange, now with a Nordic reach, has an attractive mix of sectors and companies. Our derivatives exchange is number three in Europe. Quite understandably, OMX has attracted the interest of foreign potential buyers. I might add that the competitive position of the Swedish and Nordic markets ultimately depends - not on ownership of the stock exchange but on our regulatory framework, our pool of qualified professionals, and on the economic environment which provide investors with attractive companies in which to invest.

The Nordic region is also characterized by the existence of banks that compete cross-border in the retail market. This is almost unheard of in the rest of Europe. Stockholm is noted for a strong presence of private equity firms, which in turn fosters a network of related advisers. Sweden is also the host to a number of hedge fund managers, far behind the UK, but quite respectable when compared with the rest of Europe. By building on our strengths, and addressing the remaining weak points - one of which is the general level of financial capability - we will ensure that Stockholm remains an attractive financial centre with a concentration of relevant firms and professionals and that important conferences like this will be held here also in winter time.

Thank for listening.

-------------------------------------------------------
Ämnesområde: Samhällsekonomi och statsbudget
Statsråd: Mats Odell
http://www.regeringen.se/sb/d/8730/a/84446

jag minns då jag i den gamla Teosofiska litteraturen faktum läste att - man påstod att "Ljuset" skulle komma från Norden...

Jag skulle kunna tänka mig detta också - Vi har genom vår läskiga kultivering Läs socialisering ända sedan Machiavellis äckliga polare - Gustaf Wasa - Som, faktiskt - enligt min mening - var den första agentprovokatör att införa denna socialistiska fascistiska styrelse-reform på oss, har - genom psykisk - Abuse - faktum, genom detta förhållande - frammanat ett folk som sannerligen då den fattat galoppen - vad det är frågan om - nog - kommer att ställa till det för dem - "Världsbyggarna"!!!

Med andra ord - då vi verkligen, "Vaknar" - då kommer vi att bli en nagel i ögat på de styrande i världen!!!

Därför så har de (Bovarna! ) blivit måna om att sas- "Stämma i bäcken"!!!
Detta folk måste liksom lobotiseras - innan något allvarligt händer!

Då får nog man räkna med att det nordiska ljuset kommer ifrån ställen där människoflocken minst anar det! Det blir möjligtvis inte lika trevligt som underhållningsprogram i mainstream TV och det kommer definitivt att blända en del PK-slavar!

Får hoppas att det även kommer att lysa upp medvetandet hos de som tror att de vaknat bara för att de sett eller hört en larmsignal via aletnativmedia. Det är många som stannar upp på vägen och ansluter sig till "EN" lära, teori eller profet/sektledare och sedan direkt utropar sig till fullärd för att bli någon i den nya flocken. Det är så himla synda att många som just tagit sina första steg på vägen mot mental frihet direkt underordnar sina tankeviljor under nytt grupptryck utan att ens märka det.

Allt börjar med en tanke... så ingenting är omöjligt så länge kunskapen frodas på individnivå och vägrar att godta en sanning bara för att många hävdar att det är den enda rätta.

Våga vara själv med eller utan meditation!

Deras mål är att genomföra bilderbergarnas dagordning:

Övervakningskameror
Avlyssning
Co2-mytologi
Kapa offentliga utgifter
Höja skatterna
Stoppa upp huvudet i EU-röven

Några frågor? När alliansen blir impopulär, då sätter Wallenberg in sina A-aktiker, sossarna och B-aktierna får vänta tills nästa gång. Men notera att när A-aktierna sätts in så kommer de inte göra ett enda piss åt vad som gjorde B-aktierna impopulära utan de fortsätter givetvis med dagordningen och låtsas om att det är bara en tillfällighet. Man måste vara bra dum i huvudet som sosse eller moderat för att det här är knappast första gången de gör det.

Eh... ok, och vad menar du att detta tal säger om alliansens "verkliga mål"??

Odell är för övrigt kd:are.

Quote:
Ditt inlägg är tämligen obegripligt. Vad menar du??? Hur kommer Wallenberg in i bilden?

Quote: Du menar Bilderbergaren Wallenberg va?............så mycket information å du har inte fattat galoppen???????

Det är bara du som finner det obegripligt. Ingen annan.

De dövstunblinda zpz och hans vaccinationsskadade kompisar ser INGET konstigt att regeringen håller på att skänka bort det sista Sverige äger och har kvar av reella tillgångar till Rothschild och deras "kollegor" bland Wall-street satanisterna.

Quote:

Quote:

Lite från regeringen.se

Jag tycker att alla partier i Sverige kan öppet ställa sig bakom:

http://www.library.wisc.edu/libraries ... Fascism/Images/FRY05.html

och

http://www.library.wisc.edu/libraries ... Fascism/Images/FRY08.html

folk är ändå så skadade så de skulle tycka att det är skitbra och kul att bli rövade av globalistmaffian.