Forbes – Bundesbank board member Edgar Meister said hedge funds should open up their books for public grading by rating agencies and introduce a code of conduct so as to makethe industry more transparent.
In an interview with the Financial Times, Meister said: ‘We can’t just wait until a market crisis happens. The risk is growing that a crisis is coming.’
There have long been calls for regulation of hedge funds since the crisis sparked by the near-collapse of the Long-Term Capital Management (LTCM) fund in 1998.
‘We have spent a lot of time talking about regulation. But there is no international agreement on regulating hedge funds. So we have to move towards market solutions,’Meister said.
