Boris Defends The City

BethPH
By BethPH Last edited 104 months ago
Boris Defends The City

That staunch defender of London's role as financial capital of the world has sprung into action again, this time over hedge funds.

The mayor claims that proposed EU plans to force hedge funds to be more transparent and borrow less will drive firms into the arms of the US and Switzerland. For the economically-uninitiated, hedge funds were said to be a key factor in the financial meltdown which hit the banking industry.

Only last month, he took on FSA head Lord Turner over his suggestions that taxes be imposed on the financial services industry, which he described in his own inimitable way as 'crackers'. True to his Conservative roots, he has gone against prevailing opinion to defend the bonus culture in banks, if only so that he could persuade bankers to donate to charidee.

Boris Johnson has been criticised in recent months for appearing to achieve not very much at all in his first year, apart from a guest appearance in Eastenders and taking on the Americans in the ceaseless battle over embassy congestion charge debts, but at least the City can claim to be getting their money's worth from the mayor.

Last Updated 02 September 2009

Tom Williams

"hedge funds were said to be a key factor in the financial meltdown which hit the banking industry."

Were said to be, yes, but wrongly so in my opinion.

Hedge funds were predominantly victims of the credit crunch, rather than perpetrators, as investment strategies dependent on borrowing collapsed in the face of sharply increased debt service costs and others bit the dust when investors panicked and all tried to get out at the same time.

Yes, some people make an awful lot of money running these things, but that is not a crime. Boris is right to fight their corner as this is a successful and highly innovative sector of the financial services industry that London can ill-afford to lose.

metakid

Yep, I agree. I don't think hedge funds were the key factor in the financial meltdown. I do think the mayor has a case. The regulation is going to hurt. http://www.newsy.com/videos/eu.... In fact several US congressmen seem to think so too.