IMF MEETING ECB's Stark says hedge funds did not aggravate market turmoil |
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Published
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Fri, 19 Oct 2007 19:37
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LONDON (Thomson Financial) - European Central Bank board member Juergen Stark said hedge funds were not responsible for causing or worsening the recent turbulence in financial markets, adding that they contribute positively to the smooth functioning of markets.'The financial market turmoil was not triggered or aggravated by hedge funds,' Stark told a seminar on the sidelines of the annual meetings of the IMF and World Bank.The market upheaval was the result of tensions in the US subprime mortgage market and the behaviour of some parts of the banking sector, he said.Stark said hedge funds and private equity firms make a positive contribution to the functioning of financial markets, by boosting liquidity and by increasing product diversity.Politicians who criticise hedge funds therefore should not overlook the positive effects of their activities, he said.steve.whitehouse@thomson.comroCOPYRIGHTCopyright Thomson Financial News Limited 2007. All rights reserved.The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
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ECB's Stark sees no sign of euro zone growth weakening despite market turmoil 