Timothy Geithner Warns European Commission Of A Possible Rift Over Regulation

According to a report by the Financial Times, U.S. Treasury Secretary Timothy Geithner has warned the European Commission that any plans to regulate hedge funds, and private equity firms could possibly cause a rift by discriminating against U.S. groups.

In a letter sent this month to Europe´s internal market commissioner, Geithner made it clear that the EU would be heading for a clash with Washington if it went ahead with any protectionist laws. The EU is planning to impose tighter restrictions on hedge funds, private equity firms, and other alternative investment funds, which is seen by many as an attempt by France, and Germany to contain UK´s dominance of financial services.