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Article: Investment banks can cure the hedge fund virus
- Article from:
- The Sunday Telegraph London
- Article date:
- March 6, 2005
- Author:
CopyrightCopyright 2005 The Sunday Telegraph London. Provided by ProQuest LLC. (Hide copyright information)
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Hedge funds are a virus. They ruthlessly exploit weaknesses in the
financial system. And, up to the moment that they wreak havoc in any
particular market or security, they are barely visible.
In the case of the competing bids for the London Stock Exchange,
for example, debate on the boards of the LSE and of the two putative
bidders - Deutsche Borse and Euronext - is too much about whether the
hedge funds will reward or punish certain initiatives rather than how
to build an optimal European bourse.
This is not to argue that Deutsche Borse, delirious after a hedge
fund attack, is blameless. It failed to address its vulnerability to
what can be categorised as "corporate governance arbitrage".