Secretive Industry of Hedge Funds Must Answer for Financial Crisis

LONDON, September 22 /PRNewswire/ --
Unite, the UK's largest trade union, has called on hedge funds to own up about their secretive practices. Unite is demanding that the industry, worth an estimated GBP1.37 trillion worldwide, be forced to demonstrate that their investment strategies are not perpetuating the current "disorder of the markets."
At a time of massive financial uncertainty for workers, the union is demanding that hedge funds be more transparent, give greater disclosure and must be subject to risk management. Unite has put forward an emergency motion to the Labour Party Conference on the LTSB takeover of HBoS.
Derek Simpson, Unite Joint General Secretary, said: "It is not acceptable that the privately-owned investment companies which are responsible for half the daily turnover of shares in the London stock market are such secretive entities that have very limited public disclosure requirements.
"The current financial turmoil is the direct result of corporate greed. The unregulated pool of capital which is the world of hedge funds simply doesn't reveal to anyone the risks they are taking and how well they are doing. This secrecy means that our financial system is dependent on the manoeuvres of investors who are never accountable to anyone but their bulging wallets. The excessive leverage of the hedge fund industry on our lives means that these institutions need to be opened up to public scrutiny."
The entire industry is so unregulated it is even impossible to establish the number of hedge funds in existence. Without scrutiny the practices of these wealthy institutions represents a real threat to the UK's financial stability.
Notes to Editors
Unite has put forward an emergency motion to the Labour Party Conference on the LTSB takeover of HBoS. This will be heard on Monday 22nd September.
For more information contact: Saba Mozakka, Unite press officer on: +44-(0)7768-693-953