Trichet presents ECB annual report

Jean-Claude Trichet, president of the European Central Bank (ECB), briefed the European Parliament on the bank’s 2006 annual report in Strasbourg last week.

Trichet discussed the ECB’s view on hedge fund regulation, saying that the impact of hedge fund losses on the derivatives market was a concern.

He added that he supported the findings of the Financial Stability Forum’s May 2007 report on highly leveraged institutions: “The report contains a number of recommendations addressed to supervisors, hedge funds’ counterparties and investors, and the hedge fund industry itself, which I fully share. More than ever, I will support the proposal that the

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