What was it Gordon Brown said about reining in the banks? It had to be done on an international basis. Well, the Government is now pursuing an international deal. But it doesn’t look much like a clampdown. More like a rescue operation. Britain is colluding with Spain to block tougher European Union rules on hedge funds and private equity firms. Not that tough in fact, just a little more transparency here and there. But that terrifies the City folk who started the whole financial collapse in the first place. Spain currently holds the presidency of the EU, which means it gets to determine priorities for new directives. Chancellor Alistair Darling and City minister Lord Myners are in cahoots with the country’s economic minister Elena Salgado to get the tougher rules – championed by France and Germany – watered down. While Spain is desperate to attract private equity, the Treasury fears disinvestment in the City. Like crime, the perception of the threat is greater than the incidence
