Obama joins private equity fight

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The Independent Online

Poul Nyrup Rasmussen, a former Danish premier, is in talks with aides to the US presidential nominee Barack Obama about the regulation of private equity firms and hedge funds.

Now a leading MEP, Mr Rasmussen is trying to establish pan-European Union regulation, such as limiting the amount of debt taken on by private equity when it buys companies.

Mr Rasmussen wants the US and the EU to develop complementary regulatory systems. As well as talking to the Obama camp, he has contacted Barney Frank, the chairman of the House of Representatives Financial Services Committee, and Joseph Stiglitz, a former World Bank chief economist.

"The next presidency of the US will see closer and closer development [with the EU]," Mr Rasmussen said. "We will see what we can create together."