Why U.K. hedge funds may say ‘amen’

TEXT OF STORY

Bill Radke: The British hedge fund industry has gained a surprising new ally. The Church of England says it’s fighting the good fight against new financial regulation. We get more from Marketplace’s London bureau chief Stephen Beard.

Stephen Beard: Talk about a conversion. Only a year ago the Church of England was the scourge of the finance industry. The Archbishop of Canterbury called on bankers to repent their sins. But now the Church is rushing to the industry’s aid — attacking European Union plans to crack down on hedge funds. It says the new rules would make it harder to generate the cash to carry out the church’s charitable mission.

Andrew Hilton runs the CSFI think tank. He is not that surprised the Church has changed its tune.

ANDREW HILTON: The Church of England has an endowment about the same size as a mid-level Ivy League university and it saw that endowment shrink by over 20 percent in the last year. That’s enough to focus the minds of even the most religious people.

The church objects to — among other things — the plan to limit hedge funds use of leverage because it could reduce returns. The hedge funds say “amen” to that.

In London this is Stephen Beard for Marketplace.