1. Looking into “Chinese Boxes”: Hedge funs and the Eu’s draft directive CEPS Conference, Brussels, 26.06.2009 Poul Nyrup Rasmussen PES President

2. They were all in the same boat Collapse of the credit bubble ”The trigger” Sub-prime Investment- banks Credit Rating Agencies Hedge- funds Private Equity IMF Global Stability Report (April 2008): “There was a collective failure to appreciate the extent of leverage taken on by a wide range of institutions […] and the associated risks of a disorderly unwinding”

3. Only the banks to blame? The claim by the PE and HF industry : The crisis is a result of excessive risk-taking in regultated banks and other financial institutions – not PE and HF’s activity. Answer: They were all in same boat! Not enough to look at the originators of loans – we need to also look at the demand side.

4. S&P (September 2008) Looking af 55 entities that have defaulted globally in the first 8 months of 2008. In 70% of the cases, private equity had been involved in transactions at one point or another.

5. Could LBO’s have triggered the crisis? " Perhaps it has just been sheer luck that some multi-billion mega LBO deals were not the first to trigger a similar crisis" "Private Equity: Boom and Bust?" Journal of Applied Corporate Finance, 2007, Vol. 19 (4) REMEMBER: Long before the crisis there were structured problems with LBO’s

6. Super light touch: 10 loopholes in the COM proposal 1)Only EU managers 2)Pure formality – no requirements 3)Massive exemptions (min. 100 mio/500 mio. Euros) 4)No capital requirements or liquidity 5)Insufficient transparency 6)No real disclosure on portfolio companies 7)No initiative on market disruption by non-EU funds 8)No regulation of naked short-selling 9)No specific protection of institutional investors 10)Nothing on tax evasion

7. The Road to Recovery and progress A smart green growth and jobs strategy New financial market regulation Reductions in climate change emissions A Social Progress Pact Workers’ rights, incl. Posting of Workers Directive

8. This crisis is not a law of nature!  Let’s turn it into new opportunities  A New progressive roadmap for sustainable jobs