Wednesday, March 3, 2010

U.S. Justice Department Investigates Hedge Funds 'Bearish Euro Bets'

As reported in a recent Wall Street Journal Article, "The Justice Department has launched an investigation into whether hedge funds might have banded together to drive down the value of the euro, people familiar with the matter say. In a letter last week, the department has asked hedge funds including SAC Capital Advisors LP, Greenlight Capital Inc., Soros Fund Management LLC and Paulson & Co. to retain trading records and emails relating to the euro, say people who have seen the letter."

The article goes on to discuss an "idea dinner" where the above mentioned hedge funds discussed euro parity with the dollar.

In the near term Mark Faber sees a rebound for the euro before further decline.

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