On Tuesday, the Finance Chiefs of the European Union once again could not resolve the ongoing issue over the new regulations that are being proposed to control hedge funds, and the whole issue has now gotten locked in a stalemate situation.

The new regulations, which look to curb the pay and borrowing at hedge funds and bring some transparency and clarity to an industry which is notorious for its mysterious ways, have been welcomed by some and some are blatantly refusing to put up with any such new rules and interferences into the way hedge funds across the nations work.

With London wanting lenient, US-like regulation of the industry, and Germany and France looking for a stricter approach, the situation is now in a deadlock and even top officials and ministers are finding it difficult to handle it. As for now, however, the whole thing has just reached a stalemate.

One is prompted to think what the debate is all about in the first place. Hedge funds saw both good and bad times during the recession. While some progressed, others suffered deficits, and these caused problems for the nations they are operating in on the whole. No wonder then that London can be alright with a lighter regulation of the sector. After all, hedge funds in the country did manage to do well, and benefited the economy which was trying its best to shake off the recession hurt and rise all over again.

Nations like Greece, France and Spain, on the other hand, which have had quite a burn during the global financial meltdown, would very well want a stricter hand governing the industry, so that it does well, the operations are transparent enough for everyone to understand and there are no problems as far the funds and their assets go.

The financial crisis has taught the world a lot of things, one of them being that there is a good chance that the hedge funds sector and its many secret components were responsible in part for triggering the financial crisis. Investigators are seriously looking into the possibility.

We all burned our fingers at least once during recession, and if the hedge funds industry and its mysterious working ways are kind-of responsible for the situation which the whole world endured for over 2 years, stricter ways and regulations to govern the same should now be employed as soon as possible.