Considerations by Managers of Private Funds in Light of Potential Eurozone Crises

May 09, 2012
European financial markets have experienced volatility based on concerns regarding rising government debt levels, credit rating downgrades and possible defaults on or restructuring of government debt of various countries, most notably Greece. This turmoil has fed speculation that one or more European Union Member States that have previously adopted the euro might choose or be forced to abandon the euro and return to a national currency, also raising questions about whether the euro can survive as a single currency following a departure of one or more countries from the currency mechanism. This update examines what managers of private funds should do to ensure they can react to a eurozone crisis with maximum flexibility while complying with applicable regulatory requirements.