EU nations override UK on hedge fund rules

BRUSSELS (AP) - European Union governments are overriding British objections by agreeing on tighter oversight for hedge funds, a lucrative industry for London's financial district.

Finance ministers proposed rules that don't give funds the automatic right to sell across the 27-nation bloc.

The final shape of the new law is not yet clear. Governments must find a compromise between their version and one voted by the European Parliament - which is likely to give more rights to the funds to do business across Europe.

United States Treasury chief Tim Geithner has complained about the draft rules, saying he was worried they would shut American funds out of Europe.