Hedge Funds Off Radar At G-8

Date: Thursday, June 7, 2007
Author: Washington Times

Washington Times/AP reports: Big business is on the back burner at the Group of Eight summit. Instead of focusing on concerns about hedge funds, fluctuating currencies and better transparency in financial dealings, the world's eight wealthiest nations are putting their full focus on climate change and watching to see if a new spat between the United States and Russia could develop into another cold war.

The question of how to handle hedge funds, which Germany hoped to make a major topic, was all but shelved after finance ministers from the eight countries met last month and said any decision would take months.

German Chancellor Angela Merkel conceded as much earlier this week, telling newsmagazine Der Spiegel that there were "parts of the conference program on which negotiations have practically been concluded; for example, the hedge-fund issue." Germany has made tighter supervision of hedge funds a focus of its G-8 and European Union presidency and has been agitating for a voluntary code of conduct in light of the rapid expansion of the funds, which carry high risks and are often exempt from regulation.