U.S. Treasury Secretary Henry Paulson discussed with German Leaders the possibility of including hedge fund transparency among the issues broached by the powerful, multi-national Group of Eight, according to the Associated Press.
Earlier in the week German leaders announced plans to examine whether hedge funds pose a “systematic risk” to global markets. Germany assumes presidency of the G-8 on Jan. 1.
In Berlin, German Finance Minister Peer Steinbrueck met with Paulson, who then met with Chancellor Angela Merkel.
“The focus is transparency, not regulation,” said Ulrike Abratis, spokeswoman for the Finance Ministry.
Germany advocates making information about hedge funds easier to obtain. Many regulators, including the U.S. Securities and Exchange Commission, have expressed concern about the loosely regulated investment vehicles of the wealthy, which have gained popularity with small and more institutional investors lately.
Many fear that without greater transparency, hedge funds could threaten global financial systems and stability.
The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.