Germany Deputy Finance Minister Thomas Mirow plans to take a closer look at hedge funds to examine whether they pose a “systemic risk,” according to HedgeCo.Net.

Mirow held a briefing with reporters on Germany’s upcoming presidency of the Group of Eight in 2007, and said hedge funds were “insufficiently transparent” and the industry had already seen one big hedge fund fail, although with few market repercussions.

He said industrial nations would try and coordinate efforts to reduce risks posed from hedge funds by promoting more transparency through regulations.

“All over the world, people who are in charge of the stability of the international financial system are dealing with the problem. There is a sufficient amount of experts saying we should have a closer look at it so to prevent a possible crisis,” Mirow said.

“What we would look to know is are there systemic risks, and if so, what could we do to deal with it in a reasonable manner.”

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