No Hedge Deal At Heiligendamm

Jun 4 2007 | 9:02am ET

Not one, but three top German officials acknowledged that the country’s hedge fund initiative—a centerpiece of its G8 presidency—will go nowhere at this week’s summit of group leaders.

“We won’t score our big hit in Heiligendamm,” Bernd Pfaffenbach, the German organizer of the meeting, admitted, referring to the Baltic resort town where G8 leaders will meet from Wednesday through Friday. German Chancellor Angela Merkel, in an interview published in the magazine Der Spiegel today, indicated that hedge funds would not occupy much time at the summit.

“There are parts of the conference program on which negotiations have practically been concluded,” she said. “For example, the hedge fund issue,” which was discussed at a meeting of G8 finance ministers last month.

But the Germans have been nothing if not tenacious and resilient on the issue, and indicated that this failure has not cooled their enthusiasm for achieving some sort of hedge fund oversight.

“We talked about [hedge funds] at the summit in Gleneagles [in Scotland] in 2005, but ran up against a wall there,” Pfaffenbach told Agence France-Presse. “This time, the U.S. and Britain, where most of the funds are based, are prepared to discuss the issue.”

“That’s a start,” he added hopefully.

Germany’s point man on the issue, Finance Minister Peer Steinbrück, also said his country will continue to try to persuade other countries—in addition to the U.S. and U.K., Japan has indicated it is not inclined to support any sort of hedge fund regulation or oversight—of the efficacy of its position.

“The government is trying to reach international consensus on potential measures that aim to limit potential systemic risks for financial stability,” he wrote in a guest column in the business newspaper Börsen-Zeitung. “Our aim is an international code of conduct, which the industry—also in its own interest—applies to itself. It’s also clear that we’re only at the beginning of the debate and that there will not be any quick decisions.”

“To supplement the indirect approach, I’d like to see market discipline strengthen by making hedge funds more transparent,” he added, reprising a push for more direct involvement dropped by Germany when it went all out for its code of conduct proposal.


In Depth

High Time For A Cannabis Hedge Fund?

Sep 30 2014 | 7:07am ET

Launching a hedge fund is always a gamble, but Leslie Bocskor's decision to launch...

Lifestyle

Griffin Donates $1M To Rauner's Illinois Gov. Campaign

Sep 22 2014 | 9:29am ET

Hedge fund billionaire Kenneth Griffin definitely has a dog in this fight. The Citadel...

Guest Contributor

Appraisal Ratio Key To Evaluating Hedge Funds And Other New Investments

Sep 29 2014 | 3:07pm ET

As a former finance professor Peter Hecht experiences heartburn every time he hears...

 

Videos

Editor's Note

    Must Attend Hedge Fund Charity Events For October

    Sep 30 2014 | 9:29am ET

    The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…

 

Futures Magazine

September 2014 Cover

High frequency market making

High frequency trading is not evil, it is not a conspiracy and it really is not new; it is the natural evolution of the professional trading community making markets, providing liquidity and hopefully...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.