UPDATE: No Hedge Deal At Heiligendamm

Jun 8 2007 | 11:16am ET

As expected, Germany’s much ballyhooed call for hedge fund regulation went nowhere at the summit of G8 leaders this week.

In a communiqué issued after the meetings, the heads of the world’s richest nations acknowledged, “We discussed recent developments in global financial markets, including hedge funds.”

“We reaffirm the need to be vigilant,” it said, but went no further.

German leaders have been preparing for this outcome for some time.

“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 met from Wednesday through Friday. German Chancellor Angela Merkel, in an interview published in the magazine Der Spiegel this week, 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 its opposition to 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.”


In Depth

Will Liquid Alts’ Performance Sustain Future Asset Flows?

Aug 25 2014 | 10:34am ET

Liquid alternative investment funds saw the highest percentage of capital inflows...

Lifestyle

Hedgies, Economists and Musicians Mingle At Milkin Mixers In Hamptons

Aug 25 2014 | 6:00am ET

Leave it to Michael Milken to bring some gravitas and sweat to the Hamptons -- along...

Guest Contributor

Looking Ahead: What’s In Store For Managed Futures?

Aug 22 2014 | 12:52pm ET

The last five years were phenomenal for investors in equity indices. Will the next...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

The time was right

Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...

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.