Turkish Daily News – European Union and G8 president Germany backed away from proposing regulation of the $1.7 trillion hedge fund industry, after opposition from some EU states and the bloc’s topfinancial regulator.<\/p>\n
German Finance Minister Peer Steinbrueck told a meeting of EU finance ministers there was growing awareness of potential risks from the sector, adding: “[There are] a whole series of domino blocks that could start knocking one another down if these risks are realized.”<\/p>\n
But Steinbrueck, whose country presides over EU affairs until end-June, added, “My idea is not to conduct a regulation-targeted debate.”<\/p>\n
He later told a news conference, “We simply wish to have a discussion on how we can deal with possible systemic risk. … Not regulation, but greater co-operation in order to avoid risk.”<\/p>\n
Germany, which is also president for 2007 of the G8, comprising Russia and the G7 group of long-industrialized nations, has pushed hedge fund regulation up the international political agenda as president of the EU and the G7, whose finance ministers meet on Feb 9-10 in Germany.<\/p>\n