"It's a healthy thing to discuss; private pools of capital, hedge funds and private equity capital have grown significantly," Paulson said. "Anything that grows so fast should be scrutinized."
Paulson reiterated the US view that the most effective way to contain risks posed by hedge funds was to monitor the banks, pension funds and insurance companies that do business with them.
Germany has made the topic a priority for its EU and G-8 presidencies this year.



