Regulating hedge funds

German Finance Minister Peer Steinbrueck knows how to ram home a point. At a recent meeting of the G...

German Finance Minister Peer Steinbrueck knows how to ram home a point. At a recent meeting of the Group of Eight finance ministers, he pushed hard for a code of conduct to regulate the hedge-fund industry. It's all very well to talk about codes in the abstract. It does not mean very much. Like steak, they can be tough or tender, depending on who does the preparation. The important point is what the code says and does not say. One that encourages openness and responsibility, without stopping innovation or risk-taking, would help the industry. The question is, how do you get there? Hedge f...