A demand for a co-ordinated G8 response to the “threat” posed by private equity and hedge funds will be made on Friday by trade union leaders from the world’s leading industrial nations. This will be the latest development in the growing political pressure being brought to bear particularly on private equity.

A meeting in Paris organised by the trade union advisory committee to the Organisation for Economic Co-operation and Development will call on leaders of G8 nations to establish a joint task force to investigate dangers posed to the international financial system from the “spectacular growth” of highly leveraged private equity deals and hedge fund investments.