Harbinger chief says hedge funds offer access to capital

WASHINGTON (Reuters) - Philip Falcone, senior managing partner of Harbinger Capital Partners, testified at a U.S. House Oversight and Government Reform Committee hearing on Thursday:

* Says important not to "overreact" to what has happened in financial markets.

* Says hedge funds industry provides creative thinking to help companies avoid bankruptcy, save thousands of jobs.

* Says supports some additional transparency for hedge funds so investors know what assets are on balance sheet, what they are worth.

* Says supports creation of public exchange or clearinghouse for derivatives trading, including credit default swaps.

* Says "Access to capital is more important than ever and I believe hedge funds can and should be a source for this capital."

* Says "not everyone who runs a hedge fund was born on Fifth Avenue" and that his pay is based on returns for his investors.