World leaders agree on more financial regulation (Roundup)

US News

Nov 15, 2008, 21:54 GMT

Washington - The world's 20 top economies pledged to better regulate global financial markets and take steps to halt a global economic slide at an emergency summit hosted by US President George W Bush in Washington. United States President George W. Bush makes a statement to the media following the one day Summit on Financial Markets and the World Economy leaders at the National Building Museum in Washington, D.C., USA, 15 November 2008. EPA/RON SACHS/POOL

United States President George W. Bush makes a statement to the media following the one day Summit on Financial Markets and the World Economy leaders at the National Building Museum in Washington, D.C., USA, 15 November 2008. EPA/RON SACHS/POOLThe action plan agreed to at the meeting includes a call for beefing up regulation of the world's financial system and bolstering government spending to spur economic growth at a time when the global economy risks sliding into recession. 'We are determined to enhance our cooperation and work together to restore global growth and achieve needed reforms in the world's financial systems,' said the Group of 20 (G20) leaders which includes the world's advanced economies as well as the leading emerging economies. Winding up the summit, Bush paid tribute to the efforts of the government chiefs in seeking to tackle the world financial crisis that has triggered global market turmoil. He described the measures agreed at the meeting as 'substantive'. Held in Washington's ornate National Building Museum, it was the first time that G20 government chiefs have met together since the organization was established in 1999. The meeting was held against the backdrop of signs of a further rapid decline in the global economy, a stream of bleak quarterly reports from leading companies around the world along with renewed share market turmoil. Speaking to reporters, Bush said the summit's aim was to adapt 'the financial structures to the realities of the 21st century' with the G20 agreement giving the world's leading emerging economies a greater role on the international economic stage. But in his comments, Bush also underlined the differences that emerged specially between Europe and the US in the run-up to the summit on the degree of financial market regulation and control. 'I'm a free market person,' Bush said, adding that even though nations' economies were 'being hit very hard, there is a common understanding that all of us should protect pro-growth economic policies.' Apart from strengthening global financial transparency, accountability and disclosure measures, the meeting ended with the leaders also calling for immediate steps. This includes the creation of a new monitoring mechanism, through a system of 'supervisory colleges.' Under the plan, national regulators would come together to monitor all major cross-border financial institutions. Finance ministers have been given a deadline of March 31 to hammer out the details of the proposals agreed to in Washington. This is to be followed by another summit of the G20 leaders at the end of April, when US president-elect Barack Obama will be in office. 'We are entering a new world,' said French President Nicolas Sarkozy, who is credited with initiating the summit. France also holds the European Union's sixth-month rotating presidency. Sarkozy told reporters following the summit that many of the concessions made by the US would have been unthinkable just a short time ago. Moreover, the summit also represents a big win for emerging nations who have been pressing for a bigger role in the world's key economic forums. This was especially important, since as the advanced economies sink into recession next year, powerhouse emerging economies in Asia, the Middle East and Latin America are likely to be the key pillars of economic growth. The leaders of major emerging economies have also expressed concern that they could pay an economic price for the crisis which was triggered by a meltdown in the US mortgage market and has rapidly spread around the world. 'Emerging market countries were not the cause of this crisis, but they are amongst its worst affected victims,' said Indian Prime Minister Manmohan Singh. In their summit declaration, the leaders said they were committed to 'comprehensively' reforming top international financial institutions such as the International Monetary Fund and the World Bank to 'reflect changing economic weights in the world economy and be more responsive to future challenges.' 'Emerging and developing economies,' the leaders said, 'should have greater voice and representation in these institutions.' The leaders also said they want to 'strive to reach agreement this year on modalities' that would lead a successful conclusion to the troubled World Trade Organization Doha round.

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page: 1

lanceNov 15th, 2008 - 22:06:49

As usual:

There are already enough laws against fraud in the US. The US just has to apply them.

The U.S. does not need more laws.

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Beltway GregNov 16th, 2008 - 01:32:47

Can anyone say 'Circle Jerk?' Why did Bush host this 'summit' announced before the election?
In theory it is because he's a forward thinking sun of a gun trying to attack big problems before they can grow even more threatening. (Of course we know the truth.) Bush planned for this to be the coming out party for the new president John McCain. However, reality and history had other ideas. Why any world leader would want to appear in a final group photo with the 'Decider' is beyond me? Let's see: Bush destabilized both the world and the American economic system employing a multi-faceted approach that featured ill-advised tax cuts, bogus wars, and prodigious spending all the while alienating our allies and creating more enemies. If he was a true leader he would've invited/insisted that President Barack Obama attend this summit. As a matter of fact I'm sure that if McCain had triumphed he would've been front and center. And if you had polled the world leaders after the election I'm sure they would've believed that Obama was going to be in attendance. Seriously, what was the point of having a conversation with the worst American president in recent history? It was a waste of jet fuel.

Beltway Greg

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Recession is artificial,Nov 16th, 2008 - 01:43:47

It is a way for the rich and industrialist to punish the poor, the raw material sellers, the farmers and the labour.

HOW MANY BIG TIME MONEY SQUANDERERS ARE UNEMPLOYED? none

How many of the rich are unemployed? NONE

HOW MANY OF THE FINISHED PRODUCTS, like cars, even toys LOST THEIR VALUE AND PRICE? none

Who is being helped by the governments? THE RICH AND BANKS

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SP4: More Regaulaion!Nov 16th, 2008 - 01:46:57

Golly...ya think?!

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CHINA.........................Nov 16th, 2008 - 04:06:30

Should not give any money to the US, IMF or World Bank.

Let those lazy azz people work for their own money.

CHINA earned its money the hard way.........BY WORKING HARD and BEING SMART.

The best thing is for so-called United States to be broken up into smaller countries. The same with so-called United Kingdom.

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When Homegrown Hurt UsNov 16th, 2008 - 09:02:09

This: 'CHINA earned its money the hard way.........BY WORKING HARD and BEING SMART.'

Just tell me, who were the ones investing in China, who were sending their jobs overseas, who decided to import products from Chinese sweat-shops, who continues to purchase poison from them?

Guess you are right about the smart part!

Change! Change! Change!

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The World is WatchingNov 16th, 2008 - 09:09:14

Because of these kind of words: 'The best thing is for so-called United States to be broken up into smaller countries. The same with so-called United Kingdom.'

You break me up. Seriously, how would you like it if your country were broken up into smaller countries?

Personally, I consider that a threat.

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The answer is not BREAKING UP USANov 16th, 2008 - 13:24:51

Rather the smaller nations get together and sow the seeds of togetherness and not discord, that can become a power of brotherhood and offer same peace to all. There are quite a few world powers today, but they are all afraid of each other. They are not sowing the seeds of totherness, rather they want others to follow them.

LET EVRYONE BE FREE TO CHOSE WHAT THEY DO, DO NOT PUSH YOUR RELIGION, CREED, NOR TYPE OF GOVERNMENT i.e. DEMOCRACY ON OTHERS

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Saudie slaves will payNov 16th, 2008 - 17:05:38

We have heard details that Saudies are going to increase their oil production, by more than other nations are cutting and they are going to foot the losses partly by the money that Bushes have in common with Al Qaidah.

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SP4: wake upNov 16th, 2008 - 22:28:34

..you're not living in a trade protected world.

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????Nov 16th, 2008 - 23:24:32

What is a regaulaion???

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to sp4Nov 17th, 2008 - 00:53:47

go back to sleep.

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SP4: Your DreamingNov 17th, 2008 - 02:35:08

...if you think you can live in a world where Europe, China and numerous other nations have trade accords and America thinks it can now, as the result of a single president, can become trade protected.

Better take a look at the companies who provide jobs related to critical exports...Caterpillar, Mercedes-Freightliner, Parker Hannifin, Boeing and numerous others. These jobs disappear when free trade gets compromised. six presidents backed NAFTA, GATT, WTO and MFN for China. You can question their motives but not the outcome.

You're not living in a tariff world. Even this president, I suspect, understands this, if only because the Clinonites he's hired are now explaining it to him. After all, who do you think greenighted all this?

So go home, pour yourself a drink and then realize that you are living in a much smaller world. If the Chinese, of all people, threw off Marxist-driven economics, how can anyone else question capitalistic economics?

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Worn-out SPNov 17th, 2008 - 03:48:21

Your usual comments are becoming laced with bad language and spelling.
Your Dreaming should have been You're and pointed out only because you are so good at telling others to spell check. A little nap now and then for the elderly does wonders.

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