G20 ministers push for more regulation

Financial gurus from 20 nations ask for more oversight of financial institutions, more support of IMF.

EMAIL  |   PRINT  |   SHARE  |   RSS
 
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)

HORSHAM, England (CNN) -- Financial experts from 20 nations urged more regulation and oversight of fiscal institutions to help prevent another monetary crisis, as they laid the groundwork Saturday for next month's G20 Summit of world leaders.

Their proposals for restoring growth and confidence included helping developing countries, providing more support to international banks and improving accounting standards.

"This is a global crisis, and it requires a coordinated, global response," U.S. Treasury Secretary Timothy Geithner said at a news conference. "We have a broad base of consensus to act aggressively to restore growth."

"You are seeing the world move together at a speed and on a scale without precedent in modern times. All the major economies are putting in place substantial fiscal packages," he said. "The stronger the response, the quicker recovery will come."

The G20 financiers recommended substantial increases in support for the International Monetary Fund and Asian Development Bank. In a communiqué, they said an expansion of the IMF's membership should be considered.

The IMF monitors global financial developments, loans money to developing countries, provides technical assistance and does economic research. The institution also plays a key role in the fight against money-laundering and terrorism.

Geithner said the United States will soon release a framework for regulatory reforms that is guided by several principles, including stronger oversight of financial institutions and stricter standards for stability and disclosure.

Action must be taken, the financiers said, to ensure that all major "financial institutions, markets and instruments are subject to an appropriate degree of regulation and oversight, and that hedge funds or their managers are registered and disclose appropriate information to assess the risks they pose.

The recommendations also will be considered at next week's session of the European Council.

"Regulators in one country must cooperate more closely in another country to create a global network of supervision," British Prime Minister Gordon Brown said at a news conference.

"We have to address the fact that a bad bank in one country can undermine good banks in every country, and that multibillion-dollar markets still exist outside the supervisory net," Brown said.

"We call on all countries to adopt international standards and sign bilateral agreements to exchange tax information with other countries."

The G20 summit next month was initially going to focus on financial markets and regulation, but the deepening crisis around the world necessitated the need for a broader economic package that includes everything from stimulus packages to uneven interest rates, said Mark Malloch-Brown, the British prime minister's envoy to the summit. To top of page

Features
They're hiring!These Fortune 100 employers have at least 350 openings each. What are they looking for in a new hire? More
If the Fortune 500 were a country...It would be the world's second-biggest economy. See how big companies' sales stack up against GDP over the past decade. More
Sponsored By:
More Galleries
10 of the most luxurious airline amenity kits When it comes to in-flight pampering, the amenity kits offered by these 10 airlines are the ultimate in luxury More
7 startups that want to improve your mental health From a text therapy platform to apps that push you reminders to breathe, these self-care startups offer help on a daily basis or in times of need. More
5 radical technologies that will change how you get to work From Uber's flying cars to the Hyperloop, these are some of the neatest transportation concepts in the works today. More
Sponsors
Worry about the hackers you don't know 
Crime syndicates and government organizations pose a much greater cyber threat than renegade hacker groups like Anonymous. Play
GE CEO: Bringing jobs back to the U.S. 
Jeff Immelt says the U.S. is a cost competitive market for advanced manufacturing and that GE is bringing jobs back from Mexico. Play
Hamster wheel and wedgie-powered transit 
Red Bull Creation challenges hackers and engineers to invent new modes of transportation. Play

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.