Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

Obama to G-20: Keep the recovery going

By Aaron Smith, CNNMoney.com staff writer


NEW YORK (CNNMoney.com) -- President Obama has called for greater market transparency and oversight to help propel the global economic recovery in a letter to leaders of the Group of 20 Nations ahead of their June 26 summit in Toronto.

"Our highest priority in Toronto must be to safeguard and strengthen the recovery," wrote Obama, in his G-20 letter released by the White House on Friday. "We worked exceptionally hard to restore growth; we cannot let it falter or lose strength now. This means that we should reaffirm our unity of purpose to provide the policy support necessary to keep economic growth strong.

Obama provided a list of suggested policy changes, including the implementation of more stringent capital and liquidity requirements as well as stronger oversight of derivatives markets and "more transparency and disclosure to promote market integrity and reduce market manipulation."

In addition, the president said the G-20 needs a "more effective framework for winding down large global firms."

The president pointed out that both houses of U.S. Congress have passed financial reform legislation. They are currently working on reconciling the bills in a move toward final approval.

He also highlighted one of his greatest macroeconomic concerns: the "continued heavy reliance on exports by some countries with already large external surpluses."

Obama also warned that all G-20 nations - including the United States - need to control their national debt. But he added that nations must balance fiscal responsibility with the concern that withdrawing economic stimulus too soon could jeopardize economic recovery.

"We must be flexible in adjusting the pace of consolidation and learn from the consequential mistakes of the past when stimulus was too quickly withdrawn and resulted in renewed economic hardships and recession," Obama wrote.

The G-20, an international group of finance ministers and central bank governors, was established in 1999 after the 1997 Asian financial crisis. The group aims to stabilize the global markets by uniting international economies. To top of page

Overnight Avg Rate Latest Change Last Week
30 yr fixed3.60%3.72%
15 yr fixed2.77%2.69%
5/1 ARM2.80%2.86%
30 yr refi3.56%3.59%
15 yr refi2.77%2.75%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates:
Index Last Change % Change
Dow 17,409.72 269.48 1.57%
Nasdaq 4,691.87 97.43 2.12%
S&P 500 2,036.09 35.55 1.78%
Treasuries 1.46 0.00 0.07%
Data as of 8:40pm ET
Company Price Change % Change
Bank of America Corp... 12.70 0.52 4.27%
Freeport-McMoRan Inc... 10.69 0.56 5.53%
Ford Motor Co 12.39 0.23 1.89%
Apple Inc 93.59 1.55 1.68%
Citigroup Inc 40.44 1.96 5.09%
Data as of 4:03pm ET
Sponsors

Sections

Sumner Redstone's National Amusements issued a warning Tuesday to Viacom executives who are fighting to keep their board seats, telling them that their legal challenges are futile. More

Investors are already sifting through the Brexit market rubble for opportunities. Morgan Stanley compiled a list of highly-rated stocks that have limited or no direct exposure to the situation in the U.K. More

Facebook has redesigned the share tools on other websites, part of a larger set of changes designed to spur more sharing on Facebook. More