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adjusting the pace of consolidation and learn from the consequential mistakes of the past when stimulus was too quickly withdrawn and resulted in renewed economic hardships and recession," Obama wrote.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 fixed3.88%3.84%
15 yr fixed3.09%3.05%
5/1 ARM3.23%3.20%
30 yr refi3.86%3.82%
15 yr refi3.09%3.04%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates:
Index Last Change % Change
Dow 21,012.42 74.51 0.36%
Nasdaq 6,163.02 24.31 0.40%
S&P 500 2,404.39 5.97 0.25%
Treasuries 2.27 -0.02 -0.83%
Data as of 6:45am ET
Company Price Change % Change
Bank of America Corp... 23.36 -0.01 -0.04%
General Electric Co 27.83 -0.46 -1.63%
Ford Motor Co 10.96 -0.08 -0.68%
Advanced Micro Devic... 10.89 0.00 0.00%
Chesapeake Energy Co... 5.55 -0.12 -2.20%
Data as of May 24
Sponsors

Sections

Starbucks executive chairman Howard Schultz says that male executives must be vulnerable to be great leaders. More

Blue Cross and Blue Shield of Kansas City is exiting Obamacare in 2018, possibly leaving nearly 19,000 Missouri residents without coverage option next year. More

Analysts at Morgan Stanley estimate that Waymo -- the self-driving car startup that is owned by Google parent Alphabet -- could be worth $70 billion. It seems like a stretch given that Waymo is unlikely to be profitable until 2022. More

Want to keep more of your money? Do these five things -- each of which takes 20 minutes or less -- so you can cut your spending and fatten your pocketbook. More