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the pace of consolidation and learn from the consequential mistakes of the past when stimulus was too quickly withdrawn and resulted in renewed economic hardships and recession," Obama wrote.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

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Overnight Avg Rate Latest Change Last Week
30 yr fixed3.94%3.88%
15 yr fixed3.02%3.05%
5/1 ARM3.48%3.50%
30 yr refi4.01%3.93%
15 yr refi3.10%3.14%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates:
Index Last Change % Change
Dow 18,214.42 -10.15 -0.06%
Nasdaq 4,987.89 20.75 0.42%
S&P 500 2,110.74 -3.12 -0.15%
Treasuries 2.02 0.05 2.39%
Data as of 7:16pm ET
Company Price Change % Change
Apple Inc 130.42 1.62 1.26%
Facebook Inc 80.41 0.85 1.07%
Microsoft Corp 44.06 0.06 0.15%
Cisco Systems Inc 29.91 0.42 1.42%
Intel Corp 33.65 -0.30 -0.87%
Data as of 4:00pm ET
Sponsors

Sections

The new FCC net neutrality rules are here. Now Comcast is threatening lawsuits and warning it'll stop investing in its own network. More

Shu-Ling Garver, once a homeless child in Shanghai, rose to one of the top engineers at Intel. Now her entrepreneurial mission is to get kids excited about engineering. More

Glassdoor recently published its annual list of the highest-rated companies for interns. More