What can the Group of Twenty (G20) accomplish that the Group of Eight (G8) couldn't at this weekend's summit in Toronto? Well for one thing, they bring the money with them. Finance Ministers and central bank governers take part in G20 as opposed to G8 for state leaders.
The United States Treasury secretary, Timothy F. Geithner, (who served as an international affairs advisor for the Clinton administration, and later worked with The Federal Reserve Bank/FED in New York and later the International Monetary Fund/IMF) said that progress was being made on new capital standards, although disagreements remained.
The United States Treasury secretary, Timothy F. Geithner, (who served as an international affairs advisor for the Clinton administration, and later worked with The Federal Reserve Bank/FED in New York and later the International Monetary Fund/IMF) said that progress was being made on new capital standards, although disagreements remained.
'We’re narrowing those differences, but we’re still some ways apart,' he said according to The New York Times.
The US Financial Stability Board is also working on rules in order to tighten regulation of hedge funds and debt rating agencies; to set restrictions on executive pay to discourage excessive risk-taking; and to push trading of derivatives onto open markets. The Congressional legislation, which is expected to be handled by President Obama next week, includes similar provisions in those areas.
So major banks are to face tougher regulation in Washington, after the Obama administration's regulatory means, but will not have to face a new set of global rules on capital and liquidity anytime soon, following the agreements at the present G20 summit in Toronto. So the G20 members will reunite in Seoul, South Korea, in November to lay down the rules for the banking industry.
For further information, please see:
http://www.nytimes.com/2010/06/28/business/global/28bank.html?hp
http://en.wikipedia.org/wiki/Timothy_Geithner
The US Financial Stability Board is also working on rules in order to tighten regulation of hedge funds and debt rating agencies; to set restrictions on executive pay to discourage excessive risk-taking; and to push trading of derivatives onto open markets. The Congressional legislation, which is expected to be handled by President Obama next week, includes similar provisions in those areas.
So major banks are to face tougher regulation in Washington, after the Obama administration's regulatory means, but will not have to face a new set of global rules on capital and liquidity anytime soon, following the agreements at the present G20 summit in Toronto. So the G20 members will reunite in Seoul, South Korea, in November to lay down the rules for the banking industry.
For further information, please see:
http://www.nytimes.com/2010/06/28/business/global/28bank.html?hp
http://en.wikipedia.org/wiki/Timothy_Geithner