Sunday 26 October 2008


ASIA, EUROPE LEADERS URGE MORE FINANCE RULES BEFORE BUSH SUMMIT

Jennifer M. Freedman and Christopher Swann

Bloomberg, October 26, 2008

Asian and European leaders called for an overhaul of World War II-era banking rules, lending support to French President Nicolas Sarkozy as he pushes the U.S. to embrace greater supervision of global financial markets.

The leaders “pledged to undertake effective and comprehensive reform of the international monetary and financial systems,” according to a statement in Beijing yesterday. Chinese Premier Wen Jiabao told reporters after the gathering of more than 40 heads of state and government that “we need even more financial regulation to ensure financial safety.”

U.S. and European leaders have sparred over the causes of the credit crunch and how to cure it. Sarkozy has called for stricter government oversight of banks and hedge funds. President George W. Bush, who will host the Group of 20 industrialized and developing nations on Nov. 15, emphasized the role of free markets in a speech yesterday.

“It is foolish to think that within a few weeks Europe and the U.S. are going to be able to overhaul international financial regulation,” said Allan Meltzer, a professor at Carnegie Mellon University in Pittsburgh. “It will be extremely hard to come up with a consensus. I doubt the Europeans will even be able to agree among themselves.”

(...) [artículo aquí]

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