G7 likely to keep closer eye on banks
The Group of Seven economic powers are likely to deploy an international team to keep closer tabs on the world's big banks while demanding better risk management and information disclosure across financial markets.
Finance ministers and central bankers of the G7 nations meet in Washington tomorrow to plot their next move in response to the crisis, based on a list of recommendations from the Financial Stability Forum, a body they created.
Among the key FSF ideas, elements of which were published in the Wall Street Journal and confirmed to Reuters by a G7 source yesterday, is the creation by the end of this year of a team of supervisors to watch over the biggest international banks.
As news of the action plan emerged, so did news that German regulators had ordered the closure of a small bank which blamed its downfall on the credit crunch. This hit in August as a defaults crisis in the US mortgage market snowballed.
“If implemented, the plan should minimize the possibility that the challenges we've faced will reoccur,” David McCormick, US Undersecretary of the Treasury for International Affairs, said, according to the Wall Street Journal. (China Daily)
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.