Updated on
Summary
For regulating the global banking system, the worlds most powerful economies finance ministers have agreed a series of measures. They wish for a long-term performance rather than short-term risk-taking. However the G20 meeting in London failed to agree on specific limits on the amounts individual bankers get paid. Britain, the US and Canada opposed the idea, but the Financial Stability Board will examine the issue. It will report back to the summit of G20 leaders in Pittsburgh, Pennsylvania later this month. The G20 countries agreed on measures requiring banks to disclose the pay and bonuses of their highest-paid employees and to allow bonuses to be clawed back if decisions which seemed successful later go wrong. Ministers also pledged to continue financial support for the global economy until recovery from recession is secured. They warned that although there were signs of recovery in the world economy, that recovery would not have happened without massive intervention from governments - and all bankers should take note that they owed their salvation to action by taxpayers. US Treasury Secretary Tim Geithner said the momentum for financial reform needed to be kept up despite the signs of an upturn. Ministers also agreed to raise significantly the say of emerging nations on the world stage. But concrete proposals will not be put until January 2011.
