G-20 leaders push for bank regulations
U.S. President Barack Obama greets Brazil's President Luiz Inacio Lula da Silva as they arrive to an opening reception and working dinner for heads of delegation at the G20 Summit in Pittsburgh, Penn
TEXT OF INTERVIEW
Bill Radke: The big news at the G-20 summit this morning is not about the global economy. A few minutes ago, President Obama accused Iran of building a secret nuclear fuel plant for several years and he demanded that Tehran comply with international rules on nuclear nonproliferation.
President Barack Obama: Iran has a right to peaceful nuclear power that meets the energy needs of its people. But the size and configuration of this facility is inconsistent with a peaceful program.
Tamara Keith joins us now live from Washington. Good morning.
Tamara Keith: Good morning.
Radke: So nuclear programs aside, Tamara, when the summit ends today there will be the traditional closing statement that presumably will have something to do with the economy. I understand there's a draft of it floating around.
Keith: Yes there is, and it is all about the economy. There are several big items in this draft. First, it makes it clear that global economic policy is actually going to be set at the G-20, rather than the G7 or the G8. That means going forward, countries like China, India and Brazil will be included in the economic conversation. The communicae also includes pledgets to keep economic stimulus measures in place until a recovery takes hold. And also, the leaders are agreeing, in principle at least, to make financial regulatory reforms.
Radke: And how are those reforms shaping up?
Keith: Well, they're saying that they will be in place by the end of 2012, so three years from now, and that it will be rules for banks and other financial institutions. They've agreed on broad principles rules but haven't written anything yet. They want banks to keep more capital on hand and they want to create incentives to prevent the excessive risk taking that lead us to where we are now. And also, they're talking about restructuring executive pay at financial institutions.
Radke: Reporter Tamara Keith joining us live. Thank you.
Keith: You're welcome.