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G-20 takes shape around regulation
U.S. President Barack Obama and British Prime Minister Gordon Brown at a plenary session at the G-20 leaders summit in London -- April 2, 2009
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TEXT OF INTERVIEW
Steve Chiotakis: World political and financial leaders are in the official throws of the G-20. Of course the before and after will last much longer than the four or so hours that the group is meeting in London today. Our man in London Stephen Beard joins us now. Stephen, there's been this threat that France and Germany -- not happy with regulatory talks -- would add a little suspense and walk out. What are the chances of that happening?
Stephen Beard: It seems less and less likely, Steve. The momentum towards some sort of agreement does appear pretty unstoppable now. Both the French and the German leaders were pretty adamant last night that they want much tougher regulation of banks and hedge funds, but the mood music this morning does suggest that they're going to get enough to keep them at the table signing the communique later today.
Chiotakis: Do we know what's gonna be in this communique?
Beard: Well, some details have been filtering out and they're rather along the lines that we've been suggesting in previous days: no new global, coordinated series of stimulus packages, but rather a pledge by the G-20 companies to do what it takes to boost their economies. And a statement that they're already in the process of pumping something like $2 trillion into their economies to stake off recession. There's likely to be an increase in funds available to the IMF, up to at least $500 billion, and of course new regulations to try and stop the banks and other financial players from getting us all into the same mess again.
Chiotakis: Yeah, regulation of course the big theme. What's going on in that front?
Beard: A few details, tax havens will be reigned in. And interestingly, the establishment of so-called regulatory colleges to coordinate the supervision of the world's biggest banks. Now, this is not quite the global financial regulator that the French were demanding, but a step in that direction.
Chiotakis: All right, our European correspondent Stephen Beard joining us from London. Stephen, thank you.
Beard: OK, Steve.
I'm really glad they're cracking down on these off-shore tax havens. They're sheltering trillions of dollars at the expense of regular tax payers who have to make up the difference.
Also, who's the new photographer following Obama these days? The guy is really stylized. Some of the pictures I've seen coming out of this Summit look like Brat Pack pictures. They're just missing Sinatra and Dean Martin.
