G20 takes global approach to recession

TEXT OF STORY

Steve Chiotakis: World financial officials are in Washington today for the annual Spring meetings of the IMF/World Bank and G20 Finance Ministers. They're going to talk about Greece certainly, but the official agenda is setting up a new financial structure to prevent another banking collapse. Marketplace's John Dimsdale has more.


John Dimsdale: Previewing the three days of high-level meetings, IMF Managing Director Dominique Strauss-Kahn was asked what he thought about U.S. financial regulatory reforms. He said the president and Congress are acting too quickly.

Dominique Strauss-Kahn: It comes too soon in terms of having a global answer. And the fact that different countries are moving, which I can totally understand, makes it more difficult to have a global and coordinated answer.

A global recession requires a global fix, he says, and part of the solution is a worldwide bank tax, which Strauss-Kahn, says would serve two purposes:

Strauss-Kahn: One is to secure some resources to be able to help for crisis resolution, and the second was to have a tool that will help curb risk-taking behavior.

If the tax idea gets a favorable response from finance ministers this weekend, the IMF will submit it to the meeting of G20 heads of state in June.

In Washington, I'm John Dimsdale for Marketplace.

About the author

As head of Marketplace’s Washington, D.C. bureau, John Dimsdale provides insightful commentary on the intersection of government and money for the entire Marketplace portfolio.

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