Brown assessing risk with bankers

Marketplace Staff Mar 24, 2009
HTML EMBED:
COPY

Brown assessing risk with bankers

Marketplace Staff Mar 24, 2009
HTML EMBED:
COPY

TEXT OF STORY

Bob Moon: The British are busily preparing for next week’s G20 summit in London. Prime Minister Gordon Brown will sit down today with CEOs from many of the world’s largest banks — before a lot of the world’s largest economies hit them with a raft of new regulation. Christopher Werth reports.


Christopher Werth: Consorting with bankers has become risky business for politicians. But Gordon Brown is undeterred. Top-banking executives from Germany’s Deutsche Bank to the U.S.-based Citigroup will weigh in on plans for overhauling the global financial system.

Justin Urquhart-Stewart of Seven Investment Management says one of the biggest challenges is regulating just how much risk banks are able to take on.

Justin Urquhart-Stewart: Banks want to take on more risk, they can do so, but they’ll have to insure effective capital adequacy.

Meaning financial institutions will be expected to hold more money in reserve for every dollar they lend out, and to build up their own emergency fund for future crises.

European leaders say they are committed to making banking and financial regulation their top priority at next week’s G20 summit.

In London, I’m Christopher Werth for Marketplace.

As a nonprofit news organization, our future depends on listeners like you who believe in the power of public service journalism.

Your investment in Marketplace helps us remain paywall-free and ensures everyone has access to trustworthy, unbiased news and information, regardless of their ability to pay.

Donate today — in any amount — to become a Marketplace Investor. Now more than ever, your commitment makes a difference.