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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.
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