G-20 Summit News Roundup: Global Regulatory Challenges and Reform

The biggest news on Earth over the past week has been the 2009 G-20 Summit taking place in London; and in between threats of a G-20 walkout by Nicolas Sarkozy and Michelle Obama causing a stir by touching the Queen, some actual serious business was discussed.

We’ve spent a few minutes this morning rounding up the articles, posts, and stories on the G20 Summit that have the most relevance from a GRC angle. Titles, excerpts, and links below:

G20 Summit: the regulatory challenge

There is little dispute among the G20 leaders that a global failure of regulators helped cause the financial and economic crisis. Excessive borrowing by banks, the explosive growth of hedge funds and a bonus culture that offered big rewards for short-term profits have all been singled out for blame.

However, as the leaders assemble in London’s ExCel Centre for the one-day summit, there’s little sign of consensus on what a new system of financial regulation looks like.

French President Nicolas Sarkozy has been the most ardent advocate of putting financial regulation at the very top of the G20 agenda. While the governments of US President Barack Obama and Prime Minister Gordon Brown have each put forward plans to overhaul the regulation of financial services, reaching a consensus that can be enforced effectively will be far from straightforward. These are the issues that need grappling with.

>>>read entire article on the regulatory challenges faced by the leaders at the G20 Summit at Telegraph.co.uk

——————–

G20 leaders seal $1 trillion global deal

Leaders of the world’s largest economies will shortly announce an agreement worth around $1.1 trillion to tackle the global financial crisis.

To help countries with severe problems, the International Monetary Fund (IMF) will get extra resources worth up to $750bn (£510bn).

In addition, there will be a deal at the G20 summit to “name and shame” countries that breach free-trade rules.

There will also be sanctions against secretive tax havens.

A member of the German delegation told the BBC’s reporter Joe Lynam that the G20 will pledge $1.1tn for multilateral organisations such as the IMF.

An official announcement will be made soon, but leaders are expected to announce measures in the following key areas:

>>>read entire article on the agreement reached at the G20 Summit at BBC News

——————–

Obama hails G-20 summit as ‘turning point’

Concluding his first international summit, President Barack Obama hailed agreements at the emergency meeting of world powers Thursday as a “turning point in our pursuit of global economic recovery.” But he cautioned, “There are no guarantees.”

Obama said the heads of industrial countries that met in London agreed on “unprecedented steps to restore growth and prevent a crisis like this from happening again.”

He spoke shortly after G-20 leaders pledged an additional $1.1 trillion in financing to the International Monetary Fund and other global institutions and declared a crackdown on tax havens and hedge funds. The leaders announced the creation of a supervisory body to flag problems in the global financial system — but did not satisfy calls from the U.S. and others for new stimulus measures.

>>>read entire article on Barack Obama’s assessment of the G-20 Summit at MSNBC.com

——————–

G20 summit: the verdicts from the world’s press

The French press were cautiously optimistic, praising G20 politicians for wresting back power over the world of finance. “Elected politicians take back control,” said the left-leaning daily Libération, even if it felt the G20 results needed to be confirmed in time. “Words have changed, now we have to judge on actions.”

…

The pro-Kremlin press was this morning frothing with approval at the outcome of the G20 talks. Izvestia credited Dmitry Medvedev with much of the glory, saying he had impressed other leaders by meeting them with “proposals rather than evaluations.

…

Chinese coverage focused on the $1tn package and the bilateral meeting between Obama and President Hu Jintao. The People’s Daily, mouthpiece of the Communist party, said President Hu told his US counterpart that relations were “at a jumping off point and faced with an important development opportunity”.

>>>read the entire article on the G20 Summit at Guardian.co.uk

——————–

And a few other links:

Sarkozy: G20 Results ‘Beyond Expectations’ — (WSJ.com – subscription required)

The Last Europoean: Why the G-20 Was a Success — (Economix – New York Times blog)

The London G-20 Summit Agreement: An initial reaction to the Communique — (The Kaufmann Governance Post)

Accenture on G20 Summit: Global Regulatory Body Not Likely — (BankTech.com)

The G-20 Summit and Beyond: How to Address the Emerging Regulatory Climate — (Accenture.com)

Tags: barack obama, G20 Summit, regulatory reform