WASHINGTON (CNNMoney.com) – Leaders of G-20 nations committed Friday to a timeline to establish and enforce new rules aimed at spurring financial firms around the globe to improve capital cushions and avoid taking risk.
They agreed to keep working to stimulate economies and stabilize financial systems following the worst financial crisis in decades.
"We brought the global economy back from the brink, we laid the groundwork today for longtime prosperity as well," President Obama said at a press conference after the summit concluded. "Still we know there is much further to go."
The Pittsburgh summit was the third G-20 summit in less than a year, and leaders agreed to work together more closely toward sustained growth and cracking down on banking regulations.
By the end of 2010, the nations would agree on rules aimed at improving "quantity and quality" of bank capital and discouraging excessive risk-taking. They also set a goal to start enforcing those rules by the end of 2010.
The G-20 leaders' statement did not detail how the nations would enforce those rules.
In a related measure, the leaders also agreed to set new executive compensation standards that would avoid risky-taking, like "avoiding" multi-year guaranteed bonuses and requiring stronger disclosure for compensation policies.
The leaders asked firms to start putting into place such compensation suggestions, but didn't lay out a method for enforcing them. They also asked a G-20 advisory board to suggest more executive pay measures by next March.
One of the bigger announcements was that the G-20 will now eclipse the G-8 as the group tasked to work out global economic efforts. The G-8 will continue to meet on security issues but will carry much influence, according to
Obama administration officials.
"This decision brings to the table the countries needed to build a stronger, more balanced global economy, reform the financial system, and lift the lives of the poorest," according to a White House press release.
We need to put a "Death Penalty" clause in the Executive compensation packages. If they f-up the company, they lose all their assets and get to leave their head on display in the board room – as a reminder to the next criminal that there will be penalties for screwing the population out of money.
I've been through 4 major recessions since I've started working in 1990. That's ridiculous that I should have to eat rice and beans because criminals like Michael Milkin stole Millions. Criminals like Charles Keating stole Millions. Criminals like Ken Lay stole Millions.
"O" – the smart president!!!!!
Notice no credit for Bush who had to make some fast decisions and start the ball rolling, but quick to blame Bush for anything. Ah, the hypocrisy of liberalism. Nobama, now a worldwide joke.
The lead clown Obama takes the USA down a road of depression.
Brought to you by the Obama Socilaistic Republic of Non-America.
Please.... lets not forget where this nightmare started !!!!
The great Deregulator Ragan, and the world is ON to unencumbered Greed with no controls on anything whatsoever.
It will more than likely happen again in the not too distant future as people will forget again as we did since the last crash!
"Still we know there is much further to go"... as Obama put it, so we hope not to have too much time for waiting...
I sure hope this thing was worthwhile after you and your buddies turned our town upside down and the trashed it.
I do have to agree with the protesters on one point though. We have Too Much Government Already. Get your fingers out of the mix. We would never be in this fix if it wasn't the government forcing banks to loan money to people that couldn't afford it.
Obama the all the world leaders and thugs have no respect for you. Why do you think Iran , Cahvez, Kaduffy are thumbing thier noses at you?
President Obama is doing a fabulous job, in spite of the rabid right wind nut cases.
While Obama is doing his Victory Lap in front of his new buddies in the G-20, 10 – 20% of Americans are having an awful tough time finding work and congress is extending unemployment benefits so that our homeless count doesn't increase by hundreds of thousands before the 2010 elections.
Global control of compensation. Am I the only one creeped out by where that could lead?
Global "anything" is nothing more than rhetoric by a bunch of blow-hards...including OBAMA!
Well, it does stir up a bunch of "libs" around the world so I guess that is all it is really good for.
Gives them another reason to "march" for what they think is a "cause!"
I second your motion.
The group is being expanded to include the countries that funded the recently terminated US shopping spree. The imbalance in global capital flows is THE issue, not executive pay or "speculation."
The hope is that they'll finally let their currencies appreciate and use all those reserve dollars on domestic consumption and investment. Maybe. But then the US has to become an export power again. Doubt it. Seriously.
I think Obama is in love with his own voice. The man is nothing more than a voice box on a soap box.
Do we really need more reforms or just have the current regulatory organizations actually enforce and monitor using the current laws....This meltdown could have been avoided without a single new law on the book. For instance there were at least 4 people who reported Bernie Madoff 10 years before he was caught. Lets not go overboard with new regulation.
Roll on 2012! We can't afford much more of this! :(
and how many billions is this stunt going to cost us......
Power does what it wants. Grab a picket sign and go to the designated protest area in D.C. maybe if you are lucky they won't misrepresent your efforts on the news, that is if anyone covers it at all. Bush had what? a 65% disapproval rating for the most I remember. It didn't stop him from doing whatever the hell he felt like doing in between golf trips. You have no say, all out revolution usually involving blood, has been the only thing in history that creates any real change. Sadly, we are raised to believe we have more control than we actually do, and some people buy that and vote for lies. Look at the original Democrats in Greece they started rioting back in Jan. Remember when Obama promised transparency, pull the troops out immediatly, torture, any real concern for that anymore? No, we need to look forward. Maybe if they wait a couple of years everyone will forget about the economy, too.