G-20 acts on hedge funds

April 2, 2009

G-20 acts on hedge funds

		Keen to secure a confidence-boosting message for voters and frazzled financial markets as the world succumbs to recession, US President Barack Obama said there were no substantive differences with Europe, despite the hardball stances taken by the French and German leaders. --PHOTO: AGENCE FRANCE-PRESSE

LONDON - WORLD leaders are set to declare an end to unfettered capitalism at a G20 summit on Thursday after France and Germany demanded they act fast on promises to prevent a repeat of the worst economic crisis since the 1930s.

A communique drafted for release at a G20 summit in London, obtained by Reuters, signalled that leaders would submit large hedge funds to supervision for the first time and enhance regulation through a new agency and a beefed-up International Monetary Fund.

DRAFT COMMUNIQUE LONDON - G-20 leaders of the world's largest developed and emerging economies are due to agree on Thursday to a major plan for restoring global growth and rebuilding a financial system, ravaged by the worst financial crisis since the 1930s. Here are key points in the G-20 communique draft, a copy of which was obtained by Reuters from delegation officials attending the summit. ... more

It included a pledge to deliver 'the scale of sustained effort necessary to restore growth' without making any commitments beyond the trillions being spent to stabilise banks, shore up demand and limit job losses.

Keen to secure a confidence-boosting message for voters and frazzled financial markets as the world succumbs to recession, US President Barack Obama said there were no substantive differences with Europe, despite the hardball stances taken by the French and German leaders.

Washington wanted tougher regulation too, he told a news conference on Wednesday with Britain's Gordon Brown, summit host, saying he was at the summit not just to lecture but to listen and to help lead the way out of trouble.

It was not clear whether the flashpoint, which appeared to focus primarily on Mr Sarkozy's demands for blacklisting of tax havens, would be enough to derail a message of unity from the meeting.

The draft communique said tax havens would be identified and sanctions could be deployed.

'The era of banking secrecy is over,' it declared. -- REUTERS

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