G20 promise to learn from ongoing recession
If nothing else, if we are able to learn lessons from the ongoing recession and ensure we do not experience such a difficult period in the future then perhaps there is a means to an end. The US and UK have put forward a plan which would significantly increase liquidity requirements and capital adequacy tests for banking institutions in the future. However, even though the G20 seems together in public there are many different opinions behind the scenes.
While the UK and US authorities are looking for big changes in the future the French finance minister has suggested a "small tweaking" of the current regulatory environment should be more than enough. Yet again it seems that while in public the G20 leaders are coming together, behind the scenes there are yet more differences of opinion and potential subjects for fallout. So where do we go from here?
One of the traits of the G20 over recent times has been the ability to grab the headlines with new ideas and new promises and then ultimately fail to deliver. There is no reason why we should hope for any different at the forthcoming G20 meeting because even now there is a significant distance between many of the parties involved.
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