The world's leading and developing economies are forging a new, globalapproach to economics, declaring an end to the era of risky behavior bybig banks.
British Prime Minister Gordon Brown during the G20 Summit in Pittsburgh, 25 Sep 2009British Prime Minister Gordon Brown Friday reaffirmedcomments by the United States that the Group of 20 will become theworld's "premier international organization" on economic matters.
Mr.Brown also said G20 leaders meeting in the eastern U.S. city ofPittsburgh will be much tougher on banks and big financial firms thanmany people expect, promising "There is no return to the bad old days."
Limitingthe risk-taking by big banks was one of the most contentious issues inthe lead-up to the summit. But G20 officials say leaders are close toa deal that would control bonuses for bank executives and tie theircompensation to the performance of their financial institutions.
Someeconomists and officials blame banks for plunging the global economyinto a deep recession, while some countries, including France andGermany, have expressed outrage at the large bonuses paid to the topexecutives at failed financial firms.
Officials say the finaldeal also will require banks to hold more cash in reserve in case theirinvestments go bad, although it will not impose a hard cap on executivecompensation. U.S. officials had said such a requirement would be adeal-breaker.
On Thursday, U.S. Treasury Secretary TimothyGeithner said Thursday there also was "strong consensus" on the need torebalance global trade so that it is no longer dependent on spending byAmerican consumers.
Until this summit, the Group of Eight major industrialized nations had been considered the world's leading economic group.
TheG20 consists of the G8 - the United States, Britain, France, Germany,Italy, Japan, Canada and Russia - as well as Brazil, China, Indonesia,Mexico, Argentina, Australia, India, Saudi Arabia, South Africa, SouthKorea, Turkey and the European Union.
Canada and South Korea announced Friday they will co-host the next G20, scheduled for June 2010.
Some information for this report was provided by AFP, AP and Reuters.
