G-20 Leaders Pledge $1 Trillion to Beat Recession

Leaders at the G-20 summit on Thursday issued details of an unprecedented package of measures to tackle the global economic recession. The deal, which was agreed upon by the leaders of the world's 20 largest economies, included reform of the international banking system and an injection of more than $1 trillion into the world's financial system.

The push and pull between the stimulus-aimed U.S. and Britain against countries who favored more banking regulations came together to agree on the package. It is seen as great progress on financial institution reform, and is being described as an historic compromise.

The six-point plan includes bank reform measures, the $1 trillion to restore credit, growth and jobs, and also has measures to cut down on tax havens, as well as a commitment to creating a green, sustainable economy.

Much of the G-20 communiqué (PDF) issued at the end of the London summit restated promises and goals that international leaders had made earlier, relying on language such as "we remain committed" and "we reaffirm our historic commitment."

The six-point consensus consisted of measures to:

restore confidence, growth, and jobs
repair the financial system to restore lending
strengthen financial regulation to rebuild trust
fund and reform our international financial institutions to overcome this crisis and prevent future ones
promote global trade and investment and reject protectionism, to underpin prosperity
build an inclusive, green, and sustainable recovery.

The G-20 will meet again later in the year to review the success of its plans and further details of the summit will be announced in the next few days.

The G-20 members say they will also establish a new Financial Stability Board to provide "early warning of macroeconomic and financial risks," the summit's final communiqué says. It is not clear if the board would have regulatory powers.

About the Author

Linda McGlasson

Linda McGlasson

Managing Editor

Linda McGlasson is a seasoned writer and editor with 20 years of experience in writing for corporations, business publications and newspapers. She has worked in the Financial Services industry for more than 12 years. Most recently Linda headed information security awareness and training and the Computer Incident Response Team for Securities Industry Automation Corporation (SIAC), a subsidiary of the NYSE Group (NYX). As part of her role she developed infosec policy, developed new awareness testing and led the company's incident response team. In the last two years she's been involved with the Financial Services Information Sharing Analysis Center (FS-ISAC), editing its quarterly member newsletter and identifying speakers for member meetings.

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