The G20 statement on restoring the global economy the start of the current financial crisis lacks specifics on how nations will deal with toxic assets which have resulted in huge losses at companies around the world, saying banking systems have already been given support.
In its Communique released Thursday, the G20 notes its actions cannot be effective until the nations restore domestic lending and international capital flows.
“We have provided significant and comprehensive support to our banking systems to provide liquidity, recapitalize financial institutions, and address decisively the problem of impaired assets,” the leaders state.
Going forward, banks will be required to have a larger capital cushion and reduce their leverage, the report states.
“The final communiqué has a very strong emphasis on regulation, and while the general principles are sound, the details sound more like a shopping list of the current favorite scapegoats -- hedge funds, tax havens, bonuses, said Marco Annunziata, chief economist at Unicredit, according to Reuters.