G-20 financial leaders to find out uniform regulations

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From Fazle Rashid
NEW YORK, June 04: The US Treasury Secretary Tim Geithner will use the two-day meeting of the central bank governors and finance ministers of the largest economies beginning in the South Korean city of Busan today (Friday )for forging a uniform financial regulation.
The Treasury Secretary does not anticipate any major decision to emerge from the two-day high level conference but underscores the urgency and importance of financial overhaul to restore what he said "fiscal sustainability" saying this is a shared imperative and "we all recognize it".
Geithner is pressing for greater transparency, new restrictions on derivatives trading and more stringent capital and liquidity requirements for banks, the New York Times (NYT) in a report said. America is also pushing for a global tax on largest banks. The Group of Twenty (G20) nations have pledged to "summon collective will to meet common challenges." With Europe facing a severe debt problem, the challenges the G20 members facing are no less stiff and hard.
The present round of talks will be followed by another meeting in Toronto, Canada this month and G20 leaders will return to South Korea for another meeting in November.
"We are saving more as a country, borrowing substantially less from rest of the world. We are meeting our responsibilities", Geithner was quoted as saying. Eurozone governments need to conduct more rigorous and transparent stress test of their banks to ensure that they would be able to survive big shocks to the economy and financial markets. Doubts exist about the solvency of many European Banks, the British Minister in charge of financial regulations Mark Hoban said.
One area where change is most pressing is the tightening of capital and liquidity standards. This requires international coordination. The Obama administration has called for 10-year tax on banks that would generate $90 billion. The European Union and the International Monetary Fund support the US.