EU, US call for a global summit to reshape banking[End of Bretton Woods?]

AP ^ | 15 Oct 2008 | Aoife White

[BGHater]

EU, US call for global summit to reshape banking as early as next month in New York

The Group of Eight major industrial nations announced Wednesday they will hold a global summit -- perhaps as early as November in New York -- to forge common action to prevent another economic meltdown.

French President Nicolas Sarkozy said all European Union nations backed radical restructuring of global institutions like the International Monetary Fund and World Bank. He called for a meeting "preferably in New York, where everything started" and said it should lead to "a new capitalism."

Sarkozy said emerging economies such as China, India and others outside the G-8 should also participate because "no one should feel excluded from what we are recasting."

EU leaders meeting in Brussels "all agreed that we don't want the same causes to produce the same effects in future," the French leader said. "We don't want all this to start again; we want lessons to be learned."

British Prime Minister Gordon Brown said the meeting would require vision similar to the creation of the United Nations and the Bretton Woods conference that laid out the post-World War II international financial and monetary system.

The G-8 leaders said in a joint statement released by the White House that they were united in their commitment to change the regulation of the world's financial sector to restore confidence and "remedy deficiencies exposed by the current crisis."

"We are confident that, working together, we will meet the present challenges and return our economies to stability and prosperity," they said.

Brown, a longtime former Treasury chief widely seen as a leader in crafting policies to combat the financial crisis, said he wants a group of supervisors from major nations to monitor the world's 30 largest financial institutions.

[BGHater]

The cabal gathers.

[Shermy]

"preferably in New York, where everything started" I dislike these broad accusations.

But the Euros, like everyone else, like not to talk directly about their failures. As if Sarkozy would be honest and say,

"We Euros believed Goldman Sachs, JP Morgan, and Fannie Mae reps and bought trillions of dollars worth of smelly American financial paper. We were screwed. But we lucked out in the end, at the same time Bush has hocked his country to us and the Chinese and the Gulf Arabs, and if he doesn't bail us out with his people's money, we won't continue to finance his deficits."