Leaders of the 20 countries said they will implement financial regulatory reforms that “raise standards together” to prevent companies from seeking out jurisdictions with less-stringent oversight, reports Bloomberg. Rules will be developed by the end of 2010 to require banks to hold more and better-quality capital and discourage leverage, the leaders said in a statement yesterday at the end of a two-day summit in Pittsburgh. “What this is signaling is that the race to the bottom in international regulation and competition is officially dead,” said Margaret E. Tahyar, a partner in the financial institutions practice at law firm Davis Polk & Wardwell LLP in New York. said. “The statement is unusually granular and that shows how serious they are.” The G-20 also proposed moving all standardized contracts onto exchanges or electronic platforms by the end of 2012.
G-20 Vow to ‘Raise Standards’ on Financial Regulation
The G-20 in Pittsburgh focused on financial regulatory reforms.
September 28, 2009