Sunday, February 22, 2009
Ready for the NEW WORLD ORDER? Regulations on all financial markets!
European leaders in Berlin have agreed on the need to regulate all financial markets including hedge funds.
Leaders of Europe's major economies said a global solution was needed to the current financial crisis.
German Chancellor Angela Merkel highlighted that leaders faced an "extraordinary international crisis".
But leaders including UK Prime Minister Gordon Brown warned against reverting to protectionism in such a difficult economic climate.
The Berlin gathering is a precursor to the next meeting of the G20 group of major developed and developing countries in London on 2 April, which aims to rewrite the rules of the global financial system.
"There is a need for a global new deal so that the world economy can recover" said Mr Brown to ensure an economy that is based on the "soundest principles".
Leaders said there was a need for international institutions, including the International Monetary Fund, to play a greater role not just to help countries in financial trouble but to prevent countries from getting into such difficulties.
Mr Brown said leaders had agreed that that the IMF needed access to at least $500bn (£348bn)
The comments in Berlin come amid ongoing volatility in world financial markets and uncertainty over the future of some of the world's key banks.
Ms Merkel said: "We are making a commitment that all financial markets, products, and participants - including hedge funds and rating agencies - are of course subject to supervision and regulation."
Details on such a plan need to be worked out before the meeting in London, she added.
Hedge funds, which typically attract wealthy private investors, have been criticised for their lack of transparency and oversight.