Merkel optimist about market reform agreements at G20 summit

Last Updated: Tuesday, September 22, 2009 - 11:18

Berlin: German Chancellor Angela Merkel
expressed optimism that an agreement on finance market reform,
including a curb on excessive payments of bonuses and
compensations, could be reached at financial summit of the
G-20 nations, which opens in Pittsburgh on Thursday.

"We are on the right way since the first summit in
November, last year. However, one can notice that some
financial centres have become more sceptical about effective
finance market regulation and control than at the end of last
year.
"Therefore, we have to make every effort to ensure that
the present financial crisis will not be repeated," she said
yesterday.

Addressing a news conference after discussions with
experts on the financial crisis, Merkel spoke of her
determination to work for an agreement on more stringent
regulation of financial markets and to prevent financial
institutions from "blackmailing" the state.

It is extremely important that "every financial product,
every financial location and every market participant must be
brought under a new control" in order to prevent a recurrence
of the crisis, she said.

The issue of financial market reform, especially a curb
on excessive payments of bonuses, executive salaries and
compensations by banks and other financial institutions,
effective supervision of financial markets are among the
central themes for discussions by the G-20 nations, including
India.
Proposals to set new rules to govern the hedge funds and
to tighten the supervision of credit rating agencies are also
high on the agenda.

The German government wants to make sure that in future
the state will not be blackmailed by a bank facing bankruptcy,
the chancellor said.

"We want to make sure that in future it will no longer
be possible for financial institutions to blackmail the
state," Merkel said in an interview to a newspaper.

Bureau Report



First Published: Tuesday, September 22, 2009 - 11:18

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