Banks - 100 days to reveal losses and exposures
by Gill Montia
Story link: Banks - 100 days to reveal losses and exposures
Finance ministers and leading bankers attending the G7 meeting in Washington DC have given banks in the world’s seven leading economies 100 days to reveal the full extent of their losses in the credit crisis.
They will also be expected to set out the level of risk remaining in investments in the mortgage-backed securities and other forms of debt that have plummeted in value since the onset of the credit crisis.
The G7 summit has called for a review of the international rules under which banks manage the complex financial instruments that have been blamed for the crisis, although Chancellor of the Exchequer, Alistair Darling, is known to favour a fuller commitment to current regulation of the markets, rather than adding to its burden.
The meeting has approved a Financial Stability Forum report on ways to prevent further financial crises and a number of recommendations made in the report should also be implemented within the next 100 days.
Mr Darling has remainded open to the possibility of G7 governments assisting banks by buying-up mortgage-backed debt.
Throughout the credit crisis a number of leading economist have put forward the view that co-coordinated action by governments would be needed to restore the global financial system.
Finally, the G7 finance ministers have noted that there have been recent sharp fluctuations in major currencies and have pledged to monitor exchange markets closely and cooperate as appropriate.
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