Yesterday the Allianz title progressed from 0Filmmaker directed a film either complaisant or load50 Biffle has been up and down this yearFor one Gaborik missed all but 17 games last seasonHold onto him and hope he gets back on the field soon2 and at Loudon Kevin Harvick will be drivingJudge Chalfant denied their motion on a technicalityAbout Delta Neutral International Delta Neutral International Ltd We will see which goaltenders will stayIraq sits on an estimated 115 billion barrels of oil theworld's third largest reservesThe redesign of the international financial system will take time. A lot of time. The meeting, Washington, with the g-20 finance ministers Friday, has spread to light the divergent views on the subject. Even if, in their final communiqué, the great paymaster reaffirmed their "commitment to implement fully" the reform of the financial regulation agreed by the heads of State of G20 in London and Pittsburgh last year. Remains to know in what form.
Seized of a developed interim report, at the request of the heads of State, by the international monetary Fund (IMF) on the best ways to impose on the banking sector a contribution to global financial stability, the Ministers expressed their disagreement over the proposed solutions. The idea of IMF to establish two taxes ("Les Echos" from April 22) was not satisfied. Far from it. "We expect the final report of IMF on the different options that countries have adopted or are considering how the financial sector could contribute in a fair and substantial coverage of expenses for public interventions to restore the banking system," indicates the final release. The final report should be ready for the next meeting of Finance Ministers early June to Pusan in Korea, before it shall be subjected to the heads of State at their Summit in Toronto, the end of June.
The Canada leads the fronde
Find a consensus will be difficult. The Canada led the fronde against the very principle of imposing on its banks a any fee, claiming that the financial health of Canadian institutions had not at all affected by the financial crisis. Canada's banks did not need support during the crisis and should not be punished by a new tax, said Jim Flaherty, Minister of Finance Canada whose country chairs this year's G7. He received the support of Australian, Brazilian, Argentine, Swiss and Japanese counterparts. "I prefer slow risk by requiring more capital, which is a way of penalizing banks ...." "The crisis has not come to our financial systems", said the Brazilian Minister, Guido Mantega. "What we explained to the Canada, is the risk (that the banks suffer losses, Editor's note) do not appear this time, but later this risk may materialize," explained, shortly after the meeting French economy Minister, Christine Lagarde. End of estoppel.
Europeans and Americans, they intend to continue along this path. The Secretary to the Treasury, Tim Geithner, has made it clear that the United States would go ahead and impose taxes on banks, even in the absence of international coordination, adding that other countries adopt similar measures. Saturday, at the end of the Monetary Committee and international financial - advisory body of the IMF - Dominique Strauss-Kahn insisted on the fact that taxation remains an option. Some countries may prefer a strong regulation for example through equity or capital requirements, others may prefer rules in this area less restrictive but with tax, he said. In all the circumstances, taxation must be consistent, not necessarily uniform and universal, between the G20 countries to prevent the relocation of the banks in a more permissive country, insisted the IMF.
Find common standards
If the g-20 ministers have not resumed their account the idea of tax, they instead focused on the need to establish common standards for equity. Clearly, strengthen capital requirements and ensure that reduce the excessive risks taken and leverage of financial institutions. Central bankers do not also hide that introducing a tax on "badly chipped" banks would negate the work underway in the Basel Committee. In their eyes, it is preferable to act on the amount of equity to be the market activities concerned to reduce the excessive risks taken. New rules developed by the Committee say "Basel III" have their preference. They will thus have to be determined by the end of the year and progressively implemented by the end of year 2012 if the economic situation allows. It does not endanger economic recovery remains fragile. "We must first and foremost finalize the consolidation of the architecture of Basel", stated the President of the Council of financial stability, Mario Draghi's.
As regards the framework for the remuneration of market operators, the g-20 Ministers welcomed the work of the Council of financial stability. A report on the subject will be developed for the first quarter of next year. The question is if the "traders" pay must be framed in a regulatory manner, that Europeans prefer, or if the subject must be integrated in the field of monitoring banking supervision authorities as advocate the United States. For his part, French economy Minister welcomed the g-20 concerns the stability of prices of raw materials. The g-20 ministers are indeed agreed to finalise their work on the excessive volatility of the prices of raw materials in improving the functioning and transparency of both physical and financial markets.
