IMF Urges Global Financial Rules
The International Monetary Fund urged a new system of government oversight of big hedge funds, private-equity firms and other financial firms whose failure poses a major risk to the global economy, along with other moves to dramatically widen the scope of international financial regulation.
The IMF, which the global recession has turned into a major player in financial rescue plans around the world, is suggesting governments adopt a “binding code of conduct across nations” to coordinate how and when they would intercede in troubled firms, and how to share losses from major financial institutions that operate across borders.
The proposals are aimed at influencing an April 2 summit in London of the so-called Group of 20 leading economies, focused on responding to the global slowdown. The group’s summit in November, before the U.S. administration changed over, produced few concrete results.
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This article was originally posted on WSJ.com