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| Version 2 | Version 3 |
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| G20 pledges tougher bank action | G20 pledges tougher bank action |
| (40 minutes later) | |
| Finance ministers from the world's most powerful economies have agreed a series of measures to try to regulate the global banking system. | Finance ministers from the world's most powerful economies have agreed a series of measures to try to regulate the global banking system. |
| They want a system that rewards long-term performance rather than short-term risk-taking. | They want a system that rewards long-term performance rather than short-term risk-taking. |
| However the G20 meeting in London did not agree on specific limits on the amounts individual bankers get paid. | However the G20 meeting in London did not agree on specific limits on the amounts individual bankers get paid. |
| Britain, the US and Canada opposed the idea, agreeing to ask the Financial Stability Board to examine the issue. | Britain, the US and Canada opposed the idea, agreeing to ask the Financial Stability Board to examine the issue. |
| It will report back to the summit of G20 leaders in Pittsburgh, Pennsylvania later this month. | It will report back to the summit of G20 leaders in Pittsburgh, Pennsylvania later this month. |
| Critically now the job is to make sure that you translate those principals into practical propositions that actually bite and actually work Alistair Darling | |
| The G20 countries agreed on measures requiring banks to disclose the pay and bonuses of their highest-paid employees and to allow bonuses to be "clawed back" if decisions which seemed successful later go wrong. | |
| The FSB has also been asked to look at the desirability of new rules which would allow regulators to rule on whether the total pool of cash set aside by a bank for bonuses is excessive, given its long-term financial stability and strength. | |
| Ministers also pledged to continue financial support for the global economy until recovery from recession is secured. | |
| They said they would develop co-ordinated "exit strategies" to deal with ballooning public deficits once the recession is over. | |
| The finance ministers agreed to continue with economic stimulus plans | |
| UK Chancellor Alistair Darling said all bankers were obliged "to make sure that their pay practices are responsible". | UK Chancellor Alistair Darling said all bankers were obliged "to make sure that their pay practices are responsible". |
| He said: "Above all we are determined to take action to stop banks or other financial institutions getting themselves into a situation where their pay-and-reward practices actually encourage people to take risks which bring their institutions into a situation where they could be brought down with catastrophic results." | |
| Concrete proposals | |
| Discussing possible regulation of bonuses, he said: "If you have got an institution that is struggling or it's in the process of rebuilding itself the regulator could say that pool set aside for bonuses is really too big." | |
| Mr Darling added: "Critically now the job is to make sure that you translate those principals into practical propositions that actually bite and actually work. | |
| Gordon Brown: "Too early a withdrawal of vital support could undermine the tentative signs of recovery we are now seeing" | |
| "We need to have standards that are observed right across the world." | |
| The US Treasury Secretary, Tim Geithner, said there was broad agreement on the need for change. | The US Treasury Secretary, Tim Geithner, said there was broad agreement on the need for change. |
| He said: "Changing compensation practices fundamentally will be fundamental to future reform, and we're going to move forward and do that." | He said: "Changing compensation practices fundamentally will be fundamental to future reform, and we're going to move forward and do that." |
| International Monetary Fund chief Dominique Strauss-Kahn said that governments now had to act. | International Monetary Fund chief Dominique Strauss-Kahn said that governments now had to act. |
| "The problem is we need to go beyond agreement. We need to have concrete measures." | "The problem is we need to go beyond agreement. We need to have concrete measures." |
| Ministers have agreed to raise "significantly" the say of emerging nations' on the world stage. |