This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/8270404.stm
The article has changed 3 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| UK 'blocking tough finance rules' | UK 'blocking tough finance rules' |
| (21 minutes later) | |
| German Finance Minister Peer Steinbrueck has accused the UK of blocking tougher financial rules ahead of the G20 summit. | German Finance Minister Peer Steinbrueck has accused the UK of blocking tougher financial rules ahead of the G20 summit. |
| "There clearly is a lobby in London that wants to defend its competitive advantage tooth and claw," Mr Steinbrueck told Stern magazine. | "There clearly is a lobby in London that wants to defend its competitive advantage tooth and claw," Mr Steinbrueck told Stern magazine. |
| Germany and France have led calls for more restrictions on banks, which have been resisted by the US and UK. | Germany and France have led calls for more restrictions on banks, which have been resisted by the US and UK. |
| But the UK Treasury told the BBC the UK was not blocking more regulation. | |
| The leaders of the richest 20 nations will discuss reforming the global economy when they meet in Pittsburgh later this week. | |
| London opposition | London opposition |
| The UK has "particular difficulties" regulating hedge funds "to put it politely", Mr Steinbrueck told the weekly German news magazine. | |
| Politics at times is like a train engine, it's slow to get up to speed Peer Steinbrueck, German finance minister | Politics at times is like a train engine, it's slow to get up to speed Peer Steinbrueck, German finance minister |
| He said the financial sector accounted for 15% of the UK's gross domestic product (GDP) in contrast to just 6% in Germany. | |
| However, a spokesman for the UK Treasury told the BBC the finance sector accounted for 8% of UK GDP, not 15%. | |
| Despite the debates leading up to the summit, Mr Steinbrueck was confident that there would be progress at the G20 meeting. | |
| "Politics at times is like a train engine, it's slow to get up to speed, but it can pull more and more people along," he said. | "Politics at times is like a train engine, it's slow to get up to speed, but it can pull more and more people along," he said. |
| "We will deeply change the rules of the game for financial markets." | "We will deeply change the rules of the game for financial markets." |
| He said he did not want to have to go through the experiences of the past year again. | |
| "Back then, the stick of dynamite nearly blew up in our faces," Mr Steinbrueck said. | "Back then, the stick of dynamite nearly blew up in our faces," Mr Steinbrueck said. |
| UK proposals | |
| There has been much debate about how to reform the financial services sector of the global economy after the banking crisis a year ago. | |
| The UK Treasury said the UK was at the forefront of efforts to change the global banking sector. | |
| "The UK government has led the international efforts to end the risky pay and bonus culture in the global banking industry," a Treasury spokesman told the BBC. | |
| "Our proposals for clawback and deferral of bonuses in addition to much greater transparency have become the international blueprint for reform." | |
| The UK and US have been resistant to calls for restrictions and to mandatory caps on banker bonuses, as proposed by France. | |
| Instead, they have proposed deferring bonuses for several years and allowing banks to take bonus payments back in the event a bank later runs into trouble - both policies designed to reduce the incentive for risky lending. | |
| "We will continue to work with other nations - including our G20 partners in Pittsburgh this week - to make sure pay policies are structured in the long-term interests of financial stability," the spokesman added. | |
| 'Obscure' | 'Obscure' |
| This week's G20 summit in the US will also call for major reforms to promote a more balanced global economy. | This week's G20 summit in the US will also call for major reforms to promote a more balanced global economy. |
| This would see countries in Europe and the US save more, and countries that are fast growing such as India and China spend more to boost global growth. | |
| A draft document seen by the BBC says huge imbalances in the global economy must be ironed out. | A draft document seen by the BBC says huge imbalances in the global economy must be ironed out. |
| But Brazil, one of the leading emerging economies, was unenthusiastic about the draft statement. | |
| "The way it is, this proposal is obscure and we do not agree with it," Brazil's Finance Minister Guido Mantega said. | "The way it is, this proposal is obscure and we do not agree with it," Brazil's Finance Minister Guido Mantega said. |
| He said the G20 should focus on monitoring the financial system, performing stress tests to determine whether banks need more capital. | He said the G20 should focus on monitoring the financial system, performing stress tests to determine whether banks need more capital. |
| Indian Prime Minister Manmohan Singh also said the G20 needed to deliver a strong message against protectionism in trade and international financial flows. | |
| Mr Steinbrueck said he was in favour of a levy - known as a Tobin Tax - to be applied to every financial transaction to discourage risky lending and pay for | |
| "It can't be the case that citizens have to shoulder the cost, even though they did not cause the crisis. That's why we have to ensure the financial sector makes a contribution." | |
| "Every euro that we can collect on financial markets will provide relief for tax payers," Mr Steinbrueck added. |