Mr. Summers laid out five principles for the plan: The government must have the authority to take over and liquidate failing nonbanking financial institutions. Regulated entities must not be able to choose their regulators, nor should regulators have to fight each other for jurisdiction. And the interests of consumers must trump the interests of regulated companies.
But IMF chief Dominique Strauss-Kahn and U
Finance ministers from the Group of Eight leading industrialized countries Saturday said they had started to discuss how to scale back the massive amounts of stimulus they have injected into their economies. Less than a month before a meeting of G8 world leaders in L’Aquila, Italy, top finance officials said they had asked the International Monetary Fund to help them map out the best strategy for cutting budget deficits, withdrawing support from banks, and tightening monetary policy.Continue reading