No way. Obama decided to stand on the sidelines, Bush is clearly not willing (or mentally fit) to craft a coherent plan, the developing countries seem to think this is an opportunity to slash a larger share of the pie and the Europeans were not very specific in their delineation of a regulatory "college". This was a bit disappointing, I have to say. Expect large losses in the stock market tomorrow. A good analysis of what happened and the coming attractions from Business Week here. The full text of the common statement of the G-20 here. There was actually one interesting idea: the insertion of the principle of anti-cyclicality into the banking sector. Andrew walker of the BBC expounds:
And here is one to set the pulse racing: "mitigating against pro-cyclicality in regulatory policy". That might actually turn out to be quite important.
The idea is to have banking regulation that does not exacerbate the cycle of boom and bust - indeed the aim is to moderate it.
'Dynamic provisioning'
Spain's system has attracted a lot of interest.
In effect, it requires banks to build up a financial cushion in the good years which can help them absorb losses in the bad times when increasing numbers of borrowers fail to repay.
The basic principle is not exactly financial rocket science, although the name it has - dynamic provisioning - makes sound as though it is.
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