G20 leaders hammer out massive plan to tackle financial crisis, revive economy

STRENGTHENED FINANCIAL SUPERVISION, REGULATION

The G20 leaders agreed to take action to build a stronger, more globally consistent, supervisory and regulatory network for the future financial sector to rebuild trust in the financial system.

Chinese President Hu Jintao attends the Group of 20 summit in London, Britain, April 2, 2009. (Xinhua/Ju Peng)

They agreed to establish a new Financial Stability Board (FSB) with a strengthened mandate as a successor to the Financial Stability Forum (FSF), including all G20 countries, FSF members, Spain and the European Commission. The FSB will collaborate with the IMF to provide an early warning of macroeconomic and financial risks and the actions needed to address them.

The leaders agreed on extending regulation and oversight to all systematically important financial institutions, instruments and markets, including systematically important hedge funds for the first time.

They reached consensus on taking action against non-cooperative jurisdictions including tax havens, and agreed to publish a list of tax havens. "The era of banking secrecy is over," said Brown.

They also agreed on extending regulatory oversight and registration to Credit Rating Agencies to ensure they meet the international code of good practice, particularly to prevent unacceptable conflicts of interest.