The G20 finance bureaucrats on Saturday took aim at excessive bank pay and risk-taking at the root of the financial crisis and insisted trillions of dollars of emergency economic supports would be needed for some time.

They broadly agreed that banks ought to hold more capital as a cushion against the sort of catastrophic losses that led to bank failures and bailouts, says Reuters. (1)

The G20 also set up the Financial Stability Board (FSB) to monitor and advise on changes to the financial system, says David Smith in The Sunday Times. (2)

Is this a joke?

Is the G20 recognising that since 15 August 1971,
when US president Nixon broke the Bretton Woods Agreements,
which linked the US dollar to gold at fixed parity
and all other currencies to the said dollar,
there’s no more stability or continuity in the financial system?

Ivo Cerckel
honestmoney@maktoob.com
http://twitter.com/ivocerckel/

NOTES

(1)
G20 aims at bank pay and capital; stimulus to stay
Sat Sep 5, 2009 6:56pm EDT
http://www.reuters.com/article/topNews/idUSL532747920090905

(2)
From The Sunday Times
September 6, 2009
G20 seeks curbs on bank bonuses
David Smith, Economics Editor
http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article6823291.ece