Banking Rules and Deficits Reviewed by G20

Finance chiefs of the world's leading economies continue to tackle the thorny issue of reforming supervision of banks and other financial institutions. The urgency of such a task has been sharpened by fears that Hungary's debt crisis could bring on a new round of financial turmoil. The group of 20 major advanced as well as developing economies appears likely to put aside discord over ‘technical details,’ for the sake of progress on an outline for a coordinated program of financial reforms to be endorsed by all leaders; including President Obama.

Talks focused on the need to rein in ballooning deficits that collectively threaten world economies. As they began their talks in the South Korean port city of Busan, the group of finance ministers and central bankers showed growing concern over Europe's sovereign debt crisis and its threat to global recovery. Hungary became the latest country following Greece, Portugal, and Spain, to warn that it is facing a grave outlook.

Apart from controversy over whether or not to impose a bank levy to fund bailouts, members are also considering a global standard for capital reserves that financial institutions would be required to hold as a cushion against potential loan losses. The group was unanimous in expressing strong support for Europe's bailout. We will keep you posted…

30 Day Libor	10-Year Treasury	Prime
0.35%	3.32%	3.25%

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