G7 Vows to Get a Grip on Financial Crisis

By Neal Colgrass,  Newser Staff
Posted Oct 10, 2008 6:28 PM CDT
Treasury Secretary Henry Paulson and Italian Finance Minister Giulio Tremonti pause during a g7 group photo on Friday, Oct. 10, 2008, in Washington.   (AP Photo/Evan Vucci)
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(Newser) – The finance ministers of the world's economic leaders vowed to stem the financial bleeding in international markets today after stocks plummeted yet again, Reuters reports. Reacting to pleas from investors, the IMF, and several other countries, the G7 reps pledged "urgent and exceptional action" to free up credit and money markets. Meanwhile, Washington confirmed that it will use bailout money to purchase stakes in US banks, the Washington Post reports.

The G7 ministers promised that their plan will keep vital institutions afloat and make sure banks can raise capital, but the statement they released after North American markets closed was light on specifics. Their pledge comes after other moves, including interest rate cuts, cash injections, and the $700 billion American bailout plan, have failed to reassure investors. "It all depends on whether the governments can get a grip on this," a US portfolio manager said.