The G20 leaders have agreed to a plan to pump $1 trillion into the world economy, British PM Gordon Brown announced today; the agreement will also tighten global financial regulation and crack down on secret tax havens. The plan calls for:
- The money available to the International Monetary Fund to triple to $750 billion
- A new overdraft allocation for the IMF of $250 billion
- A commitment of $250 billion to support trade finance
- An agreement to “name and shame” countries making protectionist moves.
- Sanctions against tax havens that resist transparency
- International financial regulation to be extended to all financial institutions, including hedge funds
- Tighter regulation of credit rating agencies to curb conflicts of interest
- A coordinated effort to implement new rules on pay and bonuses.