The G20 meeting in London has started off and after the morning meeting there seems to be various agreements and timetables for reform and stimulus. The tide has turned against Tax Havens and the concept of Banking Secrecy is on its way out if the new agreed regulations are put in place.
G20 has so far agreed on:
- Fiscal stimulus $5 Trillion by the end of 2010.
- $500 Billion in additional funding for the IMF and $250 Billion for special drawing rights.
- IMF will be allowed to issue bonds
- A Tax Haven list will be published that do not comply with anti-secrecy requirements
- Creation of International Colleges for Regulation.
- Regulatory blueprint for stricter limits on hedge funds, caps on executive pay, credit rating agencies and bank’s risk taking.
- A common approach to toxic assets
The markets are reacting positively to the G20 agreements as there are concrete signs of a unified response from the leaders meeting in London.
