News

A five-point strategy was issued after finance ministers and central bankers from the seven richest country met in Washington (USA, UK Germany, France, Italy, Canada and Japan). They agreed on principles for a coordinated response to the financial crisis but remained vague on the concrete steps that will be taken. Action will address the following areas:

- Use all available tools to prevent any systemically important financial institution to fail.

- Ensure access to liquidity and funding for financial institutions.

- Set up recapitalisation schemes so banks can raise capital from public and private sources.

- Protect depositors.

- Take action to restart the secondary market for mortgages and other securitised assets.



However, many commentators blamed the meeting for not taking concrete steps to address the most important financial crisis since 1929.







The G7 meeting took place on 10 and 11 October. This followed one of the worst weeks in the history of stock exchanges on both sides of the Atlantic.