Leaders at the global economic summit in Washington are considering creating a “college of supervisors” to oversee the world’s biggest financial institutions, the Washington Post reported on Friday.
The proposal at the Group of 20 summit of wealthy and emerging nations would add a level of security to monitor excessive risk-taking by banks and other financial firms, the Post reported.
The “college of supervisors” would bring together international regulators to coordinate oversight of the world’s 30 largest financial institutions, the Post said, citing officials familiar with the plans.
Additionally, the Post reported that the United States, European countries, Japan and major developing nations are close to a deal to create an “early warning system” to detect weaknesses in the global financial system before they reach epic proportions. The report said details of the plans were still being worked out.
A White House official, speaking on condition of anonymity, confirmed that this was one of the ideas being discussed.
“We should let the summit take place, but there are a number ‘college of supervisors’ already in existence, and we have always supported this concept to ensure that everyone is using best practices and sharing information,” the official said.
The extraordinary summit aims at steadying a faltering global financial system, although US officials up to now have resisted calls for a global regulatory authority.
President George Bush was set to host leaders at a dinner Friday ahead of summit discussions on Saturday. — AFP