More regulations, same monetary system, after G20

LONDON, April 2, 2009 (AFP) – G20 leaders made major progress in reforming a “failed regulatory system” for global finance which had endangered the world’s prosperity, US President Barack Obama said after their summit Thursday.

“We made enormous strides in committing ourselves to comprehensive reform of a failed regulatory system,” he said after a G20 summit which had been clouded by splits over European demands for reform of global financial rules.

“Together I believe that we must put an end to the bubble and bust economy that has stood in the way of sustained growth and enabled abusive risk-taking that endangers our prosperity,” he added.

At one point before the London summit, French President Nicolas Sarkozy had threatened to walk out if it failed to agree deep enough reforms of the way the global financial system is regulated.