Beast System Update 5

The Blood Beast of Babylon Takes Another Step Forward
from WashingtonPost.com

Global Deals in Works On Eve of G-20 Summit
Body to monitor world banking among proposals
Nations are close to adopting a series of measures aimed at combating a global recession and laying the groundwork for a broad reconstruction of the international financial system, as world leaders arrive in Washington for a major economic summit this weekend.
Among the most notable measures would be a new body to supervise the regulation of global financial institutions . . . .
The United States, European countries, Japan and major developing nations are also close to a deal to create an "early warning system" to detect weaknesses in the global financial system before they reach epic proportions . . . .
Some officials have advocated beefing up the Financial Stability Forum, a little-known body in Switzerland. Created in the wake of the Asian financial crisis in the late 1990s, the organization has no dedicated budget and only a handful of staff members. But it remains the only global body that periodically brings together regulators, as well as finance ministers and central bankers from leading countries, making it a juicy target for expanding its mission.

One major obstacle to such a plan: The forum is largely viewed as a club of rich nations, with almost no representation from the emerging giants such as China and Brazil, countries that most diplomats now agree must have a larger say in any remake of the financial system. Several of those countries, however, are now in talks to join the organization, according to diplomatic sources in Europe and Latin America.

The new college of supervisors, an idea that faced initial resistance from Washington when it was proposed by British officials months ago, would have its seat at the Financial Stability Forum. International regulators could compare notes on bank liquidity and risk, coordinating regulation of major global financial institutions.

"You have a big multinational financial institution operating in seven or eight economies around the world, then you gather together the supervisors from each of those, and you have them take a look at the company's activities around the globe so that you don't get this fragmented picture of a business's operations," said a senior British government official. For more than a year, the forum has functioned as a repository for reports that have warned of the dangers to the financial system posed by the sub-prime mortgage crisis, as well as by the securities and derivatives tied to them. Officials believe the forum, along with the IMF, could now play a key part of in the creation of a financial early warning system. [emphasis added]
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