Punish executives responsible for market crisis: Brazil

November 10th, 2008 - 1:28 pm ICT by IANS  

Sao Paulo, Nov 10 (Xinhua) The Brazilian government has proposed to the Group of 20 (G20) industrialised and emerging economies that executives implicated in fraudulent practices endangering the financial integrity of their enterprises be punished.The Brazilian delegation called for penal provisions in the new regulations of the international financial market during the two-day meeting of G20 finance ministers and central bank governors, which concluded here Sunday.

“The executives responsible for frauds in balances or those who assume excessive risks, in detriment to financial integrity of corporations at medium and long term, must be penalized in civil and criminal courts,” according to the proposal.

The Brazilian delegation also said the high bonuses paid to the top executives of major financial institutions must be regulated to acceptable levels and financial institutions should be encouraged to operate in the market in a manner compatible with the current economic stability.

The Brazilian delegation also proposed other measures to prevent another crisis, including putting in place appropriate regulation and supervision and ensuring transparency in the balance sheets of financial institutions.

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