German experts call for world loan registryNovember 14th, 2008 - 8:55 pm ICT by IANS
Berlin, Nov 14 (DPA) German experts compiling a brief for the G20 summit in Washington called Friday in Berlin for a revision of the way banking executives are paid and also called for a worldwide loan registry.They handed a report to German Chancellor Angela Merkel and Finance Minister Peer Steinbrueck.
Otmar Issing, a former chief economist of Germany’s central bank, the Bundesbank, who chaired the group, said they had gathered ideas from many people on how to prevent the current global financial crisis from happening again.
But the purpose had not been to draft a new “financial architecture” for the world in just 14 days.
Merkel said she hoped the proposals could be handed over to world experts to elaborate on over “the next 100 days.”
The report criticizes short-term performance bonuses for financial executives, saying they were a significant cause of the global financial crisis, according to officials who saw the document.
It called for alternative incentives, such as increasing pension rights for good work. But Issing and the other experts said government regulations on pay would not work.
The group also called for a world registry of big loans, similar to the database of big domestic credits which Germany already has, so that governments can see at a glance how great the credit risks in a nation are.
The Issing group also called for annual public reviews by independent auditors of ratings agencies.
Merkel and Steinbrueck were to leave later for Washington, where the meeting begins with a Friday evening dinner, followed by substantive talks among the Group of 20 Saturday.
Tags: angela merkel, chancellor angela merkel, chief economist, g20 summit, german chancellor angela merkel, german experts, global financial crisis, new financial architecture, otmar issing, substantive talks