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World leaders edged closer to an agreement
Saturday that would flag risky investing and regulatory weak spots
as President George W. Bush welcomed the progress at an emergency
economic summit.


      Nearly two dozen foreign leaders got down to work at the largest
gathering of its kind in nearly a decade. A chief goal was charting
a map to avoid future financial meltdowns like the one now
imperiling the global economy. Leaders also sought to find ways to
revive the economy, which has pushed up unemployment and shrunk
savings.


      Under the glare of an intense political and public spotlight,
the presidents and prime ministers needed to be careful not to let
the talks become a blame game, which could further roil the fragile
markets.


      A thorny issue was whether all nations should pledge to enact
government spending plans to stimulate their economies. It appeared
likely the leaders would endorse the benefits of that approach, but
stop short of a commitment for all participants to act at the same
time.


      To help prevent future crises, Bush and his counterparts
prepared to endorse a plan for more openness in financial markets
and an early warning system for problems such as the speculation
frenzy that fed the U.S. housing bubble.


      "I am pleased that we are discussing a way forward to make sure
that such a crisis is unlikely to occur again," Bush said as
discussed got under way. "Obviously, you know, this crisis has not
ended. There's some progress being made, but there's still a lot
more work to be done."


      German Chancellor Angela Merkel told reporters that the leaders
will achieve consensus on a plan "that includes almost 50 actions
that have to be implemented by the end of March." She added,
"There shall be no blind spots," she said. "I believe there is
here a great common will to ensure that such a crisis is not
repeated."


      The plan would include measures aimed at making the global
financial system more accountable to investors and more transparent
to regulators, diplomatic officials said.


      It would improve international monitoring of markets and bolster
rules governing how companies value their assets, a current
weakness seen as partly responsible for the financial crisis at
hand. The officials spoke on condition of anonymity because leaders
had yet to agree on their final statement.


      While the emerging plan would boost oversight of fragile
financial markets, it would fall short of the sweeping set of tough
new regulations some Europeans want.


      "These are difficult talks," British Prime Minister Gordon
Brown said. "I think it's obviously important to move people to
decisions ... about what can be done." Brown has taken a lead in
pushing for a global coordination of county-by-country economic aid
plans.


      The Bush administration, however, has reacted coolly to a second
U.S. aid plan and opposes a bailout of the teetering U.S. auto
industry. Democrats are pushing for aid to Detroit automakers amid
reports that the biggest one, General Motors Corp., could be forced
into bankruptcy by the end of next month.


      A follow-up summit is envisioned for the spring, after Barack
Obama becomes president.


      A new "college of supervisors" of financial regulators from
many nations was among the ideas expected in the leaders' final
statement after the summit ended late Saturday.


      The leaders of major industrialized powers, including Britain,
Germany, France and Japan, were at the summit, as were the heads of
developing countries such as China, India and Brazil. The World
Bank president, Robert Zoellick, is among the international finance
leaders who welcomed the more inclusive mix of countries - beyond
the top wealthiest nations. That's where many of the problems first
cropped up and then spread, affecting developing countries among
others. "This crisis is not of their making," he said.


      Echoing that, Brazil's president, Luiz Inacio Lula da Silva,
said, "Emerging economies have to be taken into consideration in
today's globalized world."


      Japan's prime minister, Taro Aso, urged China and others to help
increase the International Monetary Fund's $250 billion bailout
pool for struggling nations hit by the crisis. Japan on Friday said
it was ready to put in as much as $100 billion.


      The crisis broke out in the United States around August of last
year. Mortgage investments soured with the housing market's
collapse and the fallout quickly spread to other countries. Banks
and other financial companies suffered huge losses and foreclosures
skyrocketed. The troubles crimped auto and student loans and locked
up lending for many consumers and businesses worldwide.


      Although Obama stayed away from the summit, he designated two
representatives - former Secretary of State Madeleine Albright and
former Republican Rep. Jim Leach of Iowa - to meet with leaders on
the sidelines.


      Besides the United States, the participants are: Argentina,
Australia, Brazil, Britain, Canada, China, France, Germany, India,
Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South
Africa, South Korea, Spain and Turkey. Other than Spain, those
countries - plus the European Union - make up the Group of 20
industrialized and developing economies, or G-20. The group
accounts for roughly 90 percent of the global gross domestic
product, which measures the value of goods and services produced
worldwide.

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Business and Economic News

World leaders edged closer to an agreement
Saturday that would flag risky investing and regulatory weak spots
as President George W. Bush welcomed the progress at an emergency
economic summit.


World leaders move toward tougher financial rules

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