UPDATE 1-US Treasury: G20 must coordinate financial reforms

(Adds comments on leverage ratios)

BALTIMORE, May 27 (BestGrowthStock) – A top priority for the Group
of 20 major economies is making sure global financial
regulations, including limits on bank leverage, are “well
harmonized,” Deputy U.S. Treasury Secretary Neal Wolin said on
Thursday, adding that he saw progress in this area.

“I think there is a good deal of convergence globally on
the basic objectives and ways to achieve these objectives,”
Wolin told a broker-dealer regulatory conference here.

He said that the United States has been advocating
substantially higher capital standards worldwide, and much work
is being done on that point at the G20 level.

“Leverage is something that absolutely needs to be
addressed by the regulators. It needs to be done here in the
United States but also in the context of an international
framework,” Wolin said at the Financial Industry Regulatory
Authority conference.

Some countries have shown reluctance to adopt specific
leverage caps and a key test will be whether a new package of
Basel III reforms will be adopted at a G20 summit in November.
Banks are lobbying hard to delay introduction of the new
regulations.

The G20 finance ministers and central bank governors are
expected to take up discussions on bank capital and other
financial reforms at a meeting in Busan, South Korea, on June
4-5.

As the G20 and the Basel Committee on Banking Supervision
work through these issues, Wolin added: “We want to make sure
we get this right at the core — to make sure there are thicker
cushions, more capital, higher quality capital, but also
attention paid to defining leverage ratios that would also be
an important piece of the regime.”

Investment Basics

(Reporting by Joseph Giannone, writing by David Lawder;
Editing by Padraic Cassidy)

UPDATE 1-US Treasury: G20 must coordinate financial reforms