G-20 Statement: It Worked.
The G-20 Leaders' Statement is out (opens .pdf). My favorite part is lines 4-5 of the preamble (presented below in their entirety):
4. At that time, our countries agreed to do everything necessary to ensure recovery, to repair our financial systems and to maintain the global flow of capital.
5. It worked.
Indeed. So far, at least. I want to give the statement its full due, so I'll tackle it this weekend. But here are a few quick thoughts, based on what I've read so far:
- As I anticipated, the framework they've put in place has no enforcement structure. So it will probably amount to a lot of talk and little action.
- I forgot how long it takes groups like this to get anything done. They've agreed to agree on new capital requirements by the end of 2010, to be implemented by the end of 2012. So no interesting news there.
- They endorsed (whatever that means) standards for financial compensation guidelines. That includes avoiding multi-year guaranteed bonuses, deferred variable compensation and clawbacks. Somewhere Goldman Sachs CEO Lloyd Blankfein thinks he's hearing an echo.
If there's anything else worth noting, I'll do so on Monday after I've had more time to dig in.