World leaders announced that the G-20 will replace the G-8 as the main forum for coordinating global economic policy. Jeffrey Brown and Paul Solman report.
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One key outcome of the summit is that the Group of 20 will replace the G-8 as the permanent council on global economic cooperation, reflecting the larger role of countries like China, India and Brazil in the world economy.
The main focus of what's intended as new, broader economic cooperation was how to readjust global imbalances, how to prevent another financial crisis.
To that end, leaders agreed late today on proposals designed to revamp the global financial system, among them: issuing stronger rules on how much capital banks must hold to cushion against future losses to be rolled out by 2012; linking executive pay to long-term value creation, not excessive risk-taking — no bonus caps, however; reducing global imbalances; and creating a so-called peer review system under which countries, with assistance from the International Monetary Fund, would assess each others' policies on issues like national savings and spending.
Late this afternoon, President Obama held a press conference.
U.S. PRESIDENT BARACK OBAMA:
And here in Pittsburgh, we've taken several significant steps forward to secure our recovery in transition to strong, sustainable and balanced economic growth.
We brought the global economy back from the brink. We laid the groundwork today for long-term prosperity, as well.
Today, we took bold and concerted action to secure that prosperity and to forge a new framework for strong, sustainable and balanced growth.
Next year, summits will take place in Canada and Korea.
Our economics correspondent, Paul Solman, has been in Pittsburgh this week. I talked with him a short time ago.