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G20 leaders unveil blueprint to tackle global -

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Reporter: Peter Ryan

TANYA NOLAN: World leaders are calling it 'historic' and a 'turning point' on the road to economic
recovery.

The G20 summit in London has ended with a regulatory blueprint, designed to derail the worst
financial crisis since the Great Depression.

The plan imposes strict new limits on banking practices, hedge funds, credit rating firms and
executive pay. But it stops short of imposing a global super regulator on the financial system.

Central to the plan is agreement to triple the resources available to the International Monetary
Fund which in turn will help troubled economies.

But questions remain about how the framework will be implemented and whether it will succeed in
leading the way out of a global recession.

Here's business editor Peter Ryan.

(Sound of camera snapping)

PETER RYAN: Today's team photograph of G20 leaders was much more than the usual show of diplomatic
unity for the media.

This time in the face of deep recession world leaders effectively rewrote the rules of capitalism -
a prospect unthinkable a year ago.

US President Barack Obama summed up the fresh commitment of an integrated world economy in chaos
and a financial system on the brink of catastrophe.

BARACK OBAMA: You know at home I've often spoken about a new era of responsibility and I believe
that this era must not end at our borders.

In a world that is more and more interconnected we all have responsibilities to work together to
solve common challenges. And although it will take time I am confident that we will rebuild global
prosperity if we act with a common sense of purpose, persistence and the optimism that the moment
demands.

PETER RYAN: The G20 host British Prime Minister Gordon Brown described today's historic blueprint
as 'a new world order'.

GORDON BROWN: This is the day that the world came together to fight back against a global recession
- not with words but with a plan for global recovery and for reform and with a clear timetable for
its delivery.

PETER RYAN: Mr Brown went further, signalling that the traditional industrial power of the United
States had been weakened given its responsibility as the genesis of the global financial crisis.

GORDON BROWN: The old Washington consensus is over. Today we have reached a new consensus that we
take global action together to deal with the problems we face, that we will do what is necessary to
restore growth in jobs, that we will take essential action to rebuild confidence and trust in our
financial system and to prevent a crisis such as this ever happening again.

PETER RYAN: But dealing with a titanic challenge less than three months into his presidency, Barack
Obama was not about to surrender America's leadership status.

BARACK OBAMA: I do not buy into the notion that America can't lead in the world.

PETER RYAN: Responding to a question about the consequence of failure, President Obama spoke openly
about the scenario of a global depression.

JOURNALIST: Can you say with confidence that the steps the G20 nations are talking today,
committing to today, will prevent the world to avoid a depression or deeper recession?

BARACK OBAMA: In life there are no guarantees and in economics there are no guarantees. So there
are always risks involved.

I have no doubt though that the steps that have been taken are critical to preventing a sliding
into a depression.

PETER RYAN: To avoid that outcome, G20 leaders have agreed to a framework that will put stricter
limits on hedge funds, executive pay, credit ratings firms and risk taking by banks.

Hedge funds will need to be registered and will be required to disclose the potential risk they
pose to the financial system.

Credit rating firms such as Standard and Poor's and Moody's will be required to provide better
disclosure of their track records, clients, and importantly the assumptions that underpin the
ratings they provide.

Executive pay standards will be reviewed, given the outcry over bonuses paid to failed executives
particularly in the United States and Britain.

And banks which have been at the heart of the still unfolding crisis will be under greater
scrutiny.

Finally membership of the Financial Stability Board will be widened to include all G20 countries,
the European Commission and also Spain and the board will be given a broader role in the global
oversight of regulatory bodies.

KEVIN RUDD: Today's agreement begins to crack down on the sort of cowboys in global financial
markets that have brought global markets undone.

PETER RYAN: Australia's Prime Minister Kevin Rudd has welcomed the global unity. He was part of the
successful push to triple the funding of the International Monetary Fund.

KEVIN RUDD: In a worst case scenario the International Monetary Fund is the thin blue line between
failing national economies and global financial chaos and the key has been to make sure that the
IMF had the resources necessary to act; and what we've done today is to ensure that is the case.

PETER RYAN: Far away from London the reaction has been positive. Economist Fred Bergsten from the
Peterson Institute in New York is one of the cheerleaders.

FRED BERGSTON: And this is the biggest economic expansion program that has ever been worked out on
a global basis.

PETER RYAN: Share markets around the world rallied on the potential breakthrough. In London the
FT100 closed more than four per cent stronger while markets in France and Germany were up five and
six per cent respectively.

In New York when the news hit, the Dow Jones Industrial Average exceeded the psychological 8,000
point level for the first time since February.

FRED BERGSTON: When you get all the world leaders together to discuss about our global economic
problem and there's good constructive comments that come out of it, it's clearly going to have a
positive reaction to our market.

PETER RYAN: The Australian market also jumped in early trade, though not as much as the US and
Europe - up 1.7 per cent.

Banks were stronger across the board with investors cautiously optimistic that the G20 blueprint
could restore confidence to shattered financial markets.

TANYA NOLAN: Business editor Peter Ryan.