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Obama News Conference at Conclusion of G-20 Summit

And we also agreed on bold action to support developing countries, so that we aren’t faced with declining markets that the global economy depends on. Together, the G20 is tripling the IMF’s lending capacity and promoting lending by multilateral development banks to increase the purchasing power and expand markets in every country.

We’ve also rejected the protectionism that could deepen this crisis. History tells us that turning inward can help turn a downturn into a depression. And this cooperation between the world’s leading economies signals our support for open markets, as does our multilateral commitment to trade finance that will grow our exports and create new jobs.

That’s all on the growth front.

And next we made enormous strides in committing ourselves to comprehensive reform of a failed regulatory system. And together, I believe that we must put an end to the bubble-and-bust economy that has stood in the way of sustained growth and enabled abusive risk-taking that endangers our prosperity.

At home, back in the States, our efforts began with the approach that Secretary Geithner proposed last week, the strongest regulatory reforms any nation has contemplated so far to prevent the massive failure of responsibility that we have already seen. Today, these principles have informed and enabled the coordinated action that we will take with our G20 partners.

To prevent future crises, we agreed to increased transparency and capital protections for financial institutions. We’re extending supervision to all systemically important institutions, markets and products, including hedge funds. We’ll identify jurisdictions that fail to cooperate, including tax havens, and take action to defend our financial system. We will reestablish the Financial Stability Forum with a stronger mandate. And we will reform and expand the IMF and World Bank so they are more efficient, effective and representative.

Finally, we are protecting those who don’t always have a voice at the G20, but who have suffered greatly in this crisis. And the United States is ready to lead in this endeavor. In the coming days, I intend to work with Congress to provide $448 million in immediate assistance to vulnerable populations — from Africa to Latin America — and to double support for food safety to over $1 billion so that we are giving people the tools they need to lift themselves out of poverty. We will also support the United Nations and World Bank as they coordinate the rapid assistance necessary to prevent humanitarian catastrophe.

I have to say, though, that this is not just charity. These are all future markets for all countries, and future drivers of world economic growth.


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