G7 Countries Present Coordinated Plan for Global Economic Crisis

Officials from the Group of Seven nations, meeting in Washington Friday, agreed on a list of guidelines for stabilizing ailing banks and financial markets.

The group, which in addition to the US consists of Britain, Canada, France, Germany, Italy and Japan, issued a five-point “plan of action” after Friday’s meeting.

In the plan, the G7 pledged to continue to work together to “stabilize financial markets and restore the flow of credit.” The group said member countries would “take decisive action” and use “all available tools” to prevent important financial institutions from going under.

The guidelines also included a commitment to ensure that national deposit insurance programs are strong and consistent, and a pledge to restart secondary markets for mortgages and other securitized assets where appropriate.

Additionally, the G7 said banks and other institutions would be able to get capital through public and private channels.

Following the meeting, U.S. Treasury Secretary Henry Paulson said the U.S. government is considering taking equity stakes in financial companies as part of its overall plan to stabilize the markets.

via TheStreet.com: G7 Offers Guidelines for Staving Off Crisis


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