Reply #3: It's what was agreed to by the G-20 [View All]

Sept. 25 (Bloomberg) -- Group of 20 leaders said they will crack down on banker pay and better align economic policies as they turned from crisis management to delivering a new set of rules for the world economy.

President Barack Obama and counterparts meeting in Pittsburgh crafted a plan to force banks to tie bonuses to risk and raise the amount of capital they hold, officials said, citing a draft of a statement. They pledged to maintain stimulus measures until growth takes hold and to narrow disparities in trade and savings. They also announced the G-20 will replace the G-8 as the main forum for steering the global economy.

Leaders want to temper the excesses that helped trigger the worst financial crisis in seven decades and the deepest recession since World War II. At the same time, richer governments acknowledge they lack the sway to govern the world economy alone as power shifts to emerging markets such as China.