WASHINGTON — World leaders meeting in Washington agreed to put in place the foundations of a new global structure to oversee the banking system after one of the worst financial crises of the century brought global economic growth shuddering to a halt.

The leaders agreed an “action plan” and sixteen principles for reform, creating working groups that have 100 days to develop detailed proposals before a second summit of G20 leaders is convened.

French President Nicolas Sarkozy called the agreement “historic,” praising the contribution of fellow leaders and underscoring the importance of having secured the imprimatur of both the outgoing Republican administration and incoming Democratic White House team.

A 16-point communique identified “comon principles for reform” and promised timely implementation that would “strengthen…regulatory regimes so as to avoid future crises.”

The joint statement said there would be “intensified international cooperation among regulators and strengthening of international standards..

The leaders agreed that financial institutions must “bear their responsibility for the turmoil” and to create a new network of global oversight that would include an expanded Financial Stability Forum, which will have a new larger membership that includes central bankers and regulators from fast-growing economies like China and Brazil.

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Note:  5:49 pm and I was gone for the day until I saw this.  First reaction — I do NOT agree with this decision simply because I don’t want Canada’s banking system opened up to the influence of third world countries.  Look to the UN to see how well that works.

Gone again.

Goodnight.

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