Civil Society Groups Urge President Obama to Press for Greater Financial Regulation
September 21st, 2009
The Missionary Oblates joined with over 50 organizations representing some eight million Americans in sending a letter to President Obama urging him to advocate for strong regulation needed to prevent future financial crises.
The heads of the 20 leading economies will meet in Pittsburgh, Pennsylvania from September 24-25 to discuss the global financial crisis and regulatory reform. It “will be the next critical test of whether the United States can inspire the governments of the other major economies to join together to begin the vital work of creating a global economy that delivers a future of widely shared economic prosperity and security at home and abroad,” according to the labor, consumer and faith groups that signed onto the letter. The groups are working to reform and restore oversight, accountability, and transparency to the nation’s financial system.
The letter calls on President Obama and the G-20 to establish “a global regulatory floor for hedge funds, private equity funds, derivatives and off balance sheet activity.”
The groups also urged the president “to lead an effort to ensure international agencies are pursuing policies that support global economic recovery.” The letter notes that the International Monetary Fund (IMF) and World Trade Organization (WTO) impose de-regulatory requirements that impede nations’ ability to reign in “too big to fail” financial service providers and prevent destabilizing capital flight.