The White House has released a joint letter from the past, current and future chairs of the G20 Leaders' Summits to their G20 colleagues imploring them to continue their efforts to implement regulatory reform to strengthen the international financial system. "We all have a mutual responsibility to deliver on all our commitments to address the weaknesses that led to the financial crisis. This will require that we maintain our vigilance to address the required reforms and guard against complacency as our economies recover." The Leaders did note a recovery in the global economy, but cautioned that the "nascent recovery ... remains fragile." The letter sets forth the Leaders' objectives to return to sustained growth and job creation through global cooperation, to reform and strengthen international financial institutions, to reduce barriers to free trade, and to improve global access to clean energy sources. The Leaders concluded the letter by outlining their commitment to:
- the adoption of the Basel II framework by all major financial institutions by 2011;
- the trading of standardized over-the-counter derivatives contracts on exchanges or electronic platforms with central clearing by 2012;
- the implementation of internationally-agreed compensation standards as established by the Financial Stability Board;
- the creation of a framework to address cross-border resolutions; and
- the implementation of peer reviews of adherence to such international standards.
Finally, the letter called on the G20 to not only reach an agreement on global reform, but to act on such agreement.