While Treasury Secretary Tim Geithner was south of London over the weekend at a G-20 meeting to brace up global finance, things exploded back in the USA over news that bailout giant AIG was ready to ship nearly half a billion dollars out the door in fat bonuses — after raking in public billions to stay afloat.
It’s a minefield out there in the worlds of banking and finance, and the mines are not cleared yet. From global summits, to rage over Wall Street, to toxic assets and the bank next door, the race to repair and rethink is still on.
This hour, On Point: From the G-20 to AIG, the unfinished turmoil in global banking and finance.
You can join the conversation. Will America’s cowboy capitalism survive the global meltdown? Will European-style regulation let the economy come back? And what about those bonuses at AIG?
Chris Giles, economics editor of The Financial Times. He covered the meeting of G-20 finance ministers at Horsham, England, this weekend.
Kenneth Rogoff, professor of economics and public policy at Harvard University. He was chief economist and director of research at the International Monetary Fund from 2001 to 2003.
Eswar Prasad, senior professor of trade policy at Cornell University and former head of the China Division and the Financial Studies Division at the International Monetary Fund. He is also a senior fellow at the Brookings Institution and a research associate at the National Bureau of Economic Research. He wrote recently for Brookings about the G-20 stimulus plans.