Germany says U.S. to lose financial superpower status 2008-09-26 01:29:37   Print

    BERLIN, Sept. 25 (Xinhua) -- German Finance Minister Peer Steinbrueck said on Thursday that the United States will lose its financial superpower status due to the financial crisis and called for more internationally coordinated regulations to prevent future crises.

    In a speech on the current financial crisis to German lawmakers, Steinbrueck said the serious global financial crisis will leave "deep scars" and will fundamentally transform the global financial system.

    "The world will not be the same as before the crisis ... One thing seems probable to me: The United States will lose its status as the superpower of the global financial system. The global financial system will become multipolar," said Steinbrueck.

    He predicted that state funds and banks from Asia, the Middle East as well as Europe with a universal banking model will play bigger role in the new global financial markets.

    The German finance minister also sharply criticized what he called "irresponsible overemphasis" of the "laissez-faire" principle of the Anglo-Saxon model, which he said was obsessed on returns.

    "The German banking system has proved to be relatively robust in international comparison," Steinbrueck said.

    With a view to the future, he noted that just to overcome the crisis and then return to business as usual would not be enough. "It's necessary to recivilize the financial markets and make best possible efforts to help prevent similar crises in the future."

    "For me the important answer is stronger, internationally coordinated regulation at the international level because the crisis goes beyond measures that can be taken by nation states, "Steinbrueck said.

    He proposed an eight-point plan to address the crisis, including larger capital reserve requirements for banks to offset credit risks, an international ban on purely speculative short-selling and strengthening market supervision in Europe.

Editor: Yan
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