Berlusconi Says Leaders May Close World's Markets
(Update1)
By Steve Scherer
Oct. 10 (Bloomberg) -- Italian Prime Minister Silvio
Berlusconi said political leaders are discussing
the idea of closing the world's financial markets while they
``rewrite the rules of international finance.''
``The idea of suspending the markets for the time it takes to
rewrite the rules is being discussed,'' Berlusconi said today after
a Cabinet meeting in Naples, Italy. A solution to the financial
crisis ``can't just be for one country, or even just for Europe,
but global.''
The Dow Jones Industrial Average fell as much 8.1 percent in
early trading and pared most of those losses after Berlusconi's
remarks. The Dow was down 0.5 percent to 8540.52 at 10:10 in New
York.
Group of Seven finance ministers and central bankers are meeting
in Washington today, and will stay in town for the International
Monetary Fund and World Bank meetings this weekend. European Union
leaders may gather in Paris on Oct. 12, three days before a
scheduled summit in Brussels, Berlusconi said today, while Group of
Eight leaders may hold a meeting on the crisis ``in coming days,''
he said.
Berlusconi didn't give any details about what kind of rules
leaders were looking to change, except to say that leaders are
``talking about a new Bretton
Woods.''
The Bretton Woods Agreements were adopted to rebuild the
international economic system after World War II in a hotel in
Bretton Woods, New Hampshire. The aim of the agreements was to
establish a monetary management system, initially by pegging
currencies to gold. The IMF was set up later to help manage the
international financial system.
To contact the reporter on this story: Steve
Scherer in Rome at [email protected]
Last Updated: October 10, 2008 10:15 EDT