WASHINGTON (AP) - Finance officials from the world's top economic powers endorsed a plan Friday to stem the worst financial crisis in more than a half-century. The officials from the Group of Seven countries issued the five-point plan aimed at reversing a credit crisis that has unhinged Wall Street and markets around the globe. They pledged to take "decisive action and use all available tools."Under the plan, the countries vowed to protect major banks and to prevent their failure. They also committed to working to get credit flowing more freely again, support the efforts of banks to raise money from both public and private sources, bolster deposit insurance and revive the battered mortgage financing market.
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Besides the United States, the G7 countries are Japan, Germany, Britain, France, Italy and Canada.
Aside from the important details on bank stock purchases that Paulson offered, the finance officials did not provide specifics beyond their five-point action plan. The one-page joint statement from the G7 financial officials was rare in its brevity. The statements usually issued by the G7 run multiple pages.
By adopting a broad set of common goals, individual countries will have leeway to develop specific remedies that best suit their needs, Paulson explained. The United States and other G7 countries have unveiled a number of bold plans already aimed at shoring up banks, protecting bank depositors and thawing frozen credit.
As individual countries move forward on relief efforts, actions "should be taken in ways that protect taxpayers," the finance officials said. "Never has it been more essential to find collective solutions to ensure stable and efficient financial markets and restore the health of the world economy," Paulson said.