US will lose global financial superpower status: German FM
London (PTI): German Finance Minister Peer Steinbruck onthursday said US will lose its status as a global financial superpower in the wake of the financial turmoil and called for a regulatory crackdown on the markets, a media report said.
"The US will lose its status as the superpower of the world financial system. This world will become multipolar with the emergence of stronger, better capitalised centres in Asia and Europe," the Financial Times reported quoting Steinbruck as saying to the German Parliament.
According to the report, Steinbruck launched a biting attack at the US government for resisting calls for stricter regulations of financial markets even after the subprime crisis erupted last summer, for which he said Washington was partly responsible.
However, Steinbruck praised the US crisis management, including the government's planned USD 700 billion rescue package for the financial sector. "Washington, he said, had earned credits for acting not just in the US interest but also in the interest of other nations," he was quoted as saying.
Yet, Steinbruck reiterated Germany's refusal to mount a similar rescue operation using taxpayers money to acquire toxic assets.
"This crisis originated in the US and is mainly hitting the US," he said. In Europe and Germany, such a package would be neither sensible nor necessary," the report noted.
He said crisis management alone would not rebuild the lost confidence and added, "we must civilise financial markets, and not just through moral appeals against excess and speculation. Self-regulation is no longer sufficient."