Brady Rejects International Bank Insurance Proposal
Treasury Secretary Nicholas F. Brady today spurned a proposal from a top bank regulator to create a new international insurance fund that would partially protect banks against defaults by Third World debtors.
“We don’t think that is necessary at this point in time,” Brady said in a briefing with reporters before his departure this week for an economic summit meeting in Paris.
Brady did not completely rule out the idea, offered by Federal Deposit Insurance Corp. Chairman L. William Seidman, saying, “We do want to have a look at its details.” But, he said, the Group of Seven, the world’s seven largest industrial powers, including the United States, had previously rejected the creation of a new international organization to deal with the intractable debt problem.
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