U.S., Europe Warn of Further `Bad News;’ Strengthen Regulation

By Gonzalo Vina and Alison Fitzgerald

April 13 (Bloomberg) — Finance chiefs from the U.S. and Europe said the eight-month credit squeeze is still festering and urged banks to take steps to relieve it.

“The chain of bad news may not have come to an end,” Italian Finance Minister Tommaso Padoa-Schioppa said yesterday as the International Monetary Fund held its semi-annual meetings in Washington.

The collapse of the U.S. subprime-mortgage market led to a seizing up in capital markets and has triggered $245 billion in asset writedowns and losses since the start of 2007. Finance ministers and central bankers from the Group of Seven are trying to strengthen market regulation and want banks to speed disclosure of losses and improve the way they value assets.

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Technorati Tags: Alison Fitzgerald, Annual Meetings, Bad News, Banks, Bloomberg, Capital Markets, Collapse, Credit Squeeze, Disclosure, Europe News, Finance Chiefs, Finance Minister, Finance Ministers, International Monetary Fund, Losses, Subprime Mortgage Market, Tommaso Padoa Schioppa, Value Assets, Vina