U.N. urges more protection amid financial crisis

UNITED NATIONS (Reuters) - U.N. Secretary-General Ban Ki-moon said on Monday that more needed to be done to protect ordinary people from the impact of the global financial crisis and criticized the "ad hoc" way in which governments had tackled the economic turmoil.

Actions taken by world financial leaders over the weekend were "laudable" but insufficient, Ban said in a statement.

"More coordinated approaches, including direct intervention by governments of the major economies, are necessary to recapitalize the banking system and guarantee the savings of ordinary people," he said.

He called for "deep and systemic reforms based on an inclusive multilateralism for a global financial system that can better meet the challenges of the 21st century."

"The ad hoc manner in which governments have had to respond to the management of this crisis is reflective of serious lacunae (gaps) in the current world financial system," Ban said.

Officials attending Group of Seven, International Monetary Fund and World Bank meetings in Washington at the weekend endorsed an action plan by major economies to chart a course out of the crisis, which began in the U.S. housing market.

Britain, Germany, France and other European countries have pledged more than $1.36 trillion for bank guarantees and equity stakes, and U.S. officials said they were finalizing a similar plan. Markets rebounded as a result.

But Ban said he remained deeply concerned about the impact of the crisis on poor countries.

Initiatives by the World Bank and the IMF to provide new emergency liquidity to those countries could help them counteract some of the consequences, "but more needs to be done," the U.N. chief said.  Continued...