Speaking today at the G20 London Summit, UK Chancellor Alistair Darling told FX&MM editor, Drew Hillier, that talks aimed at redrawing plans for a system of global banking regulation had been “pretty constructive so far.”

In answer to the recent sabre rattling coming from the French and Germans of areas which they would ring-fence in terms of regulation of the financial system which they would hold out for as integral to any deal, Mr Darling said: “I don’t think there’s ever been as much difference as sometimes made out between the positions taken by Germany and France, the UK and the United States. We’ve all been setting out legitimate concerns; all of us have moved in our different ways quite a lot. We believe the regulatory and supervision system needs to be more extensive - so it needs to include hedge funds. Also we’ve been calling for some time for the registration of credit ratings agencies, which I think will happen too. Generally, the system needs to be tightened up and be more intrusive. It needs to ask more searching questions. I think there’s universal agreement we’ve got to learn from what’s happened over the past period. We cannot allow this situation to happen again. It doesn’t matter which side of the Atlantic you’re on – or which side of the world you represent – what is clear is that we have to have a global system.”

As to whether this applied to the shutting down of tax havens, Mr Darling was adamant: “I think it’s interesting that even in the last three weeks, when the finance ministers met here, there have been a number of countries coming forward who for years have been sheltering their tax affairs but who are now saying, ok, we’re ready to sign up to international agreements," he said, adding: "That’s been discussed at the moment, I believe we will make progress with this matter because all of us know that at this time, especially, it is grossly unfair that a minority of countries are able to hide their affairs away.”