The communiqué released today by finance ministers ahead of the G-20 summit papered over the profound divide among officials over what to do with the EU crisis.  But, even as the G-20 ministers discussed market events, they concluded action on an array of pending regulatory initiatives, largely rejecting industry pleas for modification and/or delay.  This report analyzes these conclusions, which mean that the G-20 heads of state will in early November endorse contentious standards like the G-SIB surcharge.  Although not part of the official communiqué, the meeting has also decided to expand the list of G-SIBs and will publish it early next month, a move that raises near-term risks for likely targets of a tough new capital requirement (see Client Report CAPITAL178).  However, in a departure from past sessions, the ministers were more emphatic that resolution standards should extend beyond banks to other financial institutions, building on the U.S. demand that, as required by Dodd-Frank, systemic rules not be a bank-only framework.

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