World leaders try to reassure markets

World leaders tried to convince financial markets yesterday that Europe can move fast enough toward a major overhaul of its banking systems that could help fix its debt crisis and restore confidence in a faltering global recovery.

At a Group of 20 leaders summit, Europe signalled it was considering eurozone-wide integration of its banking sector, a major reform sought by the United States and other nations to break the cycle of highly indebted countries rescuing failing banks, which only pushes governments ever deeper into debt.

But the news that the G20 was readying a firm statement for restoring global growth and jobs, along with Europe’s pledge of action, brought little relief to investors.