Gordon Brown and George Bush are to set up a UK-US working group which will develop proposals to monitor and regulate banks with cross-border interests according to the Financial Times.
The move comes after Chancellor Alistair Darling and his US equivalent Hank Paulson agreed plans to form a body of senior Treasury and regulatory figures from London and Washington to supervise international banks and financial institutions.
Darling believes national regulators are unable to fully understand the activities of global financial institutions and has suggested a “college” of supervisers which will individually tailor regulation to specific firms. He will push this idea at the G7 meeting on April 7.
The UK-US working group will seek to find a mutually beneficial response to the credit crunch as well as generally boosting the regulatory cooperation between the two countries. It will also investigate the role of credit rating agencies which has been highly critisised.