Paulson Defends G-7 Communique

The Group of Seven issued a communique on the first day of their meetings in Washington, DC.  It promised to take “decisive action and use all available tools” without specifying what they are beyond supporting the Financial Stability Forum’s recommendations. (WSJ) In a press conference, Treasury Secretary Henry Paulson emphasized the importance of restoring interbank liquidity, deposit insurance, commercial paper, and illiquid mortgage assets.