By Caren Bohan
WASHINGTON, June 25 (Reuters) – The win President Barack Obama racked up on U.S. financial regulation reform on Friday will give him a boost at this weekend’s Group of 20 summit in Toronto but probably only a limited one.
In the shadow of the 2007-2009 financial crisis, the United States has often found its regulatory structure the target of fingerpointing by other G20 countries at recent summits.
The package agreed to by a joint House of Representatives and Senate negotiating panel would put new curbs on trading by banks, tighten bank capital rules and toughen regulation of derivatives.
When leaders of the world’s biggest economies get together on Saturday and Sunday, U.S. officials hope to show they are leading by example when it comes to cracking down on the risk-taking that helped set the stage for the crisis.
But Obama’s effort to showcase U.S. progress on the issue may get overshadowed to some degree by a debate over economic stimulus and deficit reduction that is set to take center stage at the summit.