G-20 pumps $1 trillion into beating recession

LONDON, England (CNN) -- Leaders attending the G-20 summit in London Thursday laid out a raft of measures they said would shorten recession and save jobs.

Gordon Brown outlines the measures agreed at the G-20 summit in London.

UK Prime Minister Gordon Brown said an additional $1 trillion was agreed -- most of it going to the International Monetary Fund.

He said: "We have reached a new consensus we tackle global action together. We will do what is necessary to restore growth and jobs."

There had been concerns that a rift was opening up between the approach being championed by the U.S. and Britain and that favored by France and Germany.

Brown, who chaired the summit, said at the closing news conference: "There's no quick fixes but we can shorten the recession and save jobs ... and prevent a crisis such as this ever happening again.

The U.S. and Britain wanted countries to agree to more economic stimulus ahead of new rules for the banking system.

France and Germany wanted the rules first -- and tougher ones than initially suggested -- and remained resistant to pumping more money into their economies.

Brown said the final deal included agreement on tighter regulation of hedge funds, tax havens and the banking system.

"The banking secrecy of the past must come to an end," said Brown. "We are engaging in a deep process of restructuring our financial system for the future."

The leaders of France and Germany, Nicolas Sarkozy and Angela Merkel, declared the day before the summit that tighter regulation of hedge funds and tax havens was a "non-negotiable" goal of the summit.

As the G-20 deal was finalized, leaders said they wanted to find ways to stabilize financial markets throughout the world and pull the world out of a deepening recession.

Fact Box

This week's London Summit brings together the leaders of the world's 20 largest economic powers, known as the Group of 20, to discuss the global financial crisis and decide new measures to set the world on a more stable economic footing.

They sat at the table Thursday for their first session with several targets in their sights, including tax havens and protectionism.

European Commission President Jose Manuel Barroso backed up calls for a firm stand on tax havens.

"We have to be clear that those that want to keep shadow banking systems that are kind of underground (with) clandestine finances have to suffer sanctions, because it's once again a problem of confidence," Barroso said.

"We are for open economies and open markets, but open economies and open markets have to respect some rules." Watch, is the recession global »

Britain pushed for the same regulation of banks and financial institutions that operate in a "shadow banking world," Mandelson said. He said an international body should oversee the regulation.