Morning Brief: Regulation time

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European Union leaders met in Berlin on Sunday to discuss a common strategy for addressing the financial crisis. The leaders backed a series of sweeping regulations of financial markets and hedge funds. In a statement on behalf of the other members, German Chancellor Angela Merkel promised greater oversight of all financial instruments “which may pose a systematic risk.” The leaders also promised to double the funding of the International Monetary Fund.

In a newspaper op-ed promising new banking regulations, struggling British Prime Minister Gordon Brown said that while he understands consumers’ anger, “anger on its own does not offer us a solution. Instead, Britain needs to lead the world in reforming and restructuring our banking system.”

On the other sides of the pond, the Obama administration will begin to review the status of the country’s top banks in a series of “stress tests” designed to determine their long-term viability. The review comes as reports emerged that the government is in talks to take a greater stake — as much 40 percent — in ailing financial giant Citibank.

Obama is planning an address to Congress on Tuesday in which he hopes to explain how recent legislative actions will eventually resolve the crisis.

Middle East

Isreali Prime Minister Ehud Olmert fired his lead Gaza negotiator.

A French tourist was killed by a bombing at a popular outdoor market in Cairo.

Al Qaeda’s Ayman al-Zawahiri released a tape urging Islamist militants in Yemen, Afghanistan, Somalia, and Palestine to continue fighting.

Asia

Sri Lanka’s Tamil Tiger rebels indicated they may be willing to accept a ceasefire.

While visiting China, U.S. Secretary of State Hillary Clinton described both countries’ economic fates as intertwined.

The Pakistani Taliban says it will have to review and already agreed-upon truce with government forces in the Swat Valley.

Americas

Companies owned by accused billionaire con artist Allen Stanford were seized in Antigua.

U.S. Republican governors were sharply divided over how to respond to the economic crisis during an annual meeting.

Venezuela’s Hugo Chavez made a surprise visit to Cuba where he met with both Castro brothers.

Europe

British citizen Binyam Mohammed, who claims to have been abused during his imprisonment, will be released from Guantanamo.

Greece’s law-enforcement officials were embarrassed after a pair of criminals escaped from a maximum-security prison for the second time.

The main office of the Basque socialist party was bombed, likely by separatist group ETA.

Africa

Madagascar’s president and his political rival reached an agreement to try to resolve the country’s political turmoil.

DR Congo is launching a new round of strikes against Rwandan rebels in its eastern provinces.

During a meeting in Cairo, Egyptian president Hosni Mubarak expressed his support for possibly soon to be indicted Sudanese leader Omar al-Bashir.

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