Editorial: A symbol for the G-20

The leaders of the G-20 nations meet today in Pittsburgh (yes, Pittsburgh) amid international skepticism that the gathering can achieve lasting solutions to the financial turmoil.

When the world leaders met in London last April, they were focused on rescuing the global economy from collapse. They agreed to pump $1 trillion into markets to promote growth and save jobs, which seems to have prevented the crisis from getting worse.

The question now is how to prevent another economic meltdown. In his radio address last week, President Obama said the group should fix gaps in regulation that enabled Wall Street and other masters of the universe to engage in reckless risk-taking.

Obama is right, but already there are signs that he's backing off a regulatory crackdown. The administration no longer is fighting for a merger of the Securities and Exchange Commission with the Commodity Futures Trading Commission, which could have brought more effective oversight of the shadowy deals that contributed to the financial implosion.

Bankers' bonuses, too, should be addressed. Too many investment bankers were rewarded for taking big risks that failed spectacularly. And despite a lot of tough talk, investment houses are returning to their high-flying bonus ways - even at firms that received government bailouts. The European Union has agreed that the G-20 should adopt binding rules on executive bonuses.

The United States is expected to push for rules that would boost banks' capital reserves, to ensure they have more of a cushion to weather another crisis. That's a worthy idea, provided that it can be accomplished without causing banks to further restrict lending. Two years ago, lenders were too loose with credit; now, they are making it too difficult even for responsible borrowers to get loans.

Why debate these weighty matters in Pittsburgh? Even the city's leading newspaper asked that. A prime minister or a king might not care that the Steelers and Penguins are reigning world champs, or that pierogies are a delicious treat.

But the host city does have plenty to showcase. Despite ongoing challenges, Pittsburgh has succeeded in remaking its economy.

Thirty years ago, the steel mills upon which the city relied for so long were dying. Thousands of jobs disappeared. Today, Pittsburgh has a diversified economy, a vibrant downtown, and a focus on green jobs. The biotech and health-care industries have helped keep its unemployment rate below the national average.

Pittsburgh still has problems common to many cities, including population loss and shaky municipal finances. But as the host for a summit on economic recovery, Philadelphia's cousin is an appropriate choice.