Geithner pushes for more money for IMF lending

By CHRISTOPHER S. RUGABER - AP Economics Writer

Saturday, Apr. 25, 2009

WASHINGTON --

As protesters clashed with police on Washington's streets, Treasury Secretary Timothy Geithner urged world finance officials meeting near the White House on Saturday to ante up more to help countries wrung by the recession.

Geithner said major progress toward bolstering the International Monetary Fund "must be an important outcome of these meetings. The international community should act quickly."

More than 100 demonstrators angered by how world leaders have handled the economic crisis took on police outside the headquarters of the IMF and World Bank, which are holding their spring meetings this weekend.

Authorities used batons and pepper spray when activists tried to march onto a prohibited street, and several people were pushed to the ground by police. The protesters swarmed officers unexpectedly, and police had to respond, said D.C. police Capt. Jeffrey Harold.

In early April, leaders from the Group of 20 developed and emerging nations pledged to provide $1.1 trillion in new resources to international lending institutions, including $500 billion for the IMF. President Barack Obama is seeking congressional approval for up to $100 billion, matching commitments for the same amount made by Japan and the European Union. But the full $500 billion hasn't yet been pledged.

The additional money could aid countries in Latin America, Eastern Europe and elsewhere that are reeling from sharp drops in exports and foreign investment. Such countries increasingly are relying on IMF lending to make up for the lost funds.

But divides emerged this weekend over how to provide the extra money. Emerging economic powers such as China, Russia, Brazil and India are insisting that the United States, France, Britain and other old-line powers listen to their ideas on different funding approaches.

They want the IMF to consider issuing bonds as a way to raise the support. The countries would buy the IMF bonds rather than extending the support in loans.

The debate is tied up in demands the emerging economies are making for a greater say at the IMF - at the expense of the current power structure that favors the U.S. and Europe.

Bonds would be a temporary way to provide the IMF with extra resources "without undermining the reform process," said Brazil's finance minister, Guido Mantega.

The IMF has never issued bonds before, although the idea was explored in the 1980s. Both the bonds and loans would require the IMF to pay interest.

Outside the meetings, held a few blocks from 1600 Pennsylvania Ave., a 22-year-old man accused of using pepper spray on an officer during the scuffle was arrested. Before the demonstrations began, police arrested six people and accused them of vandalizing two banks, an incident that authorities think was linked to the protests.

Protesters claimed police responded without warning.

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Associated Press writers Martin Crutsinger, Harry Dunphy and Nafeesa Syeed contributed to this report.

Vandalism Arrests Amid IMF and World Bank Meetings

Protesters March, Clash With Police; Larger Rally Planned for Sunday

By Michael Alison Chandler, Aaron C. Davis And Hamil R. Harris

Washington Post Staff Writers

Saturday, April 25, 2009; 5:33 PM

Six people were arrested early this morning for smashing the windows of banks near Logan Circle, and a seventh was arrested a few hours later when nearly 200 protesters clashed with police near the site of the International Monetary Fund and World Bank's spring meetings in Washington, D.C. police said.

A two-hour march ended near the IMF headquarters, where police used pepper spray to disperse the crowd. One protester was taken to a hospital with a splint on his leg. Dozens of others, and one police officer, were treated at the scene for burning skin and eyes. A 22-year-old demonstrator was arrested for kicking a police officer who had fallen from his bicycle, police said.

Police said they think the vandalism at the banks -- a PNC branch and a Wachovia branch -- was associated with the protests later in the day, though several demonstrators denied involvement. Some of the six suspects were from out of town, police said.

"We believe that they are linked," said Cmdr. James Crane, head of the department's Special Operations Division. "It's a logical conclusion."

Security cameras at the banks and at an adjoining building captured images of about 15 people dressed in black racing down the sidewalk in the 1400 block of P Street NW around 5:20 a.m., according to residents who saw some of the screenshots.

The group threw bricks through the windows in rapid succession. A few splashed red paint on the outside of the bank, spilling it on the sidewalk. They painted the initials IMF and IB on the walls, each in a circle with a slash through it.

Robert Scanlan, who lives above the PNC branch, peered out his bedroom window and saw a mob of about 15 people dressed in black, sprinting along the sidewalk below. When he left for work later, he realized the group had smashed every panel of the bank's 100-foot-long lass facade.

"It was just horrible," Scanlan said. "I can understand they may have their beliefs about things, but this is way beyond... it won't get them anywhere."

An off-duty D.C. police officer working security at a nearby drug store arrested two of the suspects. Other officers arrested another four as they fled the area.

Scanlan said detectives told him those arrested were mostly teens or in their 20s. Some were still wearing some black clothing, and had red paint on their shoes. One teenage girl had red paint still on her nose, Scanlan said.

Residents said they were told by police that the suspects had come from Baltimore and had used hammers and bricks to vandalize the banks.

They were charged with felony counts of destruction of property and rioting, a charge that police said they brought because the group was larger than five people.