Goldman Sachs’s O’Neill Sees Bank of BRICS Gathering Momentum

Leaders from the world’s biggest emerging markets are moving closer toward establishing a development bank of their own, according to Goldman Sachs Asset Management Chairman Jim O’Neill. The so-called BRICS nations of Brazil, Russia, India, China and South Africa have spent the year considering an Indian proposal for a multilateral bank that would be exclusively funded by those nations and finance projects in them.

While the Chinese have been “scratching their head” about whether to support it, they may decide to if rich nations continue to prove slow in backing a shift in voting power toward emerging economies at the International Monetary Fund, O’Neill told Tom Keene at the Bloomberg Link FX Summit in London yesterday.