Obama keeps distance from G20 financial summit

Fears that the global financial turmoil could lead to a deep global recession have prompted French President Nicolas Sarkozy and British Prime Minister Gordon Brown to call for a new version of the 1944 Bretton Woods conference.

The New Hampshire gathering, held in the wake of the Second World War, led to the creation of the International Monetary Fund and the World Bank, and set the foundation for the modern financial structure.

This weekend's G20 gathering is not expected to be anywhere near as sweeping. But analysts said it could be the beginning of a process that will lead to urgently needed changes in the fraying world financial system.

With Bush lacking clout and Obama absent, hopes have dwindled for big strides at the meeting.

Obama strongly favors close international cooperation on overhauling the financial system, a view he espoused long before markets began melting down in mid-September.

Some foreign leaders had hoped for a chance to meet with him during their visit to the U.S. capital.

While Obama adviser Gibbs said the president-elect will not sit down with leaders on the sidelines of the summit, he did not rule out the possibility that some of Obama's advisers might meet with visiting officials.

Several Obama advisers, including former Treasury Secretary Lawrence Summers and former Federal Reserve Chairman Paul Volcker, have relationships with many foreign officials that go back years.

(Additional reporting by Deborah Charles, editing by Jackie Frank)