French President Nicolas Sarkozy has demanded that those responsible for the financial disaster be punished, making him to be the first world leader demanding accountability, while cautioning his counterparts to be aware of the gravity of the global financial situation.

Speaking at the dinner of the Elie Wiesel Foundation's function, where he was bestowed the 'Humanitarian Award' Sarkozy told the over 800 guests, including French and American business leaders, ''Today millions of people around the world are fearful of losing their nest eggs, their apartments, their savings in banks.''

He added that "We must provide them with clear answers. Who is responsible for this disaster? That those responsible will be held accountable and punished and that we government leaders will assume our responsibilities," giving a clear indication that the US government should take action against those who brought the world financial market to its knees.

"If we don't speak clearly, we won't create a stable world, maybe the most helpful thing that could be done today is if world leaders accepted the seriousness of the situation and spoke frankly on these topics about which one should not compromise," said Sarkozy.

Sarkozy is in the US to attend the UN meet and on Thursday he will be addressing world leaders on the economy with greater stress on the current market crisis as well as give broad outlines of the 2009 draft budget which will be revealed on Friday.

He also had a meeting with the president of the US Federal Reserve Bank of New York, Tim Geithner, who appraised him on Treasury Secretary Henry Paulson's $700 billion financial rescue plan which requires the US congress approval.

The bailout plan has also come into severe criticism from some financial experts who opine that it was highly unfair for taxpayers to bear the brunt and not the bankers who have created this crisis.

Some economist are horrified at the idea of bailing out private financial institutions with public money whereas the Wall Street banker taking home a eight-figure salary will go scot free.

Some are also critical of Treasury Secretary, Henry Paulson, who was a product of Wall Street, is demanding a blank cheque of $700 billion be put in his hands to bail out the very industry he was in earlier. He has also said that there would be no punitive action on anybody, which itself is a huge joke.

Paulson was chairman and chief executive officer of investment banking mogul Goldman Sachs from 1999 until President Bush nominated him on 30 May 2006 to take over the treasury department.

Many are asking whether Henry Paulson, who comes with enormous potential conflicts of interest, is the right person to seek virtually unregulated authority to administer the largest bailout of the financial industry in US history.

Paulson said he doesn't want a rescue to be punitive. "Why should the plan not be punitive?" asked Dean Baker, co-director of the Centre for Economic Policy Research in Washington. "The whole point is that these guys got themselves in a huge mess. You don't just hand them more money. We have an interest in keeping these firms in operation, but we have zero interest in helping their shareholders."

Others argue that the losses the firms will take on as loans they sell to the government will be sufficient punishment.