Skip to comments.Bankers unite against Barack Obama and Gordon Brown in call for world regulation
Posted on 01/27/2010 9:31:09 PM PST by La Lydia
Bankers stood shoulder-to-shoulder at the Swiss ski resort of Davos to try to prevent a scatter-gun approach to new financial regulation by different countries. They united against Barack Obama's threat to break up banks and Gordon Brown's growing enthusiasm for a Tobin tax on all financial market transactions.
The Standard Chartered chief executive, Peter Sands, warned against over-regulating the private sector and stifling economic recovery. The stakes are very high, he said. If we get it wrong in one dimension, we will end up stifling growth. If we get it wrong in the other dimension we end up with another crisis...
Barclays Capital boss Bob Diamond warned that threats from the US President and moves from the Prime Minister such as the bankers' bonus tax were damaging. This is a time when isolated actions in the US and UK are not beneficial, he said. Without risk we do not have a banking industry. Having banks willing to take risks, particularly cross-border risk is essential to economics.
Financiers are keen to see a slower approach to new regulation rather than knee-jerk reactions from individual countries.
We could all be losers in the end if we don't have an efficient market in place any more, Deutsche Bank boss Josef Ackermann said at the World Economic Forum.
Moves to limit bank size were misguided, and risked ending up with small players, ill-equipped to cater to the needs of global trade, he said. He added: I think you wouldn't have better, more resilient and more efficient markets....
We have enough trouble with our Central Bank Now (The Federal Reserve). A Global one would turn the “kook conspiracy theory people” into prophets. No way, no how.