Davos
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It’s the oldest trick in politics: when you’re in trouble, change the subject. And so two days after his administration and party were reeling after losing the special senate election in Massachusetts, President Barack Obama announced a plan that places new restrictions on banks’ activities and overall size. First, he called for a ban on commercial banks (like high-street banks) from trading using depositors’ money unless directly on behalf of customers (so-called ‘proprietary trading’), and from owning, investing or sponsoring hedge funds or private equity funds. Second, he proposed expanding the current cap on the market share of deposits (set at 10 per cent) to other liabilities. Obama’s proposals follow on the heels of other bank-bashing moves in recent weeks. In mid-December he blasted ‘fat cat’ bankers during a TV interview.
Bashing the bankers is making Obama go blind | spiked
Bankers bite back against regulation threats at Davos | Business
At Davos, bank executives warned that putting limitations on the sector would be the wrong course of action to take as the global economy struggles to recover from the global financial crisis. International bankers joined forces on the opening day of the World Economic Forum in Davos to warn governments against proposals to limit their activities. Moves to restrict banks to certain types of activities would do more harm than good, they said. Several top bankers were present in the Swiss resort to fight what they fear will be over-regulation in the aftermath of the global financial crisis. Barclays Bank President Bob Diamond said he has "seen no evidence that suggests that shrinking banks is the answer" to preventing a future meltdown. Barclays' Robert Diamond was vocal about his feelings
Business Spectator - Is Obama's banking reform policy right? - B
So my timing was pretty good. Following a blog yesterday on how Australia’s hubris is unwittingly laying the foundations for the next GFC, which I posited would likely originate out of Asia, and the growing unity between intellectuals on both the left and right around the need to embrace a ‘narrow banking’ approach to regulating too-big-to-fail financial ‘utilities’, US President Obama has taken the first tentative, although possibly flawed, steps along this road.It's quick, easy and you'll be able to read up to 8 articles per 30 days. Plus you can use these tools: News by Email Get the latest headlines and industry sector-specific briefings direct to your inbox. Over 40 daily updates to choose from, plus set keyword alerts for news as soon as it is published.
World - Davos to hear of rebound in public trust
