Banks, officials find common ground at Davos meeting
DAVOS, Switzerland — Policy-makers and bankers called a truce after a week of mutual recrimination at the World Economic Forum annual meeting, saying they agreed on the need for global financial regulations.
“On many aspects, we found common ground,” Deutsche Bank AG Chief Executive Officer Josef Ackermann said in an interview after a private session of bankers and regulators in Davos, Switzerland, this weekend. “There was better dialogue between business leaders, political and regulatory leaders than ever before.”
The meeting came after policy-makers pushed back at bankers who had warned of excessive and uncoordinated attempts to toughen regulation after unprecedented government bailouts of the financial industry.
Executives from Bank of America Corp., HSBC Holdings Plc, Standard Chartered Plc and JPMorgan Chase & Co. were among those in attendance.
“There are very important issues to which there needs to be input from the politicians, from the regulators, from the central bankers, from the private bankers and from the private sector,” Adair Turner, chairman of the U.K.’s Financial Services Authority, said after the meeting. “The purpose was to discuss the full range of issues.”
One of the topics was how to define whether an institution is “too big to fail,” meaning that its collapse would harm the entire financial system, according to John Sununu, a former U.S. senator who’s on the board of managers of Bank of New York Mellon Corp.’s ConvergEx Holdings.
“We had good discussions and agreement among all the participants,” said Brian Moynihan, the CEO of Bank of America, the largest U.S. bank.
“There has to be a lot of discussion to make sure that we do the things we need to do in terms of reform.”