31 January, 2010

Obama's latest plans for banks

The Economist has begun writing about Obama's plans.

The Europeans might be sceptical of restrictions on the size and operations of banks will get implemented. “A lot of people here are saying that we shouldn’t fool ourselves into doing something that America will not do because of lobbying by American banks,” says Nicolas VĂ©ron of Brueghel, a Brussels think-tank.

However, American bankers might be wary of open dissent. An investment banker likens the atmosphere to the aftermath of the September 11th attacks, when no one dared call for restraint in torturing suspected terrorists. That choice of analogy may reveal as much about the depth of Wall Street’s persecution complex, and its inability to face up to its role in the crisis, as it does about those beating it with sticks.

However, Bloomberg reports that Regulators and Bankers might find common ground and seek a truce. “We had good discussions and agreement among all the participants,” said Brian Moynihan, the CEO of Bank of America, the largest U.S. bank.


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