Skip to content Skip to footer

Major Global Banks Split on Regulation Battle

The world’s top banking gurus aren’t sure how to fight back against a global push for tougher financial regulation, with commercial and investment banks struggling to reach common ground, according to a recent Reuters report.

The world’s top banking gurus aren’t sure how to fight back against a global push for tougher financial regulation, with commercial and investment banks struggling to reach common ground, according to a recent Reuters report.

“Top executives from Wall Street and Europe’s leading banks have been holding behind-the-scenes talks at the World Economic Forum in the Swiss ski resort of Davos, sources close to the negotiations said, but a deal has proved elusive,” Reuters reported.

Both Wall Street’s largest banks and some major European ones have argued to support each other against politicians who are calling for tougher procedures to regulate the industry in the wake of financial crises.

“But they did not manage to win over the heads of some commercial banks who believe the industry needs to be more conciliatory, the sources with knowledge of the talks said,” Reuters reported.

U.S. President Barack Obama has said he wanted the financial sector to pay for a massive taxpayer bailout. This followed a recent move by Britain to introduce a “supertax” on higher bank staff bonuses.

One top banker said many executives were frustrated after they’d done a lot to change in the past year but that politicians just weren’t listening, according to Reuters.

“The more challenging strand of how banks and bankers craft a new relationship with society is on the political side,” he said, adding the industry had been “tone deaf” and insensitive, Reuters reported.

We’re not going to stand for it. Are you?

You don’t bury your head in the sand. You know as well as we do what we’re facing as a country, as a people, and as a global community. Here at Truthout, we’re gearing up to meet these threats head on, but we need your support to do it: We still need to raise $14,000 to ensure we can keep publishing independent journalism that doesn’t shy away from difficult — and often dangerous — topics.

We can do this vital work because unlike most media, our journalism is free from government or corporate influence and censorship. But this is only sustainable if we have your support. If you like what you’re reading or just value what we do, will you take a few seconds to contribute to our work?