Reply #120: Rifts Imperil Overhaul of Global Banking Rules

[Demeter]

http://online.wsj.com/article/SB10001424052748703404004575198420596206274.html?mod=dist_smartbrief

The globally coordinated response to the financial crisis has given way to nationalistic bickering, imperiling hopes that governments around the world can come up with a fix for outdated international-banking rules.

Government and industry officials say the disputes focus on how much money, and what type, banks should keep on hand as a cushion against losses, one of the most fundamental aspects of banking. Countries involved in the negotiations agree banks should maintain larger capital reserves, but disagree on key details, including definitions of core terms. Officials are instead moving to protect the interests of their own banking industries while penalizing others elsewhere.

In the U.S., government and industry officials say the global talks could have a greater impact on financial markets than the current Capitol Hill debate over new rules for Wall Street. The disputes could come to the fore this weekend at a meeting of U.S. and foreign finance ministers and central bankers in Washington, D.C. The gathering will pose a test of whether policy makers will be able to hammer out a complex overhaul of global financial rules to address flaws exposed by the financial crisis.

"This move toward Fortress U.K., Fortress U.S. and Fortress Europe is looming large on the horizon as the worst possible outcome of the crisis," said Bob Penn, a London-based partner at law firm Allen & Overy LLP who advises some giant banks...

LET'S HOPE SO! HIS CLIENTS NEED A LITTLE HUMILIATION AND HANDCUFFS