Pic credit: Bedzine
I have to give it to the Europeans, they call it what it is. A scheme. I find it hilarious that they toss the word around as though it holds some regulatory might; a scheme? Really? The ultimate irony being that they're actually calling it what it is. While Tim Geithner is off babbling about "saving the system" the Europeans come out saying we need another scheme.
(yours truly loves a great scheme but not in the European sense of the word)
Some of the world's most prominent bankers have come out in favour of a global bank wind-down fund, a concession from the industry after weeks of fighting proposals for new taxes in the US and Europe.
Josef Ackermann, chief executive of Deutsche Bank (DB), told the FT yesterday: "To help solve the too-big-to-fail problem I'm advocating a European rescue and resolution fund for banks. Of course, the capital for this fund would have to come from banks to a large degree."
Bob Diamond, president of Barclays, also supported the idea of a global levy, which could see banks contribute tens or even hundreds of billions of dollars over a period of years.
"I think every G20 country would like to have an insurance scheme that would help cover the cost of any future bank failure," he told the FT at the World Economic Forum in Davos. "A co-ordinated global system is preferable to an unlevel playing field."
Aww shit, Obama, what does this do to your refinancing