Legendary investor George Soros must be a radical break with the banks,
the too big to fail.
Also supported US President Barack Obama has proposed reforms to the size
of banks to limit the World Economic Forum in Davos.
At a private lunch, Mr Soros told reporters that the bankers of Wall
Street when Obama plans were tone-deaf.
Other banks in the case, however, warned against more regulation.
The head of Barclays Capital, Bob Diamond, said that not seen evidence
… suggests that banks are falling and banks are smaller and closer to
the answer. Other banks, such as Jacob Frenkel, JPMorgan Chase said it
affects the maladjustment .
The analysis attempts to overcome the crisis, Mr. Soros has shared a lot
of praise for the plan of Mr. Obama in large banks – the separation of
commercial banking and investment arm piece.
Even after the collapse of Mr Obama would be more investment banks are
still too big to fail has proposed, said Soros, visitors for lunch.
To contain these banks said all the major economies must be set to a
common set of financial rules that can make use of the strict limits – How
much money banks have begun to receive loans for investment.
No such international agreement, section dealt only with the less
developed countries.
If, however, participated in all major economies, have the necessary
control over the flow of money to take on rogue states to prevent
circumvention of the system – either stop the Goldman Sachs auto body
shop in Somalia, he said one participant.
Mr. Soros called the current economic crisis is a bubble super which
created by the system itself, and was the culmination of 25 years to get
bubbles and incorrect attempts to manipulate.
These bubbles were highly leveraged credit and great deals where investors
borrow a multiple of their own money could lead to an investment fund.
Both regulators and bankers were the misunderstanding that markets are
efficient, Mr Soros said, and was ideology of market fundamentalism ,
provided that markets are always easy to be blinded stable .
Every time a burst bubble, governments and regulatory authorities of the
situation is exacerbated by lower interest rates and even less to make
money – at a time until the subprime bubble, tore the whole system, he
said.
Mr. Soros has leased two regulators in the UK – Lord Adair Turner, the
Financial Services Authority and the Bank of England Governor Mervyn King
- to understand the crisis and to develop a policy to prevent recurrence.