Response to Washington's multibillion-dollar Wall Street bailout has involved a lot of skeptical grumbling in Germany and the UK. German Chancellor Angela Merkel says the Bush administration has mishandled Wall Street, and that its refusal to adopt stricter rules led to the current crisis. German Chancellor Angela Merkel: "That cannot be allowed in the international sphere." The United States government is campaigning around the world for support for its multibillion-dollar Wall Street rescue package. The reaction has been skeptical at best -- and in Europe the plan has been met with bareknuckled criticism. German Chancellor Angela Merkel has accused the US government of serious failures which she believes contributed to the current credit crisis. In particular she blamed Washington for resisting stricter regulation. On Monday she also said the crisis could hurt the German economy. "The whole thing is going to set the pace for the economy in the coming months and perhaps years," Merkel said at a meeting of her party, the conservative Christian Democrats.
Response to Washington's multibillion-dollar Wall Street bailout has involved a lot of skeptical grumbling in Germany and the UK. German Chancellor Angela Merkel says the Bush administration has mishandled Wall Street, and that its refusal to adopt stricter rules led to the current crisis.
German Chancellor Angela Merkel: "That cannot be allowed in the international sphere." The United States government is campaigning around the world for support for its multibillion-dollar Wall Street rescue package. The reaction has been skeptical at best -- and in Europe the plan has been met with bareknuckled criticism.
German Chancellor Angela Merkel has accused the US government of serious failures which she believes contributed to the current credit crisis. In particular she blamed Washington for resisting stricter regulation.
On Monday she also said the crisis could hurt the German economy. "The whole thing is going to set the pace for the economy in the coming months and perhaps years," Merkel said at a meeting of her party, the conservative Christian Democrats.
Germany said on Monday it sees no need to create a US-style financial sector bailout of its own as Chancellor Merkel renewed calls for tighter regulation of the financial sector. Germany has no plans to join in the massive US bailout operation for financial institutions that have run into difficulties with risky mortgage debt, officials said Monday, Sept 22. The six Group of Seven economic powers aside from the United States do not plan any measures comparable to a US package to support the banking sector, German Finance Minister Peer Steinbrueck said on Monday. Ulrich Wilhelm, a spokesman for German Chancellor Angela Merkel, too said the government saw no need for such an undertaking in Germany.
Germany has no plans to join in the massive US bailout operation for financial institutions that have run into difficulties with risky mortgage debt, officials said Monday, Sept 22.
The six Group of Seven economic powers aside from the United States do not plan any measures comparable to a US package to support the banking sector, German Finance Minister Peer Steinbrueck said on Monday.
Ulrich Wilhelm, a spokesman for German Chancellor Angela Merkel, too said the government saw no need for such an undertaking in Germany.
The UK and Germany believe that a new international system regulating the financial sector must be constructed to prevent a repeat of global banking crisis in the future. Peter Steinbrueck, Germany's Social-Democrat finance minister, raised on Sunday (21 September) the idea of "an international authority that will make the traffic rules for financial markets," while speaking to German radio, Reuters reports. One government alone cannot deal with the consequences of globalisation Meanwhile, UK Prime Minister Gordon Brown is to outline proposals for just such a body, run under the authority of the International Monetary fund, in a speech to the Labour Party conference on Monday, as well as domestic plans to crack down on "irresponsible" bonuses handed out in the City, London's financial quarter. "I think what people haven't appreciated is we've now got global financial systems but we've only got national regulators to cover them," Mr Brown told the BBC ahead of the speech, adding that he had been trying to convince his international counterparts for years of the need for "a global system of financial regulation."
The UK and Germany believe that a new international system regulating the financial sector must be constructed to prevent a repeat of global banking crisis in the future.
Peter Steinbrueck, Germany's Social-Democrat finance minister, raised on Sunday (21 September) the idea of "an international authority that will make the traffic rules for financial markets," while speaking to German radio, Reuters reports.
One government alone cannot deal with the consequences of globalisation
Meanwhile, UK Prime Minister Gordon Brown is to outline proposals for just such a body, run under the authority of the International Monetary fund, in a speech to the Labour Party conference on Monday, as well as domestic plans to crack down on "irresponsible" bonuses handed out in the City, London's financial quarter.
"I think what people haven't appreciated is we've now got global financial systems but we've only got national regulators to cover them," Mr Brown told the BBC ahead of the speech, adding that he had been trying to convince his international counterparts for years of the need for "a global system of financial regulation."
It's not a bad idea though, no?
He's also therefore avoiding having to announce anything concrete that will damage his relationships with his chums in the City. After all he may be in need of a directorship or two in the near future. keep to the Fen Causeway
i) postponing any decisions for a couple of years, ie after the election so he doesn't have to worry about it. A deferred policy change is as good as no policy change.
ii)by the time they come to a decision, all of the fallout will be over and, if still in power, he can portray it as an unwarranted intrusion of the EU into the profitability of the City institutions that makes Britain a world leader blah blah.
Basically, he gets to be seen to be supporting the idea of change whilst whole-heartedly resisting it. There's a whole lot of lobbying, parties, favours, golf trips and bribes from deep deep pockets to be done before "decisions" are made. Just remember how effective Mandelson is at ensuring that all regulations and controls on trade reflect Anglo-American priorities rather than protecting the european public from the rapacious scum preying upon them. keep to the Fen Causeway
And anyone who thinks any of these bastards have really learnt their lesson need only remember that Barclays are gonna pay $2.5 billion worth of bonuses to Lehmans staff for driving their company into bankrupcy. they're very sorry for 5 minutes and then when everybody's backs are turned they'll be at it again and regulation will be the enemy of "innovation", profits and bonuses; same as it ever was. keep to the Fen Causeway
That's only $10,000 to 250,000 people for a half year of house payments or health insurance perhaps.
One the other hand, 2.5 billion is only 250 x 10 million dollar yachts. Yachts that size are actually the tiny 30 meter ones. But think of all the employment that will bring. The skilled builders and painters and repair engineers flying all over, and a few of crew around all year and more for those few weeks and all those weekends that the owner is actually aboard.
Monaco Yacht Show starts tomorrow. Come on down. Never underestimate their intelligence, always underestimate their knowledge.
Frank Delaney ~ Ireland
British and European banks could be excluded from Washington's $700 billion (£382 billion) bailout amid a backlash over the financial burden on the US taxpayer. While Hank Paulson, the US Treasury Secretary, wants to allow foreign banks to benefit from the scheme, some Democrats in Washington and others on Wall Street are angry that taxpayer funds may be used to prop up overseas businesses. Uncertainty for banks such as UBS, the Swiss financial group, Deutsche Bank, the biggest bank in Germany, and HSBC comes two days after Mr Paulson and President Bush urged lawmakers in Washington to push through the largest financial intervention package since the Great Depression to avoid the meltdown of America's banking system. As Mr Paulson held meetings with Republicans and Democrats over the weekend to persuade them to nod through the package, dissent broke out over the terms. Chris Dodd, the Democratic chairman of the Senate Committee on Banking, Housing and Urban Affairs, acknowledged yesterday that the crisis demanded quick action, but made it clear that Democrats would not rubber-stamp the Administration's proposal. It is believed that bankers from Deutsche Bank and UBS approached America's central bank and other Washington agencies at the weekend to seek assurances they would be included in the bailout.
British and European banks could be excluded from Washington's $700 billion (£382 billion) bailout amid a backlash over the financial burden on the US taxpayer.
While Hank Paulson, the US Treasury Secretary, wants to allow foreign banks to benefit from the scheme, some Democrats in Washington and others on Wall Street are angry that taxpayer funds may be used to prop up overseas businesses.
Uncertainty for banks such as UBS, the Swiss financial group, Deutsche Bank, the biggest bank in Germany, and HSBC comes two days after Mr Paulson and President Bush urged lawmakers in Washington to push through the largest financial intervention package since the Great Depression to avoid the meltdown of America's banking system.
As Mr Paulson held meetings with Republicans and Democrats over the weekend to persuade them to nod through the package, dissent broke out over the terms. Chris Dodd, the Democratic chairman of the Senate Committee on Banking, Housing and Urban Affairs, acknowledged yesterday that the crisis demanded quick action, but made it clear that Democrats would not rubber-stamp the Administration's proposal. It is believed that bankers from Deutsche Bank and UBS approached America's central bank and other Washington agencies at the weekend to seek assurances they would be included in the bailout.
