Bankers, governments discuss regulation at Davos forum

DAVOS - Bank executives met central bankers and government officials here Saturday to discuss whether regulations should be imposed on financial markets.

Officials from the US and Europe were taking part in the discussions with Deutsche Bank, Switzerland’s UBS and other major banks at the World Economic Forum in the Swiss mountain resort.

Regulation of banks has been a major talking point in Davos, where the future of constraints on capital institutions is being examined along with concerns that the economic recovery was far too weak, requiring a more sustainable plan for growth.

On Friday, Lawrence Summers, economic advisor to US President Barack Obama, told the forum a strong system was needed to prevent the threat of system failure and “constrain the risk large financial institutions take”.

The constraints on the major players would reduce risk “without interfering in any ways with the ability of institutions to serve their customers”, said Summers, a former treasury secretary.