Gov’t officials from Europe, US meet with int’l bankers over proposed regulations

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Gov’t officials, bankers meet in Davos

DAVOS, Switzerland — Government officials and regulators from several nations met behind closed doors Saturday with a host of international bankers, talking up proposals for regulation that have many in the financial sector concerned.

Associated Press reporters at the forum saw several business and political leaders enter the room, including French Finance Minister Christine Lagarde, British treasury chief Alistair Darling and Joaquin Almunia, the European Union’s competition commissioner.

Also seen entering the meeting was Lawrence H. Summers, President Barack Obama’s top economic adviser, and Jean-Claude Trichet, president of the European Central Bank, which oversees the 16-nation euro zone.

U.S. Congressman Barney Frank, who was also taking part in the talks, told reporters that “We are determined to do strong, sensible regulation” and rejected any notions that his government was threatening to choke off growth by putting too many controls on the banking industry too quickly.

“I think they understand the reality, which is we are going to go ahead with regulation,” he said. “We will be listening to them about specifics.”

The level of anxiety among financiers about the proposals was reflected in a series of meetings at Davos on Friday, and it has been an underlying thread throughout the World Economic Forum that began Wednesday and ends Sunday.

There is concern that too much regulation could hamper a nascent economic recovery and threaten the global economy.

Frank told The Associated Press that the meeting was important to hammer out details for the coordination of regulation among various international agencies who have oversight of the financial industry in Europe, Asia, the U.S. and elsewhere.

At the same time, it was a chance to reach out directly to the heads of banks worldwide.

“It’s very important to tell the banks, the hedge funds what we’re going to do,” he said.

Asked about the tone of the bankers in the previous meeting and before Saturday’s gathering, Frank was abrupt and adamant.

“I don’t pay any attention to it. It has no effect on public policy,” he said. “We have been glad to discuss things with them. They have information, but we have decided to go ahead with this (regulation).”

To see more about the World Economic Forum or discuss the topics being talked about, go to AP’s World Economic Forum discussion page at bit.ly/amY7Sp and www.facebook.com/apnews