The French President Nicolas Sarkozy called for a thorough rethinking of capitalism because of the lessons from the financial crisis. In his statement at the World Economic Forum which takes place this week in the Swiss town of Davos, he said the economy needs fundamental change. His comment came after bankers and regulators involved in the forum to miff on the proposal to divide the large banks, which endangers the functioning of the entire financial system, police BBC. The French president said he wanted to restore “moral dimension” of free trade. He warned that unless steps are taken to change this would be an expression of great irresponsibility on the part of the leading figures in politics and economics involved in the international event in the Swiss alpine resort. France supported the banks plan to increase its capital to impose limits on bonuses paid in the banking sector. U.S. President Barack Obama has proposed to reduce the size of large banks, for which purpose they are prohibited to hold hedge funds and impose strict limits on the risk they bear when they trade in financial instruments. The Representatives of the banking sector in Davos, however, have welcomed these proposals cool. Against the backdrop of meager applause Sarkozy noted that governments and companies around the world should not behave as if nothing has happened to the economy over the past three years.
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