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.
(more…)

Ended today in Davos and Jubilee 40-World Economic Forum now has its short definition: the most rigorous, more specific and loquacious as ever.
According to British newspaper The Times’s key messages are:
- Experience of consolidation of state and government leaders and bankers to reduce their investment in speculative assets;
- Borrowed a total defense bankers are uniform and warned that if my hands are tied to finance the world economy will fall into the pit so that the passing crisis will seem child’s play.
“To improve the world” – this slogan gathered in Davos this year over 1400 politicians, economists, businessmen and scholars. They were more than 30 state and government leaders, more than 65 ministers and over 100 heads of international organizations. Occasion politicians and bankers to be so strongly opposed each other on banking regulation, it was proposed last week the U.S. President Barack Obama to drastically reduce the bank in order to prevent fine to mix with some banking operations too risky financial markets. First overseas has cast a glove president of France. “Let’s turn our economy facing the people – that is the question of the XXI century”, a philosophical slogan addressed to the participants in the forum on the first day, Nicolas Sarkozy. He not only supported the U.S. president, but he launched an attack against banks that were accused of all sins, led to one of the world’s largest financial and economic crises in the world.
(more…)