Bankers lay down the law at Davos

[Hannah Bell]

In 2009 they were conspicuous by their absence. The following year they were still keeping their heads down. But at this year’s just concluded annual World Economic Forum meeting held in Davos, Switzerland, it was a different story. Two years after the eruption of the global financial crisis, having been bailed out...bonuses and salary packages restored...the bankers were not only back in force, they were laying down the law.

The tone was set early in the five-day meeting by Goldman Sachs president Gary Cohn. Criticising the imposition of new rules on traditional institutions, Cohn warned that the “unregulated sector will grow at an exponential rate”.

But the so-called “unregulated sector”—comprising organisations such as hedge funds and special purpose vehicles—and the banks are not separate organisations. They are two sides of the same financial system. The “unregulated” organisations could not function for a day without the massive supply of credit from the banks.

Viewed in this context, Cohn’s “warning” was a rather thinly-veiled blackmail threat: give us what we demand or we will find another way to do what we want and set off another financial crisis.

http://www.wsws.org/articles/2011/jan2011/davo-j31.shtml

[xchrom]

1. recommend

[hobbit709]

2. They need a history lesson

Especially 1789 and 1917 and the events that followed immediately after.

The banksters cold become the new Bourbons and Romanovs.

[dixiegrrrrl]

3. Too bad the gathering of robber banksters is being overshadowed by Egypt right now.

[underpants]

4. I heard this last week on NPR- as the meltdown report came out citing lack of regulation

the boys in Davos were saying that regulation was not needed and was harmful.

Even the NPR hostess was incredulous about the whole thing.