Some major banks move in favour of wind-down fund-FT

SINGAPORE, Jan 30 (BestGrowthStock) – Some key bankers have moved
toward support of a global bank wind-down fund to help cover
the costs of bank failures, the Financial Times reported from
Davos, Switzerland.

The newspaper quoted Josef Ackermann, chief executive of
Deutsche Bank AG (DBKGn.DE: ), as saying on Friday: “To help
solve the too-big-to-fail problem I’m advocating a European
rescue and resolution fund for banks.”

The fund’s capital would have to come largely from banks,
he added.

Barclays Plc (BARC.L: ) president Bob Diamond was another
supporter of the concept of a global levy, which could mean
bank contributions of tens to hundreds of billions.

“I think every G20 country would like to have an insurance
scheme that would help cover the cost of any future bank
failure,” Diamond was quoted as telling the FT at the World
Economic Forum in Davos. “A coordinated global system is
preferable to an unlevel playing field.”

The most realistic way to begin a global levy would be to
start with Europe, the newspaper quoted Jaime Caruana, head of
the Bank for International Settlements (BIS), as saying.
(Writing by Jerry Norton; Editing by Sanjeev Miglani)
(Reuters Asia Desk, +65 6870 3815)

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Some major banks move in favour of wind-down fund-FT