(c) World Economic Forum
By Martin Arnold, Banking Editor
Two of the world’s most senior bankers sought to rebuff the charges of their critics by arguing the industry had become safer since the financial crisis thanks to higher capital levels, lower leverage, reformed pay structures and a tougher regulatory scrutiny.
Douglas Flint, chairman of HSBC, said of the financial crisis: “Nobody in that room [the HSBC boardroom] ever wants to take the risk of ever being in that situation again.”
Speaking on a panel at the World Economic Forum in Davos, he added that the HSBC board was spending half to two-thirds of its time “dealing with the aftermath of the crisis”.
Antony Jenkins, chief executive of Barclays, said: “Where the system failed and where institutions failed within that was where they mis-priced risk.” Arguing that banks had increased the levels of capital they held and reduced their leverage, he added that “changes
in conduct” had also reduced the chances of the 2008 crisis being repeated. Read more
Today we’re looking at Greece. Yup, again. But over the last week, the possibility that the Mediterranean country of 11 million people might actually leave the eurozone – a scenario long considered taboo – has become increasingly plausible. European policymakers and central bankers have gone from repeated assurances that a ‘Grexit’ would never, EVER happen, to a gradual admission that, yes, it’s possible. And if that’s the case, then the threat of contagion to the larger eurozone economies of Spain and Italy – and thus the broader single currency project – is magnified. Much will rest on the outcome of fresh elections in Greece on June 17. In the meantime: Read more