ECB President Trichet (left) and German-Bank-Chef Ackermann at the dinner. Source: AP
VIENNA. First of all a supplement to the dinner at the Spanish Riding School on Thursday evening: In his dinner speech had ECB President Jean-Claude Trichet at 21:30 clock actually the responsibility to entertain the audience. His warning was not so friendly but clear. To the point of the top European monetary authority said: "We can allow the banks and their lobbying organizations, not again, the economy, citizens and politicians to blackmail, as in the recent crisis."
The Interim Report of the IIF "to the cumulative impact of proposed changes in banking regulation on the global economy," the ECB president went for even hard to court. The IIF had the report just before noon to the press and warned that nearly ten million jobs would not arise if the proposed reforms would be implemented for banks in its current form.
The IIF seem to assume that there is a trade-off there between economic growth and regulation, "said Trichet. It would, however, completely overlooked that the banks are with their poor regulation and supervision of the main reason for the current crisis and, consequently, the main reason for the lack of economic growth. What is the IIF write in his report is "unilaterally", "white to very black." Good regulation and good supervision are in the interest of anyone, certainly in the interest of the economy. The banks take the Kandarr causes not only costs but also bring benefits.
Medial highlight was the last day – before the appearance of Greek Georgios Papandreou in the evening – the speech of the Hungarian Prime Minister Viktor Orban. However, his dinner speech after the camera flashes was more newsarm, for example, was for the statement that they would do anything to the deficit target in the budget einzuhalten.Trotz drew all the problems Orban of Hungary, but not out of modesty. "Without Hungary there is no strong central Europe," said Orban.
Better, however, was the closing plenary of the German bank chief Hugo Bänziger risk. He currently sees little risk that may be systemic, because the capital adequacy of banks to "record level" level is. The greatest risk is from his perspective, the "regulatory interference", which is counterproductive especially it alone. When the bank was asked to report the "short seller" of Euro-money and got the rumgesprochen quickly in London and led to the exodus of customers who never came back more.
Another minefield ahead could (once again) the real estate markets, when the period of low interest rates coming to an end and the turn comes. "We want to be too perfect, everything is up for regulation," was his rather pessimistic conclusion. Which brings us back to the starting point of the meeting: the international bankers celebrated while the Hofburg Imperial in a frame. But some gave the impression that the golden age of financial markets and their "talent" was over.