LONDON (Alliance News) - Barclays PLC's former chief executive Monday argued that insufficient progress has been made in tackling the 'too big to fail' problem facing systematically important financial financial institutions.
Writing in the Financial Times, Bob Diamond admitted bank leverage was excessive in the boom years and said today's standards for capital and liquidity have improved following actions by legislators and regulators.
However, he called for politicians, regulators and banks to collaborate on the 'too big to fail' problem, whereby certain institutions in the economy cause unparalleled economic hardship through their failure.
Diamond called for an international plan to tackle the problem, through greater cross-border cooperation, a level playing field internationally thanks to following of Basel international standards in banking, consistent and coordinated rules, as well as proper implementation of the rules by regulators.
Diamond said avoiding the next crisis is "well within our reach if regulators put in place a robust resolution regime, strong capital liquidity and leverage rules, and ensure consistency with other key regulations, including cross border derivatives and bank and market structure rules".
Diamond had previously defended the risks taken on by Barclays and other banks prior to the crisis.
http://www.ft.com/cms/s/0/1d8921f4-1c8d-11e3-a8a3-00144feab7de.html?siteedition=uk#axzz2f21ZHiDD
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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