George Soros urged to spend radical crushing of big banks

/IRBIS, January 28, 10/ - George Soros urged to spend radical crushing of banks which are "too big for crash", is specified in message BBC published on January, 27th. The known financier made the given statement in Davos where takes place the World economic forum. Soros also supported offered by the US president the Barrack Obama reforms on restriction of the sizes of banks. As informs BBC, acting during a private dinner, Mr. Soros declared to journalists that bankers of Wall-street who resist to Obama's plans, are "deaf persons". We will remind that the administration of the White house has suggested limiting essentially the sizes and activity of big banks of the USA. According to the given offers, banks it is necessary considerably or to refuse at all many brave investment operations in the markets. Bankers apprehended offers of administration of B.Obama is critical. Head Barclays Capital Bob Dajmond told that he "does not see any proofs. For the assumption that reduction and narrowing of banks is the answer". Jacob Frenkel from JPMorgan Chase also declared concern "bad regulation". Soros praised Obama's plan on division of big banks into commercial and investment branches. However he declared also, what even after realization of offers of Obama the majority of investment banks will be "still too big for crash", marks BBC. As he said, to constrain risks of these banks all basic economy should agree concerning the general set of financial regulation which establish rigid restrictions on leverage. лWithout the global agreement the capital it will be simple to flow to less adjustable countries" - Soros considers. However if all basic economy take part in global regulation, they could carry out the necessary control over monetary streams for prevention of detour of system. Soros has noted, as regulators and bankers shared the general opinion that the markets are effective, and have been blinded by this "ideology" of market fundamentalism."When the bubble has burst the governments and regulators have made a situation even worse; having reduced interest rates and having given the chance to earn money even is cheaper - Until the hypothec bubble has not led all system to crash" - he told. [2010-01-28]