'Don't shun bankers: they're part of the solution', says Davos chief
2009 01 29
Klaus Schwab, World Economic Forum founder and executive chairman, at the Davos Congress Centre
Bankers who helped to cause the global economic crisis should not be shunned but included in the hunt for a solution, the head of the World Economic Forum said today.
Klaus Schwab, the founder and executive chairman of the World Economic Forum, which opens today in Davos, Switzerland, called for unity and said that executives from troubled financial institutions had their part to play in finding a way out of the current economic crisis.
“Those people, and there are many of those here, have the feeling they are standing at a cliff and they may fall over at any moment,” Mr Schwab said in a speech to mark the opening of the 39th annual forum.
“But those people are not only part of the problem," he said. "They are part of the solution.
"We need a well-functioning financial community, we should not forget. Otherwise, we don’t have a well-functioning economy.”
Senior officers from Citigroup, Bank of America and UBS AG, all of them facing severe financial problems, are among the Davos audience that will mingle this year with more than 40 world leaders.
The leaders include Gordon Brown and other prime ministers: Wen Jiabao, of China, Vladimir Putin, of Russia, Taro Aso, of Japan, Angela Merkel, the German Chancellor, and José Manuel Barroso, the President of the European Union.
Mr Putin is to give the keynote address this evening, even as Russia’s bankers and energy tycoons struggle with debt and plunging oil prices.
Mr Schwab said that the Davos summit was a chance for bankers and politicians to discuss the crises facing the world's economies — caused, he said, by a failure to address the needs of society — and a formula for solving them.
"It's an overlapping of different crises, we have the crisis that was caused by an imbalance in our economies, we have a financial crisis, we have a confidence crisis and above all we have a systems crisis," Mr Schwab said in an interview with the BBC.
"Everyone feels isolated, everyone wants to understand. Bringing the people together, the politicians, business leaders and particularly also experts to sit together and to try to find out what really happened, I think this is exactly this year what Davos is about."
Mr Schwab said that those who were attending Davos needed to focus on identifying the mistakes that had been made and debating how to reset the world's financial systems.
"Without change we will leave a world for our children and our grandchildren that will be horrible ... A reconfirmation of what we have done would be stupid because it would lead us into a new crisis.
"No, we have to rethink. We have to reboot the whole system."
He rejected the idea of completely rewriting the global economic system, however.
He said: "I think a free market economy is still best of all systems, but we have to make sure that this free market economy serves more society, and that is what we failed to a certain extent to do in the last years."
There are many absentees from Davos this year. Bob Diamond, the president of Barclays, the UK bank, pulled out yesterday without giving a reason after a volatile fortnight for the British bank. However, Marcus Agius, the chairman of Barclays, is expected to attend.
John Thain, the former head of Merrill Lynch, who was ousted last week as president of global banking at Bank of America, will not attend.
Mr Thain attended Davos last year, before Merrill Lynch was rescued by Bank of America.
The $50 billion (£35 billion) deal officially completed this month, but Mr Thain resigned from the merged lender only days later after Merrill revealed larger-than-expected losses of $15.3 billion, forcing Bank of America to borrow $20 billion from the US Government.
Other absentees include Vikram Pandit, the chief executive of Citigroup, the embattled US bank, and Richard Fuld, the former chief executive of the collapsed Lehman Brothers Holdings, whose annual lecture at Davos has been cancelled.
Martin Sullivan, the former chief executive of American International Group (AIG), which, until this year, was one of the forum's highest-paying members, will not be at Davos, and Marcel Ospel, who was replaced as chairman of UBS AG in April, will not attend.
At last year's World Economic Forum, Mr Thain talked extensively about the future of the economy and the banking sector.
In a comment that he has probably come to regret, Mr Thain said that Merrill Lynch was not concerned about future losses because it had marked down all the complex financial instruments exposed to distressed debt.
Last January he said: “They’re marked down so low that we have no concerns left about this at all.”
Source: 'Don't shun bankers: they're part of the solution', says Davos chief
Global Banking: the Bank for International Settlements - Part 1 of 2
The Bank for International Settlements Calls for Global Currency
Red Ice Radio - Joan Veon - G20, Global Credit Crisis & Public-private Partnership
The New York Stock Exchange Goes Global
The Bankers Manifesto of 1892
Bankers Engineered WWII US Intervention
The Illuminati, The Rothschilds & London Bankers
The "Matrix" of Manufactured War
Latest News from our Front Page
Nigel Farage (UKIP) Speech on the EU, UK & Mass Immigration
2014 03 08
UKIP Nigel Farage Spring Conference speech - 2014
Red Ice Radio:
Nigel Farage MEP - The State of the EU & The Undemocratic Treaty of Lisbon
Labour wins UK by-election as Ukip trumps Tories
The ruling coalition in the UK was dealt a blow in the latest by-election test, as the UK Independence party pushed the Conservatives and Liberal Democrats into third and fourth ...
Pentagon studying Putin’s body language to predict his behavior
2014 03 07
The Pentagon has spent hundreds of thousands of dollars in recent years so that researchers can study the body movements of foreign leaders, including Russian President Vladimir Putin, in hopes of predicting future behavior.
An article published by USA Today reporter Ray Locker on Thursday and corroborated by documents discovered by RT provides rare insight into a scarcely-discussed military effort that ...
Pentagon Claims That Climate Change ‘Enables Terrorism’
2014 03 07
In it’s latest Quadrennial Defense Review the Pentagon has said that climate change and ’erratic’ climate will cause increased terrorist activity.
The four yearly reports highlight threats that face civilization and this years homed in on climate change causing an increase in terrorism.
It also mentioned that rises in sea levels and other issues associated with a warming planet will lead ...
Scientists Control Tiny Mechanical Probes Inside Human Cells
2014 03 07
Nanotechnology doesn’t get as much attention these days as genetic and stem cell approaches to medicine, but all three aim to target the causes of illness with greater precision and less collateral damage in the rest of the body than conventional approaches.
Nanotech breakthroughs have come more slowly than many had hoped, but a recent success shows progress toward the goal ...
Fukushima: The Ticking Nuclear Bomb. Over 800 Tons of Radioactive Material Pouring into Pacific Ocean
2014 03 07
First published by GR in October 2013
In August this column ran a piece claiming that the Pacific Ocean was being poisoned by radioactive material escaping from Fukushima, two years after the devastating tsunami and meltdown at the Japanese nuclear facility. Three months later, shocking evidence points towards a calamity situation.
Silence from the corporate media.
There is growing evidence coming from ...
|More News » |