It's Davos time. The bankers will be schmoozing for all they're worth.
And as the FT notes:
The banks’ cause was boosted by Alistair Darling, UK chancellor, who rejected size limits and a forced split in activities.
“You could end up dividing institutions and making them separate legal entities but that isn’t the point,” Mr Darling told the Sunday Times. “The point is the connectivity between them in relation to their financial transactions.”
Of course: but I addressed this point last week when I said:
The rules have also to require that those who will be trading, hedging and private-equity dealing do so out of their own capital, and not the capital of deposit-making citizens. Only then will the risk be segregated.
A reformed Basel could easily handle that.
Time to think a little bit more broadly, I think. Why can't the Treasury manage that?