Davos 2010 ends with bankers on the defensive

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DAVOS, Jan 31(BBC): Bankers have indicated that they may agree to far-reaching reforms, as the World Economic Forum (WEF) in Davos ends.
Top regulators warned that they could take drastic action to take some of the risk out of the financial industry.
However, the annual meeting of some of the world's most powerful business leaders and politicians ended with few new plans or real achievements.
There was agreement though that job creation and free trade had to be key ingredients of any economic recovery.
Larry Summers, economics adviser to US President Barack Obama, probably coined the most memorable phrase of this year's Davos when he said the world was experiencing a "statistical economic recovery, but a human recession".
The lack of results of the discussions at this year's forum are arguably a perfect reflection of the general uncertainty that has gripped most political and business leaders here in Davos.
While overall chief executives are much more confident now - "the world is a better place than 12 months ago" said Peter Sands, chief executive of Standard Chartered Bank - there is little agreement on how exactly the recovery will play out, and whether the economy could still experience a "second dip" downturn.
Capturing the tenor of most economic forecasts was the phrase of a "LUV-shaped recovery" - an L-shaped long-term low growth recovery in Europe; a U-shaped slow growth recovery in the United States; and a sharp upturn in emerging economies like India, Brazil and China.
Business leaders, like Azim Premji of Indian IT services giant Wipro, warned that the real issue of this economic crisis was employment, while others warned that Western economies especially could face years of jobless growth.
The biggest worry of most chief executives - from both developed and emerging economies - was that politicians could give in to populism and approve protectionist measures.
"Open trade is absolutely critical to development, to lift people out of poverty," said Mr Sands, whose bank operates mainly in Asia.