German Finance Minister Wolfgang Schäuble
recently gave a German banker the most brutal lesson to date -- delivered in a
series of apparently incidental comments. At a press conference last Thursday
afternoon, Schäuble launched into one of his notorious lectures on sound fiscal
policy in times of crisis. But then,
finally, he had an opportunity to air his frustration over the incorrigible
banker caste. A journalist asked Schäuble about his response to recent comments
by Deutsche Bank co-CEO Jürgen Fitschen. The previous day, Fitschen had accused
Schäuble of irresponsibility and populism, because the finance minister had
insinuated that the banks were still bypassing financial industry regulations.
"I
don't know if Herr Fitschen has understood what I mean," Schäuble
complacently replied. He also noted that he had only recently reminded the bank
executive that the financial crisis had not been caused by politicians. Then,
as if he hadn't already sufficiently lambasted one of the country's leading
bankers, Schäuble added: "If Herr Fitschen carefully reviews his
statement, he will undoubtedly come to the conclusion that he is incorrect in
this matter." And Fitschen has undeniably adopted the wrong tone, he said. The head of the venerable Deutsche Bank
reprimanded like a schoolboy? Ouch.
Schäuble's slap in the face is a warning to
Deutsche Bank. The minister's portfolio includes Germany's Federal Financial
Supervisory Authority (BaFin). These days, the Bonn-based financial watchdog is
conducting far more than the usual number of investigations into Germany's
largest bank, and the consequences of these probes -- for the bank and its
co-CEOs Fitschen and Anshu Jain -- are ultimately a political issue.
1 comment:
WITH breathtaking hypocrisy Romanian PM Victor Ponta lectures David Cameron not to treat Eastern European citizens as "second rate".
This from a leader who presides over a deeply divided society where Romania's four million Roma gypsies are openly despised, have suffered generations of prejudice and live in abject poverty.
It is understandable why Roma gypsies would want to escape to a country where even the lowest wages are 10 times those they can earn at home. This has fuelled fears that our public services, already struggling to cope, will buckle under the strain of an influx of immigrants from Romania next year.
Mr Cameron last week proved he was aware of those fears by tightening rules on when benefits can be claimed after controls against Romania and Bulgaria are lifted on January 1. Our Prime Minister wants to ensure Britain will not pick up the tab for Romania's failings. The Romanian premier would do well to lecture less and listen more. Get your own house in order, Mr Ponta.
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