IMF Warns Bank About Lack of Reform

Banking reforms aimed at preventing another financial crisis have failed to make enough progress, the boss of the International Monetary Fund has warned.

IMF managing director Christine Lagarde blamed a combination of the complexity involved, industry lobbying and “fatigue” for the delay.

“The industry still prizes short-term profit over long-term prudence,” Ms Lagarde said at a conference on the future of capitalism.

She called for tougher global rules.

Ms Lagarde said some of the biggest problems were with the so-called “too-big-to-fail firms”, banks whose collapse would cause such a big knock-on effect on the wider economy that governments were still expected to rescue them.

via BBC

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