The Great Debate UK

Why trust is the new currency for banks

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Robert Phillips- Robert Phillips is UK CEO of Edelman, a public relations firm. The opinions expressed are his own. -

Trust is an entry which does not appear on a bank’s balance sheet. As an important asset, perhaps it should.

As banks struggle to get back to their feet, however, another deficit would not be welcome. According to Edelman’s 10th annual Trust Barometer, published last week at the World Economic Forum in Davos, trust in the UK banking sector has fallen to an all time low, plummeting to just 21 percent, down from 41 percent in 2007.

The UK banks are by no means alone: trust in U.S. banks fell from 68 percent in 2007 to 29 percent in 2010 as the banking giants on Wall Street ran into a new wave of criticism from Main Street.

from Breakingviews:

Global bailout fund looks unlikely to fly

Regulators and bankers rarely see eye to eye. But at the World Economic Forum in Davos, the two sides were in surprising agreement about creating a global fund, financed by a tax on banks, to deal with future bailouts.

Mario Draghi, head of the Financial Stability Board, which is spearheading a new global financial regulatory regime under the auspices of the G20, floated the idea of a cross-border body to manage this fund. Surprisingly, several big European banks -- including Barclays and Deutsche Bank -- support it.

from The Great Debate:

Business must take the lead on carbon management

APOTHEKER

Léo Apotheker is CEO of SAP. The views expressed are his own.

Most people who followed the Copenhagen climate talks in December will have been disappointed.

While the agreement brokered by the group of countries that included the United States, Brazil, China, India and South Africa and ratified by most of the attending countries is being touted as a success of sorts, it fell far short of the expectations that had built up, and achieved very little in concrete terms.

from The Great Debate (Commentary):

Redefining balance between state and free enterprise

ashrafghani31-Ashraf Ghani is Chairman of the Institute for State Effectiveness and co-author with Clare Lockhart of "Fixing Failed States: a Framework for Rebuilding a Fractured World". His opinions are his own. -

The current financial crisis has called into question our trust in globalization as a spontaneously generated order. Such orders, while of human making, are not of human design. The market can be seen as a force capable of generating solutions to the most difficult of economic problems.

from The Great Debate:

Ethics without regulation won’t cut it

– James Saft is a Reuters columnist. The opinions expressed are his own –

There has been a lot of talk in Davos about improving business ethics, and mercy knows there is certainly room for that. The past few years, like the end of most booms, have included plenty of fraud, self-dealing, and general all-purpose unethical behaviour.

James Saft Great Debate

I think it’s fantastic that business should seek to raise ethical standards. It's good business, and not before time. I do understand that a lot of what happened was a social phenomenon, and that a change in mores can only help.

from The Great Debate:

The end of the Davos consensus

-- James Saft is a Reuters columnist. The opinions expressed are his own --

James Saft Great Debate It's not exactly a wake, but participants at this year's World Economic Forum have witnessed many of their most cherished beliefs being challenged, upended and sometimes ground in the mud.

Think of it as the "Davos Consensus," a loose alignment of principles that held sway in this Swiss mountain resort and in large parts of the world over the past decade.

from The Great Debate:

Davos debate: What happens to development and sustainability amid crisis?

davos-delegatesDavos leaders have traditionally looked to the long term and have largely been keen on helping all nations of the world to benefit from economic development. But with politicians and businesses tied up with short term concerns about the economic crisis there's a risk at least that efforts to spread development and to ward against the threat of climate change may go on hold, at least for a time. Reuters News asked delegates at the World Economic Forum's annual meeting to share their thoughts on whether we should be concerned about development and sustainability slipping down the global agenda.

from James Saft:

Stephen Schwarzman’s hair of the dog

jimsaftcolumnSo what is Blackstone Group chairman Stephen Schwarzman's prescription for solving the banking crisis?

More leverage and less transparency, apparently.

Schwarzman told a panel at Davos that you can't mandate higher levels of bank capital at the same time losses are mounting and that mark-to-market accounting needed to be changed.

from The Great Debate:

Trust: the commodity in shortest supply

Where do I put my money?
What do I read?
Who do I listen to?
Who saw it coming?
Who made money from it?
Who will make money from it?
Who can I trust?

david-schlesinger-in-the-newsroom
As Davos gets under way, my feeling from chatting with contacts and listening to conversations around me is that one thing the world economy is really suffering from right now is a crisis in trust.

from Davos Notebook:

The shift in power from West to East

One news theme I've asked our journalists to be alert to this year is the shift in power and emphasis from est to East.

The rise of China's economic power during 30 years of reform and opening to the world is just one manifestation of this; the knowledge and service powerhouse that India has come in a globalised world is another. At Davos this year I'm moderating a panel on Asian innovation that will surely highlight software advances in Japan, Korea and Thailand as well.

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