Deutsche Bank CEO, Josef Ackermann, who is also chairman of the Institute of International Finance, wrote a letter to still-president George W. Bush urging him to develop an “exit strategy” from government investments in banks as soon as the markets calm down. Why does Ackermann fear prolonged government control of banks? Governments would bring on widespread inefficiencies. Which, as we’ve all seen, is the responsibility of banks themselves.
Bloomberg: A permanent, larger role for the public sector in financial companies would bring “wide-spread inefficiencies,” hurting the chances of renewed growth in output and jobs, Ackermann said in his letter, posted yesterday on the Web site of the Washington-based IIF, an association of financial institutions.
The leaders of the Group of 20 industrial and emerging countries meet in Washington this week amid looming recession. The world’s biggest industrialized economies will all contract next year for the first time in more than half a century as the financial-market seizure leaves companies and consumers starved of credit, the International Monetary Fund forecast this month.
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