Banks struggle to reach common ground

The world's top financiers are at odds about how to fight back against a global push for tougher financial regulation, with commercial…

The world's top financiers are at odds about how to fight back against a global push for tougher financial regulation, with commercial and investment banks struggling to reach common ground.

Top executives from Wall Street and Europe's leading banks have been holding behind-the-scenes talks at the World Economic Forum in the Swiss ski resort of Davos, sources close to the negotiations said, but a deal has proved elusive.

Wall Street's largest and some major European investment banks argued in favoUr of a tough common front against politicians who are calling for much tougher measures to regulate the industry in the wake of the financial crisis.

But they did not manage to win over the heads of some commercial banks who believe the industry needs to be more conciliatory, the sources with knowledge of the talks said.

"The tough line of the large investment banks is very different than the approach of the major commercial banks," said one of the sources. "It looks like it is very difficult to reach a common position."

The banks held the discussions ahead of an expected meeting with regulators and lawmakers tomorrow.

Reuters