9/23/2010

AFME is cautioning regulators against levying additional capital surcharges on major banks, saying it could be counterproductive. "Better supervision and better corporate governance are the core of a future financial system that is stable and strong," said Mark Austen, acting CEO at AFME. The organisation said developing a list of banks deemed "too big to fail" and subjecting them to additional surcharges and other reforms would not help stabilise the financial industry. "Indeed, such a list could, paradoxically, produce the very opposite as firms known to be on it may be assumed by customers and counterparties to be 'too big to fail'," AFME said.

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