And they're right about that. As mentioned before, the US and UK lead the world in this business so both countries remain very afraid of what might happen to their dominance should the bankers be pushed too hard. Especially during a recession such concerns are understandable though along the way, Washington and London have ignored how deep the impact has been on everyone. Caution is one thing but cowardice is another.
A war of words broke out between London and Berlin yesterday as the German Finance minister, Peer Steinbrück, made an outspoken attack on the City. As world leaders meet at the G20 summit in Pittsburgh, Mr Steinbrück laid bare the disagreements between France and Germany on one side and the UK and US on the other about tighter regulation.
He said he hoped that the summit would agree "specific measures" to limit bankers' bonuses, but added: "There is clearly a lobby in London that wants to defend its competitive advantage tooth and nail.
"In the United States, too, the financial industry is evidently putting a lot of pressure on Congress with the message, 'Don't take things too seriously with regulation'."
