Strongly worded argument for varieties of capitalism in banking

Global financial markets have become “a monster” that “must be put back in its place”, the German president has said, comparing bankers with alchemists who were responsible for “massive destruction of assets”.



.... in banking. Finnacial Times report on the comments of the Horst Kohler, current German president and former head of IMF:
Global financial markets have become “a monster” that “must be put back in its place”, the German president has said, comparing bankers with alchemists who were responsible for “massive destruction of assets”.
In some of the toughest comments by a leading European politician since the start of the subprime crisis , Horst Köhler... called for tougher regulations and the reconstruction of a “continental European banking culture”.

Mr Köhler singled out excessive executive pay, the focus of much public resentment against top managers, as a factor in the subprime crisis and accused bankers of acting irresponsibly.

“The complexity of financial products and the possibility to carry out huge leveraged trades with little [of their] own capital have allowed the monster to grow…also responsible [is] the grotesquely high compensation of individual finance managers.

I do not remember the times when he was at IMF, but from comments at other blogs I gather that he is saying something else in Berlin than he was in Washington.