Int'l banks want coordination

Global regulators and international banks have attempted to thaw their icy relationship, at Davos. The two groups met behind closed doors on Saturday, to talk about proposed financial reforms.

The more than two-hour long meeting was not on the forum's official agenda, but quickly became the most significant development of the day.

For 2-hours politicians and bankers met to informally discuss a contentious issue proposed financial reforms.

Although they reached some common ground, they say their talks were only constructive not conclusive.

Barney Frank, US Congressman, said, "What we talked about, which is the main reason I came here, is the importance of knowing what each country is going to be doing and trying to do them with some coordination."

Frank said after the meeting, the most important element was coordinating and understanding the various approaches that governments are taking to stabilize and prevent excessive risks in their financial industries.

He added that the aim was not to push for a global financial governing system. And that each country could deal with the crisis on its own terms.

Barney Frank, US Congressman, said, "We are prepared to talk to people about the specifics of how best to achieve the goal. But the other thing is that there is general agreement that there has to be international coordination. But there's no global sovereignty and no one is going to be able to impose any global rules."

The head of Britain's Financial Services Authority said the banks were asked for their input at the meeting, but he wouldn't elaborate on any possible proposals or agreements.

Lord Adir Turmer, Chairman of UK Financial Services Authority, said, "I hate to disappoint you, but the purpose of the meeting was not to debate some big new idea or to reach agreement, so there was no sort of big thing to either agree on or disagree on."

Financiers have been anxious about regulatory proposals. That was reflected in a series of meetings at Davos this week, with bankers and politicians debating how to reform the financial industry without slipping into over-regulation that could prolong the economic crisis.

The forum ends on Sunday.