VIGO, Spain, Jan 26 (Reuters) - U.S. President Barack Obama's proposals last week to limit financial risk taking are reasonable in part but more details are required, Bank of Spain Governor Miguel Angel Fernandez Ordonez said on Tuesday.
'In order to give an opinion, we need to know on what, and Obama's measures aren't very detailed,' Ordonez told a lunch in the northern Spanish city of Vigo.
'I believe the general line, both in terms of the levy on some institutions as well as specific limitations, is acceptable.'
Obama, two weeks ago, called for a levy on banks' earnings and last week proposed moves to force banks to separate riskier market trading activities from their more fundamental role as deposit takers and loan makers.
Ordonez, who is also member of the European Central Bank governing council, recognized the public anger which had arisen in some countries where banks had been the subject of multi-billion-dollar bailouts.
'In this country, the banks have not cost the tax payer a single euro, and because of this we might not understand the disgust, the fury, in other countries including the United States and some European countries,' he said.
'When considering limitations on the banks, I believe Obama's ideas are not bad because they're aimed directly at trading operations which have been very dangerous.'
Any regulation should be considered on a global scale, he said, adding that he agreed financial institutions cannot be left to regulate themselves.
'Worldwide, it is obvious we have to change regulation and we can't let the system auto-regulate,' he said.
(Reporting by Paul Day; editing by Patrick Graham) Keywords: BANKOFSPAIN/OBAMA (jason.webb@thomsonreuters.com; +34 91 585 83 28; Reuters Messaging: jason.webb.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
'In order to give an opinion, we need to know on what, and Obama's measures aren't very detailed,' Ordonez told a lunch in the northern Spanish city of Vigo.
'I believe the general line, both in terms of the levy on some institutions as well as specific limitations, is acceptable.'
Obama, two weeks ago, called for a levy on banks' earnings and last week proposed moves to force banks to separate riskier market trading activities from their more fundamental role as deposit takers and loan makers.
Ordonez, who is also member of the European Central Bank governing council, recognized the public anger which had arisen in some countries where banks had been the subject of multi-billion-dollar bailouts.
'In this country, the banks have not cost the tax payer a single euro, and because of this we might not understand the disgust, the fury, in other countries including the United States and some European countries,' he said.
'When considering limitations on the banks, I believe Obama's ideas are not bad because they're aimed directly at trading operations which have been very dangerous.'
Any regulation should be considered on a global scale, he said, adding that he agreed financial institutions cannot be left to regulate themselves.
'Worldwide, it is obvious we have to change regulation and we can't let the system auto-regulate,' he said.
(Reporting by Paul Day; editing by Patrick Graham) Keywords: BANKOFSPAIN/OBAMA (jason.webb@thomsonreuters.com; +34 91 585 83 28; Reuters Messaging: jason.webb.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
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