Sunday, 19 July 2009

berlin against city and wall st

Merkel attacks Wall St and City

Fri Jul 17, 2009 10:43pm BST

NUREMBERG, Germany (Reuters) - Germany will not allow financiers in New York or London to dictate how money should be made and then leave others to pay for their mistakes, Chancellor Angela Merkel said on Friday. Merkel's remarks were part of an effort to patch up relations with the Christian Social Union (CSU), the Bavarian sister party of her conservative Christian Democrats (CDU), after a period of squabbles over tax policy and Europe. She needs the CSU because the two parties form a parliamentary bloc and she used her speech to a CSU party convention in Nuremberg to stress their common aim of a strong, respected Germany.

Merkel said Germany would use the Group of 20 forum of global leaders to push for tougher financial market regulation. "With us, dear friends, Wall Street or the City of London won't dictate again how money should be made only to let others pick up the bill," she said. Merkel's comments in Nuremberg were the second time in recent weeks that she has criticised financial players in the United States and Britain -- and those closer to home. Last month, she said she was sceptical about the extent of the U.S. Federal Reserve's powers and steps introduced by the Bank of England. In her June remarks, Merkel also said the European Central Bank had "bowed somewhat to international pressure" by deciding to buy covered bonds to inject money into the credit markets, a radical form of monetary stimulus.

German Finance Minister Peer Steinbrueck has also criticised MPs' attitude to the London financial markets. Earlier this month, he accused Britain of hindering efforts to reform global financial markets because it was too eager to pander to the City of London. Last year, he attacked Britain's economic policy.

(Reporting by Irene Preisinger, writing by Paul Carrel, editing by Tim Pearce)

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