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Thu 01 Jan 2010Sarkozy backs call for banking reforms

THE BATTLE lines were drawn on the opening day of the Davos economic summit on US president Obama’s plans to limit the size of banks and restrict the investment activities of retail banks.

Senior bankers warned that the proposals would damage the world economy, while political and public figures gave them a guarded welcome but cautioned against isolated moves by governments to overhaul regulation and eradicate risk-taking by their national banks.

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