Speaking at the Euro Finance Week event in Frankfurt, Deutsche Bank CEO Josef Ackermann referred to the financial and economic crisis - which began with the real estate bubble in the United States and has since evolved into the Greek sovereign debt crisis – as a "turning point" for the banking sector.

Ackermann warned of the impact excessive regulation could have European banks, while others at the conference highlighted the need to improve checks and balances on financial markets.

The head of Germany's central bank, Jens Weidmann, previously an advisor to German Chancellor Angele Merkel, criticized Europe's management of the eurozone debt crisis.

He also rejected calls for the European Central Bank (ECB) to play a greater role in overcoming the crisis and participate in the European Financial Stability Facility (EFSF). Weidmann said he believed such moves could hurt the independence of the Bundesbank.

Rising interference

"The boundaries between monetary and fiscal policy are at risk of blurring or even completely disappearing, as shown in the recent debate on whether to involve the Eurosystem (the European Central Bank and member states' central banks) in the leveraging of the EFSF," Weidmann said. "This rising interference in monetary policy is dangerous."

It is up to policymakers, not the ECB, to solve the debit crisis, Weidmann added. "Monetary policy cannot and should not solve the debt problems of countries and banks."

With the financial crisis far from over and demonstrations against banks taking place around the world, Ackermann pointed to changes ahead.

"The financial and economic crisis, which has now accompanied us for four years, represents a turning point in many ways," he said. "Those who still believe in a return to the status quo should think again."

Ackermann said banks face a decade of challenges, and that the possibility some won't survive is greater than ever.

Key financial industry lobbyist

Ackermann's words carry weight. In addition to being CEO of Deutsche Bank, the Swiss-born banker is the financial industry's key lobbyist in his role as head of the Institute of International Finance. In this position, he is determined to fight what he views as excessive regulation.

"The current trend is for national governments and regulatory authorities to bring markets and institutions stronger under their control," he said.

German State Secretary of Finance Jörg Asmussen drew plenty of attention when he stepped to the pulpit. Asmussen, who will take over as chief economist at the European Central Bank next year, is viewed as a powerful political string-puller who has normally avoids public appearances.

Prior to the financial crisis, he pushed for the liberalization of financial markets. But this week in Frankfurt, he campaigned for more regulation, admitting that he had a change of mind.

A learning process

"Humans aren't perfect, and markets aren't perfect if you leave them alone" Asmussen said. "Consequently, governments - or to be more precise, the community of states - need to set and enforce rules. For many of us, the financial crisis has been a learning process. It has for me at least."

Asmussen appealed to the conscience of banks. "What we need is what (former German Chancellor) Helmut Schmidt called 'decent morals,'" he said.

Speakers at Euro Finance Week shared plenty of reflective thoughts with top bankers attending the event. Whether these financial leaders will ever act on them remains to be seen.

Author: Sonila Sand / jrb
Editor: Sam Edmonds