Billionaire investor George Soros says there must be global financial regulation if the global economy is to be saved.
"The whole banking system has become globalized, but it has been operating on a false principle that the system can regulate itself," Soros recently told reporters in Jakarta.
"There is a globalization of market, but there is no globalization of regulation."
Soros, who is chairman of Fund Management Foundation and founder of the Open Society Institute, says that, in general, bailout policies should not be carried out.
“If banking regulations are well run, a bailout is not needed,” Soros says.
As the World Economic Forum meeting in Davis, Switzerland ended, bankers indicated that they might agree to far-reaching reforms, the BBC reports.
However, the annual meeting of some of the world's most powerful business leaders and politicians ended with few new plans or real achievements — though there was agreement though that job creation and free trade had to be key ingredients of any economic recovery.
At the summit, top regulators warned that they could take drastic action to take some of the risk out of the financial industry.
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