A group representing the world's largest banks Monday urged the Group of 20 to maintain anti-crisis measures and recognize moves the financial industry is making to change its ways.
Facing heated rhetoric from Group of 20 leaders on bankers' ways and their perceived return to "business as usual," the Institute of International Finance stressed in a letter to President Obama that "this is not the case at all."
The lobbying group, which represents more than 375 companies, said the industry had made progress on strengthening its business models and adopting good-governance policies, including compensation practices that do not reward excessive risk-taking. And it promised that such efforts would continue.
"We fully recognize that confidence and trust have been profoundly shaken," the letter said. "Nevertheless, it is important to recognize the steps that have been taken, since they represent essential ingredients of a more stable financial system."
Obama, who will play host to the G-20 leaders Sept. 24 and 25 in Pittsburgh, called on Wall Street to "take responsibility" and mend its ways in a major speech in New York later Monday.
This month G-20 finance ministers and central bank heads agreed on guidelines for bankers' bonuses but did not call for caps.
Instead, these officials asked the Financial Stability Board to consider the case for a limit on overall bonus payments made by an individual bank as a share of profits.