European Central Bank President Jean-Claude Trichet warned Monday that countries should tread carefully before implementing a new regime of taxes on banks.
The International Monetary Fund has offered a tax plan that is aimed at paying for bank rescues in the event of future crises and to constrain risk-taking. Trichet cautioned against "overloading the ship" if too much of a burden were imposed on the banking system.
Though he acknowledged widespread concerns that the U.S. might not accede to new capital and liquidity rules that the Basel Committee is drafting, Trichet said his discussions with various U.S. authorities left him confident this would not happen.
"It makes me absolutely convinced that the U.S. authorities understand that it is absolutely necessary to apply the new rules," he said in an interview.
