Barclays's Diamond Says Banks Need Derivatives To Compete

8th Jun 2010 19:07

By Joe Bel Bruno Of DOW JONES NEWSWIRES NEW YORK (Dow Jones)--Barclays PLC (BCS) President Robert Diamond said Tuesday stripping derivatives desks from banks would put U.S. Institutions at a disadvantage. Diamond said lawmakers should not give in to "populist" calls that make a financial overhaul too restricting. He pointed out that a proposal to separate derivatives from banks does not have support from the White House or Treasury Secretary Timothy Geithner. Further, he believes drastic reforms would make it difficult to synchronize with global regulators. "You can't separate derivatives from banks because they go hand in hand," Diamond said during a speech before a trade group in New York. "If we don't get it right here, it will be much tougher to harmonize (reforms) globally." -By Joe Bel Bruno, Dow Jones Newswires; 212-416-2469 (END) Dow Jones Newswires June 08, 2010 14:07 ET (18:07 GMT)