Following the G20 summit meetings (in London and Pittsburgh), it became clear that these nations were looking for a way to curb the “recklessness” of the major financial institutions. These latter were the explicit cause of the global financial crisis and the ensuing great recession. Measures were then implemented, following an agreement of the G20 finance ministers last September, on the need to adjust the financial bonuses given by banks to their proactive employees who provide these banks with major services within the scope of investment banking. If the G20 Summit decides upon expanding the Financial Stability Board, which works under the Bank of International Settlements in Zurich, and transforms it into a council that is entrusted with the task of choosing a new course for banks, this would protect the global economy from collapse as a result of reckless investments, while not denying the world economy revenues that it needs to achieve growth. While these decisions to commission such bodies were taking place, and amid the serious quests to modify regulations governing the work of financial institutions in a manner with which these institutions are prevented from threatening the global financial system, many organizations in Switzerland, both political and nongovernmental, expressed their demands for the dismantlement and downsizing of the major financial institutions. This is while the United States was engaged in dismantling the major automakers there, and demanding that they restructure and reconsider their future plans in order to obtain the support of the U.S administration and the necessary financial assistance necessary for their rescue. The success of this step had a positive impact that bolstered the idea of dismantling the major American financial institutions. This is particularly valid given the stubborn stance by the latter in continuing to offer bonuses to their employees, in excess of the amounts proposed by the U.S President Barack Obama for the fees (Financial Responsibility Fee) which are estimated at 117 billion dollars over ten years, while these bonuses amount to 150 billion dollars each year. The shock decision to reform American banks could thus be justified, despite the ability to otherwise find many other kinds of regulations to curb their non-commitment to governmental instructions, and the reckless course of work that major banks around the world have chosen to take. Meanwhile, China seems to be the party least affected by the crisis's repercussions, issuing its warnings and instructions to banks not to lend excessively, especially in what regards crediting investments in real estate. The Chinese authorities also raised the benchmark interest rate by half a percentage point to help trim unchecked credit growth. The banking sector, following the financial crisis that swept the whole world, had emerged completely overturned, as the financial torrent uprooted several medium to large banks, all around the world. In the United States, the largest number of bankruptcies in the banking sector was recorded, with 140 banks collapsing in a single year. The shock was severe, as the crisis spared no one. Even the institutions that were hitherto the giants of the finance world were not spared, such as the U.S firm Citigroup, which was until recently believed to be unshakable. Moreover, the credit for the survival of any banks can subsequently be given to the economic stimulus programs, which were quickly endorsed by the public sector, particularly on both sides of the Atlantic in Europe and America. As such, the sheer size of these financial institutions did not shield them from the repercussions of the crisis. On the contrary, their collapse caused panic in political circles at the leadership levels, and spurred apprehension amid citizens who lost all their assets, especially their homes, jobs and livelihoods. For instance, Citigroup, which absorbed 45 billion dollars in aid from the federal state, was valued at 178 billion dollars in 2007, compared to 88 billion by the end of 2009. This is while Citigroup can in practice be seen as a benchmark of other major banks. In reality, the economic crisis spawned a strong rearrangement of financial institutions, as a result of accumulating risks over the previous years, and as a result of their management policies. The losses these institutions suffered were very high, especially among the large U.S investment banks, with the exception of Goldman Sachs. Banks such Merrill Lynch, Bear Stearns, and Morgan Stanley, the three stars of Wall Street, were left to fall in the trap of toxic derivatives until they sank in them, as these banks were ensorcelled by their hunger for quick and high profits. Then the crisis came and exposed their excesses. Meanwhile, the victims of the crisis in Europe were the financial institutions that took more risks than others did, without putting appropriate regulatory and monitoring systems in place. As a result, British and German banks invested in the U.S real estate market without any restraints, and solely on the basis of high-risk credit derivatives. At present, the world is apprehensive of a similar financial bubble that could take place in China, where banks have broadly turned on their lending taps in response to the previous government's appeals to boost growth. Therefore, the Financial Stability Board (FSB) is urging banks to increase their assets this year, which are considered their financial “air cushions” that can help them absorb bad loans, which are estimated to reach 73.2 billion dollars in 2010. The FSB also proposes that banks should increase their capital continuously until 2012, in order to protect the banking system. The American “leadership” of the global financial and economic collapse may not thus result in building a new banking system on the basis of dismantling the major institutions. However, dividing the latter into non intersecting but parallel specialized sectors at least guarantees the savers' money in the future, and curbs the recklessness of investments, especially when financial authorities represented by central banks are assigned with the task of monitoring and directing the banking systems, as well as providing a certain measure of accountability.
