We note recently that some people are now in favor of a global bailout fund that would rescue large multinational banks when they run into trouble. The idea was floated at Davos and a few large European banks--Deutsche Bank and Barclays--surprisingly bought into the idea.

But Breakingviews throws some water on the whole idea. It would certainly be a very complex undertaking, to coordinate across so many regulatory bodies. And it's hard to see local bodies giving up control of bailout decisions to an international body. A fund that would serve as an IMF-like lender might be a good idea. But that also seems like a stretch.

While Breakingviews argues the main impediments are fiscal--and I can't see large bank paying a special fee twice--some might argue that the politics of all would be too complex to manage. I doubt we'll hear much more about this anytime soon. Davos seems to have a certain effect on people. 

For more:
- here's the article

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