What's Important in the Financial World (1/23/2013)

The new tax was inspired by a political drive to make the financial industry contribute more heavily after a financial crisis in 2007 sparked a global economic downturn. It is due to be rolled out with 10 other European countries, including Germany and Italy but not Britain. Critics say such a tax can only work if it is imposed worldwide, or at least Europe-wide, and that its adoption in around 2015 risks pushing trading and jobs elsewhere.

JPMorgan Chase & Co Chief Executive Jamie Dimon apologized to shareholders for the $6 billion loss caused by the so-called "whale" trade, calling it a "terrible mistake," but said the bank has moved on and is still highly profitable.

"If you're a shareholder of mine, I apologize deeply," Dimon said at a presentation at the World Economic Forum in Davos, Switzerland. "But we had record results and life goes on."

Despite a $6.2 billion loss from bad trades in JPMorgan's chief investment office last year, the bank still managed to earn a record $21.3 billion in 2012.

The world economy appears set to emerge slowly from its hangover after the financial crisis but momentum on policy reform must not cease, economic experts attending the World Economic Forum in Davos will tell business leaders this week.

Economists sense that the risks to recovery are now much lower even if the pace of any upswing is likely to remain weak and their broadly positive sentiment is also shared by most officials attending.

Christine Lagarde, managing director of the International Monetary Fund, will go to the Swiss mountain resort with the message: "We stopped the collapse. We should avoid the relapse. It is not time to relax".

Laboured as she recognised her buzzwords were, they sum up the views of leading economic thinkers attending Davos who have lost last year's fears of an imminent collapse of the euro.