Europe needs to recapitalise, restructure or shut down its banks as part of a vital clean-up of the industry, International Monetary Fund managing director Christine Lagarde said as she warned that the threat from world's biggest lenders was more dangerous than ever". Speaking in New York ahead of next week's IMF Spring meeting, Ms Lagarde launched a broadside against the financial services industry for resisting urgent reform. "In too many cases - from the United States in 2008 to Cyprus today - we have seen what happens when a banking sector chooses the quick buck ..., backing a business model that ultimately destabilizes the economy. We simply cannot have pre-crisis banking in a post-crisis world. We need reform, even in the face of intense pushback from an industry sometimes reluctant to abandon lucrative lines of business." Almost five years since Lehman Brothers collapsed, she claimed: "The 'oversize banking' model of too-big-to-fail is more dangerous than ever. We must get to the root of the problem with comprehensive and clear regulation." Regulators have forced banks to increase significantly their loss-absorbing capital buffers since the crisis, but are still working on "resolution" mechanisms that will allow giant lenders to fail without hitting the taxpayer and threatening financial stability. Regulators must also work together, she added, amid evidence that some countries are caving into pressure from the banking lobby.