Ah, here is a fresh idea from Charles Goodhart and Avinash Persaud  in the FT: give bank supervisors hefty bonuses that pay out over five years or so if the firms in their purview stay profitable.
Next on their menu is a revision to Basel II capital adequacy requirements that raises them by a ratio linked […]

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Philippe Carrel, SVP at Thomson Reuters, has been rounding up bankers, quants and technologists in New York and London to gauge the satisfaction with existing information on structured assets (very low) and create some standards that market participants can agree upon. Everyone knows Black-Scholes has some underlying problems but it provides an accepted way to […]

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It’s a well-known marketing ploy in banking – offer free checking and then hit customers with outrageous fees when they bounce a check – £40 or so in the UK for what American bankers called non-sufficient funds (NSF). Now the High Court has ruled the fees come under laws on fairness of contracts, governed by the  […]

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