Ah, sweet revenge. Chinese leaders are offering the US advice on how to run its economy, and a bit of criticism on its performance so far, reports Edward Wong in The New York Times. The Chinese have called America’s concept of economic regulation “warped,” and called on the country to halt the dollar’s decline. America […]
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Some outlines of regulatory changes are starting to take shape. My guess is that US investment banks will see increased regulation in return for the Fed’s intervention in the case of Bear Stearns and its decision to allow investment banks to borrow from it.
The Fed’s approach will be to that the cowboys of finance are […]
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For a couple of weeks I have been writing about banking and regulation and the possibility, make that likelihood, that a Democratic regime in the US will be looking at an extensive set of new regulations. Is the financial services industry making any effort to get out in front of this?
Not as far as I […]
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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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Deutsche Bank’s CEO Josef Ackerman touched off a storm a few weeks ago as chair of the Institute of International Finance when a working paper there suggested revisions to mark-to-market because values in an illiquid market “results in valuations that do not provide a true picture of the financial positions of the firms.” Meanwhile the […]
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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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Last month at The Forum in London, the MiFID conference sponsored by JWG-IT, David Wright, deputy director general, EU Commission, told bankers they should take the current financial crisis seriously. “The firms that created this mess have to step up to the plate. This is not the time for firms to seek de minimus solutions or […]
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Which parts of the FSA’s guidance is a firm expected to follow?
That’s what one attorney asked Roseanne Harford, Manager, Strategy and Risk Division – at the FSA during Tuesday’s MiFID Forum in London.
The FSA relies on informal guidance which creates the risk of a soup of materials that firms find difficult to navigate, he said. Is […]
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Wholesale markets in Europe have done well under a gentle regulatory regime, David Wright, deputy director general, EU Commission told The Forum, a MiFID event Tuesday. European markets grew twice as fast as GDP and faster than markets in the US.
“It is a pretty staggering change from where we were 10 years ago.”
But he warned […]
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US Treasury Secretary Hank Paulson’s proposals are catching a lot of flak from NY Times columnist and Princeton economist Paul Krugman
Although he works in Princeton, nearly 200 miles from Washington, Krugman routinely beats the pants off the Washington press corps by reading legislation and budgets, paying attention when the Bush administration gives five different […]
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