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Politically driven post-crisis legislation must be avoided
A regulatory backlash is almost certain to follow the current trail of bail-outs and mortgage guarantees. Banks must ensure they have a say in any reform process or face the burden of further legislation.
Google moves into the online banking picture
Could Google revolutionise the world of online banking? Its involvement as a platform is looking increasingly likely.
Labour policy dream is not yet dashed
It is not yet time to abolish ALMPs – activation policies can make a difference, say Rafael Lalive, Jan van Ours and Josef Zwimuller.
Better supervision is key to stability
The EU needs to step up co-operation on financial supervision? That is what is required to prevent crises and maintain the soundness of financial institutions and markets, says Tommaso Padoa-Schioppa.
Robust review should be used to stem panicked policy responses
Jumpy governments should not be allowed to tinker with economic policies at times of crisis without a review of the potential effects.
More pioneers are needed to include poor
Yunus is creating another new financial model to include the poor in global capitalism – and still more models are needed.
Attack of the credit crunch claimants
The glut of subprime crisis-related lawsuits lodged in the US may have implications for the UK, say Tim Strong and Ivan Wilkinson.
Certain wheels must keep turning
Banks must resist calls for quick change to tackle the subprime crisis. But they must also not retreat into their shells. Concerted action and a willingness to continue to take risks is the way forward, says John Varley.
Sovereign wealth fund rescue puts Citigroup in recovery position
Bellwether Citigroup may have plugged the holes in its capital after its unacceptable fourth quarter performance, but how many other financial institutions will show the same resilience?
Assessing Northern Rock’s damage to the UK
A string of problems would result if the UK government decides to take the nationalisation route to digging the troubled bank out of trouble.
Vietnam leads the way in tackling poverty
The declining poverty rate in Vietnam is due to the country’s policy of inclusive development, writes Ajay Chhibber.
A robust framework for risk management
Basel II does not need to be overhauled – it is adaptable to rapid financial innovation and moreover, is designed to help steer banks through extreme market conditions, says Nout Wellink.
Central banks’ action is welcome but long-term rethink is needed
The unprecedented action by five central banks in response to the credit crunch is only a short-term solution to the problem.
Is SWF investment a sign of global structural change?
Emerging markets used to suffer from Western crises. Now they help to solve them by pouring capital into the system.
No quick fix to a crisis
Regulators and governments must not make the mistake of responding in haste to recent crises, such as German bank failures, the Northern Rock debacle and liquidity problems, advises Howard Davies.
Regulations caught red-handed in search for subprime crisis culprits
Bank rules are a key reason behind the upset in financial markets and the advent of Basel II will do little to improve the situation.
M&A market oblivious to hostile climate
A range of exciting mergers and acquisitions are proceeding among banks unaffected by subprime concerns.
Tables turned as capital flies to ‘safety’ of emerging markets
For now, emerging markets bask in glory as they poach quality moniker from ailing developed markets – but a bubble looms.
A poisoned chalice for new UBS chief?
Marcel Rohner, the incoming UBS CEO, is inheriting all kinds of problems, most of which are not of his making.
The struggle for accord on free trade
Labour and environment sidebars are not protectionist, says Jeffrey Schott.
A significant test of emerging markets
Taking a global perspective is vital to learn lessons from financial market turbulence and find the right approach to move forward in the future, says Jaime Caruana.
Northern Rock crisis reveals fissures in oversight structure
The current debacle over Northern Rock is going to lead to a complete rethink on markets and the way they are governed.
Gulf exchange buy-ins must be accepted
As the world enters a new era of diverse wealth distribution, global financial institutions must reflect the change.
Europe’s regulator looks menacing
The European Commission could be just one major event away from toughening its stance on financial regulation, says Robert McLeod.
The Europe 2.0 opportunity
Remaining competitive in the global marketplace requires that Europe lead the second phase of the internet, which will be driven by collaboration and Web 2.0 technologies, says John Chambers.
Damn the purists, greater good demands central bank intrusion
Government intervention may let the financially reckless off the hook but it can also prevent the wider economy from collapsing.
Hypocrisy over sovereign wealth funds
Given current regulations regarding SWFs, the US and EU have no right to attack emerging economies on how they invest.
Appealing to the MySpace generation
Web-based social networking is coming to banking, and marketeers must learn to talk to exploit it, writes Marian Salzman.
Subprime mortgage woes
As major players face rating downgrades, observers wonder if the problems in the credit market will cascade into the equity markets.
Oil price hikes offer Africa a silver lining
Climbing oil prices may be a headache for the West, but could provide Africa with much needed development revenue.
China cuts out the middleman
By negotiating directly with Africa, China is changing the rules on commodity trading, writes Martyn Davies.
Responsible growth benefits all of society
Brazil’s approach to economic stability has a strong social priority, with lower inflation and greater job creation benefiting even the poorest citizens, says Henrique de Campos Meirelles.
The miscalculation of posturing over currency misalignment
The US and IMF’s targeting of China’s currency has as much to do with playing to the political gallery as it does with economics.
Free market credentials par excellence
It is high time France was given some credit for operating an economy that is more open than most to foreign companies.
The myth of microfinance
Microcredit is not a profitable business model – nor does it aid long-term development, argues Thomas Dichter.
Greater EU presence on the world stage
As Portugal takes over the EU presidency, the country’s president, Professor Aníbal Cavaco Silva, stresses the need, among other things, for Europe to assert itself as an effective and influential global performer.
America’s attack-dog foreign policy thrown to the wolves
Much work is required for the US to regain a position of moral authority required to take on new challenges around the world.
China and Africa’s mutual back scratching
A 10-fold increase in bilateral trade means China is set to eclipse Europe and the US as the main foreign actor in Africa.
Tearing up the rules on retirement
Institutions specialising in retirement provision are wrong to assume that retirees will follow their logic, say Monish Kumar and Andy Maguire.
Regulator academy
The establishment of a school for financial regulation in London should attract students from around the world eager to learn about the UK’s principles-based oversight model, says Mervyn Davies.
Bank consortium joins forces to share the spoils of M&A market
The three-way bid by RBS, Fortis and Santander for ABN AMRO is the prototype for a new model of mergers and acquisitions deal.
Cash alternative society can only work if the market says ‘yes’
Projections for a prepaid-card economy see 360 million cards issued in Europe by 2010. But this lucrative business still carries risks.
Change happens from the bottom up
The obsession with ‘global’ solutions to global problems is misguided. Answers are to be found at a much simpler level.
Argentina needs soft approach to inflation
In Argentina’s delicate post-crisis economic landscape, inflation targeting isn’t the answer, central bank policy needs to reflect the transitional phase of the Argentine economy, says Martín Redrado.
An end to old certainties
Globalisation is throwing up new consumer potential in the emerging world and shattering old theories of economic management. Banks failing to track this fast-moving target will be consigned to history.
Where will tax competition end?
Will corporate tax continue to fall until the rate is zero? Michael Devereux looks at what is fuelling the competition.
Application of Equator Principles lands adherents in hot water
The establishment of a set of voluntary guidelines for project finance has handed pressure groups a stick with which to beat banks.
Don’t tar all vultures with the same brush
The current Zambian case not withstanding, most distressed debt traders form a valuable part of the financial system.
Banks thriving despite Chávez bravado
Venezuela’s president may shock with his ‘socialist’ pronouncements but the banking sector is not worried.
Supervisors must be professionals
Whether responsibility for banking supervision in the EU lies with national central banks or with separate agencies, it must be able to stand up to pressure, argues Jean Lemierre.
Cries of impending catastrophe at HSBC are overblown
The UK bank’s US exposure should only be a short-term liability and shareholders will again benefit once the economy rebounds.
LSE risks losing out by resting on its laurels
While rejecting numerous overtures from suitors, the London Stock Exchange has failed to go on the offensive and risks being left behind.
Too weak for a liquidity injection
Fiscal stimulus is unlikely to aid economies in the next recession as it has done in the past, writes Andrew Smithers.
Financial markets: reasons to be fearful
Current account imbalances, household indebtedness, large leveraged transactions in the corporate sector as well as the growth in market complexity should all be sounding alarm bells, says Mario Draghi.
Liberalisation is not a free ride into China
Despite China opening up banking to foreigners, incomers will face difficult challenges to make an impact on such a gargantuan market.
US sees folly of heavy-handed regulation
This may be the year that the US pendulum swings away from excessive regulation towards balanced principles.
The consumer-led US boom is a myth
Strong business profit performance lies behind the upswing in the US economy, writes Yusuke Horiguchi.
Regulators’ eyes on financial institutions
Regulators need to keep on top of banks, says Dr YV Reddy.
Hard landing looks likely
The risks of a US recession this year are high, and there is little likelihood that the rest of the global economy can uncouple itself to prevent a sharp global slowdown, writes Nouriel Roubini.
Never mind the economics
From a cost perspective the merging of stock exchanges in a particular region makes perfect sense, but nationalistic politics dictates this cannot be, hence partnership is the only way forward, says Ruben Lee.
Investing in global public good delivery
Financing common public goods such as measures to combat climate change and international financial instability requires multilateral co-operation between developing and developed actors, says Kemal Dervis.
Building domestic asian bond markets
Regional co-operation through the Asian Bond Fund initiatives will make intermediation between savings and investment increasingly effective in the region, says Joseph Yam.
Awesome potential locked in Africa
Africa is a real banking market with real potential and there is nothing philanthropic about Barclays’ activities there, writes John Varley. He outlines particular areas that his banking group is committed to developing and region-specific issues that must be addressed.
Some nations more equal than others
In this extract from his latest book, former World Bank chief economist Joe Stiglitz argues that a trade regime based on the principle of universal reciprocity regardless of circumstances does little to help developing countries.
Best laid plans
The North American Free Trade Agreement (Nafta) was intended, among other things, to improve Mexico’s economy (and thus reduce illegal immigration). In fact, it worked to the detriment of Mexico. Joe Stiglitz analyses what went wrong.
