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A wintry pessimism prevails in Davos
Brian Caplen takes the temperature of the banking community at the World Economic Forum annual meeting in Davos – and finds few optimists among the frowns.
‘Transparency is the key word for what we are doing now'
Jean-Claude Trichet, European Central Bank governor
European Central Bank governor Jean-Claude Trichet talks to Brian Caplen in Davos about the present crisis, the dangers of opacity and what Europe and the US have in common.
Integration advantage
Kosit Panpiemras, Thailand’s deputy prime minister
Kosit Panpiemras, Thailand’s deputy prime minister, tells Brian Caplen that trade and investment policies must be transformed to achieve greater integration into Asean.
The potential for wealth
Is the African renaissance for real? Or will development hopes again be dashed? Nigerian president Umaru Musa Yar’Adua makes the positive case.
Timely wisdom from an enduring master
Bill Rhodes, chairman of Citibank
Bill Rhodes, chairman of Citibank and winner of The Banker’s Lifetime Achievement Award talks to Stephen Timewell about his 50-year career, offering insights on the Latin American debt crises of the 1980s through the end of communism and expansion eastwards, to the present day rise of protectionism.
Hedge funds find silver lining in subprime clouds
Michael Hampden-Turner, Citi
While the rest of the market reels from the subprime-sparked credit crunch, some specialist hedge funds which speculated on a downturn are reaping hefty returns. Silvia Pavoni looks at how they did it and where they will look next.
CDO ratings hit troubled waters
Christian Stracke outlines five key areas where CDO ratings methodology – and structured finance ratings more generally – need to be improved in order to help restore confidence in the structured finance space.
Facing up to the need for honesty
Banks do not like talking about liquidity risk because it kills confidence and, historically, they have not been rewarded for candour on this particular topic. But events typified by the Northern Rock debacle show this attitude must radically change, say David Vander and Bill Cuthbert, co-founders of Liquidatum.
A window on the financial crisis
The issue of transparency is pivotal to the present financial crisis, writes Jacques de Larosière. He shares his thoughts on the source of the crisis and what action needs to be taken to restore investor confidence.
Time for Regulatory soul-searching
Regulators should worry about incentives, liquidity and the perverse impact of past regulations, and seriously re-examine their approach in the light of the incoming evidence of culpability for the credit crisis, says Raghuram G Rajan.
Holding off on IRB implementation
Recent turmoil shows the internal risk models of many banks are inadequate, underestimating the degree of risk exposure. The Basel Committee must therefore conduct further study before allowing banks to use the internal ratings based (IRB) approach for calculating regulatory capital, says Harald Benink.
Clear view curtails crisis fallout
Brady Dougan, Credit Suisse CEO
Credit Suisse fared well during the subprime crisis. Brian Caplen asks CEO Brady Dougan what underlies the bank’s new stability and what it is planning for the year ahead.
Upbeat outlook
Bob Diamond, Barclays president
After Barclays failed to gain control of ABN AMRO, president Bob Diamond focuses on the positive elements of the bank’s position. Interview by Brian Caplen.
A quiet revolution
Jean-Paul Votron, Fortis CEO
The three-way acquisition of ABN AMRO by RBS, Santander and Fortis proved a remarkable collaborative effort, as Fortis CEO Jean-Paul Votron tells Geraldine Lambe.
Undercarriage defects threaten to slow pace of a racing economy
Percy Mistry, High Powered Expert Committee (HPEC)
India’s economic momentum along with its global ambitions are growing rapidly. But gaping holes in the range of financial products on offer required by firms for efficient capital raising and risk management could hold back further progress. Geraldine Lambe reports.
The right tools for the unbanked
As banks seek growth in segments of the world’s population among whom penetration is low, Kris Gopalakrishnan explains how technology can help them achieve a return on their investments.
The selfish green
Vicki Bakhshi, associate director at F&C
The world of green initiatives is opening up to investors – whether green or sceptic – as banks create climate change-related financial products and indices. Silvia Pavoni reports.
Subprime crisis?
Tim Congdon laments the fact that academic monetary theory has become so technical, abstruse and remote from day-to-day practicality, that busy decision-takers in banking may start ignoring it.
Play it again, John
Sometimes a telling quote can be more profound than the entire book... and it certainly involves less reading. The Banker’s editors sat down and thought about the books, throughout history, that have had the most impact on business and finance and the most famous quotes from them. Here is their Top 10 selection. The star choice, which is especially relevant to the current crisis, is from the late John Kenneth Galbraith’s A Short History of Financial Euphoria.
The elusive 1000% return
The Banker’s top 10 bright ideas for potential limitless returns on investment. Report by Charles Piggott.
Policy must combat rising protectionism
The rapid rise in the number and size of sovereign wealth funds means that concerns about them are becoming more significant and shaping best practice has become more urgent, writes Robert M Kimmitt.
Partnerships large and small
David Vander, worldwide managing director of Microsoft Financial Services, tells Alan Duerden of the work his firm has undertaken in the payments arena with large financial institutions, as well as working in the unbanked sector.
New year’s solutions
Alan Duerden explores five important New Year’s resolutions that CIOs should be making for 2008 to ensure they deliver value for money.
