Why are financial disasters, such as Parmalat and Enron, so difficult to predict? This month The Banker asked a group of industry experts to participate in a roundtable discussion to explore the issues. Detecting fraud is far from easy, finding solutions far more so. We also look at whether risk models do the job.
Meanwhile, Karina Robinson interviews Singapore’s Prime Minister Goh Chok Tong on developments in Asia, and discusses Argentina’s ailing financial sector with central bank governor Alfonso Prat-Gay. And Jeffrey Sachs describes how George W Bush has run the most reckless fiscal policy in US history while Andrew Smithers argues that the US current account deficit is too small rather than too big.
In the capital markets, The Banker introduces its inaugural Deals of the Year, which highlights the best deals in 30 countries and the most prominent investment banks involved. We also interview Greg Fleming on Merrill Lynch’s capital markets strategy for 2004, examine how derivatives are being used as a hedge against inflation and look at how syndicated lending prices are keeping borrowers in the driving seat. Our Team of the Month is Goldman Sachs, and in FX & Treasury we reveal the latest innovations in money market funds.
In Western Europe, we look at Dexia’s cross-border European strategy and discuss the new optimism in Turkey with Akbank chairman, Erol Sabanci. Further east, we examine the distressed debt market in the Czech Republic and the problems facing Belgian bancassurer KBC in Poland and Hungary.
In the Americas, we assess the huge asset management opportunities in Latin America, especially Brazil, trade agreements in the region and Grenada’s shortlived era as an offshore centre. Meanwhile, uncertainties in Egypt are discouraging investors and, in Asia, further liberalisation in Taiwan depends on the results of upcoming elections.
In retail, Doha Bank in Qatar outlines its strategy – especially for expatriates – and, in technology, Deutsche Bank’s Mitchel Lenson describes the role of a chief information officer in a global bank and Chris Skinner talks about what core systems banks need in a digital age.
In addition, The Banker provides three special supplements: New Look for European Clearing & Settlement includes an interview with Clearstream’s Volker Potthoff; Indonesia’s Challenges Ahead addresses the banking and investment climate in a year choc full of elections; and Capital Strategies for Banks examines the impact of the impending Basel II requirements along with the global expansion of covered bonds.
