Andrew Smithers argues that the US current account deficit is too small and its financial markets need to fall.

Top US banks, led by Citigroup, again produced strong profits growth in the fourth quarter and for all of 2003, reflecting imp-roved credit quality and strength in retail financial services.

Jonathan Wheatley reports on the phenomenal growth opportunities of the asset management industry in Latin America, with Brazil leading the pack.
When Brazil introduced a temporary tax on financial transactions, the CPMF, in 1997, it was met with howls of protest. It was a regressive tax that would damage the competitiveness of Brazilian companies, critics said, and once introduced, it was unlikely to be withdrawn. The tax has indeed persisted and is much despised. But one industry has done well from it: asset management.

The new plans for an FTAA fall far short of ideals and economic growth could suffer, says Jonathan Wheatley.

Social unrest and a government that turns a blind eye to problems means Argentina’s future looks bleak, reports Karina Robinson from Buenos Aires.

Henrique de Campos Meirelles assesses the achievements of the Lula administration in leading Brazil out of crisis.
Brazil is living through a time of hope, in which it is re-discussing its past and its present in order to create a new future. Today, it is clear that this new future may be quite different and much better than the one envisaged at the beginning of 2003.

US concern over domestic banks looks set to put back the Capital Accord again, and may jeopardise hopes of a level playing field.

There is growing concern that Venezuela’s banks are ignoring their
private credit portfolios and relying instead on government paper, says
Mike Ceaser.
What happens when a nation’s banking system loses all of its customers
except one? When that nation is Venezuela, and the customer is the
government, the banks thrive. But the morals of this tactic and its
effect on the nation’s economy are being questioned.“Not having access to international markets, which had a very high cost, the state turned to the internal market”

Political upheaval can translate into easy money for the financial sector – despite what the bankers might say, argues Jonathan Wheatley.