Category Archives: Regulation

UK regulator on the future of banking: "The costs of doing business will be higher"

Banking District (Photo credit: bsterling)
I recently interviewed Paul Sharma, Director of Policy at the …

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Filed under Financial Crisis, Regulation

Bankers just don't get it

A new paper sheds light on an amazing learning disability within the financial sector: …

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Filed under Banking, Financial Crisis, Regulation

How Free Trade killed the Buffalo

A bufallo from the 1870s. (Image via Wikipedia)

Never before in the history of mankind …

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Filed under General Economics, Globalization, Regulation

Why debt matters – some real empirical evidence

Last week  Henry Kaspar published an interesting blog post “Why debt matters” on Kantoos …

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Filed under Financial Crisis, Monetary Policy, Regulation

A warm welcome to Quantitative Tightening

You’ll definitely have heard about Quantitative Easing (QE). This catchword stands for the unconventional …

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Filed under Financial Crisis, Globalization, Monetary Policy, Regulation

Don’t listen to the banks' lobbyists – Basel III is way too soft

Canary Wharf, London: Big banks, big risks (Photo: Dave Pape, via Wikimedia Commons)
ECB President …

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Filed under Banking, Financial Crisis, Regulation

$4.7bn per bank, per year – How the U.S. government subsidizes Citi, BoA et al.

Peer Steinbrück, the former German finance minister, was adamant. The merger of two leading …

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Filed under Banking, Financial Crisis, Regulation

Lobbying for the crisis

Prior to the crisis the financial industry spent billions of dollars on lobbying activities. Three economists with the IMF have scrutinized the consequences of these spending spree. Lobbying of the financial industry in itself was a cause of the financial crisis. The more a particular bank spent on lobbying the riskier its lending activity was. Continue reading

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Filed under Banking, Financial Crisis, Regulation

The arcane mysteries of banking regulation

The debate about financial regulatory reform is at a decisive stage. While policymakers bandy plenty ideas, a new paper reveals how frighteningly little is known about how the existing rules actually work. The Basel core principles for effective banking supervision have no discernible benefits for the soundness of the financial industry of a particular country. Continue reading

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Filed under Banking, Financial Crisis, Regulation

Accident, Suicide or Negligent Homicide?

Was the financial crisis just an economic act of God which could not have been prevented? This is what Alan Greenspan and other economic policy makers claim. U.S. economist Ross Levine now strongly challenges this view. Brown has conducted a meticulous autopsy of the financial system which leads to a rather unsettling conclusion. Continue reading

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Filed under Banking, Financial Crisis, Monetary Policy, Regulation