- Peter Praet, a Belgian who joined the ECB’s six-man executive board last June, will head the economics division, which prepares recommendations on interest rate decisions. He takes over from Jürgen Stark, who stood down in December.
- Praet is also a member of the ICFR’s International Advisory Council.
- Bloomberg: CFPB to crack down on shadow banks
- The CFPB will begin supervision of mortgage servicers, payday lenders and student-loan companies in an immediate expansion of its authority under the Dodd-Frank Act, according to new agency Director Richard Cordray.
- Will clamp down on nonbank firms ‘that often compete with banks but have largely escaped meaningful federal oversight.’
- FT: Only one MMF ‘broke the buck’ – Letter
- Corrects statement that ‘a number (of MMFs) broke the buck and incurred losses during the financial crisis’ – only the Reserve Primary Fund did.
- The Reserve Primary Fund Held $785m in Lehman commercial paper.
- Investors in the funds recovered more than 99%.
- Oct 08 Treasury Temporary Guarantee
Program for MMFs ended after a year with no claims being paid.
- 60-70% of proposed financial transactions tax would be collected in Britain.
- Cumulative impact of regulatory onslaught, combined with the 50p tax rate and curbs on immigration of skilled employees, will count against London when financial firms look to expand or move.
- The gap between London and New York, in first and second place, and Hong Kong and Singapore in third and fourth has narrowed in recent surveys.
- London’s advantages:
- Incumbency has powerful network effects – virtuous circle.
- London is in middle of global trading day – starts as Asian markets are closing and still working as NY opens – ideal for global asset managers.
- Highly respected body on commercial law and experienced judges make it ideal place to strike international deals.
- EBA: 2012 work plan
- Working towards the single rule book for the EU banking system - prioritising system capital and capital buffers, liquidity, remuneration and leverage ratios.
- To deliver independent and high quality analysis of EU banks and the EU banking sector.
- Promote supervisory convergence.
- Andrew Sheng: Global financial situation
- Macro numbers did not suggest 2011 was that serious a crisis year - US GDP growth 1.8%, Euro area GDP growth 1.5%.
- But the Eurozone had a sharp downturn in the fourth quarter of -2%. Japan did slip into minus 0.9% growth, due to the disruptive effects of the tsunami and nuclear disasters.
- We should treat the period 2007 to 2011 as a double dip crisis – can be seen be behaviour of inflation.
- But good news is global re-balancing is finally happening. The biggest threat to blow this process off course is a European crisis.
- Ultimately, the integrity of the Eurozone hangs on the solvency of the whole. If the interest rate and debt burden is too heavy, it will break.
- The real concern is that ECB is the
only credible institution that can act fast enough to deal with the liquidity
situation, but it does not have the fiscal powers to tax and pay its way out of
the mess.
No comments:
Post a Comment