July 31, 2012
July 30, 2012
July 29, 2012
July 27, 2012
July 26, 2012
July 25, 2012
FT, you´ve forgotten that unencumbered risk taking brought you the banks (and your Britain) to be proud of.
July 24, 2012
"Disaster economics" is also a consequence of regulations that push the banks into what is officially deemed “infallible”.
July 23, 2012
July 21, 2012
July 20, 2012
July 19, 2012
July 18, 2012
By the way, I suppose you know about "risk-adjusted rates of returns"
July 17, 2012
July 16, 2012
Want more opportunities and less inequality? Then scrap capital requirements for banks based on perceived risks.
July 14, 2012
Sir, Sir Mervyn King, the Bank of England Governor lashes out with “From excessive compensation to deceitful manipulation of one of the most important rates, we can see we need a change in the culture of the industry”. Sorry, as a regulator he is not really one to speak about the need for a culture change.
Only because of the capital requirements based on perceived risks, the regulators caused the banks to charge hundred and so basic points in higher interest to those perceived as “risky”, like small businesses and entrepreneurs, and hundred and so basic points in lower interest to those perceived as not risky, like infallible sovereigns. If that is not manipulation of the most important rates, I do not know what that is.
And besides, most of the excessive compensations to bankers arose from the fact that regulators freed the bankers from having to compensate shareholders by requiring so little bank equity. By the way, on that issue, it might be better for Sir Mervyn King to lie low, because there could be calls for claw-backs on all types of compensation.
July 13, 2012
What was “not-risky” turned into risky because it was allowed to earn too high returns on bank equity.
July 11, 2012
July 09, 2012
July 08, 2012
Though a bad outcome is usually associated with risk it does NOT mean it was produced by something "risky"
Sir, “The tale of sober nonconformists... yielding to investment bankers with a thirst for risk” is how John Plender subtitles his “How the traders trumped theQuakers” July 7.
July 07, 2012
July 06, 2012
July 05, 2012
Governments, start by guaranteeing one hour of work per week for absolutely everyone, and then take it from there
July 04, 2012
If European regulators discriminate against Spain and Italy, why should not the citizens do the same?
Sir, Martin Wolf in “A step at last in the right direction”, July 4 writes that “Rational Spaniards and Italians still cannot regard a euro in their banks as being as safe as a euro in a German one, largely because elevated insolvency and break up risks evidently remain” and he forgot to add that this is also because bank regulators feel the same and require any bank to hold more capital when lending to a Spanish or Italian bank, than Germany, just because their respective sovereign has a lower credit rating.
The way we are going, with those highly distortive capital requirements, all our banks are doomed to end up gasping for oxygen and capital on the last officially perceived safe beach… probably the US Treasury or the Bundesbank.
The priority in Europe should be, urgently, to correct these outrights dumb capital requirements.