October 31, 2013
October 30, 2013
October 29, 2013
Europe, who should define what the non-core assets of your banks are? Regulators, or the needs of your real economy?
October 27, 2013
Classic economics, models and free markets, stand no chance against arrogant intellectually sloppy regulators
October 26, 2013
Americans who sing about their “Home of the brave”, are clueless about what their bank regulators are up to
God make us daring!
October 25, 2013
Bank of England must allow its banks to finance UK´s future and not just make these refinance its seemingly safer past.
October 24, 2013
Will the ECB correctly review the disaster in the banks’ balances and assets that Mario Draghi helped to cause?
October 23, 2013
October 22, 2013
Some disagreements with Professor Persaud´s excellent comments on bank bail-ins and contingent convertible notes, Cocos.
October 21, 2013
October 18, 2013
Before sending watchdogs into the shadows, should we not get better ones for banks in the light?
October 16, 2013
Wolf, when spinning the US debt ceiling in favor of the spender, do not forget there is also a roof to get off.
October 15, 2013
Mr. Osborne will receive little help from banks with the real economy, thanks to current bank regulators
October 14, 2013
Nassim N. Taleb. If you piss against the wind and get wet, that is no "Black Swan". That is only being stupid
October 12, 2013
Janet Yellen: Basel II-III risk-weighted capital requirements do not make banks finance the future, only refinance the past
October 11, 2013
Current economic growth is not based on risk-taking but on risk-aversion, and therefore creates more fat than muscles
While bank regulations that make it harder for medium and small businesses, entrepreneurs and start-ups to access bank credit are not eliminated, and regulators stop insisting on that banks shall only lend to the “infallible” sovereign, the housing sector and the AAAristocracy, any economic growth will only be of the type that leads to obesity.
Indeed, it would seem that the dream of politicians, government officials and bank regulators is for all us to be able to feel rich, sitting there in our houses. But unfortunately though the way they go about it will make us sit there without a job, and without being able to pay the utility bills.
But the trap is not solely related to houses, but to all assets that are perceived as “absolutely safe”, because those are the assets a bank is allowed to finance with little capital, which means lot of leverage, which means huge risk-adjusted returns on equity.
But Bbank financing to “The Risky”, the medium and small businesses, the entrepreneurs and start-ups… that is of course a NO! NO! NO!
During the IMF and World Bank meetings in Washington this week we hear more and more about the scarcity of safe assets. Of course, it can’t be any other way. If you do not take a risk on risky assets, how on earth are you to produce the safe?
October 10, 2013
Tony Barber. No! Hercules would want to have nothing to do, with most of the “eurozone´s crisis-fighters”
October 09, 2013
Why is it so difficult for Martin Wolf to understand the need for rebalancing the access to bank credit?
Banks and regulators managing the same ex ante perceived risks, simultaneously, can only result in chaos and tears
Sir, Ian Cormack writes of “Banks´ deadly blend of complexity and leverage” October 9. And he holds that though many large businesses are very complex “the differentiator for banking is risk… demanding rigorous risk managing and risk reporting”. That is true but that does not even remotely describe the real difficulties, or impossibility, of managing bank risks today.
Banks look at the ex ante perceived risk of assets and adjust to these (in the numerator) by means of interest rates, size of exposures and other ways like hedging or contractual terms. But then come the bank regulators and adjust for basically the same ex ante perceived risk (in the denominator) by means of their risk weighted capital requirements.
That creates all sort of feed-back noises and, of course… the whole system overdoses on ex ante perceived risks, and all result in chaos.
God, make these regulators understand what they are doing!