April 22, 2014

Mr. Jacques de Larosiėre. You are not telling the truth and nothing but the truth

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Sir, I refer to Jacques de Larosiėre’s “ Securitised debt could give Europe’s economy the kiss of life ” April 22. Yeah, but he must mean a...
April 21, 2014

When banks earn higher risk adjusted returns on equity financing houses than financing the creation of jobs… something is wrong.

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Sir, Congressman John Delaney writes “A significant contributor to the financial crisis was the governments mispricing of risk” “ A pragmat...
April 19, 2014

Regulators, accept gallantly you messed it all up with the risk-weighted capital requirements for banks. And amend these... please!

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Sir I refer to John Dizard’s “ Brussels spends too little time on reforms that could help SMEs ” April 19. Decades ago someone, I do no...
April 17, 2014

Regulator’s attempt to hold back the financial tide is worse than futile, it is outright dangerous.

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Sir, Robert Jenkins holds that “ Regulator’s attempt to hold back the financial tide are futile ” April 17. “Futile”? No! Much worse! O...
April 16, 2014

If I was a young unemployed European I would ask Michel Barnier to parade down European avenues wearing a cone of shame.

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Sir, I refer to Alex Barker’s and Phillip Stafford’s “ Six ways Europe’s financial sector is meant to mend its ways ” April 16. I am no...

In the absence of QEs and TARP, would Piketty have written the same “Capital in the Twenty-First Century”?

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Sir, I refer to Martin Wolf’s review of Thomas Piketty’s, “Capital in the Twenty-First Century” April 15. First, I need to make two di...

The economic impact of a “too big to fail" bank's” failure is monstrous, even if it had 100% equity.

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Sir, I refer to Martin Wolf’s “ ‘Too big to fail’ is too big to ignore ” April 16. Wolf, like many, questions whether a 5 percent lever...
April 15, 2014

Yes, “whatever it takes”… as long as we do not have to admit our mistake

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Sir, you write about Mario Draghi and Mark Carney, the past and the current chair of the Financial Stability Board, supporting asset securi...
April 14, 2014

What bankers do regulators expect to tell their shareholders, “we should go for lower risk adjusted returns”?

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John Authers argues that “ Push to beat rivals overtakes good economic sense ” April 14. Of course it does! That is why banks, while th...

If there is no great improvement on the youth unemployment front, Greece has no choice but to default.

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Sir, Wolfgang Münchau writes that “ This could be the moment for Greece to default ” April 14. But when reading that “the rate of its youth...

When deconcentrating power beware of that you do not just concentrate it somewhere else.

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Sir, no distribution on earth can do as much to combat inequality, as the fight against too much power concentration, whether that happens ...
April 13, 2014

Banks need to be made more useful, meaning less distorted when allocating credit to the real economy

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Sir, I refer to your “ Banks should be made more solid ” April 12. Like you I welcome the introduction of the “leverage ratio” which wi...

One question I dare John Authers not to pass over.

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Sir, John Authers in “ Four questions markets should not pass over ” April 12, includes the following two: “Why are Treasury yields falling...
April 11, 2014

Are car loans with adequate risk premiums to "risky" citizens really riskier than loans to “infallible” sovereigns?

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Sir Gillian Tett, jogging our memory with the problems of mortgages linked to subprime borrowers, expresses concern for that subprime, even...

No Martin Wolf, excessive trust in the government is the real dangerous delusion of the ignorant.

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Sir, Martin Wolf writes: “The authorities can affect the lending decisions of banks by regulatory means – capital requirements, liquidity r...
April 10, 2014

When restructuring the World Bank you might want to start even higher than its presidency.

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Sir, I refer to your editorial “ Restructuring hell at the World Bank ”, April 10. You end it stating “If there is a silver lining to t...
April 09, 2014

More than sovereign credit ratings we might need sovereign ethic ratings.

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Sir, last week in an Op-Ed I published in Venezuela titled “ Creditors of Venezuela, read our Constitution! ” I wrote: “In the same way the...

Because of regulatory subsidies, banks are taking over what remains of safe havens, leaving other in the arms of risk.

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Sir, John Plender writes about an “extraordinary demand for unsafe assets”, “ Time is running out for the central bank riggers ”, April 9. ...
April 08, 2014

Mario Draghi’s ‘whatever it takes’ does not contain what it takes to save Europe’s economy

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Sir I refer to Gideon Rachman’s “ ‘Whatever it takes’ may not be enough to save the euro ” April 8. I do not opine about the euro or even ...

What the World Bank most needs to do in order to end poverty.

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Sir, I refer to Robin Harding´s article on the restructuring program of the World Bank that is currently being executed by its president Ji...
April 07, 2014

If Wolfgang Münchau is right, is it not better for Italy to default and get it over with?

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Sir, Wolfgang Münchau writes that “no matter what Mr Renzi achieves [Italy] would be headed for certain default if the eurozone’s future in...

To kick-start growth we need foremost to get rid of regulatory distortions

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Sir, again: Allowing banks to hold different capital against different assets, because of perceived risks which have already been cleared f...
April 06, 2014

We must stop bank regulators from building a long-term jobless trap

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Sir, a banker stands in front of two doors, one is “the infallible” the other is “the risky” Until not so long ago he would take any of the...

After taxing the social capital wealth represented by Facebook followers, do we then tax FT’s social capital?

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Sir, I am pleasantly surprised you dared to publish Hans Byström’s creative and provocative proposal of taxing the social capital wealth re...
April 05, 2014

Europe, before aiming at the dragon with unconventional QE, go back to conventional bank regulations which do not distort.

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Sir, I refer to your “ Taking aim at the dragon of deflation ” in which you so much favor QEs of any kind, even if you would have to, quite...
April 04, 2014

By taxing more the profits derived from patents you might, on the margin, reduce conflicts between true inventors and trolls.

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Sir, Richard Waters discusses that delicate issue about a too rigid or too lax patent allocation system and so rightly states “The trouble ...

Entrepreneurship is based on the risk-taking which is impeded by dumb and overly sissy bank regulators.

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Sir, Daniel Pinto concludes his letter “ Entrepreneurship belongs at the heart of western businesses ”, April 4, by stating “The west is su...

Ms Tett, in the case of “derivatives”, their biggest danger lies in how delightfully sophisticated they sound!

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Sir, Gillian Tett writes about “the mortgage credit derivatives that proved so deadly in that credit bubble”, “ The female face of the cris...
April 02, 2014

A positive carry over financing, on zero bank capital… is that not an infinite return on equity?

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Sir, I refer to Christopher Thompson´s and Claire Jones´ “ Eurozone banks load up on state debt ” April 2. There we find: “The Basel II...
April 01, 2014

All triple-A ratings are doomed to be downgraded, sooner or later.

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Sir, Ralph Atkins and Keith Fray report “Triple A government debt ratings fall as financial crisis takes toll” April 1. It could not be any...
March 31, 2014

Democracy goes way beyond the 1% vs. the 99% debate.

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Sir, I agree in much with what Edward Luce puts forward in his “ America’s democracy is fit for the 1 percent ” March 31 but, the issue of ...

Instead of QE, why not an ECB cheque to each European?

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Sir, Wolfgang Münchau comes strongly out in favor of a quantitative easing program of well over $1tn… among other “to get banks to sell ass...

Europe needs energy, indeed, but more than electricity human energy, that which is propelled by risk taking.

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Sir, Leif Johansson, the chairman of Ericsson and Astra Seneca, when urged by the FT to pick out one issue that needs to be addressed to m...
March 30, 2014

Believing too much in “the power of peace” can be hazardous to the health of your nation.

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Sir, I refer to Simon Kuper’s “ The surprising power of peace ”, March 29. It is always better to be skeptical and pleasantly surprised...

How do we rein in runaway obsessions with data, like that of the Basel Committee?

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Sir Tim Harford’s article “ Big mistake? ”, March 29, is just great. When Harford mentions that “Google’s own search algorithm moved th...
March 29, 2014

When and if taxing the wealthy, because of inequality, remember that governments are part of the problem.

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Sir, Thomas Piketty proposes to “ Save capitalism from the capitalists by taxing wealth ” March 29, and of course there’s nothing wrong wit...
March 28, 2014

On responding to Russia and on Europe’s decline, Churchill and von Bismarck might have differed from Osborne and Schäuble.

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Sir George Osborne and Wolfgang Schäuble write about responding to Russia in a “balanced and proportionate way”, “ The eurozone cannot dict...
March 27, 2014

With respect to increasing bank capital we need banks and regulators to be partners, not enemies.

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Sir I refer to Gina Chon and Camilla Hall’s “ Fed looks beyond bank’s financial targets ” March 27. As a result of regulators falling ...
March 26, 2014

Perhaps Otmar Issing should lower the volume of his preaching to Europe.

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Sir, in much I agree with what Otmar Issing writes in “ Get your finances in order and stop blaming Germany ”, March 26, though perhaps he ...

$100bn in legal settlements for banks also means $2tn less in bank lending capacity

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Sir Richard McGregor and Aaron Stanley write on FT’s first page “ Banks hit by $100bn in US legal settlements since crisis ” March 26. ...

If Europe (and America) does not free itself from runaway control freaks… game´s over.

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Sir, John Kay writes “ Regulators will get the blame for the stupidity of crowds ” March 26 though what is most urgent in the Western world...
March 25, 2014

More than “safer” we need to make our financial system more “functional”

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Sir, as an Executive Director in the World Bank, 2002-2004, during the Basel II discussions, with respect to big banks I said: “Knowing tha...
March 24, 2014

What is the use of a perfect banking union among imperfect banks?

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Sir, on March 24 you refer to “ A highly imperfect banking union ”, but leave out what is the most important fact, namely that this union i...

FT, you need more journalistic boldness to live up to your motto, “Without fear and without favour”

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Sir, again you publish the “ Boldness in Business ” extra in which you celebrate boldness. And yet you are still not been able to write abo...
March 23, 2014

The risk based capital requirements for banks represent a tragic crossroad of history

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Sir, I refer to Simon Kuper’s great description of the assassination in Sarajevo which initiated World War I, “ The crossroads of history ”...
March 21, 2014

Pray the future which gifted minds will prioritize is that of Venezuela, and not just that of the gifted minds, like Cisneros’.

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Sir, Gustavo Cisneros holds that “ Vatican diplomacy could be Venezuela’s salvation ”, March 21. I wonder how much diplomacy he believes is...
March 17, 2014

Europe, a perfect disunion of useful banks, is much better than a perfect union of useless banks

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Sir, Wolfgang Münchau holds that “ Europe should say no to a flawed banking union ”, March 17. Indeed, I agree, but not so much for the...
March 15, 2014

Sometimes there is even more homeland business going on outside the borders than within.

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Sir, Tim Harford writes “The world economy is far more integrated now. Some of this globalization is independent of national borders…”, “ T...
March 12, 2014

ECB should foremost help to eliminate, not neutralize, the distortions produced by risk based capital requirements for banks.

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Sir I refer to Martin Wolf’s “ The spectre of eurozone deflation ” March 12. In what can be done about that threat Wolf mentions that “the ...
March 08, 2014

The Basel Committee blocks Machievelli´s historical fortunas, while making our mis-fortunas worse.

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Sir, Timothy Garton Ash makes reference to “!historical luck, the fortuna that Niccolὸ Machiavelli calls the arbiter of half of the things ...

And what if the captain of the Titanic had unwittingly directly set the course on an iceberg?

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Sir, I refer to Tim Harford’s “ Let’s have some real-times economics ” March 8. Let’s suppose we have parents who like cookies and choc...
March 07, 2014

Why can’t lending to female entrepreneurs be leveraged as much as lending to “infallible” sovereigns?

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Sir, Gillian Tett writes about Goldman teaming up with the International Finance Corporation, the private sector lending arm of the World B...
March 06, 2014

FT, perhaps you should ask for some time out in order to collect your marbles.

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Sir I refer to your “ The BoE’s big test is yet to come ” March 6. You write “QE has increased wealth inequality” true, but then, sort ...
March 05, 2014

Britain, if you had oil revenue power concentrated like in Venezuela, yours could be even more of a ‘malandro’, a hoodlum, nation.

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Sir, I refer to 99.99% of what is currently written about Venezuela, like yours “ Venezuela: the ‘malandro’ nation ” March 5. If you’d ...
March 04, 2014

When fighting inequality, in a sustainable way, it is more important to distribute opportunities than to redistribute income.

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Sir Jonathan Ostry, a deputy director of the research department of the IMF holds that some recent research indicates that “Redistribution ...
March 03, 2014

Unfortunately, the fact that something is correctly stated does not suffice for it to be correctly understood

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Sir, John Authers writes “ Risk is greatest when there is no perception of risk ” March 3. Indeed that is what I have written to you and to...

To find a solution to Venezuela, you have to be clear about its problem.

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Sir, John Paul Rathbone, Andres Schipani and Mark Frank write “Venezuela: In search of a solution ” March 3. I am sorry, that neither V...

What’s the added value of bank regulators who only concern themselves with the risks bankers already perceive?

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Sir I refer to Martin Arnold´s “ Foreign banks scramble to calculate potential losses if crisis deepens [in Ukraine]", March 3, just ...