Showing posts with label AAA rated securities. Show all posts
Showing posts with label AAA rated securities. Show all posts
May 30, 2020

Free markets were set up to go bad, because of bad bank regulations.

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John Thornhill writes: “The global financial crisis of 2008 exploded the ideology that markets always deliver the goods” “ Three game-chang...
July 20, 2018

Don’t help bank regulators get away from being held accountable for their mistakes by politicizing the issue.

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Sir, Gillian Tett commenting on Ben Bernanke, Henry Paulson and Timothy Geithner comments on the 10-year anniversary of the Lehman Brothers...
June 23, 2018

Regulators gave banks great incentives to smoke around drum barrels marked “empty”, and to stay away from drums marked “full”.

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Gillian Tett writes “before 2008 the big banks spent a great deal of time fretting about issues that seemed obviously risky — hedge funds o...
January 18, 2018

Why do FT reporters refuse to implicate regulators and their risk weighted capital requirements for banks in the 2007-08 crisis?

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Sir, Patrick Jenkins writes: “As a correspondent in Frankfurt in the early 2000s, I saw first-hand how a sector that had grown fat on govern...
January 13, 2018

Parent regulators, not even aware they were the ones blowing the bubbles, shamelessly put all the blame on their toddler banks when these burst.

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Sir, Tim Harford writes: “As any toddler can attest, it is not an easy thing to catch a bubble before it bursts” “ Forever blowing bubblema...
October 02, 2017

Is banking regulation unfinished business? You bet, risk weighted capital requirements are still used

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Sir, I have not read Tamim Bayoumi’s “Unfinished Business” yet, so for the time being I have to go on what John Authers writes in “ A fresh...
September 02, 2017

Do subprime borrowers or investors in mortgages benefit from securitization? No, now all profits go to intermediaries

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Sir, Ben McLannahan, with respect to securitization of subprime mortgages quotes Julian Hebron, head of sales at RPM Mortgage with: “Making...

How did the world get into such a mess, and will it happen again? Here is why, and yes, as is, it will happen again!

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Sir, Patrick Jenkins quotes Lord King — now a professor at the LSE and New York University with: “it was inevitable that a crisis was goin...

The financial packaging / securitization process includes an evil incentive

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Sir, Patrick Jenkins in the Spectrum special “ Financial crisis: 10 years on: Where are we now? ” September 1 writes: “So great was investo...
August 07, 2017

Should not regulators know that what is perceived safe has the largest potential of being what’s dangerous for banks?

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Sir, John Authers writes: “In January 2007, credit was priced on the assumption that virtually all US sub-prime mortgages (to people with p...
June 26, 2017

To restore real accountability in finance we must start with the bank regulators

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Sir, Jonathan Ford writes: “Since the financial crisis, bank shareholders have borne pretty much the whole cost of cleaning up the reputati...
June 03, 2017

If bank regulators in Brussels imply for instance an AAA credit rating for Greece, should Esma not also fine them?

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Sir, Nicholas Megaw and Chloe Cornish report that the European Securities and Markets Authority has fined Moody’s for “negligent breaches” ...
August 02, 2016

FT, when banks have less capital against assets, how can you be sure their capital positions have strengthened?

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Sir, Thomas Hale and Richard Blackden write: “The weakness this month comes in spite of stress test results on Friday from the European Ban...
May 19, 2016

Venezuela, and the world, is in need of a clear definition of what are odious credits and odious borrowings.

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Sir, you write “China, which has loaned Caracas more than $65bn in return for oil deliveries, potentially has a big role to play. Having ex...
April 19, 2016

The “risk” appetite that caused the 2007-08 crisis was for AAA-rated securities, residential mortgages and sovereigns.

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Sir, Laura Noonan quotes Bank of England’s Andrew Haldane with: “I think the risk culture, not just from the regulator but from financial f...
March 24, 2016

Securitization is useful, but not when it is driven primarily by differences in capital requirements for banks

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Sir, Alexander Batchvarov writes: “It is claimed that securitisation was one of the main causes of the financial crisis because it was comp...
November 14, 2015

Why is real fear of credit risks not as transitory as fear of terrorism?

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Sir, Tim Harford writes about when recalling a flight taken after “watching the Twin Towers of the World Trade Center collapse on televisio...
November 07, 2015

Those who have no business interfering should not be allowed to use that a consequence was unintended as an excuse

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Sir, Robin Wigglesworth writes: “Overlaying safeguards on an immensely complex financial system may have the unintended consequence of maki...
October 01, 2015

Those creating regulations that can be cheated provide the cheaters competitive advantages.

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Sir, Michael Skapinker writes: “Devising a system to detect when a car is being tested surely required planning, expertise and a specific d...
August 17, 2015

Alan Greenspan is either blind to what caused the financial crisis 2008, or does just not want to admit it

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Sir, I refer to Alan Greenspan’s “ Higher capital is a less painful way to fix the banks ” August 18. Greenspan has either no idea abou...