The Bracken column is named after Brendan Bracken, the founding editor of The Banker in 1926 and chairman of the modern-day Financial Times from 1945 to 1958.Over the past two years, financial institutions have received an estimated $1300bn in government-funded capital. This public-sector recapitalisation, coupled with extensive liquidity support, probably prevented the collapse of several banking systems worldwide.
The Bracken column is named after Brendan Bracken, the founding editor of The Banker in 1926 and chairman of the modern-day Financial Times from 1945 to 1958.The European commissioner for competition is one of the most important and influential officials of the EU. In her own words, the incumbent, Neelie Kroes, believes that the aim of promoting a fair and free environment for businesses in the European single market has to be pursued by acting as a referee.
The Bracken column is named after Brendan Bracken, the founding editor of The Banker in 1926 and chairman of the modern-day Financial Times from 1945 to 1958.On December 17, 2009, the Basel Committee on Banking Supervision (BCBS) published its much-anticipated proposals for strengthening the resilience of the banking sector and the international framework for liquidity risk management. The proposals are wide ranging and will have a significant impact on banks and other regulated financial institutions.
The Bracken column is named after Brendan Bracken, the founding editor of The Banker in 1926 and chairman of the modern-day Financial Times from 1945 to 1958.One of the most striking differences between the US and UK government support programmes for the financial sector is that, whereas the authorities in Washington backed the mortgage market directly, those in London targeted the banks. Non-bank lenders not only feel bruised but isolated and unloved.
The Bracken column is named after Brendan Bracken, the founding editor of The Banker in 1926 and chairman of the modern-day Financial Times from 1945 to 1958.A bank employee recently asked me: "As a trader, my bonus is derived directly from my profit and loss, which is accrued over the quarter and kept in a separate account. It does not go into the firm's bottom line and then back out to me. Also, like most traders, I accrue 2% of my gains in a loss provision account in case I have a major write-down in the year. My bonus is 10% of my profit for the year. If I make $50m for the year my bonus is $5m. What does my bonus have to do with the mortgage-backed securities [MBS] trader who is sitting on losses? Did I or did I not show a profit of $40m to the firm's bottom line?"
The Bracken column is named after Brendan Bracken, the founding editor of The Banker in 1926 and chairman of the modern-day Financial Times from 1945 to 1958.The financial crisis of 2007-08 had an immediate impact on the world's economies, with deep recession experienced across the globe. The longer-term impact on the banks will also be significant, as regulatory authorities learn lessons from the crash and implement new supervisory rules. Regulation arising as a result of the crash will indeed heavily influence bank business models, compared to what was practised in the past decade. In this article we discuss how banks will have to adjust their strategy and approach in response to new regulatory requirements.
The Bracken column is named after Brendan Bracken, the founding editor of The Banker in 1926 and chairman of the modern-day Financial Times from 1945 to 1958.The renewed currency volatility of the past year has received attention from banks, international organisations, governments and researchers, mindful of the Asian currency crisis of 1997/98. Commentators have discussed alleged causes, including systemic deficiencies, shortcomings of debtor nations and culpably soft attitudes by lenders.
The Bracken column is named after Brendan Bracken, the founding editor of The Banker in 1926 and chairman of the modern-day Financial Times from 1945 to 1958.As the world's leaders debate the role of banking and how best to regulate it, there are many elements of Islamic banking that could provide guidelines.
The Bracken column is named after Brendan Bracken, the founding editor of The Banker in 1926 and chairman of the modern-day Financial Times from 1945 to 1958.In the current climate, there has been a marked increase in the willingness of stakeholders to litigate their financial services disputes. Given cost constraints, however, there is also a desire to settle financial disputes out of court or in a tribunal if at all possible. It is therefore a pertinent time to examine the attempted harmonisation across EU member states of alternative dispute resolution (ADR) schemes for financial disputes, especially as the results of the responses to the European Commission's December 2008 consultation paper in this area were published in September.
The Bracken column is named after Brendan Bracken, the founding editor of The Banker in 1926 and chairman of the modern-day Financial Times from 1945 to 1958.During the past two years, investors have faced one of the most challenging environments in living memory. When confidence in banks falters and markets crash, equity and debt investors are left asking: what will aid recovery and help prevent another crisis? We would argue that changes to financial disclosure and reporting are required. Specifically, investing in banks continues to be complicated by inconsistent accounting rules, fragmented regulation and less confidence in management to deliver.
The Bracken column is named after Brendan Bracken, the founding editor of The Banker in 1926 and chairman of the modern-day Financial Times from 1945 to 1958.For the past 20 or so years, the global financial community has tried to craft a common minimum regulatory capital standard for banks. The result has been a complicated framework that is not enforced consistently, is constantly under revision, and failed to contain contagion during the 2008 market meltdown. The time is right to consider whether this path continues to make sense.
The Bracken column is named after Brendan Bracken, the founding editor of The Banker in 1926 and chairman of the modern-day Financial Times from 1945 to 1958.While the current crisis continues to wreak the worst financial havoc seen since the Second World War, it is at best premature and most certainly hazardous to try to draw any conclusions.
The Bracken column is named after Brendan Bracken, the founding editor of The Banker in 1926 and chairman of the modern-day Financial Times from 1945 to 1958.
The consensus explanation for the global financial crisis is that reckless lending to high-risk borrowers in the US created the credit crunch. This personalises the crisis (bonus-driven behaviour) and simplifies the solution (more state regulation). But this diagnosis is false and the consequent remedy would not prevent the next property boom and bust.
The Bracken column is named after Brendan Bracken, the founding editor of The Banker in 1926 and chairman of the modern-day Financial Times from 1945 to 1958.
There is a good deal of support for Jacques de Larosière’s February 2009 report on how to 'repair' the EU's financial supervisory and regulatory structures, balancing just enough centralisation with national safeguards to get widespread support. But he barely considers the key question of who will provide funds to tackle a banking crisis if the decisions to save or let a bank go affect more than one country. While funding is a domestic problem, it is also a domestic political tool to be shaped in line with national objectives, national priorities and national beneficiaries.
The rhetoric was hot and the drama significant as the Group of 20 leaders gathered in London.
Until recently, most banks seemed to believe that, in relation to the disclosure of liquidity risk, less disclosure was 'more prudent' and more knowledge was a dangerous thing. Since 2008, not only has liquidity risk become a stakeholder issue but it has also absorbed many more stakeholders. Traditionally, the stakeholders who had a direct interest in liquidity risk were the asset and liability committee and the local regulator. Stakeholders now include holders of senior and subordinated debt, wholesale and retail depositors and shareholders. More significantly, shareholders not only include private investors but also sovereign states.
As the search goes on for culprits and remedies in the global financial crisis, not enough attention has focused on the role played by governments in explicitly or implicitly guaranteeing the banking system.
Are French banks in a stronger position than others to weather the economic crisis? Probably yes, as their model, which is more stable and highly diversified, differs appreciably from that of other international players.
Incoming US presidents often face significant financial headwinds. Barack Obama is facing a force-five hurricane. The world economy has swiftly transitioned from a position of reckless financial risk-taking to a situation that may be even worse – no financial risk-taking. To add to these difficulties, the emerging challenge is deflation. By David Smick.
The US government has agreed to pay $700bn to shore up the current financial system. European governments are enacting capital investments into their financial systems of similarly huge magnitudes. As part of this unprecedented government intervention, many are calling for restrictions on top banking executives’ pay. By John Thanassoulis.
The ongoing credit and capital market crisis has served as a reminder that markets in distress stop functioning normally. The gyrations of US treasury bill and note yields show there may not be a market at the expected price when needed. This affects all market participants, but particularly central banks. By Ousmène Jacques Mandeng.
Four firms dominate the auditing business globally and, between them, would appear to have more than 280,000 employees dedicated more or less exclusively to audit and assurance, generating approximately $48bn in fees. By Stephen Kingsley.
Financial markets are experiencing almost unparallelled turbulence. Write-offs continue to mount – estimates now top $1000bn; job cuts are becoming more commonplace; and many senior executives have been axed. A few household names have even disappeared for good. But some financial institutions will become stronger in the aftermath of the credit crunch.
Europe and the US must not be afraid to take a firm line with Russia as it returns to full strength, writes Simon Serfaty.
