IFA Online (November 23)
“Fears of a financial crisis hitting the UK are at their highest level since the collapse of Lehman Brothers.” The risk of “a high impact event” occurring has risen to the highest level since the 2008 collapse according to the Bank of England’s Systemic Risk Survey. 76% of respondents identified “sovereign risk and the threat of an economic downturn” as “the biggest danger to the financial system.”
Tags: Bank of England, Financial Crisis, Lehman, Systemic risk, UK
The Wall Street Journal (July 23)
According to the Journal, the “one significant achievement of the Dodd-Frank law” was the “requirement that regulators break the cartel of ratings agencies that helped ignite the 2008 financial crisis.” The journal does not want to see a retreat, but foot dragging is slowing the process. Ratings cartels systematize risk. Ultimate responsibility for risk should be decentralized to those making the decisions. Credit ratings companies should compete in the market to provide the best analysis.
Tags: Dodd-Frank, Ratings agencies, Systemic risk