The Economist (January 7)
Bank bashing has become routine, but Britain should also “prize” the important contribution of finance. “London is by many measures the world’s biggest financial centre, and weakening it is in nobody’s interest—least of all Britain’s. Better regulation of banks is certainly needed…. But running down one of the world’s most successful (and mobile) commercial clusters is folly—and it is surely not the legacy Mr Cameron would wish to leave his successors.”
Financial Times (August 9)
“More regulatory foresight could perhaps have averted the nuclear meltdowns caused by the earthquake and tsunami in March.” The Financial Times approves of government plans to overhaul nuclear regulation in Japan, shifting regulatory functions from METI to break up the “damaging conflict of interest” that compromised safety.
Tags: Government, Japan, METI, Nuclear meltdown, Regulation
Financial Times (July 26)
“Made in China, undone in America.” Chinese firms that list in the U.S., often through reverse mergers, have seen their popularity drop and shares slump as questions arise over the propriety of their books. Some of the world’s most respected investors, including John Paulson, have taken their lumps. As of July 20, the shares of four of these firms were trading at less than half the price they were initially sold to US investors. Meanwhile, one of the stocks had been de-listed from Nasdaq and all eight were trading far below their one-time highs.” This trend has raised questions about whether reporting and regulation in China fall short of international standards.
Tags: China, Financial reporting, Nasdaq, Regulation, Reverse mergers, U.S.
Financial Times (July 20)
Dodd-Frank was supposed to be the biggest regulatory overhaul since the Great Depression. One year later, Dodd-Frank’s not living up to its billing. “Plenty of economists, officials and congressional aides think …the reforms have not shaken up Wall Street enough.” Of the 400 required rules, only 55 have been finalized and of 87 required studies, only 32 have been completed. Limited staff have been slowing the process, but so are concerns that the regulations are unneeded and risk slowing a still weak economy. Some are saying that it will take another major crisis to create momentum for real reform.
Tags: Crisis, Dodd-Frank, Economy, Regulation, U.S., Wall Street
Washington Post (March 16)
“At long last, humankind had triumphed over risk.” Overconfidence has led to recent disaster in the financial system and deep water drilling. “Today, the quake, tsunami and, most particularly, the potential of a nuclear catastrophe in Japan should weaken at least one of our own deeply rooted faiths – in our own infallibility.” In the U.S., many have pushed for less government, fewer rules, fewer inspections and less regulation. “Japan, one hopes, should bring an end to such nonsense…. We haven’t defeated risk…. We need some rules, some regs, and a government willing to devise and enforce them.”
“At long last, humankind had triumphed over risk.” Overconfidence has led to recent disaster in the financial system and deep water drilling. “Today, the quake, tsunami and, most particularly, the potential of a nuclear catastrophe in Japan should weaken at least one of our own deeply rooted faiths – in our own infallibility.” In the U.S., many have pushed for less government, fewer rules, fewer inspections and less regulation. “Japan, one hopes, should bring an end to such nonsense…. We haven’t defeated risk…. We need some rules, some regs, and a government willing to devise and enforce them.”
Tags: Governement, Japan, Overconfidence, Regulation, U.S.
New York Times (December 1)
Thomas M. Hoenig, President of the Federal Reserve Bank of Kansas City, writes that U.S. banks are still too big to fail. They need to be cut down to size. “More financial firms — with none too big to fail — would mean less concentrated financial power, less concentrated risk and better access and service for American businesses and the public.”
Tags: Banks, Regulation, Too big to fail, U.S.
New York Times (May 22)
“Weak regulation is a recipe for disaster,” so the New York Times applauds the senate for finally passing a financial regulations bill. The work of Congress is not yet done. The House and the Senate must now work out the differences between their bills. Then, the joint version will require passage by both bodies. During the reconciliation process, revisions should be made to better protect investors, restore confidence in financial markets and avoid another meltdown.
“Weak regulation is a recipe for disaster,” so the New York Times applauds the senate for finally passing a financial regulations bill. The work of Congress is not yet done. The House and the Senate must now work out the differences between their bills. Then, the joint version will require passage by both bodies. During the reconciliation process, revisions should be made to better protect investors, restore confidence in financial markets and avoid another meltdown.
