Inflation To Rise – We expect UK, ECB and US Policy to Diverge
Purely for geopolitical reasons, namely frustration at the failure of the governments of individual member states to respond to repeated calls for “structural reforms”,…
Central Banks Pray for Electoral “Shocks”. Forced to Nationalise Monte dei Paschi, Italy Looks in Trouble, but Cleverly Plays its Sicilian Defence.
Central Banking How will Central Banks cope with 2017 shocks? Perhaps new rules, one-off solutions, doubtless lots more QE. Populism will perhaps be their…
The Eventual Impact of Rising Bond Yields. Further Cracks Appearing in the ‘Global Consensus’ of Bank Supervision.
Central Banking Global Bond Market Yields are Rising The ECB’s recently announced 6 month extension of its QE programme reminds us that the speed…
The European Banking Can Nears the End of the Road
“The key thing to know about Lehman Brothers is that it did not cause the financial crisis, it revealed the financial crisis”[1] Central Banking…
Jittery January Markets – Does the ECB have Contingency Plans?
The ECB must be aware that investors’ confidence in stock markets, particularly bank shares, dropped in January. If contingency plans exist, they are likely…
Cobden Centre’s Gordon Kerr on Bloomberg on the Euro and European banks
The Cobden Centre’s Gordon Kerr can be seen on Bloomberg discussing the Euro and the state of Europe’s banks, which are now in a…
Weak Labour Markets and Repo Market Disruptions
Central Banking Low interest rates contribute to weak labour markets In the latter part of August, the cream of the world’s central bankers convened…
Europe’s accounting rules are destroying its banks
Late last year, a group of institutional investors sent a letter to officials in Brussels, warning that European Union accounting standards are “destabilizing banks”…
Reshaping risk-taking incentives
The evolution of banking as I have described it has satisfied the immediate demands of shareholders and managers, but has short-changed everyone else. There…
Mainstream support for accounting reform
The Guardian: Bank of England official calls for bespoke accounting standards for banks The Telegraph: New bank accounting rules needed to avoid another crisis,…