Lee C. Buchheit published a paper on walking back from Cyprus, found interesting to share some his thoughts:
Cyprus imposes losses –euphemistically dubbed a “solidarity levy” — on insured depositors with Cypriot banks as a condition to receiving EU/IMF bailout assistance.
They have 4 options on last Friday March 15th 2013:
(i) Give Cyprus a complete bailout (estimated to cost €18 billion).
(ii) Restructure the outstanding Cypriot bonds, €4.4 billion of which are governed by Cypriot law and €3.8 billion by English law.
(iii) Haircut excess deposits in the Cypriot banking system; that is, deposits in excess of the €100,000 minimum covered by the local deposit insurance scheme. These represent about half of the total deposit base. View full article »
State Bank of India chairman Pratip Chaudhuri, yet again, took on the Reserve Bank of India (RBI), saying saying CRR is a
“waste” for the economy and successive interest rate cuts by central bank have failed to contain inflation.
The CEO caused a flutter in the banking community by demanding the abolition of the Cash Reserve Ratio (CRR) in SBI vs RBI round II. RBI did promptly appointed a committee to look at this issue. The reserve ratios, CRR and SLR (Statutory Liquidity Reserve), are an important feature of Indian banking regulation. View full article »
Economy always passes in different phases could be classified as the boom phase, the downside or the burst phase . 
Central bankers are the key players in the economy with limited power in their hand.
Alans Greenspan ( former Chairman of the Federal Reserve) and YV Reddy ( Former Chairman of RBI) were credited with far greater power then they ever had and with responsibility for outcomes largely beyond their control. Central bankers actually have very limited tools and hence limited powers.
Reddy in India understood View full article »
Here are few things that I always try to grab it with a positive attitude:
Starting with the Macro factor a student from the financial market must be aware of the world economy as a whole and inherent knowledge about the Indian economy. Any measures in relation with the Govt. Budgetary View full article »
I do not like writing on the politics but when it hampers the reform of the nation there are concerns should be raised !!
Wednesday India restored electricity to the states, inhabited by 680 million people, that lost power Tuesday. But it will take much longer to restore the nation’s reputation after a dismal few days when a train fire killed 32 in south India, industrial production showed its slowest growth in months, there were two consecutive days of massive blackouts, and the government was widely ridiculed for View full article »
Apparently I did a lot of India growth stories through my postings. In the 
month of April when S&P downgraded India BBB- ? that is the last rung in the ratings grade of S&P ,downgrade from here meaning India will be having speculative grade rating. I am very positive about it I don’t believe India’s growth problems are mainly related to global slow down. They are more structural in nature & need systemic changes.
Yesterday again S&P gave the red signal that India could be 1st BRIC to lose investment grade. Just look back View full article »
People write to remember things, I write to forget. I am sure that definitely had many post on Credit derivatives.
Many of my friends and colleagues are still not so familiar with them and just wanted to define for them . For them the understanding of credit derivatives is that these monster was behind the subprime crisis in 2008, Lehman crisis, and later the Eurocrisis and now the Grexit.
Let me try to put some definitions quote and unquote: View full article »
When INR touched the level of 56 against 1$, the first sms I received “Ab Tak – 56″. One of the thriller movie in 
Bollywood. The other msg that I received which is now trending in twitter the famous dialogue of an Indian flick “Amitabh Bachchan has demanded at all payments to him be made in dollars instead of INR. Kyunki main aaj bhi gire huye paise nahi uthaata”
The Rupee has been trapped in a vicious circle, the free fall is on the roll, View full article »
Quoting from the WSJ ”Germany opposes the issuance of jointly backed European bonds, arguing that they 
would allow inefficient, highly indebted economies to gain a free ride on the stability and favorable financial conditions secured by the more-disciplined countries. German officials have said that such bonds can be an option only once all euro-zone member states have improved the health of their finances and boosted their competitiveness.” To put the above in simple words we do not want to pay.
Indeed this was expected as I recently got the opportunity to interact with a German Professor for View full article »
