There is a very interesting case thought of sharing across on the CDS market which may results in to two possible futures for the big banks. In one, the various efforts to “make banking boring” – more onerous capital and liquidity regulation, clearing and futurization of derivatives, bans on prop trading, calls to break up big banks, and so forth – would create amazing opportunities for people with the intelligence, motivation, and shall we say aesthetic sensibilities to find new ways to accomplish their non-boring goals within a shifting framework. Just like changes in the tax code create work for smart tax lawyers, so changes in banking regulation Continue reading “The case of Derivative On Its Derivatives : Credit Suisse”
A report on enhancing bank risk disclosures. Their objectives are sensible, and seven fundamental principles are suggested:
- Disclosures should be clear, balanced and understandable.
- Disclosures should be comprehensive and include all of the bank’s key activities and risks.
- Disclosures should present relevant information.
- Disclosures should reflect how the bank manages its risks.
- Disclosures should be consistent over time. Continue reading “Banks Disclosures on enhancing the risks”
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 Continue reading “THE TWO CENTRAL BANKERS – Shared in many B schools”