In its financing attempts that brought the resource-rich country to become indefinitely indebted for a long time, the Government of Angola sought a US$15 billion loan from China (one of many) last May. Just as this latest round of financing commenced, Standard and Poors downgraded Angola’s sovereign credit rating to B- due to concerns about […]
The EU has proposed that it join with the United States to formally coordinate their financial regulatory activities, as part of the Transatlantic Trade and Investment Principles (TTIP). U.S. officials reportedly oppose the proposal because such an agreement might dilute Dodd-Frank and other new American regulations. It is more important that they it for reasons of deep principle, and economics. First world executives and […]
Using high-speed, high-frequency programmed trades, Traders in effect bend down to pick up those pennies – often millions lying around in the stock market – then do it again, sometimes thousands of times a second. There is nothing wrong with this activity in, and of itself, however, HFTs have become a matter of financial public policy and regulatory review given a glimpse into its potential harm to efficient Markets. Left un-checked this could become the next big financial disaster waiting to happen.
Will technology and financial engineering of complex products require the global coordination of a financial regulatory regime. More global finance and economic policy-makers think so.
In a NY Times Op-Ed, Sheila Bair, Chair of the Federal Deposit Insurance Corporation (FDIC) outlines a compelling litany of reasons why the Obama administration’s proposed regulatory changes, while good in many respects, does not sufficiently address the issues that caused the current – or will prevent future – financial sector crises.
The 2009 G-20 summit is in full swing in London and, by all appearances, it seems to be producing a number of interesting results to confront the Global financial crisis. For instance, British PM Gordon Brown announced that world leaders attending the summit in London Thursday laid out a raft of measures in a G-20 communique […]