International Financing Review. Forex - Unofficial Problem Bank list increases to 985 Institutions - March 26 11 8:15 EDT. Stock Market, Investment, Finance, Money, Hoofy & Boo. The Investing News Source for Financial Advisers. Fool.com: Stock Investing Advice. Vesteo. London Banker. Globeadvisor.com. NT Times - DealBook. What Awaits Banks After the Leverage Ratio The Basel Committee is considering rules that will affect banks’ business strategies significantly and continue to influence how they strengthen their auditing and compliance teams for years to come, writes Mayra Rodríguez Valladares in Another View.
Read more… Time to Reduce Repo Run Risk Banks remain vulnerable to sudden runs because of their dependence on short-term borrowing, but Dodd-Frank contains many tools that regulators can use to reduce risk, contends Jennifer Taub in Another View. Read more… Venture Capital’s Need for Secrecy Collides With Public’s Right to Know A ruling by a California state court allows venture capital firms to control the amount of information they disclose. Appeals Court in Gupta Case Chooses Not to Admonish Bad Behavior With Banking, What Happens in Europe Does Not Stay in Europe A Deeper Conversation on Women in Hedge Funds Why the Bank Leverage Ratio Is Important.
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DAILYBAIL. The company also practices dirty accounting tricks like "forward funding," "advance funding," and "delayed obligations," deceptive tricks that hide its precipitous finances from auditors and its investors.
This company routinely borrows from its workers' pension plan to pay off its debt. Its accountants then claim that because the company owes the borrowed money to its own pensioners and not to outside creditors, the resulting hole in the pension plan doesn't really count as a liability. Sometimes, the company's executives neglect to pass a budget at all. When that happens, they keep the company running with "emergency expenditures," which its accountants don't consider real expenditures for records-keeping purposes, even though they're paid with real money.
By now, you've probably guessed where I'm headed. If the government were required to abide by the same accounting standards as private industry, its debt would be in the trillions, not billions. The Baseline Scenario. The Myth Of The Resolution Authority. By Simon Johnson Back when it really mattered – last spring, during the Dodd-Frank financial reform debate – Senator Ted Kaufman of Delaware emphasized repeatedly on the Senate floor that the proposed “resolution authority” was an illusion.
His point was that extending the established Federal Deposit Insurance Corporation (FDIC) powers for “resolving” (jargon for “closing down”) financial institutions to include global megabanks simply could not work. At the time, Senator Kaufman’s objections were dismissed by “experts” both from the official sector and from the private sector. Now these same people (or their close colleagues) are falling over themselves to argue resolution cannot work for the country’s giant bank holding companies. The implication, which these officials and bankers still cannot grasp, is that we need much higher capital requirements for systemically important financial institutions. The regulator’s point is correct. Credit Writedowns. IRA Analyst - A Crime Called Private Mortgage Insurance; Alex Pollock on the Political Finance of Covered Bonds.
Basel III and Capital Adequacy: Are We Paying Enough Attention to Consequence Risks?
October 29, 2013 As part of our ongoing R&D process to review and adjust our analytics systems as U.S. banking regulations evolve, we regularly read the Financial Information Letters (FIL’s) published by the FDIC. On July 9, 2013, the FDIC released three Financial Institution Letters on Capital Adequacy and Liquidity requirements for Basel III compliance requesting comments. FIL-31-2013, “Regulatory Capital Rules: Regulatory Capital, Implementation of Basel III, Capital Adequacy, Transition Provisions, Prompt Corrective Action; Standardized Approach for Risk-Weighted Assets; Market Discipline and Disclosure Requirements” FIL-32-2013, “Regulatory Capital Rules: Advanced Approaches Risk-Based Capital Rule and Market Risk Capital Rule” The message of these documents is the capital adequacy reserve ratio requirements are going up.
Supreme Court in NML v. Argentina (pari passu case). Brazil, France, Mexico, the Jubilee Network and Nobel Laureate Joseph Stiglitz are all asking the court to take the case. Others will doubtless come in on all sides; then the court might ask for the United States to say something ... it's a long story; stay tuned. For now, I only highlight Mexico's priceless intervention against the courts' misuse of Collective Action Clauses (CACs) in the pari passu argument. It is one thing for me to rant about it--but Mexico has unique credibility on CACs. Mexico is thus well positioned to disagree with a stated foundation for the Court’s reasoning: that contract provisions in sovereign debt instruments known as “collective action clauses,” or “CACs,” will limit the decision’s ramifications to Argentina alone. Stock Market News & Financial Analysis.