bank regulation

Excerpts from an excellent piece by Clive Crook:

“Anger is a poor basis for policy. The prevailing idea that greed plus deregulation explains this mess is wrong. Punishing the banks and turning back the clock is not the answer.”

 Read more

Simone Baribeau

On the heels of Sheila Bair’s earlier comments, the Fed has released a statement to the Senate banking committee arguing that it should continue its supervisory and regulatory role.

In it, the Fed makes at least one obvious statement: “We recognise, of course, that bank supervision, including ours, needs to be more effective than in the past.” Read more

The Central Bank Governors and Heads of Supervision yesterday welcomed progress made by the Basel Committee on Banking supervision, suggesting five areas of particular focus for the banking standards expected by the end of this year.

The Group of Central Bank Governors and Heads of Supervision (“the Group”) is the oversight body of the Basel Committee on Banking Supervision and comprises the same member jurisdictions. Read more

Chris Giles

The Treasury Select Committee was on particularly supine form when half of the Monetary Policy Committee came to give evidence this morning, writes Chris Giles of the Financial Times, allowing Mervyn King and Pauol Tucker to paper over their differences on banking regulation. Read more

Good macro data from the UK, but a warning from Fitch that the UK is the likeliest of the big economies to suffer a rating downgrade. The chorus of concerns about CRE sings louder, and much debate on Dodd’s regulation reform proposals Read more

Krishna Guha

Chris Dodd‘s financial regulatory reform plan goes too far in my view in stripping away powers from the Fed. It makes sense to take away the Fed’s ability to bail out individual companies under 13.3 once there is a special resolution entity in place to manage financial failures. But taking away the Fed’s banking supervision role risks robbing it of an information flow vital to deal with financial stability threats. And giving systemic risk powers to a new agency is a recipe for confusion or worse.

Why? Because an economy with a systemic risk or macroprudential regulator and a separate central bank would be like a car with two drivers. Read more

Chris Giles

Paul Tucker’s broadside against Mervyn King on the quesiton of bank regulation is little short of mutiny, writes Chris Giles of the Financial Times Read more

Chris Giles

Mervyn King goes out on a limb, calling the current proposals for banking reform deluded, writes Chris Giles of the Financial Times Read more