There is a clear danger in allowing major financial institutions to dominate both commodity derivatives markets and the related cash commodities. Now, the growing involvement of banks in commodities markets is finally being placed under the microscope. Next month the US Federal Reserve is expected to report on whether it will allow US banks to […]
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Tag Archives: Banks
When governance fails; why whistle-blowers are necessary
July 23, 2013 
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Whistleblowing is back on the regulatory agenda. Last month, new UK legislation came into force to encourage disclosure. At the same time, the Parliamentary Commission on Banking Standards Report highlighted that it does not happen often enough. Where governance fails, whistleblowing has a key role in exposing wrongdoing in banks and other organisations. Regulators need […]
Continue readingEU Banking Resolution – far reaching implications for depositors
July 1, 2013 0 Comments
Little attention has been paid to Europe’s new agreement on bail-ins for troubled banks. Yet the implications are far reaching. Major differences in accounting for derivatives – US GAAP versus IFRS – have been resolved in favour of the European IFRS approach. This has a big impact on reported leverage for the major US banks. […]
Continue readingKey themes from the Final Report of UK Parliamentary Commission on Banking Standards
June 18, 2013 0 Comments
A global financial sector within a medium-sized economy A comprehensive report, for the most part well argued and with some practical proposals for improving banking. But in some parts the Commission seems to go beyond its remit, and sets out some ideas that would be hard to implement, or could conflict with existing initiatives. RBS […]
Continue readingBank downgrades are a challenge for Trustees & Treasurers
June 12, 2013 0 Comments
The UK’s Co-operative Bank has moved quickly to repair its management and governance after ratings agency, Fitch, downgraded the Banks’s debt last month. Its bonds, PIBS and preference shares have fallen, with expectation of a write down or bail-in involving those lenders, but not depositors. The Bank has reassured investors that capital currently exceeds regulatory […]
Continue readingUniversal bank model challenged by global divergence in bank regulation
May 27, 2013 2 Comments
Synopsis: Bank regulation appears to be diverging globally, with doubts that Basel will provide a reliable and consistent basis for international co-operation on bail-ins involving depositors. The flexibility to change VaR models, re-classify financial assets and adjust risk weights is driving regulators to set rules that cannot be gamed away by banks. This will involve […]
Continue readingEmotion and the Bank Sector
October 11, 2012 0 Comments
Currently, the troubled banking sector seems to defy conventional analysis. The impact of new regulations, combined with scandals and regulatory fines, seems impossible to calculate. Bank ratings across Europe – and in the UK in particular – show that most investors have given up trying to value bank shares. Many conclude that there are easier […]
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Behavioural Edge 
Splitting major universal banks makes sense; safer & more valuable
Banks are proving a tough match for regulators, pushing back strongly against more controls and higher capital ratios. They have argued that imposing rules which increase capital could hit recovery, and politicians are particularly sensitive to this.But banks’ very success in fighting against strong capital ratios – suggesting that restoring capital should take years – […]
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