Have any lessons been learned following the Great Financial Crisis? Around the world, it looks like new bubbles are growing. Certainly, the crisis showed that central banks and politicians can move decisively on the threat of economic collapse. But the sequel has been years of bad policy; propping up banks, bad loans and unsustainable growth. […]
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Tag Archives: systemic risk
Risks are growing in big equity and bond funds
April 16, 2015 
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Money printing and the current stockmarket boom are increasing systemic risk, pushing problems into new areas. Now the questions is; are some asset managers too big to fail? The financial crisis highlighted risks in banks and insurance, but other areas have been overlooked. Finally, regulators are beginning to recognise risks in the investment sector, and […]
Continue readingNeed for Regulation on the Conflicts in Banks’ Growing Role in Commodities
August 12, 2013 2 Comments
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 […]
Continue readingRisks to investors in a high frequency world ; why controls are needed to address High Frequency Trading’s potential for systemic risk.
April 2, 2013 0 Comments
Financial News Op-Ed 2 April 2013 High Frequency Trading is now in the sights of regulators around the world. HFT involves automatic trading strategies with high volume and extremely short holding periods. Dramatic growth over the last five years means new potential for systemic risk. Last year, HFT strategies represented 36% of EU trading volumes, […]
Continue readingSystemic Risk in ETFs
November 26, 2012 0 Comments
The explosion in Exchange Traded Funds threatens to make the industry a systemic risk. Regulation has focused too narrowly on the problems of 2008, overlooking the huge growth in new products since then. ETFs were a relatively small part of capital markets during the last crisis, but since then have taken off in complexity and […]
Continue readingSystemic Risks in Money Market Funds
September 14, 2012 0 Comments
Despite new support from Europe for the financial sector, markets are still exposed to one big hidden risk. Potential problems in almost every type of financial institution and security have been tackled, yet a key danger remains. Money market funds seem to have escaped the big financial sector reforms of the past two years. The […]
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Behavioural Edge 
8 years on, has Lehman cut global bank risks?
The Great Financial Crisis still casts a shadow in the industry, eight years on. The fear remains that it might not be the main event, but simply advance warning of something bigger. After two decades of accumulated bank leverage and a few years of irresponsible lending, the remedy has mainly been sticking plasters. Regulation has […]
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