India’s banking sector requires significant attention, Sunday Guardian Live

Sunday Guardian Live
June 3, 2017

During 2007-2009, while the United States and most of Europe were engulfed in a devastating financial crisis, the Indian financial sector was largely untouched. During those years, Indian households and companies were not as indebted as the American ones, nor were Indian financial institutions transacting derivatives or securitisations as American financial institutions were. Now almost ten years later, global investors should be turning their attention to the very indebted Indian corporations and to the troubled Indian banking sector…Read More

Warning to US banks: Chinese risks are closer than they appear, The Hill

American Banker
May 30, 2017

Moody’s recent downgrade of China and Hong Kong should signal to bank risk managers and bank regulators that they need to verify that large banks can calculate their credit and market risk exposures to East Asia. Moody’s downgraded China from A1 to Aa3 on May 24. The rating agency had last downgraded China 23 years ago, in June 1989 during the Tiananmen Square Massacre…Read More

Why banks should take notice of retailers’ problems, American Banker

American Banker
May 19, 2017

This is a good time for bank risk managers and bank regulatory examiners to evaluate the effects of a deepening retail crisis on the financial services sector.

Last year, with online shopping growing ever more dominant, 4,000 stores closed, and this year is looking far worse. Some sell-side analysts predict that the number of closings could double. Just in the first quarter of 2017, 3,000 stores have closed. S&P Global Ratings expects defaults by retailers on their bonds this year to surpass those in 2008-2009, when the U.S. was in the depths of the financial crisis…Read More

Why are Republicans in such a rush to kill Dodd-Frank? The Hill

The Hill

May 11, 2017

‘Like a chorus in a Euripides Greek tragedy, Republican members of the House’s Financial Services Committee have been bemoaning that the Dodd–Frank Wall Street Reform Act is killing jobs. It is the height of irony that the legislators who are opining on how to reform the financial sector with a proposed bill called the Financial Choice Act are not producing numbers to prove their claims. Fortunately, unlike in ancient Greek times, in 2017 we have access to labor data that disprove Republican claims.’…Read More

 

Eliminating the Orderly Liquidation Authority could really hurt Americans.

American Banker
May 3, 2017

Republican politicians have launched a full-scale attack on the “orderly liquidation authority,” the provision in Title II of the Dodd-Frank Act that empowers the Federal Deposit Insurance Corp. to unwind a failing financial conglomerate in a manner that avoids chaos in the financial system. But the effort to unwind this authority is unfortunate.

In the last couple of weeks, the White House issued an order to review the OLA and the House Financial Services Committee released the Financial Choice Act, a proposed replacement to Dodd-Frank, which calls for the OLA’s elimination…Read More

Dodd-Frank is not the enemy. Bad loans are

American Banker
April 20, 2017

The statistician W. Edwards Deming once famously said, “In God we trust; all others bring data.” He might well have been talking about federal bank regulatory policy.

At the heart of the industry-supported push to roll back the Dodd-Frank Act are claims by Republican politicians and industry representatives that the 2010 reform law has been killing lending. These assertions, however, should be backed by data…Read More

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