Revisiting the Taper Tantrum: A Case for International Monetary Policy Coordination

In the backdrop of the 2007-2008 financial crisis, central banks came to acquire a prominent role in alleviating the immediate and medium term effects of the crisis on the domestic economy. In all systemic countries (US, UK, EU and Japan) central banks were confounded with a slowing economy, rising unemployment and fading market confidence, while fiscal … Continue reading Revisiting the Taper Tantrum: A Case for International Monetary Policy Coordination

Financial Stability Conference in Berlin, October 18

I would like to draw your attention to a conference about financial regulation taking place in Berlin on October 18, the „Financial Stability Conference“. It is organised by the „Financial Risk and Stability Network".  Suffice it to say, that speakers and participants are just about the top tier of European financial policymakers and topics discussed are … Continue reading Financial Stability Conference in Berlin, October 18

Keeping Pandora’s Box Closed: Precautionary Recapitalisation and the Dangers of Regulatory Discretion

Precautionary recapitalisation as set forth in Art. 32 paragraph 4 lit. d (iii) BRRD could become a key to the Pandora’s box of factual bail-outs and thus throw back European financial regulation by years. This threat, which I described in an earlier post on this blog, seems to have become somewhat more imminent after the case of Monte dei … Continue reading Keeping Pandora’s Box Closed: Precautionary Recapitalisation and the Dangers of Regulatory Discretion

Why the New Prospectus Regulation is not the Adequate Response for Cross-Border Crowdfunding Offerings

On 5 April 2017, the European Union adopted the new Prospectus Regulation (‘PR3’).[1] PR3 replaces the previous EU Directive 2003/71/EC (the ‘Prospectus Directive’). The crowdfunding industry warmly welcomed the increase of the thresholds for small fundraisings under PR3 after having lobbied extensively on issues that arose under the previous PR3 draft proposal.[2] This is understandable since … Continue reading Why the New Prospectus Regulation is not the Adequate Response for Cross-Border Crowdfunding Offerings

Regulators’ commitment to bail-in – is it credible? The case of MPS and Banco Popular

With the Italian bank Monte dei Paschi di Siena (MPS) about to be bailed out again by the Italian taxpayer, push comes to shove: Are post-crisis reforms working? First and foremost, this concerns the innovative resolution instrument of "bail-in". While until a few days ago, there was no reason to assume that the vicious combination … Continue reading Regulators’ commitment to bail-in – is it credible? The case of MPS and Banco Popular

Struggling Banks and Struggling Politicians: Precautionary Recapitalisation as a Threat for Goals of European Financial Regulation?

Lately, the instrument of precautionary recapitalisation has aroused more and more attention in discussions on European financial regulation, mostly in the context of the recent Italian version of the ongoing financial crisis. While the Italian government and others are trying to sell precautionary recapitalisation as a benevolent application of an instrument officially provided for in … Continue reading Struggling Banks and Struggling Politicians: Precautionary Recapitalisation as a Threat for Goals of European Financial Regulation?

Blue Gold: The Commoditization of Water (Part III)

Currently, there are no contracts on water or water rights that could be considered a futures contract because they are individually negotiated and, therefore, lack the standardization and fungibility necessary for a futures contract. However, such futures markets can be very useful for market participants for whom water is one of their major inputs, e.g. … Continue reading Blue Gold: The Commoditization of Water (Part III)

A European Regulatory Spring?

Not only is it actually getting warmer outside, spring also seems to be coming to the European regulatory landscape. Emmanuel Macron's victory in the French presidential election, the imminent Brexit negotiations and the uplift in the single market's economic outlook have lead to a thawing of regulatory thinking in policy circles. Several issues are currently … Continue reading A European Regulatory Spring?

How Switzerland responds to «FinTech» (and the key takeaways for lawmakers internationally)

Numerous regulators worldwide are currently responding to what is generally known as ”FinTech”. Interestingly, the question as regards the distinguishing elements of FinTech from conventional financial services seems to have been left to each stakeholder’s individual interpretation. Not seldomly, in particular in Switzerland FinTech is just characterized as “digital financial technology”. Similar in the United … Continue reading How Switzerland responds to «FinTech» (and the key takeaways for lawmakers internationally)