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
Capital and Liquidity
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?
When Macroprudential Policy meets the Judge: Prospective Implications of the MetLife Case for the FSOC and the Asset Management Industry
The aftermath of the financial crisis has led U.S. regulators to reconstruct the boundaries of the financial system by undertaking a number of regulatory reforms focusing, in particular, on procyclical behaviors of the largest, most interconnected credit institutions. A wide variety of changes in the prudential settings of banking structures, such as capital and liquidity … Continue reading When Macroprudential Policy meets the Judge: Prospective Implications of the MetLife Case for the FSOC and the Asset Management Industry
Blue Gold: The Commoditization of Water (Part II)
In response to increasing scarcity, water markets have evolved in many states of the United States. According to data gathered by the “Water Strategist” the first water transfers have been conducted in the late 1980s. Over the course of more than two decades, people have entered into different water contracts, customized to their individual needs. … Continue reading Blue Gold: The Commoditization of Water (Part II)
Blue Gold: The Commoditization of Water (Part I)
Water scarcity is promising to be one of the major challenges of the 21st century. With the global population growing at skyrocketing levels, global water demand is rising faster and faster. Already, some 1.1 billion people worldwide lack access to water, and a total of 2.7 billion find water scarce for at least one month … Continue reading Blue Gold: The Commoditization of Water (Part I)
REGULATION-Y 