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
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)
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)
Тhe decision of the British electorate to leave the European Union ("EU") will have a profound impact on the financial sector in the UK. In this post, we will look at some of the available means to avoid or mitigate the disruption in the wholesale and investment-banking sector as a result of the exit from the EU, namely … Continue reading Banks without passports: What are the prospects for a “safe landing”?
Only shortly after its creation, the European Banking Authority (EBA), the EU agency that was established in 2011 to foster a harmonized approach towards banking regulation and supervision in all EU Member States, found itself in an existential struggle: The financial crisis continued with full speed and even transformed itself into a full-fledged sovereign debt … Continue reading First Banking Union, then ‘Brexit’: Is the EBA dead?
Following the decision of the British electorate to leave the European Union (EU), the concerns of the UK-based banks are focused on the critical issue of “passporting” rights, which allow UK-licensed financial institutions to provide financial services directly to customers in other EU Member States. In a previous post, we have already sketched out the baseline scenarios … Continue reading Banks without passports: How deep is the Brexit cliff?
Тhe decision of the British electorate to leave the European Union (EU) will have a profound impact on the financial sector in the UK, which employees 1.1 mm people and generates about 9% of the country`s GDP as well as 11% from the overall tax revenue. One of the most severely affected firms in the … Continue reading Banks without passports: The baseline scenarios for the UK banking sector after Brexit
For some, it is the panacea to all problems in banking, others sees it as just one pillar among many, while banks themselves usually complain about it: capital regulation. Should banks carry more equity? Always a prominent topic in financial regulation, it is once again on top of the policy agenda, with the US president ordering … Continue reading Equity, again
Looking back at the causes of the financial crisis, it is often assumed that managers’ accountability vis-à-vis the shareholders was the major factor contributing to the excessive risk- taking that could be observed. Whilst this implication holds true, applying undifferentiated solutions to complex structures runs the danger of replacing one problem with another. Therefore, the regulatory … Continue reading Shareholders, Managers, and the Corporate Governance of Banks
Lawmakers, regulators and academics spend much energy reforming the substantive regulatory subject matter. The equally important question of how to transform this „law in the books“ to the „law in action“ is less prominent. This is astonishing, given that the prevalent systems of both sectoral (banks, capital markets, insurance; e.g. the US system with OTC, … Continue reading Regulators’ competition: Towards an objective based regulatory architecture