Historic Financial Overhaul Begins Now

On Thursday, the U.S. Congress gave final approval to one of the most massive overhauls of country’s financial regulation ever. The legislative action ended more than a year of political disagreements over the scope of the new regulations.

The new law establishes an independent consumer bureau within the Federal Reserve to monitor against abuses . . . → Read More: Historic Financial Overhaul Begins Now

Frontiers of Across-Silo Thinking in Indian Finance

India has long operated a `silo system’ where the financial industry was sought to be broken up into vertical silos associated with regulatory agencies. The word `regulation’ is relatively little understood in India. Instead, there has been a central planning notion of comprehensive `control’ of a given financial firm vesting in a given regulator, . . . → Read More: Frontiers of Across-Silo Thinking in Indian Finance

Worth Reading This SEBI Order

SEBI is pushing on the frontiers of enforcement in India. This is the order on Bank of Rajasthan.

I was surprised to see how small the market reaction was (this image is from Yahoo Finance):

What am I not understanding?

Join the forum discussion on this post – . . . → Read More: Worth Reading This SEBI Order

Five Questions on Asset Prices and Monetary Policy

Howard Davies was a deputy governor of the Bank of England, and the first head of the UK FSA. He is one of the world’s leading thinkers on financial regulation and monetary policy, and one of the people who combines skills in both finance and monetary economics. In a recent article, he focuses on . . . → Read More: Five Questions on Asset Prices and Monetary Policy

Interesting Readings for September 22, 2009

Writings about Lehman, in the broad Indian discourse, are a reminder of the low quality of the Indian economics discourse. Meghnad Desai looks back at a year after Lehman, in Financial Express. For a person who was in my father’s class at M.A., he is remarkably free of socialist cobwebs of the mind. . . . → Read More: Interesting Readings for September 22, 2009

Improving financial regulation in India

Somasekhar Sundaresan has written in Business Standard on the proposed Financial Services Appellate Tribunal (FSAT). Deepshikha Sikarwar has written in Economic Times on the proposed movement towards Regulatory Impact Assessment (RIA). These ideas come from the Mistry and Rajan reports.

These words — financial services appellate tribunal; regulatory impact assessment — sound like true . . . → Read More: Improving financial regulation in India

Swiss Banking Laws Key To Rescuing Wall Street and Consumers?

In a recent move, Switzerland’s second largst bank, Credit Suisse, has agreed to buy back more than half a billion dollars in securities and a hefty fine of fifteeen million dollars. The settlement arose due to an investigation by New York’s Attorney Genera;, Andrew Cuomo. The agreement stipulates that Credit Suisse will buy back securities from “individuals, . . . → Read More: Swiss Banking Laws Key To Rescuing Wall Street and Consumers?