Regulation Basel III: regulators seem to ignore market failures
The changes in our regulatory framework (BASEL 3) and the widespread use of inappropriate IFRS rules will not solve the imbalances of the international financial and economic system
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Opinion Central Banks : the global financial system trashcans ?
Institutionalized monetization condemns central banks to become the international financial system trashcans and, despite German opposition, it is likely to be the same for the ECB.
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Opinion Perspective and real solvency of banks
Can a universal bank go bankrupt ? An objective, rigorous and professional answer is built in three stages: credibility of the banks performed stress tests - assessment of prudential regulation to come - understanding the evolution of the banking business (...)
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Regulation Reconciling bank processing and prudential regulation
The introduction of new liquidity ratios could undermine banking core business
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Opinion The Euro will survive, but not the current Euro zone !
If the existence of the euro is not challenged, it is the case of the euro zone in its current configuration. In the same way that cohabitation between countries with maintaining parity exchange had become impossible in the EMS, cohabitation has become impossible within (...)
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Strategy Bond market: Investment opportunities on yield curves
Anticipations on future monetary policy and risk aversion linked to systemic threats create investment opportunities on the yield curves of US and Euro bonds. However, those opportunities cannot be seized before two fundamental questions have been (...)
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Note Financial markets and self-fulfilling prophecies
This phenomenon is equivalent to the change from a brutal economic and financial equilibrium to another, not because the fundamentals of the macroeconomic environment would justify it, but because there was a change for good or bad reasons of market (...)
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Opinion Greece rescue - Behind the scenes
Debt rescheduling, monetary policies questioning and EFSF bond purchases in the secondary market. These are the key steps of a plan that should not significantly affect banks’ net income but rather spread economic losses over (...)
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Opinion Euro-dollar outlook
So many reasons to sell the Euro against the dollar. Nevertheless we can expect a fall of the euro in the second half of 2011. The dollar should continue to remain for now a safe haven despite the monstrous imbalances in the US economy and because of the real risk of (...)
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Opinion Again and again the bank stress tests
Certainly it never ceases to write about the bank stress tests since it keeps getting more into banks; if proof were needed of the total lack of credibility of those made up to now
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Opinion Robots have taken power in finance
Describe the real world with numbers is a trend that seems to be accelerating. Thus, digital technology is associated with financial models to show that we (human) interact with our environment using mathematical (...)
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Note The frantic flight to liquidity and solvency
Some markets have been exhibiting dysfunctions for nearly 4 years. The flight to liquidity and compliance with solvency requirements of banks and states with financial issues, have been - and still is - only ensured by non-conventional financing provisions and emergency (...)
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Opinion Equity markets: two mistakes to avoid.
The negative news flow coming from financial markets does not mean we should give up. This article provides two small pieces of advice or rather two mistakes that must be avoided or that must never be repeated.
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Opinion Long-term rates rise....but it is not yet a bond crash
The recent sharp rise in long-term rates in Europe relies on a risk pooling across peripheral countries and the entire euro zone. But we cannot yet talk about bond crash.
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Strategy Financial markets: hedging against new structural risks and stagflation
There are at least four new structural risks to consider: regulation, Middle East, euro zone’s crisis, and again the idea of a change in growth model of emerging countries.
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