Posts
/// // Regulators Ratings and Ramblings
POSTED BY Martin Davies ON July 06-2009 21:31
When it comes to regulators and rating agencies, I fair the rating agencies have a lot to account for in this credit crisis but we only have ourselves to blame. This short article looks at a various set of scenarios which highlight the dependency rating agencies have on the banking system.
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/// // Greedy glut feeding frenzy
POSTED BY Martin Davies ON May 07-2009 12:23
Cash for trash, writes Paul Krugman and is what many sceptics labelled Henry Paulson’s 700 billion rescue plan. To be honest the same could be said for some of the securities that are part of this invincible recovery and not just restricted to US markets but across the entire wagon of global equities.
Without any doubt the lows of March 09 are gone and some firms were priced very much on the cheap end …
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/// // Why aren't banks lending
POSTED BY Martin Davies ON Mar 09-2009 14:20
Governments around the world have been complaining that banks are not lending, what is the reason for this and what can be done is discussed in this short article. This is a straight forward and interesting read on credit risks and capital adequacy.
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/// // An interview with Martin Davies
POSTED BY Martin Davies ON Feb 20-2009 01:57
An interesting debate about the approaches that banks have taken to quantify operational risk for Basel II. What have been the problems and what are some of the solutions, is openly discussed in this interview. Really does Basel II work at all?
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/// // The US compensation battle
POSTED BY Martin Davies ON Feb 08-2009 01:57
The latest musing on credit crisis or perhaps one outcome of the event is corporate compensation review.
This week president Barack Obama called the bonus payouts for banks receiving rescue funds as "shameful" and that the government will require financial companies on the aid trade to cap compensation of top officials at USD 500,00 a year.
Obama stated that he was responding to a public outcry "in bad tast" over bonuses paid to bankers and wanted to enforce greater transparency for expenses and restrict severance pay when executives leave the company.
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/// // Call it what it is, Pawn Cars
POSTED BY Martin Davies ON Jan 29-2009 21:45
The acronym GM should be renamed from General Motors to Gross Manipulation and while there are some that reckon I am heavy handed with my criticism of the US government response to the General Motors collapse, I stand by my view.
Oh I hear the argument that if GM fails the outcome to the manufacturing supply chain may be devastating; huge job losses could amploify the broad decay of the US economy further if that is possible with interest rates hovering above nothing. Sure it could lead the world to a deep seated recession as marginal retail consumption declines.
Personally I believe the world is greater than General Motors however the domain I am going to pitch from in this article is NOT some rhetoric to argue this point.
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