In bank stress tests, what’s worse: runs or lemons (the other kind)?
Lemons via www.shutterstock.com
US regulators chose to reveal detailed information to the public about the state of the banks. They were able to be so transparent, without triggering a run, because of a strong fiscal backstop.
APRA’s recent review of bank capital found Australia’s banks are stronger than they appeared to be.
Global regulators are requiring banks to hold more capital, so how high should Australia aim?
Both the ASX and ASIC were aware BBY was struggling before its collapse but allowed it to continue trading.
AAP/ Joel Carrett
As investors and unsecured creditors remain in limbo over the collapse of financial services group BBY, where were the regulators?
Only one banker has been forced to serve prison time as a result of the global financial crisis.
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Jailing bankers for failing to uphold an ethical code is possible - it's simply a matter of enforcing current laws.
ASIC Chairman Greg Medcraft wants to be able to charge banks that enable damaging corporate culture.
Recent regulator outrage about the state of banking culture overlooks the fact regulators often look the other way.
Convicted Societe Generale rogue trader Jerome Kerviel - part of a bigger system turning a blind eye to industry conflicts.
As long as fund managers and traders work for the same companies, the problems plaguing the financial sector will continue.
PayPal is far more dominant in online payments in the US than Australia where traditional players have defended the market.
Venture capital money is starting to flow into Australian fintech, but success will largely be based on whether new players can innovate in areas where bank's aren't.
Banks including Barclays are being hit with another round of fines for bad behaviour.
Increased regulation is doing little to stem the tide of bank scandals, with fines racking up. It's time more bankers were held to account.
Senator Warren has had pointed words on the subject of TPA.
While the Obama Administration vociferously disagrees, Trade Promotion Authority opens the door to watering down financial reform.
The superheated Sydney housing market has regulators, and the Reserve Bank, worried.
With rates on the way down the problem of runaway property investing has been left to the regulator APRA. But regulators should not be used as agents of short-term government policy.
Research has found when super funds share the same directors, fund performance can suffer.
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Super funds are being asked to improve board governance, and their starting point should be to consider stamping out multiple directorships.
How will candidate Clinton deal with Dodd-Frank?
The Dodd-Frank Act is the Obama Administration’s cornerstone financial reform legislation, but even after several years it remains only partially implemented and subject to collective shrugs and head-scratching…
All that glitters is not gold.
Regulating bitcoin and digital currencies is hard, but tackling currency exchanges may be the answer.
NAB chief Andrew Thorburn has been forced to defend the bank’s reputation after the actions of rogue financial planners were revealed.
There are simple solutions to prevent more financial scandals in Australia - the question is, will the government take them up?
Who’s watching Australia’s financial regulators?
The clear case of regulatory capture in Australia's financial system is grounds for a new oversight body.
Forex traders who went to the dark side could soon be forced to face the consequences.
“Oh what a tangled web we weave. When first we practice to deceive”. Sir Walter Scott’s comment could have been made about the LIBOR and foreign exchange (forex) scandals engulfing the world’s largest…
Financial planners may be considered professionals, but there’s no national exam to put them through their paces.
While financial planning is on the pathway to professionalism, its education standards continue to be the subject of much discussion – and for good reason. The current standards set by ASIC mandate a comparatively…
The collapse of Lehman Brothers was a pivotal moment in the most recent financial crisis. The next crash may feature another bank failure.
The subprime crisis and the subsequent failure of Lehman Brothers came as such a shock – and the repercussions were so severe that when the time came to mount a response, policy makers were as surprised…
Small beer? Bank fines and the culture they punish.
The biggest open secret in the financial world has been confirmed. Regulators in the UK, the US and Switzerland have announced massive fines for some of the world’s largest banks for a manipulation of…
Eyes on the prize. Regulation will hamper, but not destroy the payday loan industry.
The announcement that payday lending industry will – finally – see a cap on the cost of credit is welcome news. But any belief that this one simple measure will eliminate the industry would be mis-guided…