This is a complete chronology of the communications between the Securities Exchange Commission (SEC) and Facebook in the months leading up to their IPO. Facebook Fought SEC to Keep Mobile Risks Hidden Before IPO | Bloomberg The incident was part of a two-and-a-half-month volley of messages among SEC officials, Ebersman and Facebook’s law firm Fenwick & West LLP. A dozen letters, published a month after the May 17 IPO on the SEC’s website, depict a management team hesitant to disclose information and still guessing at even rudimentary aspects of its business just weeks before the company held the largest-ever technology … Continue reading Chronology of SEC – Facebook correspondence leading up to IPO

The Government of Canada is being quite proactive in consideration of payment regulation.  The code of conduct released in 2010 has been overtaken by introduction of apps that incorporate payments into smart phones, and the government have issued this addendum in that light.  However the approach risks being to product centric versus focussing on their mandate which is consumer protection. CONSULTATION PAPER: ADDENDUM TO THE CODE OF CONDUCT FOR THE CREDIT AND DEBIT CARD INDUSTRY IN CANADA TO ADDRESS MOBILE PAYMENTS | Department of Finance Canada The Code of Conduct for the Credit and Debit Card Industry in Canada (the … Continue reading Government of Canada introduces payments code of conduct addendum that anticipates smart phone apps, but potentially at the cost of less product innovation

Indian banks have had  to turn off an ATM cash retraction facility.  This facility meant that cash not picked up by the customer after 10-15 seconds was sucked back into the ATM and the customers account was credited again. Bank ATMs stop sucking in cash after RBI direction | Financial Express India New Delhi : Next time you go to an ATM to withdraw cash, don’t worry about the banknotes getting sucked back by the machine if not collected immediately, as RBI has asked all banks to immobilise the ‘cash retraction facility’. … The typical modus operandi has been to … Continue reading Cash retraction at ATM produced a new fraud type for Indian Banks

Is this a harbinger of things to come in the US.  ZeroHedge is always watching the trends and seeing the next big thing, but this is one staring us in the face but not recognised.  We have seen California issuing vouchers in place of cash.  We have seen some strange  things including firing police and teachers. PIIGS In America: Is Illinois Preparing To Request A Federal Bailout? | ZeroHedge ILLINOIS TEACHERS’ PENSION FUND CUTS RATE OF RETURN TO 8% FROM 8.5% It’s amusing because these are the same teachers who were demanding, and received, higher pay – 17% higher over … Continue reading Just how bad is the US financial situation?

An interesting but probably expected if I think about it development anticipated to be coming from Euro banking regulation.  When confronted with US and UK approaches why not pick both.  In this case though this might be ok in terms of being more more practical to install and actually have the required effect. EU banks face ringfence on trading assets | ft.com With a month to go until the Liikanen review is due to be completed, people close to the project said a clear majority was emerging in favour of a combination of the US and UK approach to structural … Continue reading Perhaps a smart proposal coming from the Liikanen committee

The annual Jackson Hole Symposium is on this week.  It was here in 2005 that the Chicago economist, Raghuram Rajan presented his paper “Has Financial Development Made the World Riskier?" which was derided by Larry Summers and many others for its criticism of outgoing Fed Chairman, Alan Greenspan. In the paper he speaks of the difference in incentive compensation  between investment managers and bank managers.  He also notes the dramatic shift in the industry that attempted to shift risk off balance sheet, but actually had the opposite effect by shifting assets off balance sheet but retaining the risk.  Fast forward … Continue reading “Has Financial Development Made the World Riskier?” Rajan 2005 Jackson Hole

Scotiabank is acquiring ING Direct in Canada, and further to my earlier post about the culture aspects, they intend to operate as a wholly owned sub. Scotiabank Reaches Agreement to Acquire ING Bank of Canada and Announces Common Share Offering – Preserves ING Bank of Canada’s (ING DIRECT) unique and successful model that offers specific value for self-directed customers as a distinct, wholly-owned subsidiary – Provides continuity for more than 1,100 employees and 1.8 million customers backed by Scotiabank, a strong, stable Canadian shareholder – ING DIRECT customers will have the same experience online, through the award-winning contact centres, and … Continue reading Scotiabank Reaches Agreement to Acquire ING Bank of Canada | Marketwire