Irish banks are being forced to face reality.  Irish banks need €24bn after stress tests | ft.com Ireland’s stricken banking sector will require €24bn in additional capital, pushing the total cost of the government’s rescue to about €70bn (£62bn). As the results of stress tests on the country’s banks were revealed, the government announced a radical shake-up of the industry aimed at restoring investor confidence in Ireland’s banking sector, which remains dependent on the European Central Bank. Continue reading Irish banks must increase capital to reflect the risk they took on

EDIT 11th April, 2011:  Interim report issued 11th April – for my first look click here The UK Independent Commission on Banking will report 11th April, and things are heating up.  They are expected to propose (the obvious) separation of retail and investment banking.  This is placing pressure on the coalition government, and it will be interesting to see how much we remember 2008 versus political realities. Push to keep peace on UK bank reform The Independent Commission on Banking, chaired by Sir John Vickers, will present its interim findings on April 11, with the final report due in September. … Continue reading UK Independent Commission on Banking report driving government attempts at compromise

A new report from World Bank released today draws the connection between African migration, and the resultant need for payment remittances which in turn generates economic benefits for local economies. African migration generates win-win benefits, says new report | World Bank The report, Leveraging Migration for Africa: Remittances, Skills, and Investments, presents data from new surveys. The report finds evidence that suggest migration and remittances reduce poverty in the origin communities. Remittances lead to increased investments in health, education, and housing in Africa. Diasporas also provide capital, trade, knowledge, and technology transfers. Leveraging Migration for Africa: Report (pdfs) Complete Report … Continue reading Leveraging Migration for Africa: Remittances, Skills, and Investments | World Bank

In yet another sign that nothing has been learned about banks, NR is back tot the securitisation market.  Why is this important?  Securitisation allows NR to convert mortgages into cash with some discount for market value including predicted bad debts.  Note that Moodys classify the NR issue as triple A so discount will be reduced.  This is what occurred pre 2008.  Then the mortgages that were included in securitised issues turned out to have less value than Moodys classification, so there were losses that had to be covered by an inadequate capital base.  In other words securitisation is another form … Continue reading Northern Rock is back to the securitisation market

The World Bank has a positive view on the Japanese economy despite the awful impacts of the earthquake and tsunami. Singapore, March 21, 2011 Japan real GDP growth will slow, but the slowdown will likely be temporary, as a result of the earthquake and tsunami and growth should start picking up after mid-2011 as reconstruction efforts get underway, says the World Bank in its latest East Asia and Pacific Economic Update released today. While it is still too early for a full assessment, Japan痴 past experience suggests an accelerated reconstruction effort, and the short term impact on the economies of … Continue reading World Bank view on the effects of earthquake on Japan is positive

This is an amazing post.  We are watching the Japanese Defense Force on NHK blowing water on to the Fukushima Daichi nuclear plant to cool the reactor.  As they sit in the truck so close to the reactor, they are being exposed to immense radiation. Then we saw this post from a twenties guy in Northern Japan suffering from Leukemia.  He is going through chemo and he says he has a large truck license.  He has emailed Tokyo Electricity Power Corporation asking that he be allowed to drive those trucks.  All he asks is that he can sit down once … Continue reading There are lots of heroes in the Japanese disaster

I liked this post.  Felix hosted a panel at SXSW and the topic was disruption of the banking system.  The panel comprised: Sean Harper from Fee Fighters Noah Breslow from On Deck Capital Shamir Karkal from Bank Simple Suresh Ramamurthi actually went and bought a tiny bank in Kansas Disrupting the banking system | Felix Salmon Reuters All four of these companies are doing very interesting things, and I’m sure the first three will take some small amount of market share from the big banks by offering friendlier, cheaper, and more efficient services. But my main question for the panel … Continue reading Thoughts on the nature of disruption of banks