It is good that we remember 2008, what lead to it, and think about design for the future.  Cohrs of BofE spoke in Edinburgh yesterday and this statement certainly resonates.  Crisis and crash: lessons for regulation – speech by Michael Cohrs | BofE We have clearly moved into an environment where the notion of self-correcting markets and light touch regulation is a distant memory.  However, care must be taken to ensure that regulators don’t go too far and stifle legitimate risk taking which creates value in the real economy.  The wisdom of hindsight, from which we benefit in considering the … Continue reading Lessons for regulation | Cohrs BofE

The Banks’ loyalty to Blackberry is showing weakness for the first time.   I know of one bank where the senior executives all use ipads.  This will be driving bank IT security folks crazy because they have to consider a web based model versus the safe locked down RIM model. BlackBerry losing out to iPhone as banks re-assess approach to personal computing policies | finextra While many of the country’s bank’s and government agencies remain loyal to RIM devices, the study found the first indications of a more flexible approach at Toronto-Dominion Bank. David Codack, TD’s head of employee technology said … Continue reading Chinks show in the Blackberry armour amongst banks’

Andrew Haldane (Andrew Haldane – Executive Director for Financial Stability and member of the Financial Policy Committee) is a favourite.  His talks are rich in history and assessment of patterns that point to future solutions.  This talk earlier this month was presented at the Securities Industry and Financial Markets Association’s (SIFMA) Legal Entity Identifier Symposium in New York, and is both very good in the Haldane tradition but also a direct shot at the poor state of bank technology and how that contributed to the 2008 crisis. His overall point is lack of transparency of risk within financial services.  A … Continue reading Banking is a protected industry and that protection results in limited competition and little innovation

From the country confidence department.  India and Indians relish in the chaotic democracy they proclaim to exhibit but many events including those noted by their auditor general suggest the chaos could be real and worse. Confidence shaken in Indian government | ft.com India lost up to $210bn in revenue by selling coalfields too cheaply, according to a leaked draft report by the state auditor on Thursday. The sale of the coal development blocks appears to have rewarded a handful of politically connected companies over the greater interest of India’s 1.2bn people, raising questions about the fairness of economic liberalisation. Only … Continue reading What to make of India (20% of world population)

It’s a sad state of affairs to see the once proud and risk averse Lloyds Bank having trouble with a financial minnow as one of the last decent opportunities to sell its branch network.  Lloyds to miss branch sale deadline | ft.com A particular sticking point has been the discussions between the Co-op and the financial regulator, which is yet to be convinced the mutual has the appropriate governance and systems in place to run a much bigger banking business. Relevance to Bankwatch: The enforced sale of branches serves to highlight the reality that a capital intensive branch network located … Continue reading Its an uphill battle to sell existing branches

Enough said.  Technology at some level requires hardware implementation.    Fibre optics to connect Japan to the UK – via the Arctic Meanwhile, a 15,600-kilometre link via the Canadian Arctic, to be built byArctic Fibre of Toronto, Canada, will cut the present round-trip time, or "latency", between London and Tokyo from 230 milliseconds to 168 milliseconds, claims company president Doug Cunningham (see map). Reduced transmission time will be a boon for high-frequency traders who will gain crucial milliseconds on each automated trade. Continue reading The value of 62 milliseconds

This hyperbolic language that accompanies Apple reminds me of the dot com era.  Back then if you had a brand it could accomplish anything.  We know more now.  Great brand but stick to your knitting.  You do not want to go in front of the “Barney Frank” type interrogation that banking entry will require you to endure.  This is not a balance sheet issue.  Its  a much deeper regulatory, and oversight issue which cannot easily be consolidated with typical business processes.  Don’t even get me started.  I love Apple.  Stick to technology. What is the next industry Apple can disrupt? … Continue reading Its too easy to suggest Apple should be a bank

I had to check the author of this piece in the mainstream FT talking about wireless payments.  It turns out it was not Dave Birch, so maybe payments are making some small progress with the FT picking it up. Finance: More flash than cash | ft.com Last year, Lucas Scheybal challenged himself to live for two weeks in New York handling no cash or payment cards – instead using only a futuristic watch with a wireless chip. It turned out to be easy. With a swipe of the device across a special reader, he was able to buy coffee at … Continue reading Successful cashless payments test in New York but proliferation of payment methods hinders progress

Simultaneously with Greece, St Kitts with a similar debt overhang, negotiated a restructuring (finance parlance for a debt reduction) of 50% reduction.  This was all done quietly and after a few months negotiation.  The financial crisis has far reaching consequences, yet the consequences are somehow more obvious with such small countries than with large. A proper debt restructuring | ft.com Basseterre, St Kitts: The Government of St Kitts and Nevis announced  today that the exchange offer launched on 27 February 2012 has received the overwhelming support of its creditors. … … The  New Discount Bonds, which are to be partially … Continue reading St Kitts sets the model for debt restructuring