Canada and India develop regulation proposals for G20


Deep in the Harper transcript this little gem indicating Canada and India have been working on the framework of a proposal for the G20 to consider on financial regulation. Transcript: Stephen Harper interview As you know, Canada has co-chaired with India the working group on future financial regulatory reform. We have a very good report which I think will gain consensus. Essentially, we did come down on that one in kind of a middle-ground position we hope will get the support of both the United States and Europeans and others. And that is, that we actually think it is important … Continue reading Canada and India develop regulation proposals for G20

For the record – State Leader interviews before G20 – Financial TImes


Transcript: FT interview with Manmohan Singh – India Transcript: Stephen Harper interview – Canada Transcript: FT interview with Lee Myung-bak – South Korea Transcript: FT Interview with Sergei Lavrov – Georgia Transcript: FT Interview with Barack Obama – US Transcript: India’s security advisor on Obama Transcript: FT interview with Taro Aso – Japan Continue reading For the record – State Leader interviews before G20 – Financial TImes

Transcript: FT interview with Taro Aso | G20


The FT is interviewing many of the G20 leaders this week.  Taro Aso of Japan makes a point here that is, so far, lost on the other leaders.  He is reflecting on the Japanese bubble of 1989, exemplified by a drop in land prices of 87%. He makes the point that dropping interest rates to zero will not bring back investment by itself while people and businesses are pre-occupied with reducing debt. Transcript: FT interview with Taro Aso | Financial Times It was back in [the early 1990s] that the Japanese bubble economy collapsed. At that time, land prices in … Continue reading Transcript: FT interview with Taro Aso | G20

OECD Interim report on global economy released 31st March 2009


In advance of the G20 meeting Thursday, OECD have released their interim review of world economies. [local pdf] [local pdf] It is an 150 page document of immense coverage, and you will find a few pages for your country there as well.  The introduction highlights the scope of this economic situation as it impacts the entgire world economy.  Note the negative GDP growth over two quarters in 208 and 2009, with modest improvement forecast (with caveats) for 2010. [upper right of the table]. The caveats for 2010 are key to the report, and are largely based on assumptions for banking … Continue reading OECD Interim report on global economy released 31st March 2009

“I begin with capital. We have a clear imperative to reform capital requirements” | Geithner


Its a tall order but Geithner is aiming high.  His targets align quite well with Germanys Merkel and it will be interesting to see how that plays out this week in London.  ‘Robust and stable’ system is goal of US  | FT It was good for regulators to think more about system rather than institution- specific risks. But he said: “I am sceptical about the ability of central banks and regulators to provide early warnings of crises. We need to build a system that is safe against uncertainty, against ignorance, against the failure to identify the future source of crisis.” … Continue reading “I begin with capital. We have a clear imperative to reform capital requirements” | Geithner

Web ad spend grows to 10% of all ad spend in Q4 2008


This is a small fragment of a bright spot and it comes form internet and that is satisfying.  While web ad revenue increasing is nice the real satisfaction lies in that it has posted relative gains on traditional ad spend.  This will be a stat to watch over the next quarters. Web ad revenue grew in 4Q but slower than in past | SF Gate About 10 percent of all money spent on advertising in 2008 went toward ads on the Internet, according to U.K.-based advertising company ZenithOptimedia. While that is still a small portion of the total, it rose … Continue reading Web ad spend grows to 10% of all ad spend in Q4 2008

Banks have broken their social contract with corporates and government | “what are banks for”


A brilliant question.  Mark Carney, Central Bank Governor of Bank of Canada’s answer is equally direct.  This paper is clear insightful and highly useful for the debate and discussion as the next steps of regulation of banks occurs. What are Banks really for | Carney – Bank of Canada The financial system should be the servant of the real economy. As one of my international colleagues recently remarked, “it is time the banks stopped swanning around like the Queen of England and resumed their traditional role as handmaidens to industry.” It is apparent that an era of self-absorbed finance that … Continue reading Banks have broken their social contract with corporates and government | “what are banks for”

Dear A.I.G., I Quit! | Jake DeSantis


It is very interesting and illuminating to read this resignation letter from Mr DeSantis of AIG.  He received $742K on march 16th and must either repay to keep and lose 90% to tax.  He intends to keep and donate residual to charity. Question de jour:  Should Mr DeSantis, who was earning $1 per annum salary, be held responsible for the world economic crisis?  Is he more accountable than Joe Plumber in Florida who signed up for a sub-prime mortgage knowing full well he could not afford the interest reset. These are difficult and emotional times.  Delivering bailouts without terms and … Continue reading Dear A.I.G., I Quit! | Jake DeSantis

Tempo – decoupled debit card


I came across Tempo on Netbanker – they will be presenting at the upcoming Finovate.  Tempo are focussed on a space I have high hopes for – general disaggregation of banking services.  In the case of Tempo they are in the de-coupled debit card market, something Capital One dabbled in 18 months ago. Not much detail, but their value proposition is one of customer loyalty points attached to the card.  While that is the obvious play, I remain convinced the power in this model will extend further.  I say this because loyalty points have a limited appeal to a certain … Continue reading Tempo – decoupled debit card

Charter Communications files for bankruptcy | Paul Allen


Tthis one is of interest because of the involvement of Paul Allen, Gates former partner at Microsoft. Generally speaking cable and telco’s typically have high debt, and could be next in line for problems in this crisis. Charter Communications files for bankruptcy Charter Communications Inc. (CHTR) filed for Chapter 11 bankruptcy protection, which the heavily leveraged cable-television operator has previously said it would do as part of a debt-reduction agreement with some of its creditors. Charter, controlled by Microsoft Corp. (MSFT) co-founder Paul Allen, said last month it would file for bankruptcy protection by April 1 as part of an … Continue reading Charter Communications files for bankruptcy | Paul Allen