Roubini stresses the point that the Geithner plan does not avoid bank nationalisation.  Roubini Says Geithner Plan Won’t Prevent Bank Nationalizations | RGE Monitor U.S. Treasury Secretary Timothy Geithner’s new plan to remove toxic assets from the books of the nation’s banks won’t stop some financial companies from having to be nationalized, said Nouriel Roubini, the New York University professor who predicted the financial crisis. The key is the stress testing methodology which in essence looks at banks’ liquidity and capitalisation.  If the bank is insolvent, that is, cannot maintain its commitments then it will be taken over.  The key … Continue reading Roubini stresses the point that the Geithner plan does not avoid bank nationalisation

Details from the US Treasury home page lists five components for the framework: Addressing The First Component of Regulatory Reform: Systemic Risk A Single Independent Regulator With Responsibility Over Systemically Important Firms and Critical Payment and Settlement Systems Higher Standards on Capital and Risk Management for Systemically Important Firms Registration of All Hedge Fund Advisers With Assets Under Management Above a Moderate Threshold A Comprehensive Framework of Oversight, Protections and Disclosure for the OTC Derivatives Market New Requirements for Money Market Funds to Reduce the Risk of Rapid Withdrawals There are some new and sensible components in here, e.g. 1) … Continue reading US Treasury regulation framework emphasises systemic risk, institution role, and solvency

With those words, Geithner begins the process of regulation that addresses institutions and the entire financial system.  More as I get it. Geithner lays out new financial rules | Financial Times “This crisis has made clear that certain large, interconnected firms and markets need to be under a more consistent, and more conservative regulatory regime,” said Mr Geithner. “These standards cannot simply address the soundness of individual institutions, but must also ensure the stability of the system itself.” Technorati Tags: Geithner,banking regulation Continue reading These standards … must also ensure the stability of the system itself | Geithner

Wells Fargo have started a new Twitter presence Ask_WellsFargo focussed on “service for our customers within the Twitter Community”.  This will be managed with a view to helping customers find solutions to account related questions and issues.  Wells Fargo have a long history and aspiration of being where their customers are including 5 blogs, 2 YouTube channels, Facebook, MySpace. Good luck with that Wells, and thanks to Wells Ed Terpening for the heads up.  Wells is one of the few  financial institutions that actively promotes their own activities rather than through PR Agencies. Technorati Tags: Wells Fargo Continue reading Wells Fargo add Twitter to their internet activities

This piece comes as no surprise to me at all.  Its hardly the test you would use given you hope it never happens, but how would your bank answer the question “how quickly and accurately could you get your depositors money back to them?” Northern Rock saved by "inadequate" IT | Finextra The firm operated a manual account closure process and estimated that it would have taken up to 10 to 12 weeks to repay depositors, with a likely error rate of 25%. Continue reading Northern Rock debacle takes a new twist | incompetent IT capability precluded orderly wind down

Just in case anyone doubts the depth of feeling about AIG this site will deal with that doubt. Working Families We’re all mad at AIG. Their executives bear a large share of the responsibility for bringing the economy to it’s knees, and now the same folks are getting hundreds of millions of dollars in bonuses — at our expense. Join us for a field trip to bring them the message. Technorati Tags: AIG Continue reading AIG Bus Tours – what next!

This is back up information to the Turner Report. A regulatory response to the banking crisis turner-discussion-paper-dp09_02 216 pages This FSA Discussion Paper (DP) underpins The Turner Review, which is being published simultaneously. This DP covers the issues set out in Chapter 2 of The Turner Review and the associated actions, providing further analysis and background material. Both documents have a common analysis of the main causes of the current financial crisis. Who should read this DP Although the focus on this DP is on banking and investment banking activities, elements of the DP are much broader in their potential … Continue reading The Turner Report | Discussion Paper

I have been pre-occupied with the banking and economic crisis, so it was a welcome relief to read the latest Online Banking Report that covers the iphone and banking.  I have been on Blackberry for 10 years, but I am shifting to iphone when the 09 model appears.  Reason is that it just changes everything in terms of experience, usability and functionality.  The functionality comes from the app store and the proliferation of applications that work on the iphone. Jim has focussed on financial apps and the 32 page report is worth it for the screen shots and the ideas … Continue reading Mobile Banking 2.0: iPhone Edition | Online Banking Report