Tag: Lagarde

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Too Big to Fail and How Little the Concept is Misunderstood

Colin Henderson

Sheila Blair Chair of the American FDIC (retail deposit guarantees) speaks clearly yet with words that are hardly reflective of US policy. The first task is to scrap the “too big to fail” doctrine. To do this, we need to fix weaknesses in our regulatory system, and achieve global reform for effective resolution processes when large firms fail. With these steps, we can foster real market discipline and make international cooperation more successful. Co-incidentally I watched the BBC World Debate earlier with an interesting group of contrasts (no video online yet) BBC World Debate – Global Financial Crisis: Can we … Continue reading Too Big to Fail and How Little the Concept is Misunderstood

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A future that has hope for banking innovation only in North America?

Colin Henderson

In something that is a bit ironic, the Democratic US government is looking the most conservative in management of banks amongst the G-7 scheduled next week in Italy.  Geithner is also looking the most thoughtful of the finance ministers, alongside Lagarde in France. This is seriously not a time for grandstanding as Brown and Darling continue to do too often.  Time to get it right with a sustainable approach that will not relegate banks to becoming permanent financial utilities which I fear is happening when you read this dire summary of the current state. Could we have a system in … Continue reading A future that has hope for banking innovation only in North America?

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France fears backsliding on regulation

Colin Henderson

Ms Legarde was a bright star and clear thinker at the recent World Economic Forum.  There is not yet broad agreement on the methodology and priorities amongs the countries as to resolve the global crisis. In another interview she offers some indication of how globalisation actually works, and the comparison of UK and US approaches is stark.  There is a long history between UK and France, and now is not the time to let that get in the way. Transcript – Christine Lagarde – Finance Minister – France | ft.com BH: Are they retreating in Washington and London? CL: I … Continue reading France fears backsliding on regulation