Tag: regulation

productivity

The Productivity Era

Colin Henderson

Where are we with AI now evolution Introduction I have written about AI from business perspective. Here I will look forward and cover how my original vision of AI as a business tool is coming along. Artificial Intelligence was introduced to most of us as ‘smart chat’. My original belief however was shaped earlier in 2023 which took it much further than chat. The shift in my vision took the impact a holistic vision of business benefit, social change and structural change. The model I had in mind is the British Industrial revolution which I covered earlier. There the shifts … Continue reading The Productivity Era

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Jamie Dimon’s annual Letter to Shareholders 2022 – my first impression

Colin Henderson

Annual Report 2022 | JPMorgan Chase & Co The letter contains a section on BANKING TURMOIL AND REGULATORY GOALS. My impression: More to come. Meantime here is JP Morgan introduction to this discussion extracted from the letter and the source. Following is extracted from JP Morgan letter. BANKING TURMOIL AND REGULATORY GOALS The recent failures of Silicon Valley Bank (SVB) in the United States and Credit Suisse in Europe, and the related stress in the banking system, underscore that simply satisfying regulatory requirements is not sufficient. Risks are abundant, and managing those risks requires constant and vigilant scrutiny as the … Continue reading Jamie Dimon’s annual Letter to Shareholders 2022 – my first impression

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Real banking innovation requires separation of basic banking from the rest of financial services

Colin Henderson

Reading Competition creates a Race to the TOP: The EU should seek Liberalisation not Harmonisation over at the thoughtful “The Extended Society” blog, and some of the other links there such as this at the Economist, got me to thinking more about regulation of financial services. The Dodd-Frank act | Economist  [emphasis mine] The law that set up America’s banking system in 1864 ran to 29 pages; the Federal Reserve Act of 1913 went to 32 pages; the Banking Act that transformed American finance after the Wall Street Crash, commonly known as the Glass-Steagall act, spread out to 37 pages. … Continue reading Real banking innovation requires separation of basic banking from the rest of financial services

Business Models, regulation

The Magnetar Trade – otherwise known as ‘The Black Hole”

Colin Henderson

This is a complex article at ProPublica that in simple terms illuminates all that was wrong with CDO’s and synthetic CDO’s. These instruments allowed investment bankers like Magnetar to circumvent insider trading rules.  The story of Goldman Sachs being charged by the SEC for fraud is only the beginning.  Financial reform is the last thing many financiers and bankers will have to worry about as this story takes hold. Magnetar involved all the big names and most are listed here.  You will see many recognisable names, eg. Citi, Wachovia, Deutsche, Lehmans, UBS, Mizuho, JP Morgan.  At this point it appears … Continue reading The Magnetar Trade – otherwise known as ‘The Black Hole”

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Big banks might move to Hong Kong | FT

Colin Henderson

I was listening to all the pundits making predictions for 2010 over the weekend and one struck me in particular. It was Chrystia Friedland US Managing Director of Financial Times on Fareed Zakaria GPS, and she predicted big banks moving their headquarters to Hong Kong, in response to regulation and taxes. It was a one liner comment, with no follow through, but there is no reason for an investment bank which can operate virtually not o optimise its HQ location. Interesting. One more point for the rise of emerging economies. Continue reading Big banks might move to Hong Kong | FT

Economy

Plan for Sound Banking – Conservative White Paper | analysis

Colin Henderson

Here is more on the Tory plan for banking outlined in the attached White Paper [57 pages]. Politics aside, lets take a look at the merits of this proposal and how it aligns with the problems I have perceived within banking and that are exacerbated over the last 2 years. The core issues I have seen are these: banks have become high dividend paying conduits due to protective regulation and tight association with Central Banks the regulatory protection produced a ‘cannot fail’ mentality about banks’ and .. this in turn resulted in no perceived need for a strong capital base, … Continue reading Plan for Sound Banking – Conservative White Paper | analysis

regulation

US releases draft regulatory framework for Financial Institutions

Colin Henderson

The US administration released a draft of their proposed regulatory framework today, putting the Federal Reserve front and centre. The big theme is to promote broader control of any institution involved in banking, and to specifically eliminate exemptions such as the Thrift Charter. Draft Fed report on Financial Institution Regulation pdf – 85 pages Continue reading US releases draft regulatory framework for Financial Institutions

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Canada and India develop regulation proposals for G20

Colin Henderson

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

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G20 draft communiqué & FT interview with Obama indicate more regulation coming to Banks

Colin Henderson

Lionel Barber at the FT interviews US President Obama in advance of the G20 meeting Thursday.  Despite the broad sweeping answers it seems unlikely that we will see much tangible outcome from the session, but the G20 draft communiqué (below) is clear about stronger regulation. Obama interview: Full text | Financial Times FT: Let’s talk about the G-20. What will be your benchmarks for success? Obama: The most important task for all of us is to deliver a strong message of unity in the face of crisis. There’s some constituent parts to that. Number one, all the participating countries recognise … Continue reading G20 draft communiqué & FT interview with Obama indicate more regulation coming to Banks

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Two years on | Which banks understand the web lifestyle?

Colin Henderson

When I started this particular blog, my impetus was the lack of creativity amongst Banks in getting beyond automation of traditional transactions, and sticking them online [online banking]. Introduction « The Bankwatch Introduction Saturday, 28 January 2006 Welcome to Bankwatch. The purpose of this blog is to monitor banks around the world for their online capabilities, and the strategies they are adopting with online. Consumers are web savvy now, and most banks aren’t, so I will point those out, and I will also recognise best practices too. It might be useful to just take a look and see what progress … Continue reading Two years on | Which banks understand the web lifestyle?