Found 5 article(s) for author 'Financial institutions'

Thin Political Markets: The Soft Underbelly of Capitalism

Thin Political Markets: The Soft Underbelly of Capitalism. Karthik Ramanna, Winter 2015, Paper. “‘Thin political markets’ are the processes through which some of the most complex and critical institutions of our capitalist system are determined—e.g., our accounting-standards infrastructure. In thin political markets, corporate managers are largely unopposed—because of their own expertise and the general public’s low awareness of the issues. This enables managers to structure the ‘rules of the game’ in self-serving ways. The result is a structural flaw in the determination of critical institutions of our capitalist system, which, if ignored, can undermine the legitimacy of the system. This article provides some ideas on how to fix the problem…” Link

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Harpooning the London Whale is no Substitute for Reform

Harpooning the London Whale is no Substitute for Reform. Mark Roe, August 15, 2013, Opinion. “And so the drama moves on to a courtroom. Two prime traders in JPMorgan Chase’s “London whale” misadventure have been indicted. Side plots may unfold, perhaps via extradition proceedings. But here is the big question: will the indictments lead to better, stronger financial markets? Well, yes and no. Recall the problem: JPMorgan’s London trading desk made trades that would be profitable if the post-crisis American economy remained weak. As the economy improved, the traders sought to reverse the investments…” Link verified August 15, 2013

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High Wire Act: Credit Suisse and Contingent Capital

High Wire Act: Credit Suisse and Contingent Capital. Clayton Rose, May 2013, Case. “Late in 2010, Credit Suisse CEO Brady Dougan and his team considered whether or not to issue contingent capital, which Swiss regulators would require by 2019. They faced a number of substantial issues, including: Would contingent capital actually work as conceptualized and provide sufficient loss absorption when called upon? Would it be cost effective? Would there be sufficient demand for this new instrument? What were the risks to Credit Suisse’s reputation with clients and regulators if an issue did not go well? In addition, The Basel Committee, the body…” May require purchase or user account. Link verified March 28, 2014

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Currency Wars

Currency Wars. Jeffrey Frankel, March 18, 2013, Opinion. “To the extent that the catchy phrase “Currency wars” has genuine analytical content, it is another way of saying “competitive devaluation” (or at least competitive depreciation), a kind of beggar-thy-neighbor policy (to use the language of the 1930s), or “manipulating exchange rates…to gain an unfair competitive advantage over other members…”  (to quote from IMF Article IV(1)iii.)…”  Link

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Shifting Mandates: The Federal Reserve’s First Centennial

Shifting Mandates: The Federal Reserve’s First Centennial. Kenneth Rogoff, 2013, Paper. “The Federal Reserve’s mandate has evolved considerably over the organization’s hundred-year history. It was changed from an initial focus in 1913 on financial stability, to fiscal financing in World War II and its aftermath, to a strong anti-inflation focus from the late 1970s, and then back to greater emphasis on financial stability since the Great Contraction. Yet, as the Fed’s mandate has expanded in recent years, its range of instruments has narrowed, partly based on a misguided…”  Link verified March 28, 2014

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