Why breaking the banking consensus wouldn’t be the end of the world December 11, 2012 FORECASTS of the end of the world have an even worse track record than economic predictions. Followers of the Mayan calendar believe it will all come to an end next week. But we have been here before. In 1956, an American group led by a suburban housewife believed a catastrophic flood would destroy the world [...]
HSBC’s fine stands as the first step on a lengthy journey December 11, 2012 HSBC is to pay a settlement of around $1.9bn (£1.2bn) under the terms of a deferred prosecution agreement reached with the US Department of Justice. It is the largest settlement of its kind to date, dwarfing fines paid by financial institutions like Standard Chartered and Barclays. But why is it so big? Firstly, it reflects [...]
Is the historic $1.9bn settlement between HSBC and US regulators a reasonable result? December 11, 2012 YES Roger Francis HSBC said today that it had agreed to pay $1.92bn (£1.2bn) as part of a settlement with US regulators. Although the settlement sets a new record for penalties on a bank, it should be viewed in the perspective of HSBC’s huge earnings power and the bank’s breaches of money laundering and sanctions [...]
Rapid responses December 11, 2012 The payday debate [Re: The poorest will suffer if we ignore the real evidence on payday loans, yesterday] This is the first honest, data-driven response to the payday loan industry debate I’ve seen. Unfortunately, screaming headlines about sky-high interest rates and vulnerable borrowers have led some to ignore the sad truth that many are far [...]
The poorest will suffer if we ignore the real evidence on payday loans December 10, 2012 THE non-stop tide of new regulation from the government continues. It now appears to be preparing to accept an amendment to the Financial Services Bill, which will allow the Financial Conduct Authority to cap interest rates on payday loans. A recent intervention by the incoming archbishop of Canterbury (who is strongly in favour of the [...]
Immunising entrepreneurs from the market won’t plug the funding gap December 10, 2012 VINCE Cable’s business bank intends to invest £1bn in small to medium-sized enterprises. In 2011, Project Merlin sought to facilitate a further £76bn in loans. But with all the talk of national investment banks, it is important to consider some economic semantics. There seems an almost universal acceptance that entrepreneurs are being starved of credit, [...]
Monti steps aside for Berlusconi to wreak euro havoc December 10, 2012 MARIO Monti’s announcement that he will step down as Italian Prime Minister, as soon as the budget law for 2013-15 is adopted, caught many off guard. But things had got to a point where Monti had little choice – he had effectively lost his majority in parliament after Silvio Berlusconi’s party withdrew its support. What [...]
Should the news that jobs are being moved to other UK financial centres worry the City? December 10, 2012 YES Douglas McWilliams Investment banks are planning to move 3,000 jobs from the City of London to other regional centres, which will be mixed news for the City. Past success in London has sustained high salaries and property costs, making moves to other UK centres economically viable. This is historic – property costs are likely to [...]
Rapid responses December 10, 2012 Classroom politics [Re: Lessons from Finland: How we can reform maths teaching in schools, yesterday] While I respect professor Burghes’s work, I disagree with his opinion. The greatest threat to maths education in Britain is not poor teachers or a rigid curriculum. It is the huge scale of recent political involvement in how children are taught. Standards [...]
Lessons from Finland: How we can reform maths teaching in schools December 9, 2012 THE UK’s educational standards remain low. Our pupils have fallen behind those in Germany and have been overtaken by peers in Poland. The last round of OECD tests for 15 year olds showed that the UK’s position in literacy, science and maths has fallen again. The coalition has attempted to reverse this decline and has [...]