Who says bankers have very short memories?

I do. The Financial Times reports today that Northern Rock will begin making loans against 90% of a property’s value as early as Monday. Northern Rock, which was established 30 years ago as the result of a merger between two large British building societies (roughly equivalent to savings and loans), was bailed out almost exactly … Read moreWho says bankers have very short memories?

There’s a new sheriff in town…

…and his name is Andrea Enria.  The former Bank of Italy official has taken over as chairman of the brand new chairman of the European Banking Authority.  The Financial Times reports that Enria said that the financial crisis had highlighted the weakness of consensual efforts to co-ordinate banking regulation in Europe and that the EBA … Read moreThere’s a new sheriff in town…

More capital

The Financial Times reports that a study conducted by Bank of England researchers finds that the current level of risk-weighted capital held by banks (about 7 percent) is woefully inadequate to protect against future financial crises.  Calibrating their model with data from 1821-2001, the authors find that an astounding 53 percent capital to risk-weighted assets … Read moreMore capital