Wanted: Central Banker

A couple of weeks ago, the Economist magazine ran an unusual “help wanted” ad.  The Governor of the Bank of England, Sir Mervyn King, will retire in June and the British government is looking for a replacement. On the one hand, it might seem like a great job.  The Governor receives a salary of £300,000, … Read moreWanted: Central Banker

Libor needs to be scrapped—not reformed

Last Friday, a top British top financial regulator issued a report suggesting numerous reforms to the London Interbank Offered Rate (Libor).  Libor, a benchmark interest rate that affects more than $300 trillion in financial transactions, is constructed from the cost of funds estimates submitted by a handful of large banks.  This summer, e-mails surfaced showing … Read moreLibor needs to be scrapped—not reformed