Views on improving the integrity of global capital markets

Systemic Risk


“V” Is for Volcker: All Investors Have a Stake in Prop Trading Rule’s Outcome

Kurt Schacht, JD, CFA, takes a look at the key issues in the Volcker Rule proposal.

Bogle, Volcker Discuss State of U.S. Financial System

Hear what Vanguard founder Jack Bogle and former Federal Reserve Chairman Paul Volcker had to say about Volcker's namesake rule during the John Bogle Legacy Forum at the Museum of American Finance in New York.

Special Accounting for Banks Not Beneficial for Investors

In a recent Reuters article, the Bank of England's Andrew Haldane called for a "radical rethink" of accounting rules for banks. While it's true that banks (especially large ones) pose a significantly greater systemic risk than other industries, Vincent Papa, CFA, finds it hard to see how new bank accounting rules would benefit investors.

Volcker Rule: Let’s Make Paul Proud

The original Volcker vision was actually quite simple and straightforward: eliminate, or otherwise segregate, the risks posed by proprietary trading from the large conglomerate banks that nearly toppled the financial system in 2008. Unfortunately the resulting 300 pages of regulatory hieroglyphics that now pass for the rule proposal likely have its benefactor squirming at any association.

Will Stability Bonds Save the Eurozone?

While repeated high-level summits of European leaders have failed to solve the sovereign debt crisis, EU public servants continue to explore possible ways to foster financial stability. The most daring proposal is the common issuance of sovereign bonds among Member States.

The Volcker Rule: The Wrong Track Toward the Right Objective

On the one hand, it’s hard to disagree with the angst bankers have shown over the so-called Volcker Rule. The confusing language, the unforeseen problems in its 300 pages, and its detailed mandates could cause more trouble for… READ MORE ›

Fail Me Once, Shame on Me; Fail Me Twice, Shame on Thee

I expect I am one of the only persons left who didn’t realize that MF Global is the successor to what once was the derivatives firm, Refco, which collapsed in 2006. Consequently, I wasn’t aware that this firm had… READ MORE ›

CFA Institute Forecasts Bleak Global Market in 2012

CFA Institute members have weighed in, and the outlook for the coming year is far from optimistic. We’ve released the findings of the 2012 CFA Institute Global Market Sentiment Survey, an extension of the annual Financial… READ MORE ›

Rehypothecation: Fed Rule Sends MF Global Clients to Back of Line

The Federal Reserve is supposed to be on the front lines fighting systemic failure. If the latest concerns raised about MF Global are true, however, the Fed and its rules, albeit indirectly, could have made matters worse for MF… READ MORE ›

OTC Derivatives Reform — Asia Takes up the Challenge

“Doing nothing is not an option.” Futures Industry Association (FIA) President John M. Damgard issued this message at the FIA Asia Derivatives Conference in Singapore in November. Against the backdrop of sweeping changes in the regulatory landscape for derivatives, an… READ MORE ›

Doctor, Doctor, Give Me the News: the Decline of Finance

As if the stalemate in the Super Committee weren’t enough to worry U.S. investors, speakers at the recent Investing Conference held at the University of Virginia Darden School of Business (co-sponsored by CFA Institute) were abundantly clear that this… READ MORE ›

Professional Investors to Super Committee: You Flunk

The U.S. deficit stalemate is a pathetic display — so say a broad range of investment professionals in a recent CFA Institute survey on the Super Committee bust. The bi-partisan committee was charged with determining $1.2 trillion in budget… READ MORE ›

Volcker Rule: Wherefore Art Thou?

Taking up but a mere 10 pages in the Dodd-Frank Act, the so-called Volcker Rule has morphed into a regulatory proposal just shy of 300 pages. What happened between former Fed Chairman Paul Volcker’s suggestion… READ MORE ›

2011: The Year Exchange-Traded Funds Were Thrust into the Spotlight

For people working in financial markets, the year 2011 could qualify as “the year of formidable public deficits on both side of the Atlantic”. Or “the year of the Eurozone crisis”. Or, on a related note, the “year of Greece”… READ MORE ›

“Dim Sum” on the Financial Menu

News of the launch of an exchange-traded fund (ETF) that invests in so-called “dim sum” bonds (yuan-denominated bonds that are issued and traded outside of mainland China) marks an important step in the evolution… READ MORE ›



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