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from Chrystia Freeland:

Canada’s top central banker on the Volcker Rule

In an interview at the World Economic Forum in Davos, Bank of Canada Governor Mark Carney tells Chrystia that the implementation of the Volcker Rule in the U.S. will have unintended consequences in the international bond markets and that JPMorgan Chase chief Jamie Dimon is wrong to say that the Basel Committee's decision to increase capital requirements is "anti-American."

from Financial Regulatory Forum:

Bank of Canada raps finance industry, says G20 determined to reshape

   MONTREAL, Oct 26 (Reuters) - Bank of Canada Governor Mark Carney delivered a blunt rebuke to the global financial industry on Monday, saying it had shown insensitivity over high compensation and calling on it to get on board with reforms.

"Relief is in danger of giving way to hubris," he said in the prepared text of a speech. He said the clear priority of the public sector was for banks to conserve their earnings to boost capital and expand credit formation.

Carney said the industry should not doubt that capital requirements are going up, and those who preemptively meet those requirements, rather than pay themselves handsomely, will be in the best possible position over the medium term.

"It would be a mistake to underestimate the determination of G20 leaders to reshape the financial services industry," he said. He added that risks must be returned to, and borne by, the private sector.

Recalling the G20 appeal for sound compensation practices, he said: "The current windfall, dependent as it is on the strongest of safety nets and the policy-driven snap back from the brink, sits uneasily with that principle."

He asked if firms really have a good handle on their medium-term profitability given the profound regulatory and economic changes on the horizon.

from MacroScope:

The code of silence…

It was a routine press conference given by Canada's Finance Minister Jim Flaherty and Bank of Canada Governor Mark Carney on the results of Friday's G7 meeting.

After reassuring Canadian's that they "probably have the most efficient, effective financial system in the world", Carney was asked how Wednesday's coordinated interest rate cut came together and who drove the process.

His answer revealed not only a "code of silence" among Central Bank leaders, but also hinted that those same leaders might have some special powers -- at least if we are to believe they all independently decided an interest rate cut was a good idea at the exact same time.

Bank of Canada Governor Mark Carney