Deutsche blue-chip rescue has method and madness

October 10, 2016

The idea that German companies might put capital into the country's biggest domestic lender sounds like poor financial sense. Yet as a way to avoid a politically toxic taxpayer bailout of Deutsche Bank, and protect corporates' interests, it has a certain logic.

Guest view: Where is the IMF on Greece?

October 3, 2016

The seemingly endless Greek crisis may erupt again unless the country gets debt relief, writes former Citibank executive William Rhodes. The International Monetary Fund should take the lead in spelling out economic forecasts and the decisions Greece and its creditors must take.

Jamie Dimon, 10 years on, is hard bank CEO to beat

December 30, 2015

Looking back on a decade running JPMorgan, the boss has had missteps like the London Whale, big legal fines and clashes with regulators. Yet Dimon has fashioned a bank with leading market share, top-tier returns and a head start in fintech. It’s well placed for the next 10 years.

White House wannabes give Wall Street much to fear

November 11, 2015

The fourth GOP presidential debate unleashed many fanciful notions about the financial crisis and its aftermath. Ben Carson blamed stock buybacks, Jeb Bush botched bank capital and Ted Cruz flubbed monetary policy. It’s modern history whose lessons are too dangerous to repeat.

RBS puts lipstick on Citizens for $14 bln IPO

September 8, 2014

The Scottish bank reckons cost cuts, rising interest rates, capital returns and more business will boost its poorly performing U.S. unit. Granted, all this might create decent enough returns to justify the price. But RBS is painting too pretty a picture of Citizens’ independence.

Review: “House of Debt” diagnosis beats remedies

June 13, 2014

Atif Mian and Amir Sufi make a compelling case that excess consumer debt caused the U.S. Great Recession’s severity, but their mortgage bailout proposal would make matters worse. Their shared value mortgages might help, but old-fashioned tight money is a simpler and better way.

Bank of Moscow exposes Russian regulatory void

July 5, 2011

Russian bank failures usually have political causes: well-connected banks often have more clout than regulators.

ECB will find it hard to avoid pain on Greek debt

January 11, 2012

The central bank’s refusal to participate in the Greek debt restructuring becomes harder to sustain as Athens threatens to become more coercive. And any attempt to spare the ECB losses will make it look as if it enjoys implicit seniority, pushing sovereign yields even higher.

What would a Greek plan B look like?

January 24, 2012

If brinkmanship over a “voluntary” debt restructuring fails, Athens will be staring at a hard default. The challenge will be to prevent it being a messy one. That means bailing out Greek banks. But even after that, the country’s official creditors may save money.

Worst might be over in euro debt crisis

January 24, 2012

Greece could still have a hard default and Portugal remains worse than a question mark. But the main reason there’s a regional crisis is that investors think there is one. Now they could be changing their minds, thanks to money from the ECB, plus some fiscal and political resolve.