Cox: Quarterly reporting to get a major rethink

November 17, 2015

From BlackRock’s Larry Fink to presidential contender Hillary Clinton, “quarterly capitalism” has become a four-letter word. Big publicly traded asset managers could change habits by abandoning their own three-monthly results. Watch for that in the coming year.

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.

ECB hits European banks where it doesn’t hurt

November 11, 2015

Europe’s banking supervisor wants to fast-track the phasing out of bogus capital like deferred tax assets. Greater harmonisation is exactly what Frankfurt should be pushing. But the ECB’s inability to tell national governments what to do will limit the fallout for most lenders.

Regional banks grab hold of repo grenade

November 10, 2015

Wells Fargo, Nordea and Sumitomo Mitsui are bulking up in a form of short-term collateralised lending, as big investment banks pull back. Yet buoyant “repo” financing may carry hidden risks. The market played a central role in the financial crisis - and much of it remains opaque.

Hillary Clinton lands soft punches on Wall Street

October 8, 2015

The White House hopeful has unveiled a slew of ideas for reining in financial excess. Initiatives like imposing risk fees on big banks and improving hedge fund reporting won’t win many friends in the industry. But they’re manageable blows that Wall Street could roll with.

Bank watchdogs tie themselves in knots over TLAC

September 10, 2015

Financial regulators are throwing a bone to sprawling global banks by watering down plans for what happens if a lender goes bust. Putting the likes of HSBC on an even footing with rivals structured differently is justifiable. But it makes resolving crises that bit harder.

Jefferies may be canary in shuttered Wall St mine

September 9, 2015

Unlike the rest of the U.S. securities industry, the firm controlled by $7.7 bln Leucadia isn’t barred from proprietary trading. So its quarterly results could offer some insight into just how much the Volcker Rule helps or hinders the likes of Goldman Sachs in volatile markets.

Rob Cox: Rick Perry is running for the wrong job

July 30, 2015

The presidential candidate and ex-governor of Texas is a proponent of laissez-faire markets. Yet he has joined a global chorus of politicos and watchdogs pushing policies to break up the big banks. If he’s serious, he’d make a better Wall Street regulator than White House boss.

Trading illiquidity theories lack solid ground

June 18, 2015

Blackstone’s Steve Schwarzman is the latest financial bigwig to argue that the enforced shrinkage of banks’ activities is hurting liquidity so badly that it could fuel the next crisis. A look at how markets have changed – and how brokers actually behave – suggests otherwise.

Deutsche’s attitude problem compounds Libor hit

April 23, 2015

The German bank is paying a record $2.5 bln to settle rate-rigging charges. To make things worse Deutsche Bank misled the UK regulator and others. That’s not smart in a highly regulated industry. With a currency market fine also pending, the reputational damage could grow.