Breakingviews

China wrestles with repression of financial sort

June 4, 2014

Incomplete political reforms led to violence and retrenchment twenty-five years ago today. China is stable now, but the financial system shows a similar tension between opening up and control. Missteps could lead to chaos. Yet savers may be harder to suppress than activists.

U.S. debt capers may expose “risk-free” fallacy

July 26, 2011

Exposing "risk-free" for the illusion that it is would correct another major flaw in the markets.

Regulator grudge match redux: Geithner vs Bair

June 21, 2012

The former FDIC chief has formed an independent group to help push forward reforms in the U.S. financial system. The primary pressure point will be the council of regulators led by Treasury Secretary Tim Geithner. The two have sparred before. But their interests now look aligned.

Four reasons to hedge against Japanese equities

March 28, 2011

Investors should hedge against the risk that politics, power shortages, and nuclear troubles prompt investors to turn tail.

Frankenstorm is salient risk management reminder

October 29, 2012

When it comes to natural disasters like the freak storm slamming into the eastern U.S., there’s no such thing as too much preparation. The same is true in business, particularly banking: calamities often strike without warning and there’s no such thing as too much capital.

How regulators can restore trust in bank capital

July 5, 2013

The Basel committee of bank supervisors has exposed big variations in how lenders risk-weight their assets. But forcing banks to use a standard model could require truckloads of new capital. There’s a middle way – parallel disclosure using both firms’ and Basel’s methodologies.

Junk debt rally ignores 2010′s biggest risk

January 11, 2010

Investors high on junk need to think about coming down.

Still tip-toeing around Fannie and Freddie

November 5, 2009

The Federal Deposit Insurance Corp has lowered the risk weighting of the bank debt it guarantees to zero from 20 percent -- effectively putting the debt on equal footing with risk-free U.S. Treasuries.

Stuffed on junk

October 8, 2009

Risky assets like high-yield bonds have been riding high this year, but it looks like it's time to get sober.

A reality check that markets may ignore

October 2, 2009

The ranks of the unemployed have swelled by the millions since the recession first gripped the United States in December 2007. So what's another 263,000?