Edward Hadas

Ex-Im deniers miss the real world

October 19, 2015

Vehement domestic opposition to a government agency that finances trade is a distinctly American phenomenon. But the misunderstanding of economic reality which underpins the arguments against the U.S. Export-Import Bank is widespread, not confined to zealots like the Tea Party wing of the Republican Party.

Deutsche Bank’s long round trip

March 25, 2015

Deutsche Bank inserted two bold new financial targets into its annual report in 2000. Thanks to “the enhancement of our organisational structure”, the German bank committed itself to “planned annual growth in earnings per share of at least 15 percent” for the subsequent three years, and an average annual return on equity of “more than 15 percent”.

The redundant fictions of Greek debt

February 4, 2015

By Edward Hadas

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Making money safe

December 12, 2014

By Edward Hadas

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

FX should be the last home for scandal

November 20, 2014

By Edward Hadas

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

The ongoing ethics struggle of banks

March 5, 2014

The Swiss Bank Employees Association has told an uncomfortable truth: it was “generally known” that for many years some of their employers profited from customers’ “tax evasion.” That is incontestable, as many of the banks’ managers concede. But the practice, supposedly now ended, raises an important question about ethics and business. Why were neither the managers of the Swiss banks nor their employees worried by this business model?

Madoff/subprime – spot the difference

January 15, 2014

Bernard Madoff still has some magic. The public finds anything connected to the fraudster’s case fascinating, from a prison interview to JPMorgan’s agreement last week to pay $2.3 billion for Madoff-related sins. And why not? Madoff was a grandmaster of the confidence trick. But there is more to it than that. His way of doing business was alarmingly close to the perfectly legal practices which brought down the financial system in 2008.

Imagine a world without debt

August 7, 2013

I have a dream: a world without debt, and with much more equity. It’s not just that summer holidays are a good time for fantasising. The fifth anniversary of Lehman Brothers’ bankruptcy is a month away, and regulators have recently forced both Deutsche Bank and Barclays to issue more shares.

Fear, greed and bank capital

July 17, 2013

Buildings should be strong enough to withstand storms and earthquakes. Similarly, banks should be able to remain upright after massive waves of losses. Engineers have a pretty good idea of how to make skyscrapers strong. The regulators and lawmakers who set the rules for big banks are still struggling, five years after the government rescue of many American and European banks.

Rate rigging costs more than money

June 19, 2013

Here are some depressing figures: 133, 20, 4, 3 and 1. They are the most recent key counts in what might be the most alarming of all the financial scandals since the 2008 crisis, the sometimes successful efforts of traders to rig benchmark rates.