Cyprus controls an “omnishambles”

By Hugo Dixon
March 28, 2013

Cyprus’ capital controls are an “omnishambles”. If the Argentine-style “corralito” really can be lifted in seven days, the damage could be contained. But that doesn’t seem credible. Extended controls could spawn bribery, sap confidence, further crush the economy, spread contagion and ultimately lead to the country’s exit from the euro.

Cyprus deal best of a very bad job

By Hugo Dixon
March 25, 2013

Cyprus’ economy is going to suffer terribly in the next few years. Some of that is inevitable given how bloated the banking system had become. But the disastrous handling of the crisis, especially in the past week, will make things much worse.

All Cyprus plan Bs look dreadful

By Hugo Dixon
March 20, 2013

The Cypriots have an expression: eninboro allo. It means: I cannot take any more of it.

Banks must probe clients’ motives

By Hugo Dixon
February 11, 2013

Should an investment bank worry about a client’s motive when it engages in a complex and potentially suspicious transaction?

Mario Draghi’s poisoned banking chalice

By Hugo Dixon
February 4, 2013

When euro zone governments agreed last year to give the European Central Bank the power to supervise its banks, that looked like another victory for its president Mario Draghi. It is more like a poisoned chalice.

MPS saga not just a local affair

By Hugo Dixon
January 28, 2013

The Monte dei Paschi di Siena saga is not just an Italian affair. Revelations that complex financial transactions used by the country’s third largest bank had the effect of hiding losses are causing a political storm in Italy.

Dos and Don’ts of EU banking union

By Hugo Dixon
December 10, 2012

Conventional wisdom has it that the euro zone needs a banking union to solve its crisis. This is wrong. Not only are there alternatives to an integrated regulatory structure for the zone’s 6,000 banks; centralisation will undermine national sovereignty.

Euro zone doesn’t need Disziplin union

By Hugo Dixon
October 22, 2012

European leaders nudged forward plans for a fiscal union with discipline as its leitmotif at last week’s summit. But such a “Disziplin union” is neither desirable nor necessary. It may not even be politically feasible.

Banks should learn to say “Just Go”

By Hugo Dixon
September 24, 2012

Shortly after last year’s bonus round I was having lunch with the boss of an investment firm. He told me how he heard a handful of staff had been grumbling about what, by most people’s standards, were still extraordinary pay packages. He called them into his office and told them that, since they were unhappy, they should “Just Go”.

Can EU defend supranational interests?

By Hugo Dixon
September 17, 2012

European integration tends to advance first with squabbling then with fudge. Every country has its national interest to defend. Some politicians appreciate the need to create a strong bloc that can compete effectively with the United States, China and other powers. But that imperative typically plays second fiddle to more parochial concerns with the result that time is lost and suboptimal solutions are chosen.