Banks have always remained too big to fail but their systemic risk became the topic of debates after the 2008 financial crisis. Living wills are a part of the post-2008 reforms to ensure that the risk does not spread to other sections of the financial system.
Why The Volcker Rule remains debatable in the Dodd-Frank Act?
Volcker Rule is a temporary solution to a permanent problem of ‘too big to fail’. If Volcker Rule really aims to address the issues of 2008 financial crisis, it should eliminate the issue of ‘too big to fail’ because as long as large firms exist, they will continue to attract federal support during any future crisis, despite all the adherence to the strict rules in the Dodd-Frank rulebook.
The ‘Missing Links’ in Dodd-Frank
Unlocking the Central Bank
Central Banks are the backbone of an economic system. Any fracture can create serious concerns for the financial future of the country. In recent years, there have been numerous articles raising questions about the credibility of central banks. This article focuses the basics of central banks with a strong focus on its relation with the financial crises.
Ten Quick things you should know about the Fed Interest Rate Hike
All That There is to The Fed
Brexit and its complications
The Secret Passage to Swiss Banking
Switzerland remains one of the most stable economies across the world and has not been in conflict with another country since 1505. With strong political stability and high per capita income across the world, it has also managed to keep its unemployment rate low. With Basel having headquarters of Bank of International Settlements (facilitates cooperation among the world’s central banks), Switzerland is considered one of the biggest tax havens in the world. The offshore accounts with Swiss banks have partial or full exemptions depending on the private bank. The country implements an extremely high level of secrecy when it comes to disclosure of financial assets of its clients.
The Plight of The Indian Startup Industry
The outsourcing market in India has been thriving for years now and most of the entrepreneurs of some of the biggest Indian startups like Ola and Flipkart happen to be ex-employees of the US tech giants like Microsoft and Amazon. But the plight of startups in India may not be as optimistic as the ambitious Startup India Movement.
A Second Financial Crisis – are we in denial?
Eight years of the financial turmoil has given a reason for many debates, research, arguments, discussions and even research work to many. To many nothing has really changed, in fact to them, we might be looking at something more serious in 2016. The question that is important is whether there is any truth to the occurrence of second financial crisis or are we just in denial? This article had been previously published in 2014.
Yuan’s inclusion in SDR currency basket – 10 Quick Facts
Is the US Economy Getting Caught In The Global Turmoil?
In an interview with CNBC, Mohamed El Erian’s thoughts seemed to align with Bill Gross’s statements. “I would have hiked earlier and I would have gotten off zero earlier, but it’s easier to say with hindsight,” El-Erian told CNBC. “We know that there was a moment when domestic data was relatively strong and international data was okay. Now, the international data is really scary, and therefore the Fed has lost the opportunity when it had some alignment.”
The 4 Uncertain Economies to look out for in 2015
For long, geopolitics seemed to have started playing an important role in deciding the destiny of global financial markets. 2015 has seen contrasting developments, where nearly every market affected the other, irrespective of how much contribution one made to the other’s GDP. The reason could be that globally financial markets remain highly interconnected and if not through investments then through trade, the influence remained inevitable. This article highlights four important economies that could make a difference to global financial markets.
Greece Economy in 5 Graphs
Greece has been struggling hard to meet the requirements needed to be a member in the Eurozone. Moreover, following the 2008 financial crisis in the US, Greece’s economy got smaller by 25% since 2009. Germany, France, Italy and Spain are the most important economies accounting for most of the Union’s GDP.
China’s Free Market Practices through Devaluation
By devaluing its own currency, China has tried to address its issues due to financial distress. Not many have taken this surprise move by China in good spirits. While China might be trying to fix its own domestic growth, it could trigger currency wars amongst nations that are trying to compete with each other in international trade.