Latest articles from Simon Turmaine

Newsletter Sept 2008: Dealers pledge ambitious derivative market upgrade

NEW YORK – The Operations Management Group (OMG), comprising the 17 major dealers and buy-side institutions in the enormous and rapidly expanding over-the-counter (OTC) derivatives market has set out the most ambitious plans yet to improve market practices and reduce operational risk. In a letter to Tim Geithner, president of the New York Federal Reserve at the end of July, the OMG members set out operational goals for 2008-2009 that are described as a “substantial and aggressive increase in our commitments.”

Newsletter Sept 2008: Regulators must persist with crisis reforms

JACKSON HOLE, Wyoming – The key task for regulators grappling with the credit crisis will be to remain engaged enough to see reforms through, particularly given the short-term challenges, according to the top international regulator leading the international response to the credit crisis.

Newsletter Sept 2008: Investors call for greater rating agency disclosure

NEW YORK – An influential finance industry task force has called for more transparency in the practices of credit rating agencies, and greater disclosure of their rating methods. But it has rejected a widely-touted idea of adding so-called “modifiers” to structured finance issues to identify better the nature of these types of issue.

Newsletter Sept 2008: Indian banks see mixed Basel II results

MUMBAI – The introduction in India, on March 31, 2008, of the new Basel II, risk-based capital framework for banks has so far produced mixed results, according to Fitch rating agency. While most of the banks that migrated to Basel II reported a reduction in their total capital adequacy ratio, by about 80 basis points, primarily on account of incorporating the new operational risk, a few banks reported capital relief.

Newsletter Sept 2008: Fed boss warns on moral hazard of recent actions

JACKSON HOLE, Wyoming – America’s central bank chief believes excessive risk taking and yet greater systemic risk could result if no “countervailing actions” are taken to address the moral hazard consequences of recent official actions taken in response to the credit crisis.

Newsletter Sept 2008: Expert panel reports on frozen market valuations

LONDON – Imminently expected as GRR went to press were the first musings of the experts who are advising international accounting rule-makers about improving their guidance on valuing complex financial products in seized-up financial markets.

Newsletter Sept 2008: Progress continues with long-term stability reforms

WASHINGTON – Progress continues to be made with the medium and long-term policies and reforms needed to sustain the stability of the global financial system in the wake of the credit crisis, according to a top regulator with the International Monetary Fund, the organisation that oversees the global economy. Jaime Caruana, who heads the IMF’s International Capital Markets watchdog body, told reporters in late July that despite bank write-downs exceeding $400 billion in aggregate, banks had generally been successful in raising capital and their balance sheets were adjusting.

Newsletter Sept 2008: US banks still to start parallel runs

WASHINGTON – America’s biggest banks have still to give notice of when any of them might start a trial run of the new Basel II bank capital adequacy rules as required by regulators, according to banking industry sources.

Newsletter Sept 2008: Basel II a powerful tool for Asia-Pacific banks

KUALA LUMPUR – The Basel II bank safety rules are a powerful lever for helping banks in the Asia-Pacific region enhance long-term resilience and competitive advantage in the current financial and economic turbulence, Malaysia’s central bank chief said in mid-August.

Newsletter Sept 2008: Closing the door on banks\' risky off-balance-sheet activities

Accounting changes will mean risks are more clearly retained on bank balance sheets. But there are fears that the rule-makers can\'t see the wood for the trees, writes David Keefe