Category: risk management

the widening financial gyre

TURNING and turning in the widening gyre The falcon cannot hear the falconer; Things fall apart; the centre cannot hold; Mere anarchy is loosed upon the world, The blood-dimmed tide is loosed, (from William Butler Yeats’ The Second Coming (1919))…

complexity theory going mainstream

I am one of those who believes that we cannot possibly meet the challenges presented by the modern financial system, whether global or domestic (it’s almost all the same now), by using the traditional precepts of regulation. These precepts presuppose…

deceptive by design: derivatives as secret liens

Secretive practices and institutions are common in contemporary finance. For those who’ve ceased the search for long-term value creation, temporary information advantage is key. Even commonplace practices can be reinterpreted as havens of hiddenness. My colleague Michael Simkovic’s article “Secret…

taking on the juggernauts

In Britain some fairly bold moves are afoot for addressing the great social, political and economic problem of the ultra large banks. This morning the Independent Commission on Banking (ICB) released its Interim Report, which lays out a range of…

barking dogs, deaf ears

In a great frenzy of real estate development, fueled by irresponsible bank lending, Ireland virtually blew up its entire economy. After looking like an example of the miracle of the “new economy,” Ireland now stands forlorn among the most devastated…