Dodd-Frank turned five last month and once again, the debate around some of its rules sparked many discussions by politicians and economists, but less by the public. According to a poll conducted in 2015, only 4 percent were ‘very familiar’ and 30 percent were ‘somewhat familiar’ of the Dodd-Frank law.
Earlier today, the Swiss National Bank reported a record CHF50.1 bln loss. It has the chins wagging, but the real implications are minor. The losses are not realized and are unlikely to be repeated. In fact, if the SNB’s report had covered the month of July, the loss would likely have been smaller.
Ever since the 2008 financial crisis, the Federal Reserve Board has been trying to regulate big banks that pose huge systemic risk to the economy. The financial crisis highlighted the fact that big banks were taking more risks for which they were not prepared. Some banks were so big that if allowed to fail, they could have taken down the entire financial system with them.
When an international development conference in Addis Ababa almost collapsed last week, the confrontation emerged from an obscure and unlikely source. Who knew that the status of the UN Tax Committee could so stir the emotions?
After taking negotiations to the brink, the G77 group of developing countries climbed down on demands for a global tax body and the rich countries got their way. Campaigners called it a tragic day for developing countries.
If you thought that, you would have needed a very optimistic view of the UN’s abilities in this area.
If you ask anyone what the Magna Carta is all about, you might be told that it is some sort of proto-human rights or constitutional document. This largely results from the fame and after-life of two particular clauses (39 and 40) – and the way the document has been interpreted and used over time. Such principles, though, played no part in its creation in 1215. Then, it was a kind of peace treaty between King John and the barons, and in many ways a financial peace treaty at that.
It is often said that in business, non-progredi est regredi (if you are not moving forward, you are going backward).
This maxim has never been more relevant than in modern-day America. Technology has grown leaps and bounds and is always evolving. This has resulted in the creation of many innovative solutions for business owners as well.
April 15th, a day most of us dread, is fast approaching. Have you filed your taxes yet?
Economists believe most people are rational calculating machines, but many of us do not behave rationally about filing our taxes.
Europeans, and particularly Germans, appear to be choosing nationalism and convenience over higher returns on investments. The European Central Bank (ECB) recently announced its decision to keep its interest rates at historically low rates, hurting returns on relatively safe investments like those offered by banks. Nevertheless, many Europeans are sticking with these investments instead of moving their money abroad.
For the last 50 years, few financial products have been more profitable for the issuing institutions than credit cards. Indeed, companies like American Express would routinely report double-digit growth year after year, an impressive feat given the sums to which that growth equates. While the industry would occasionally experience ebbs and flows, typically occasioned by shifts in the economy, overall growth consistently remained strong.
U.S. student loan balances rose again, reaching a record $1.16 trillion by the end of 2014 while delinquencies rose as young Americans struggle to keep up with their mounting piles of debt.
