A Tale of Two Regions

Foreign-bank lending to emerging markets during the global crisis differed from continent to continent. Lending by foreign banks is an important part of international capital flows to emerging markets and a defining feature of financial globalization. In the years preceding the recent global crisis, foreign-bank lending to emerging economies expanded rapidly—whether directly from foreign-bank headquarters (cross border) or through affiliates operating in host countries. In many countries, especially in Latin America and emerging Europe, lending by foreign banks became a significant source of funding for households and corporations. Although it had its pros and cons, on balance the presence of foreign-owned banks was generally believed to have enhanced competition and aided overall financial stability.

Overbanked, Underfunded, and Overly Optimistic: The New Face of Sovereign Europe

Ireland has finally admitted the horrendous condition of its banking system. I actually give the government kudos for this, and await the moment when the US, China and the UK come forth with such frankness. That being said, things are a mess, I have forewarned of this mess for some time now. First, the latest from Bloomberg: Ireland’s Banks Will Need $43 Billion in Capital After `Appalling’ Lending

RGE’s Wednesday Note – The Perils of Name-Calling

This week’s newsletter is excerpted from an analysis by Nouriel Roubini: “The U.S.-China Currency and Trade Collision Course.” Dr. Roubini reflects on recent discussions with Chinese policymakers at the China Development Forum, including his suggested response to the flaring U.S.-China currency rift, as well as in-depth discussion of what might happen if the U.S. brands China a “currency manipulator.” Below is his outline of the problem.

Who Ya Gonna Call? Entrepreneurs!

Just a decade ago it seemed we were stuck with landlines. State-owned telephone companies were largely entrenched, sclerotic organizations that provided poor, delayed, or simply unavailable service —even in some rich European countries, and nearly universally in poor countries. These maps (with data from 2001, 2004, and 2008) show how cell phones have quickly bypassed the dysfunctional […]

10 Questions for Finance Reformers

The current series of proposals for reforming Wall Street and bankers are toothless facades of what real regulation should look like. It seems that each new proposal for reforming Banking and Wall Street is more banker friendly – and ineffective – than the previous one. They are milquetoast, meaningless, appeasing nonsense. The reformers are in a race to see who can offer up legislation that is least offensive to bankers. 

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