Comment, analysis and other offerings from Monday’s FT,
Analysis: respinning the web
There is something slightly unnerving about the speed with which a new consensus has emerged on the re-regulation of the financial system – especially when it comes to the concept known in bankerly jargon as “macro-prudential” regulation.
Clive Crook: A thin outline of regulatory reform
The Obama administration’s proposals for US financial regulation are pretty good, as far as they go. The problem is they do not go far enough.
Europe cannot ignore its financial trilemma
Financial integration, financial stability and national supervisory autonomy cannot be achieved simultaneously and the recent crisis is a confirmation of the risks involved writes Lorenzo Bini Smaghi, a member of the ECB’s executive board.
Japan serves up a valuable minimalist lesson
Writes Peter Tasker of Arcus Research: Numerous lessons have been drawn from Japan’s “lost decade”, mostly focusing on technical issues of monetary policy and banking regulation. Less attention has been paid to the political lessons that the Japanese themselves drew from their travails. These cast an intriguing light on the current debate about market failure, the role of government and the future of capitalism.
Wolfgang Münchau: Berlin weaves a deficit hair-shirt for us all
A decision was taken recently in Berlin to introduce a balanced-budget law in the German constitution. It was a hugely important decision. It may not have received due attention outside Germany given the flood of other economic and financial news. From 2016, it will be illegal for the federal government to run a deficit of more than 0.35 per cent of gross domestic product. From 2020, the federal states will not be allowed to run any deficit at all.
Lex on the Anglo American / Xstrata tie-up
Xstrata, the Swiss miner now exploring a merger of equals with Anglo American, is nothing if not opportunistic. The commodities sell-off and divestments have been a leveller: Anglo’s market capitalisation has fallen to almost the same as Xstrata’s £20bn, putting it within reach of the more entrepreneurial miner. The attractions to Xstrata of a combination with the London-listed South African mining house lie in platinum, coal and copper, commodities they both mine.