Some highlights from Monday’s FTfm.
Bank-owned funds used as props
Bank-owned asset managers systematically use investors’ money to prop up the share price of their parent company in the wake of significant falls in the stock price of the bank, an academic study has found, but do their actions constitute illegal price support?
Captain Bernanke on course for icebergs
It is generally agreed that a bout of quantitative easing in 2008 succeeded in calming the markets. But conditions are different today, argues Edward Chancellor. Ben Bernanke is tilting at windmills if he thinks QE2 will help today
Lazy mindset misses African growth story
Even worldly and experienced investors in the developed world are applying an outdated ’70s template to assets in Africa, particularly sub-Saharan Africa, writes John Dizard, but they are wrong
Nest starts hunt for investment managers
A new national pension scheme given the go-ahead last week by the UK government is expected to begin its search for investment managers this week. It will begin with five mandates to serve as the building blocks for the default fund
Nest set to hatch savings revolution
It is likely Nest will be starkly different from conventional defined contribution pension schemes by keeping risk low in the first few years of operation, writes Pauline Skypala. But why exclude better paid savers?
Flawed Basel III could boost toxic leverage
Basel III would not only still permit vast amounts of leverage, but the toxic component of the latter may shoot upwards as banks take advantage of the flawed risk measures sanctioned by policymakers