Posts tagged 'Deposit insurance'

Icesaved?

Whatever it is that Iceland gains from winning this EFTA court case on the Icesave deposits…

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What comes first: European banking, political, or fiscal union?

It’s a commonly-held belief that the bailout of Spain’s banks won’t be sufficient to solve the country’s problems. It will increase the government’s borrowing, and may not be large enough anyway.

The real solution is fiscal banking political some kind of union. See if you can spot one of the barriers to moving forward with that: Read more

MMFs, deposit insurance, and regulation in the age of shadow bank runs

Deposit insurance on non-interest bearing accounts — it was in October 2008 that the FDIC started it, through the Transaction Account Guarantee, or TAG.

Until we looked a bit more closely, we hadn’t guessed that the issue could offer much insight into the complexities of shadow banking regulation. Read more

Shadow banking – from Giffen goods to Triffin troubles

Here’s a chart for anyone interested in the origins of the so-called deposit crisis:

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Piling on the government gurantees

Government guarantees for financial institutions are a financial crisis thing, right?

Wrong. Read more

The popping of Southsea

This piece of news slipped most of the world by…

A court order has been made to place Southsea Mortgage and Investment Company into the Bank Insolvency Procedure and appoint BDO LLP as the bank liquidator. Find out what this means for Southsea’s customers. Read more

Scenes from an asset-liability mismatch

It’s three years to the day since the UK retail bank Northern Rock suddenly found its access to short-term funding markets frozen — setting the Rock up for collapse one month later, amid a depositor run.

A fit background, then, for considering whether macro-prudential moves to make banks hold more deposits will actually prevent them from seeking short-term, risk-filled funding. Read more

Structuring yourself for failure

Talk about aiming high, Bank of England.

The central bank’s deputy governor for financial stability Paul Tucker has given a speech on Tuesday about the social responsibilities of the banking sector and associated reforms. The centrepiece: banks must prepare themselves for an “orderly wind-down” in case they fail. Read more