Republicans lose their way on Main Street 5 Apr 2017 The chairman of a House panel told CFPB Director Richard Cordray he should be fired. This escalating fight saps resources from guarding consumers against predatory lenders and debt collectors. Political dogma is obscuring the agency's mission and a populist message from voters.
White House cross-border M&A rethink risks blowback 5 Apr 2017 President Trump may make it harder for foreigners to buy U.S. firms. The process for divining national-security threats in takeovers needs an overhaul. But many of the ideas smack of pure protectionism against China ahead of President Xi’s state visit. It could spur retaliation.
Markets snooze their way to Le Pen showdown 5 Apr 2017 French government bond prices suggest a lower probability of far-right Marine Le Pen winning the presidential election than bookies do. Markets may be too calm about the disruptive potential of voter apathy, or a left-wing alliance. That limits their ability to reassure.
Britain is appropriate spearhead for bonus rethink 5 Apr 2017 UK ministers want to cut so-called long term incentive plans from executive pay. Such schemes can work, but all too often don’t. Turning them into less opaque deferred bonuses could preserve domestic competitiveness, while aligning Britain with peers that value greater clarity.
Brexit forces issues that are best left murky 4 Apr 2017 A phony battle over how Spain and Britain might treat tiny Gibraltar is a distraction, and a warning. If Britain’s exit from Europe becomes a mechanism for settling old scores, it could kill the constructive ambiguity on which the UK, the euro and the single market all depend.
Iceland needs euro peg like cod needs bicycle 4 Apr 2017 The North Atlantic state’s finance minister suggests fixing the crown’s value to its euro zone peer. Iceland’s economy could use cooling. But its volatility means that focusing attention on inflows – or even pegging to a more appropriate currency – makes more sense.
D.C. officials need Wall Street disclosure lesson 31 Mar 2017 Ex-Trump adviser Michael Flynn, under fire for Russian connections, belatedly registered as an agent of a Dutch firm tied to Turkey. Such transparency is required but feebly enforced. As financiers know, that can change – and catch people out more easily than underlying misdeeds.
Gordhan exit is dual blow for South African debt 31 Mar 2017 President Jacob Zuma has fired his respected Finance Minister Pravin Gordhan. Instead of action to rein in South Africa’s debt, it will probably now rise. The damage to the state’s credibility means the cost of servicing the debt pile will head in the same unsettling direction.
Britain sells mortgages, buys small Brexit hedge 31 Mar 2017 Selling 11.8 billion pounds of former Bradford & Bingley mortgages to Blackstone and Prudential will cut the UK’s national debt without leaving a loss. The buyers are showing confidence in the UK economy. The seller is shoring itself up in case such confidence proves misplaced.
Viewsroom: David Einhorn pokes under GM hood 30 Mar 2017 The activist’s proposal that the automaker split its stock to give some shareholders a perpetual dividend is a risky maneuver. President Trump’s plan for skilled-worker visas may make Canada great again. Plus, Republicans face high hurdles to overhaul the U.S. tax code.
ECB’s mandate is best left murky 30 Mar 2017 Two members of the central bank's executive board have mused on its accountability, after a report criticised the ECB for overreach. It indeed pulled some pretty off-piste moves during the euro zone crisis. Yet clarity could constrain its ability to fight future crises.
Nominee’s industry ties risk side effects for FDA 29 Mar 2017 President Trump pledged to close the revolving door, yet FDA nominee Scott Gottlieb is taking his second whirl. Experience in government and industry is valuable, but his potential conflicts with pharma firms may hamper the agency. Recusal isn’t a prescription for effectiveness.
M&A mavens huddle in one swamp to assess another 29 Mar 2017 Esoterica like appraisal rights are on the formal agenda for this week's dealmaker jamboree in sub-sea-level New Orleans. The more salient debates, though, will be about Trump's antitrust chief and whether a bullish outlook for mergers can withstand the chaos in Washington.
Trump regime perverts Dodd-Frank chamber’s purpose 29 Mar 2017 The Financial Stability Oversight Council will focus more on coordinating the White House regulatory rollback than identifying risks. The post-crisis body may also force watchdogs to streamline enforcement actions. Shifting duties could cause regulators to miss emerging threats.
LSE-Deutsche Boerse failure merits only fake tears 29 Mar 2017 Brussels has blocked the European exchanges’ $30 bln merger. The LSE’s reluctance to sell a trading platform looks like a fig leaf. A cautiously positive market reaction flags that both groups have dodged the trials of steering the deal through Brexit.
Hadas: U.S. deaths are economic and social failure 29 Mar 2017 Americans are dying younger due to drugs, drink and suicide. The rise in such "deaths of despair" comes from the fatal interaction of a weak welfare system, inadequate healthcare and decaying communities. These national flaws also help explain the lack of a political response.
Saudi finds cheap way to be generous to Aramco 28 Mar 2017 The kingdom has slashed its oil major’s tax rate to juice up a potential IPO. That could theoretically triple the company’s market value to well over $1 trillion. Yet because Saudi will keep a 95 pct stake, the state can recoup almost all of what it appears be giving away.
South Africa’s real problem: credibility downgrade 28 Mar 2017 President Jacob Zuma's abrupt recalling of his respected finance minister hit domestic assets. The latest spat could speed a downgrade of the state's sovereign debt, although much of that appears priced in. The greater damage would be to South Africa’s institutional solidity.
White House struggling to learn arcane D.C. math 27 Mar 2017 After failing to repeal Obamacare, Republicans are turning to tax reform. It's an even more complex endeavor. Like healthcare, tax policy is constrained by an obscure law that limits the effect on the U.S. deficit. Trump may loathe Washington process, but the numbers have to add up.
Kushner brings conflicts not aptitude to new role 27 Mar 2017 Donald Trump wants his son-in-law to harness business nous to make Washington work better. Jared Kushner was AWOL during last week’s healthcare fiasco and his family may be seeking Chinese cash to bail out its property business. His record offers little that government needs.