Government & Agencies

Review: The ultimate truth about blockchain

6 April 2018

The technology behind bitcoin has applications that extend far beyond the crypto-currency hype. But is it the panacea for humanity’s problems? “The Truth Machine” takes a positive view of decentralised digital ledgers, but underplays fundamental questions of safety and trust.

U.S. companies in China prepare to be squeezed

6 April 2018

President Trump is aiming new tariffs at $100 bln of Chinese exports after Beijing threatened duties against U.S. products. American firms have invested over $250 bln into China in the past 25 years. Their assets are now exposed to regulatory harassment and shifting trade flows.

Stronger U.S. Treasury still looks pretty weak

4 April 2018

Justin Muzinich’s nomination as deputy secretary ought to add weight to the Treasury when it comes to advising on economic policy. Muzinich helped forge last year’s tax cuts. But with hardliners egging President Trump into a trade war, his influence may be a drop in the bucket.

U.S. emissions watchdog hands keys to car industry

3 April 2018

EPA boss Scott Pruitt plans to ditch Obama-era rules mandating much greater fuel efficiency. He says the move will enhance affordability, but that’s a foil for putting industry concerns first. As finance has shown, regulators who kowtow to those they oversee can cause a crash.

Dodd-Frank sheds surprising light on Wall St pay

2 April 2018

The widest income disparities in finance don’t involve the biggest CEO paychecks. And median comp can say more about geography and sector than inequality. The law’s pay-ratio disclosures offer useful data for investors and job seekers, and could revive a debate about offshoring.

Viewsroom: Facebook’s multiplying problems

29 March 2018

The social network founded by Mark Zuckerberg is reeling from a data harvest on some 50 million users. It will take time for the $440 billion firm to feel the impact but people are starting to slowly unplug. Plus, the world’s largest consumer-drone maker may go public.

Barclays settlement fixes one of several headaches

29 March 2018

The UK lender is paying $2 billion to settle U.S. regulators’ claims of mortgage securities mis-selling. That’s less than peers paid and removes some uncertainty. But the outcome of a UK investigation is still pending and CEO Jes Staley has yet to turn the investment bank around.

FDIC risks memory loss with old-guard exit

28 March 2018

Thomas Hoenig, the U.S. watchdog’s No. 2, used his swan song to criticize recent moves to ease bank-capital standards. It’s a cry in the wind given the deregulatory bent of Jelena McWilliams, likely the next FDIC chair. Yet forgetting history can sow the seeds of future crises.

Hadas: Populist economics can be sensible

28 March 2018

U.S. President Donald Trump, Italy’s 5-Star Movement and other modern populists are floundering with outdated or bad economic plans. They would do more to help those left behind by globalisation if they used higher taxes to create better jobs and strengthen welfare security nets.

Kim Jong Un’s change of heart might be for real

28 March 2018

The despot is acting suspiciously nice, mending fences with Seoul and Beijing and warming to U.S. President Trump. This could be another ruse to lift sanctions. Yet there are reasons to believe a more secure Kim is ready to start turning North Korea into a more normal country.

Meirelles’ sanity will be a hard sell in Brazil

26 March 2018

The man running Latin America's biggest economy is resigning and wants to be president. His competence and pro-market stance are a welcome addition to a wide-open field ahead of October’s election. But voter disgust for establishment figures could mean rejection for his approach.

Ego is Italy’s main barrier to radical government

26 March 2018

The rightist League sided with the 5-Star Movement to elect parliament’s speakers. It’s a sign the two forces, which want to unpick reforms and spend more, can collaborate. A coalition of mavericks would strain euro zone relations. But agreeing on a prime minister will be tough.

China sows confusion with two central bank bosses

26 March 2018

The head of the banking and insurance regulator may also become party chief at the People’s Bank of China. Guo Shuqing would outrank new Governor Yi Gang, making for an awkward combination. Guo might be the more effective reformer, but his brash style could unsettle markets.

Guest View: Why the government will lose to AT&T

23 March 2018

The U.S. Department of Justice is tuning in to old channels in its case against the telephone company's Time Warner deal, argues a former Federal Communications Commission chief economist. The Trump administration has crocheted a quilt lacking awareness of historical pattern.

Tiny loans price big future for newbie India bank

23 March 2018

An IPO will give Bandhan a market cap of $7 bln, or almost five times book value. That sounds punchy for a microfinance lender that only became a bank three years ago. But those rich figures can be justified by low costs and pricey loans, which together produce fat returns.

Basel tweak gives global banks another helping hand

22 March 2018

Global regulators have proposed relaxing the amount of capital banks must hold against some forms of market risk. If implemented, the changes would further shrink the 28 bln euro shortfall big lenders face under new rules. After a decade of tightening, watchdogs are easing up.

China trade spat is bigger than Trump

22 March 2018

The U.S. president ordered sweeping duties and investment restrictions. A trade swipe against the PRC has been brewing for years. The issues at stake – state capitalism, intellectual-property theft and national champions – are deep-seated, and tariffs may prove largely symbolic.

Latin America’s pro-market forces need young blood

22 March 2018

Pedro Pablo Kuczynski, a 79-year-old ex-banker, has resigned as Peru’s president amid graft allegations. His junior by two years, Brazil's Michel Temer, has failed to deliver key pension reforms to spur the region’s biggest economy. Latin populism needs more vigorous enemies.

Illicit money is Europe bank stability blind spot

22 March 2018

U.S. authorities arrested the head of a Maltese bank for violating Iran sanctions, prompting calls for it to lose its licence. Similar issues triggered the recent folding of a Latvian bank. Without power to fight financial misconduct, euro zone regulators can’t keep banks safe.

How Washington could really fix trade with China

22 March 2018

President Trump is rolling out tariffs and wants a $100 bln cut to the deficit. Yet Beijing’s import-substitution plans, forced tech transfers and IP policy are the real problems. By ditching them China would justify a truce, and reinforce its claim to free-trade leadership.