As financial systems and economies worsen, innovation comes from an unlikely source

After some apparently good news yesterday, the news today has turned distinctly sour. As stories in the FT show: The world’s financial systems still seem to be getting worse, not better European solutions seem to be tinkering at the edges The ‘real’ economy is becoming increasingly volatile Innovation is needed

New rules for ratings agencies?

European regulators are seeking to introduce new rules for ratings agencies. Ratings would be suspended for countries undergoing bailouts. (But what counts as a ‘bailout’, and how would the EU prevents ratings being applied by entities outside the EU?) The issuers of financial products would be forced to change the ratings agency they use, possibly …