Regeneration of capitalism is a work in progress

Nicholas Gilani, co-head of the Investment Banking Group at the National Bank of Abu has a letter in today’s FT. He writes, “Sir, …I would like to say that the protesters in New York, Chicago, London and other places should not be criticised for incoherence in voicing their grievances about capitalism.

Three related items

This is less a newsfeed item and more a blog post, connecting up some ideas to do with changing our thinking about. First, China has been approached to help with the eurozone crisis. A member of China’s central bank monetary policy committee, a Professor Li, said: “It is in China’s … interest to help Europe because they …

Limited liability is a ‘faultline’ in more than just banking governance

John Plender writes a piece in today’s FT on a recent speech by Andrew Haldane, executive director for financial stability of the Bank of England. He describes how “bank equity is treated as a call option on bank assets by investors, because the upside payoffs are unlimited while downside risks are capped by limited liability. …

“Germany will never leave the Eurozone”

And neither will Greece. An interesting perspective in this article by Ian Bremner. A standalone German currency would be far stronger than the euro. If Germany were outside the eurozone its European neighbours (its largest export market) would find it increasingly difficult to buy those exports, and Germany would face a similar problem to that …

FSA blocks ‘liquidity swaps’

The FSA has blocked an undisclosed number of trades of undisclosed assets between banks and insurers. The banks/insurers say these would help their liquidity, by lending/borrowing a relatively easy to trade portfolio of gilts or bonds, secured against a portfolio of other less-liquid assets. The FSA says the resulting cross-holdings would make the financial system more …

GE’s growth values

General Electric is one of the most respected companies in the world, and ex-GE managers are currently CEOs of ABB, Honeywell and Boeing. Its most important production line? The one that produces its leaders. GE has spent two years rethinking what (and how) it teaches future GE leaders, and has just relaunched its five ‘growth values’. …

Positive thinking or Realistic thinking?

An interesting ten minute talk from the RSA, ranging from whether positive thinking is enough to get you a new job, to why the people who predicted the sub-prime mortgage problem (and problems in Iraq) weren’t listened to, and the alternatives to gloom and negativity. Realism: trying to figure out what is actually happening in …