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  • They started by trying to update the crude minimum capital requirements for international banking established in 1988. But the Basel Committee have been seduced by a new idea: let banks regulate themselves and get the market to police the banking system. Can we rely on the models banks use to calculate their capital? And do the regulators really understand what the banks are up to?
  • London hosted the first worldwide conference of central counterparties last month to discuss developing a system of seamless global clearing.
  • It's easily done - a typing error slips through unobserved on your computer as you tap frantically on your keyboard. But such errors can cost thousands, even millions of dollars, if you're a bond trader. And traders say the risks of expensive and embarrassing mistakes occurring are made even greater by the lack of standardization among electronic trading platforms.
  • In the past Euromoney’s country risk ratings have been reliable lead indicators of dips and surges in the world’s economic cycle. Six months ago the global economy looked in fine fettle, underpinned by favourable commodity prices and strong growth in developed countries. Financial markets are fearful this is about to change. Analysts’ forecasts for economic performance are noticeably lower than in September’s survey. But it’s not all doom and gloom. Research by Damon Ivanics and Andrew Newby
  • One of the great gainers from falling global interest rates will be emerging market financial assets - though not everywhere. I've just visited one emerging market that should outperform this year: Brazil.
  • In the internet bond trading arena the present number of competing platforms is unsustainable. The consolidation process started last month with the coming together of Market Axess and Trading Edge.
  • One of the biggest talking points in the Basel accord is the proposed charge for operational risk. But devising a system for monitoring and measuring operational risk that is subject to external review presents quite a challenge.
  • CSFB hopes "to get the orthodox, corporate listed exchangeable bond structure working in Japan", but certain obstacles are making this and other sophisticated equity capital markets techniques difficult to establish.
  • The Sparkassen and Landesbanken voice their objections in the Koch-Weser group that is developing a German government proposal to the EC. But analysts would be surprised if the group produced an acceptable solution for the EC straight away.
  • Brazil’s economy is growing fast, government spending is under control and foreign direct investment is flooding in. Despite all this, crucial structural problems persist. Capital markets are weak and underdeveloped, with an insignificant amount of corporate bond issuance and a semi-dormant stock exchange. In the wider economy, vestiges of policies of import substitution and economic isolationism hamper export growth.
  • On January 30, UK water regulator Philip Fletcher finally gave the go-ahead to Glas Cymru's purchase of the assets of Welsh Water, in exchange for assuming £1.8 billion of the debt of Welsh Water's owner, utilities group Hyder. Glas Cymru - "the people's company" is to have what amounts to mutual status and become fully debt financed. Technically, it will be owned by nobody but guaranteed by 200 members - ranging from Welsh dignitaries to hospitals - whose individual personal liability will be capped at £1.
  • Allen Wheat must sometimes wish he had never done his big merger. CSFB's chief executive officer was the driving force behind last year's acquisition of Donaldson, Lufkin&Jenrette, widely adjudged one of the least logical deals of the year.