Where finance and media intersect with reality

World needs a CBDC treaty, Cecchetti tells cbankers

By Izabella Kaminska · Jun 8, 2023 LONDON — Governments should consider an international moratorium on the development of central bank digital currencies (CBDCs) due to the financial stability risk they could pose for small jurisdictions, the former director of research at the Federal Reserve Bank of New York, Stephen Cecchetti, told central bankers in […]

Error alert! A key formula that underpins bank stability may be acting up (POLITICO)

By Izabella Kaminska · Jun 1, 2023 Protecting their business from interest-rate risk is supposed to be what banks specialize in. But a report from Goldman Sachs suggests the calculation most banks use to manage the process could be way off, due to an overestimation in how resilient their ‘deposit franchises’ are to rising interest […]

The race to govern the Bank of Italy is on (POLITICO)

By Ben Munster · May 30, 2023 ROME — Massive and imposing, Italy’s central bank looms behind a barbed perimeter of black iron and angular palm trees on the via Nazionale, minutes from Rome’s famous ancient heart. Built to project the economic potential of the new Italian state in the late 19th century, its grandeur […]

European financiers fret over US debt ceiling “collateral damage” (POLITICO)

By Ben Munster · May 26, 2023 Panic in Europe? Over a U.S. debt default? Surely not … well, maybe. Just a little. OK, quite a lot, to judge by an awkward exchange at the International Capital Markets Association’s annual bash in Paris on Thursday. “My question,” AXA Investment Management fixed-income chief Hans Stoter told […]

What’s at stake as Libor rigging scandal resurfaces? (POLITICO)

By Johanna Treeck, Geoffrey Smith What is the scandal about? A new book alleges that the traders who went to jail after the global financial crisis for conspiring to rig benchmark interest rates were victims of a miscarriage of justice. Author Andrew Verity makes the allegation that the traders were under duress from state agencies […]

Regulators threaten to rain on Tether’s parade (POLITICO)

By Bjarke Smith-Meyer, Ben Munster · May 19, 2023 BRUSSELS — Few expected Tether, the world’s most prominent stablecoin, to survive the crypto market meltdown. Instead, the issuer of dollar-pegged digital tokens revealed it was thriving by this month posting a first-quarter profit of $1.5 billion that left most of its rivals in its wake. […]

Net zero targets risk doing more harm than good, says Italian cbanker (POLITICO)

By Johanna Treeck · May 12, 2023 FRANKFURT — Net zero targets risk doing more harm than good and should be dropped in favor of more realistic strategies to help the environment, one of Italy’s top central bankers warned. Paolo Angelini, deputy governor at the Bank of Italy, said in an interview with POLITICO that […]

ECB needs a new type of bazooka to battle Baltic risk (POLITICO)

By Johanna Treeck · May 5, 2023 FRANKFURT — Russia’s war has pushed borrowing costs for the Baltic states above those of the most indebted eurozone member countries, opening a new chapter in a saga that has been an obsession of policymakers and financial markets since the sovereign debt crisis. This time it’s not out-of-control […]

The battle for your savings is JUST beginning (POLITICO)

By Bjarke Smith-Meyer – May 5, 2023 There’s a turf war going on for your savings. At stake are over $16 trillion worth of deposit balances in the European Union alone, vital to banks’ capacity to keep credit flowing to small businesses and individuals. This is especially the case in Europe which relies far more […]