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Kicillof Kirchner Argentina

Argentina’s debt restructuring options limited

On June 16th, 2014, the U.S. Supreme Court ruled in favor of NML Capital Ltd (NML) over the Republic of Argentina in a major debt settlement case. The ruling has implications not only for Argentina but also other debt-ridden countries throughout the world. Regardless of how Argentina responds, Prime Minister Christina Fernandez de Kirchner’s options are unattractive. […]

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China real estate

China’s mortgages pose risk to financial system

Zero-down payment mortgages in China suggest an increasingly risky Chinese financial system, with symptoms similar to those seen leading up to the U.S. credit crisis. Home buyers all over China, from Guangzhou and Shenzhen in the south to Beijing in the north, are being offered zero-down-payment mortgages to cover their real estate acquisitions, recalling memories of the US subprime […]

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Source: Wikimedia Commons

European Banking Union comes with fiscal discipline

By end 2014, the European Banking Union will be a reality. Aside from being aimed at restoring banking sector stability, there are far-reaching implications for fiscal discipline. The long-awaited European Banking Union is set to be operational by the end of 2014. The Eurozone’s 128 biggest banks will have to undergo comprehensive asset quality reviews […]

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mosque

Senegal sukuk bond signals wider African interest in Islamic finance

Senegal plans to issue an Islamic law compliant bond in 2014, building on momentum in sukuk issuance globally.  Senegal’s government looks set to issue a type of Islamic bond, known as sukuk as the country hopes to tap financing from wealthy Islamic states. According to reports from a recent meeting of the African Development Bank, […]

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Reverse of the one-dollar bill; Source: user-contributed image to Wikimedia Commons

US Decline Series: Are the dollar’s days as reserve currency numbered?

Despite speculation that the days of the US dollar as the world’s reserve currency will soon be over, a number of factors make such a changing of the guard unlikely. This GRI series challenges the myth of the American decline. The dollar was crowned as the king international method of payment and unit of account in the […]

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Sanctions on Russia also hit foreign investment

On 28 April 2014, the U.S. launched its third round of sanctions on Russia, aimed at President Vladimir Putin’s cronies and their businesses. As the situation continues to deteriorate, investors in and out of Russia face bigger risks. Although their confidence has not been entirely crushed, investors are leaving Russia for safety measures. Russia saw […]

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Dodd-Frank

“Too Big to Fail” banks enjoy lower funding costs despite stronger regulations

Implicit subsidies for large systemic banks has come down since the crisis but it is still higher than before, reflecting an ongoing perception of government support for the largest banks. While the US economic recovery has strengthened recently, the effects of the financial crisis and subsequent government intervention still linger. The problem of “too big to […]

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Source: Gary Rogers, Geograph

Starbucks’ new European HQ sign of ‘tax posturing’?

Tax mitigation strategies are here to stay and so is public disdain for them, leading multinationals to start ‘tax posturing’. Starbucks is the latest example. On the surface, the announcement that Starbucks is moving its European headquarters to London from Amsterdam sounds logical: the UK is Starbucks’ largest European market. Moving “a modest number” of […]

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Tax return form

FATCA is a big leap in tax enforcement

The US pushes to strengthen tax enforcement with an act set to come into force this July. The benefits are clear, but it remains to be seen how the costs of the new measure will impact the markets. Tax evasion and so-called tax havens can cause major national and international problems. When governments receive less tax revenue, […]

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china central bank

China’s Internet banking faces tightened regulations

China’s central bank is considering regulations that would curb the development of China’s Internet banking innovation. Facing rising domestic financial risks, Chinese policy makers seem to be liberalizing the financial market with great caution. On 13 March 2014, China’s central bank, PBOC, suspended the use of payments made by scanning two-dimensional codes with mobile devices […]

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