Global Financial Crisis

How to keep central banks independent

SINGAPORE (July 22): The global financial crisis that erupted in 2008 transformed the role of central bankers and the scale and scope of their policy toolkit. Today, financial stability is once again at the core of central banks’ missions, and interest rates in a number of rich countries are likely to remain at or even below zero for some time. This means that central bankers’ actions will be more visible and politically sensitive than they were even a decade ago.

How to keep central banks independent

SINGAPORE (July 22): The global financial crisis that erupted in 2008 transformed the role of central bankers and the scale and scope of their policy toolkit. Today, financial stability is once again at the core of central banks’ missions, and interest rates in a number of rich countries are likely to remain at or even below zero for some time. This means that central bankers’ actions will be more visible and politically sensitive than they were even a decade ago.

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PwC to pay FDIC US$625.3 million for failure to uncover fraud: US judge

(July 3): A federal judge on Monday said PricewaterhouseCoopers LLP must pay US$625.3 million ($855.3 million) in damages to the Federal Deposit Insurance Corp (FDIC) for failing to uncover fraud that led to one of the largest bank failures of the global financial crisis.

US District Judge Barbara Rothstein found it more likely than not that PwC’s negligence was the proximate cause of FDIC damages from the August 2009 demise of Montgomery, Alabama’s Colonial BancGroup Inc, once among the 25 largest US banks.

The Global Financial Crisis 10 years on: six charts that tell the story

(Sept 7): It is hard to believe but it is 10 years since the start of the global financial crisis. Triggered by a collapse in the US housing market it caused the deepest recession in living memory and the near-collapse of the financial system.

Banks failed, government institutions were bailed out, stockmarkets crashed and countries had to be propped up financially. We are still feeling the effects: low growth, political upheaval, Brexit and even the election of Trump can all be traced back to the crisis.

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Danger Down Under: Yields drop with iron to fuel recession talk

SYDNEY/TOKYO (June 2): Whether or not the land Down Under snaps its two-decade-long streak without a recession, a glance at the charts shows this past week has been a "septima horribilis" (to purloin and tweak from Queen Elizabeth II) for the world's 13th-largest economy. Iron ore is declining again amid worrying signs that China is wobbling, businesses are reluctant to borrow as they plan on cutting investment to a decade low.  An unexpected rebound in retail sales and soaring stock prices for Qantas were rare bright spots.

Carson Block says he's certain China will face day of reckoning

Carson Block

(May 25): Carson Block said he will continue wagering against Hong Kong-listed companies on the view that a pullback in credit will send shock waves through the economy.

Block, the founder of Muddy Waters LLC, said in an interview that China’s credit problems since the global financial crisis will reach a breaking point. He blames this on Chinese officials cramming liquidity into the banking system, which allowed other players to pull their cash out, leaving the system increasingly vulnerable to collapse, he said.

SGX added to portfolio amid widening positive sentiment

SINGAPORE (March 17): It has been a tough few years for local brokers. Securities trading volumes in the local market dived after the global financial crisis, and the penny stock crash of October 2013 sapped confidence in smaller-cap companies. Investors focused on blue chips and yield-oriented stocks and ignored the rest of the market. But we think sentiment is shifting. And, the Singapore Exchange could benefit from rising securities trading volumes over the next couple of years.

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In Asian currency-reserves checkup, two come out on top

Currencies

BANGKOK (Nov 25): Less than a decade ago, the International Monetary Fund used to talk about Asian countries piling up too much in their currency-reserve stockpiles.

The global financial crisis turned that conclusion on its head, and now that US interest rates are poised to keep climbing, the race is on to identify which countries have the strongest buffers against capital flowing out toward developed markets.

Singapore market getting bad to worse, says Credit Suisse

SINGAPORE (Sept 14): The Singapore market is going from bad to worse in terms of corporate profitability and economic growth according to a report by Credit Suisse published on Sept 9.

A combination of regulatory changes and intensifying economic structural problems have led lead analyst Gerald Wong to urge investors to remain cautious on Singapore.

While the economic slowdown in Singapore has been perceived as driven by cyclical headwinds, Wong notes that pro-consumer policy shifts since 2011 has led to a decline in corporate profits.

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