United States
A status report on Dodd-Frank and the Volcker rule
As the US and Europe move closer to co-operating on derivatives legislation, Vembar Ranganathan looks at the status of Dodd-Frank implementation aimed at curbing excesses in the derivatives market
Volcker rule is driving reluctance to hold risk, warn currency managers
US banks are holding less risk as they prepare for the requirements of the Volcker rule, leading to more short-term volatility and less liquidity in some currencies
NY Fed study says shadow banks are here to stay
Study says shadow banks will play a significant part in the future of the United States’ financial system; higher capital standards on banks will lead to increase in shadow activity
US construction slides, despite good accounts in Fed’s Beige Book
The number of new housing projects started fell unexpectedly by almost 10% in June; Federal Reserve districts reported an increase in construction and real estate activity during period
Fed's Tarullo reviews Dodd-Frank implementation progress
Federal Reserve governor tells Senate committee the Fed is at the ‘beginning of the end of the rule-making process', with the emphasis soon to shift to enforcement of the rules
No CVA exemptions in US Basel III rules
Europe isolated as US regulators opt for broad counterparty risk charge
Federal Reserve adopts Basel III for US banks
Fed Board unanimously votes to introduce new capital requirements as of January 1; Daniel Tarullo says additional measures will follow including proposals for a higher leverage ratio
Fed proposals seek to shine light into money markets
Proposals for daily data reporting by a panel of 155 banks aim to improve the Federal Reserve's ability to supervise shadowy money markets
QE1 and QE2 operated in opposite directions, ECB researchers find
Researchers at the European Central Bank find that QE1 triggered a portfolio rebalancing out of EMEs into US equity and bonds, while QE2 acted in the opposite direction
IMF expects Fed to hold QE steady until 2014
IMF releases Article IV consultation with United States; praises impact of Federal Reserve's asset purchases but criticises ‘excessively rapid and ill-designed' deficit reduction
RBA research analyses factors driving US credit crunch
Working paper finds shutdown of the securitisation market explains a ‘significant share’ of the credit tightening in the US in the run-up to the global financial crisis
MBS offer portfolio benefits for some central banks, say CBP panellists
Mortgage-backed securities may offer reserve managers a higher yield and diversification benefits for their foreign currency holdings, according to panellists in a new Central Banking On Air debate
St Louis Fed president launches new household financial stability research centre
James Bullard unveils new research centre that will focus on understanding links between household balance sheets, the overall performance of the US economy, and stability and upward mobility
IMF paper dissects 'remarkably stable’ US inflation
Working paper examines factors behind favourable inflation performance in the US following the Great Recession, identifying three main causes
Bernanke remains dovish in face of stability threats
Fed chairman says low interest rates are providing significant benefits to growth and heading off ‘incipient’ deflationary pressures; hints QE could be reduced soon, but only if data allow
Fed’s Raskin says fiscal policy is holding economy back
Member of board of governors expects fiscal policy to ‘significantly hinder’ growth this year and remain restrictive going forward, but predicts continued moderate recovery
Fed paper says macro-prudential policy is not a new idea
Research studies various macro-prudential policies employed in the past, seeking insights for contemporary policy-makers
Fed director says rest of world lagging behind on cross-border resolution
Michael Gibson says US has had its resolution authority in place for years, but slow progress in other jurisdictions is causing delays; FDIC chair says talks with G-Sib host countries are ongoing
Fed paper investigates decline in US labour market mobility
Study identifies drop in interstate migration since 1980s; attributes fall to stronger internal labour markets rather than demographic or sociological factors
Booknotes: The Leaderless Economy: Why the World Economic System Fell Apart and How to Fix It
The title of Peter Temin and David Vines’ book, especially its subtitle, promises the reader a lot
IMF's Blanchard warns Europe could drag world economy down
IMF chief economist says ‘three-speed’ global economy could be dangerous; World Economic Outlook urges central banks to keep policy loose but be ready with an exit strategy
Bernanke says Fed stress tests were a ‘critical turning point’ in crisis
Fed chair says stress tests offer macro-prudential dimension to supervision; US banks have more tier 1 common equity under a severe stress scenario than they did in reality in 2008
US agencies clamp down on leveraged lending
Fed, FDIC and OCC issue updated standards for leveraged lenders amid concerns standards are again slipping and many institutions have ‘proven less than satisfactory’ in risk management practices