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Compliance key for subprime solution

The Federal Reserve's planned rule to aid subprime homeowners must be effectively enforced if it is to be successful, said Randall Kroszner, the governor of the Federal Reserve responsible for supervision.

Banks must be scolded, not helped, by the Fed

Monetary and regulatory policy should be about reinforcing solid conduct in financial markets and punishing bad behaviour. But the recent rate cut from the Fed does little of the sort, says Avinash Persaud, the chairman of Intelligence Capital, a…

Bank governance strengthened by independence

Independent directors at commercial banks can provide an important internal governance mechanism for protecting shareholders' interests especially in large-scale transactions such as mergers and takeovers, research published by the Kansas City Federal…

Fed's Bernanke supports fiscal package

Ben Bernanke, the chairman of the Federal Reserve, told United States lawmakers on Thursday that he would support plans for a fiscal package to encourage growth so long as it was implemented quickly, was efficient and was temporary.

Merrill reports $8.6 billion loss for 2007

Merrill Lynch, an investment bank, on Thursday reported $11.5 billion-worth of subprime-related writedowns for the fourth quarter of 2007, taking its losses for last year to $8.6 billion. The bank recorded losses for the fourth quarter alone of 2007 was …

Paper highlights influence of Taylor rule

The rise in influence of the Taylor rule, which shows how monetary policy should adjust to ensure growth and inflation remain near target levels, played an important part in the shift towards a more transparent, more independent era of central banking,…

GIC and Kuwaiti SWF invest in Citi

Citi, the world's biggest bank, revealed on Tuesday that the Government of Singapore Investment Corporation (GIC) and the Kuwait Investment Authority were part of a group of investors involved in a $12.5 billion capital injection.

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