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Central Banking

What to look for in Paulson's plan

The sweeping arrangements from the US government to buy bad loans and assets from embattled financial institutions are expected to be announced late on Friday and the details will be discussed extensively over the weekend. Here is what to look out for.

Economists question initiative

Leading economists on Friday raised a number of questions about what was known or expected of the plan at the time. Most of the concerns related to how the government (either the Federal Reserve or the US Treasury) would determine at which price to buy…

Liquidity black holes

The current crisis has seen financial giants torpedoed by a lack of liquidity, which has rapidly transformed into questions over solvency. Conversations at SIBOS, the annual gathering of people in the business of liquidity delivery - payment system…

Sparks fly between Cox and McCain

Christopher Cox, the chairman of the Securities and Exchange Commission (SEC), and John McCain, the Republican president candidate, have clashed over McCain's comment that he would fire Cox if he were president.

Bank rescue - or protection racket?

Will 19 September 2008 go down in history as a day when wise and courageous politicians took the steps necessary to rescue the global banking system, or as the last throw of the dice? Maybe neither of these - maybe it will be remembered just as another…

Mboweni: reserve growth must go on

The central bank does not regard the current level of foreign exchange reserves as excessive, given the economy's high current-account deficit, said Tito Mboweni, the governor of the South African Reserve Bank.

Thailand can weather the storm

Thailand's banks are strong enough to weather the current global turmoil, said Bandid Nijathaworn, a deputy governor of the Bank of Thailand.

Tumpel-Gugerell: we need a European SEC

Europe's needs to get its house in order to be prepared for the global challenges related to the infrastructure for securities, said Gertrude Tumpel-Gugerell, a member of the executive board f the European Central Bank.

Draghi: widen scope of monetary policy

Monetary policy should aim at a greater symmetry throughout the cycle and cannot afford to neglect innovations affecting the structure of the financial system, said Mario Draghi, the governor of the Bank of Italy.

Central banks return to collective action

After a series of individual efforts aimed at resolving money market tensions, the world's major central banks resorted to collective action on Thursday, injecting as much as $180 billion (€124.75 billion) into interbank markets through various swaps and…

Banking consolidation continues apace

After months of speculation of its weakest elements, the global banking sector has undergone what many are calling a long overdue consolidation within the space of a few days. Here's a summary of what has happened, its happening - and may happen next.

Russia announces emergency plan

The Russian authorities are preparing to spend $19.59 billion (€13.6 billion) in an effort to stabilise its financial markets as trading on its two main stock exchanges remain closed.

Government still not at the SEPA table

European governments who fail to move on SEPA must be shamed into action, said Jean-Michel Godeffroy, the director general for payment systems at the European Central Bank.

The Fed's balance sheet and the US Treasury

The announcement on Wednesday that the United States Treasury is issuing debt - at the request of the Federal Reserve - to replenish the central bank's balance sheet, has raised questions about the health of the Fed's balance sheet. Here are some…

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