Much has been said about the Basel Committees ambition to create a regulatory framework that will be resilient enough to withstand and contain another Lehman Brothers scenario. Remember, before extending and deepening the regulations put on banks in order to make them more resilient to short term funding problems, the regulation known as Basel II…

The Basel-accord are frequently paraphrased in the debate around banking stability and its third step, Basel III, is seen as a set of rules and regulations that once and for all will avoid future financial panic.  But as always, this can be interpreted as mere smoke screens to avoid financial system collapse now – but…

You can now click on pictures for better resolution. Much ink has already been spilled on the so-called September “taper” which was almost pre-announced by the Federal Reserve. However, in the grand scheme of things no one will care if we spill marginally more. In May and later in June, Chairman Bernanke went lengths to…

While the Europhiles would like EU to move towards full fiscal union, with corresponding tax and spending harmonization, they have so far “only” managed to get Europe on track for a full-fledged banking union. Over the next 18 months we will probably see major changes in the European framework for banking regulation. 4.1.    Single supervisor…

Today we present the Target2-system and the fiscal bail-out facilities in our series on European efforts to bail out itself. For new readers, check out part 1 here http://bawerk.net/?p=123 Tran-European Automated Real-time Gross Settlement Express Transfer System – TARGET2 In order to facilitate cross-border financial transactions within the currency union an interbank payment system was…