Regulation

Blackstone IRR shyness could unnerve shareholders

30 Mar 2009

The buyout firm has told the SEC it won t disclose returns on its funds. It does show the current value of investments. But providing more can t hurt. Fund investors know the returns already. Without the data, investors in the company's stock might expect the worst.

US resolution scheme can’t handle global giants

27 Mar 2009

Geithner wants the power to wind down financial institutions such as AIG and Lehman in an orderly fashion. But some institutions are so multinational that a USonly scheme won t work. If this idea is to be a runner, global collaboration will be needed, says Hugo Dixon.

Geithner’s two-tier regulatory plan looks smart

26 Mar 2009

The US Treasury secretary wants to identify banks, insurers and others that are too big to fail and make them hold more capital. There are big technical problems, but the mere threat of capital charges could help by encouraging many firms to become small enough to fail.

US super-liquidator for non-banks faces challenges

24 Mar 2009

The bosses of the US Treasury and Federal Reserve want a mechanism to shut down troubled nonbanks. A FDIClike institution sounds like a great idea. But nonbank covers a lot of territory. Different liquidation mechanisms may be needed for different institutions.

Done deals could be undone by US regulators

13 Mar 2009

With fewer acquisitions to investigate, US antitrust watchdogs have time on their hands. They also have the backing of a more interventionist administration. Don t be surprised to see some revisiting of mergers like CVSCaremark or WhirlpoolMaytag.

Obama wants to make IMF belle of the G20 ball

11 Mar 2009

After being snubbed by US policymakers for years, it now finds itself key to Obama s international economic recovery plans. The US wants to stuff its coffers and even wants it to name and shame countries that it deems too stingy with stimulus. It s a big reversal of fortune.

Uses of credit ratings should guide regulation

24 Feb 2009

Governments are itching to heighten scrutiny of ratings firms. But one problem in the past has been investors overreliance on officially sanctioned credit assessments. To set good rules rather than just more of them, authorities everywhere should consider why they need ratings.