ACA Summit Salzburg Global Seminar. “New Rules for Global Finance” Nicholas W. Conger (WVWC) & Nora Myers (UCWV) October 15, 2011. Appalachian College Association (ACA) Mellon Foundation Fellowship. Salzburg Global Seminar. Austria. Austria. Austrian Alps – The Sound of Music.
ACA Summit Salzburg Global Seminar
“New Rules for Global Finance”
Nicholas W. Conger (WVWC) & Nora Myers (UCWV)
October 15, 2011
1st Time in Vienna
2008 Global Financial Crisis
Review of the Carnage…
2008 Global Financial Crisis
“The Worst Crisis Since 1929”
Architect's of the Multi-Trillion* Fiscal Bailout
Bank of America
Fannie Mae and Freddie Mac
Salzburg Global Seminar
New Rules for Global Finance: Proposals for Regulatory Reform – Topics:
Europe – Asia - USA
The Role of the EU & the UK FSB & FSA
Financial Stability Board (FSB) and
FSA (Financial Services Authority)
Starting with the EU…
HQ: Frankfort, Germany -- President: Jean-Claude Trichet
European Financial Regulatory Reform and Impact on Banks
Need for Coordinated Regulatory Framework Reforms
Euro Zone Problems are Country Concerns
“We are moving in the right direction”
Asian Financial Stability and Reform
Deputy Governor Vanikkul, Bangkok, Thailand
“My SGS A-Ha - OMG Moment”
Asian Development Bank: President Kuroda
Financial Institutions Stability – Governor Vanikkul
China Banking Regulatory Commission
NPL @ 25%
Staggered Implementation (2019) (12% Average)
NPL’s now at 1-2% Capital @ 12%
PLL > 200%
U.S. Financial Regulatory Reforms
Center for American Progress (David Min)
The Brookings Institution (Douglas Elliott)
US Financial Regulatory Response
Over $3 Trillion…and still counting
US Financial Regulatory Reforms
* Scope: to examine the causes of the crisis . Membership: 6-D & 4-R. No Policy Recommendations and no specific violations cited.
Dodd-Frank Bill: Objectives*
An Act: (1) to promote the financial stability of the United States by improving accountability and transparency in the financial system; (2) to end "too big to fail", (3) to protect the American taxpayer by ending bailouts, (4) to protect consumers from abusive financial services practices, and for other purposes.
*Senator Christopher Dodd (D-Conn) & Representative Barney Frank (D-Mass)
Dodd-Frank Bill Accomplishments
Key areas left unaddressed
Tries to do too much
So…are the various global regulatory reform measures good enough to prevent a future crisis?
”The proposals are better than we had before, but they do not go far enough”
Other Issues & Proposals
(Basel III Bank Capital Adequacy - 2019)
Where Do We Go From Here?
…or maybe a return to the old fashioned ones?
“Earn a Reasonable Return on your Investment”
“Annual income: twenty pounds. Annual expenditure: 19 pounds, nineteen and six, result happiness.
Annual income: twenty pounds. Annual expenditure: twenty pounds, ought and six, result misery.”
Source: David Copperfield, by Charles Dickens (1850). Quote by Wilkins Micawber, modeled on Dickens father, John Dickens who was incarcerated in debtor’s prison after failing to meet his creditor’s demands.