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.
“New Rules for Global Finance”
Nicholas W. Conger (WVWC) & Nora Myers (UCWV)
October 15, 2011
1st Time in ViennaSalzburg Global Seminar
HotelHotel & Tram to VNB
Review of the Carnage…
“The Worst Crisis Since 1929”
Architect's of the Multi-Trillion* Fiscal Bailout
Bank of America
Fannie Mae and Freddie Mac
AIGTroubled Global Financial Institutions
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…
1€ CoinThe Euro - The Common Currency of 17 of the 27 member countries of the European Union
HQ: Frankfort, Germany -- President: Jean-Claude Trichet
Need for Coordinated Regulatory Framework Reforms
Euro Zone Problems are Country Concerns
“We are moving in the right direction”
Deputy Governor Vanikkul, Bangkok, Thailand
“My SGS A-Ha - OMG Moment”
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%
Center for American Progress (David Min)
The Brookings Institution (Douglas Elliott)
Over $3 Trillion…and still counting
* Scope: to examine the causes of the crisis . Membership: 6-D & 4-R. No Policy Recommendations and no specific violations cited.
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)U.S. Regulatory Reform
Key areas left unaddressed
Tries to do too much
NO… enough to prevent a future crisis?
”The proposals are better than we had before, but they do not go far enough”Salzburg Global Seminar
Other Issues & Proposals enough to prevent a future crisis?
Key Takeaways enough to prevent a future crisis?
(Basel III Bank Capital Adequacy - 2019)
Discussion Questions… enough to prevent a future crisis?
Where Do We Go From Here?
…or maybe a return to the old fashioned ones?
“Earn a Reasonable Return on your Investment”
Closing Thought* enough to prevent a future crisis?
“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.*Micawber Principle
Questions… enough to prevent a future crisis?Salzburg Global Seminar