In The News

Greece's Referendum: The Price of Five Years of Cowardice

Christian Rickens July 1, 2015
Europe’s rescue measures for Greece have failed. The nation is on the brink of bankruptcy, threatening default on International Monetary Fund loans that would trigger an end to additional bailout funds. Greek leaders stunned the rest of Europe by refusing to decide on a proposed deal and instead putting the matter before voters. Europe missed three windows of opportunity to curtail the ongoing...

Central Banks: Printing Money Delays Domestic Structural Reforms

Will Hickey June 30, 2015
Countries are waging currency wars in competition over export markets, jobs and foreign investment – printing money, taking on more debt, rather than pursuing serious and needed domestic structural reforms. “Without deeper structural reforms that encourage consumption, innovation and a secure safety net ensuring certainty, the democratic governments will eventually flounder and citizens will vote...

Greece’s Banks Give Eurozone Peers Glimpse Into Abyss

Paul J. Davies June 29, 2015
Greek banks do not have enough money to provide depositors with limited amounts, restricted at $67 per day, which may be needed for daily expenses. Greece is not alone. “Beyond Greece, the rest of the eurozone must look to an acceleration of full banking union to protect weaker banks in Portugal, Austria and other countries,” writes Paul Davies for the Wall Street Journal. The bailout program for...

If Greece Defaults, Imagine Argentina, But Much Worse

James B. Stewart June 26, 2015
The best option for Greece is conceding on Europe’s demands for austerity, argues James B. Stewart for the New York Times, to avoid the economic havoc of Argentina, which has defaulted on debt multiple times. A Greek default would be worse than Argentina’s. Greece could expect a run on banks of a much higher magnitude and confusion over currency with a steep drop in purchasing power. Argentina’s...

HSBC’s Local Rethink Can’t Shore Up Global Act

Paul J. Davies June 10, 2015
The world has only a few global banks. HSBC, based in the UK, is cutting costs, laying off 50,000 or 10 percent of its workforce and eliminating units in emerging economies like Turkey and Brazil. “HSBC’s targeted returns are beaten by the best local banks in many countries,” writes Paul J. Davies for the Wall Street Journal. “HSBC insists the fight to remain global is worth it. It claims $22...

China’s Global Governance Challenge

Stephen S. Roach June 9, 2015
China is preparing for a broader role in leading Asia on economic development and world affairs. The nation has long been an active member of global organizations including the United Nations, the World Trade Organization and others, and now is “engaged in global institution building of its own” with the Asia Infrastructure Investment Bank, or AIIB, writes Stephen S. Roach, author, former...

Global Banks Admit Guilt in Forex Probe, Fined Nearly $6 Billion

Karen Freifeld, David Henry and Steve Slater May 21, 2015
Six major banks agreed to pay fines near $6 billion for the varying roles of their traders roles in alleged manipulation of foreign exchange rates. “In total, authorities in the United States and Europe have fined seven banks over $10 billion for failing to stop traders from trying to manipulate foreign exchange rates, which are used daily by millions of people from trillion-dollar investment...