financial crisis
« Previous EntriesTransparency, Conflict Minerals and Natural Resources: Debating Sections 1502 and 1504 of the Dodd-Frank Act
Tuesday, December 20th, 2011With a focus on conflict minerals and natural resource transparency, Sections 1504 and 1502 of the Dodd-Frank Wall Street Financial Reform Act are unrelated to the U.S. banking system. Yet they have stirred up controversy. As is often the case with provisions that aim at changing the rules of the game, Sections 1502 and 1504 [...]
Judge Rakoff Challenge to the S.E.C.: Can Regulatory Capture be Reversed?
Saturday, December 3rd, 2011Last Monday, Federal Judge Jed Rakoff issued a potentially precedent-setting challenge to the Securities Exchange Commission (SEC) when he rejected the $285 million settlement between the agency and Citigroup. The bank is charged with negligence related to its misleading sale of toxic mortgage-backed securities, which ultimately cost investors nearly $700 million but earned the [...]
Unexpected Earthquake in U.S. East Coast Spurs a Stock Market Rally?
Wednesday, August 24th, 2011A rare earthquake of magnitude 5.8 shook the East Coast of the US earlier today, affecting Washington, D.C., New York, their environs some environs, and Virginia. While an earthquake of this magnitude carries a minimal fraction of the force of the mega-earthquakes experienced by countries like Chile, Japan, Indonesia and Haiti in recent years, it did rattle buildings and nerves. And it raised [...]
Congress’ Dismal Performance Need Not Be the Case: A Governance Perspective
Friday, July 29th, 2011According to a Gallup nationwide poll ten years ago, 55 percent of citizens approved of the way Congress was handling its job. That was in March 2001, before the surge in solidarity that resulted in Congressional approval ratings of 70-80 percent following the 9/11 terrorist attacks. By mid-2002, the approval ratings were back to pre-9/11 [...]
Preventing Nuclear Meltdown: Assessing Regulatory Failure in Japan and the United States
Thursday, March 31st, 2011Many wonder whether Japan’s nuclear disaster could have been averted. The embattled operator of the Fukushima nuclear plant, Tokyo Electric Power Company (TEPCO), has borne the brunt of criticism; its numerous failures over the years are certainly well known. However, Japan’s Nuclear and Industrial Safety Agency (NISA), responsible for regulating the nuclear industry, also [...]
Amid Global Crises, Can Obama Make a Real Impact in Latin America?
Friday, March 18th, 2011President Obama’s tour of Latin America, including visits to Brazil, Chile and El Salvador, is starting this weekend. This visit is unlikely to constitute a historical watershed. It comes at a time when Obama faces three major crises— Libya’s ongoing civil conflict, Japan’s unfolding triple disaster, and the United States’ congressional impasse over the federal [...]
Financial Regulatory Capture Symposium at Fordham Law School
Sunday, February 6th, 2011The global financial crisis that started in Wall Street a few years ago brought to the forefront the notion of ‘capture’ in the financial sector. Policy-makers, experts and academics still disagree whether regulatory capture was a major determinant of the crisis. Nonetheless, the problem of capture has at least become an important part of the [...]
Governance improves, goes into reverse, and fails: WGI and Governance Matters released
Friday, September 24th, 2010We are releasing the new version of the Worldwide Governance Indicators (WGI), covering 213 countries over the 1996-2009 period. All the data and resources ca be found at www.govindicators.org. It is accompanied by a new analytical report on the WGI, to be found here. prepared with my co-authors in this project, A. Kraay and M. Mastruzzi. And a synthesis [...]
On the state of Governance and the governance of States around the World: what will the WGI scorecard tell us?
Thursday, September 23rd, 2010In past writings we have emphasized the neglected link between good governance by wealthy and developing countries and the attainment of the Millennium Development Goals (MDGs). Lately such link is getting a bit more attention in the media, as it is being emphasized by stars like U2′s Bono and his own NGO, named ONE. Of course, [...]
Casting Light on the MDGs through better Governance and Less Corruption
Saturday, September 18th, 2010The lofty events of the 2010 United Nations Summit on the Millennium Development Goals (MDGs) are already underway in New York. A gala is taking place tomorrow evening, Sunday the 19th of September, at the luxurious Waldorf Astoria for the rich and famous to celebrate the MDG achievements and give awards in a celebrity-laden event. One [...]
Wall Street Financial Reform: Less than meets the eye on Financial Institutions, More than meets the eye on Oil Companies
Friday, July 16th, 2010The 2,500 page long Dodd-Frank Financial Regulatory Reform Bill has passed through the United States Senate. The bill will now be signed into law by President Barack Obama. It signals a halt to the deregulatory process that the U.S. financial system has experienced for almost fifteen years. The bill promises to strengthen consumer protection. In principle, [...]
Greece and Volcanoes, BP Oil and Hurricanes
Saturday, May 29th, 2010The earth’s wrath is ubiquitous these days, as vividly witnessed by the fiery eruptions of the Eyjafjallajokull, Turrialba and Arenal, Pacahua, and Tungurahua, the active volcanoes in Iceland, Costa Rica, Guatemala and Ecuador, respectively. In ancient Greece, a volcano eruption was a sign of divine disapproval. It is unclear whether modern Greece has taken notice…
Millennium Development Goals (MDGs) will not be met unless governance improves
Friday, May 14th, 2010In 2000, the international community agreed on eight Millennium Development Goals (MDGs). Among others, countries pledged to halve extreme poverty, achieve universal education, halt the spread of HIV/AIDS and reduce child and maternal mortality rates by 2015. Ahead of the UN’s upcoming September 2010 Summit on the MDGs, countries and aid donors have begun [...]
Corruption and Fiscal Deficits in Rich Countries
Tuesday, April 20th, 2010Some of my research tends to challenge orthodoxy, such as taking issue with the claim that the developing ‘world’ is the corrupt one (contrasting wealthy nations); that corruption is largely about blatant bribery, and that corruption and macro-economic stability should be viewed separately from each other by different types of ‘experts’. I am committing the heresy of focusing on the link between corruption [...]
Wall Street Reform and Beyond
Friday, April 16th, 2010For years I have been arguing that regulatory and state capture is a major challenge in many countries, including in the US. I wrote papers, presented analysis and evidence, even argued the case to top executives at the World Economic Forum long ago. Yet I had limited success, other than getting some articles published in [...]
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