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Not quite sultans of swing

A majority of bankers, insurers and asset managers, as well as finance executives at non-financial companies, consider their organisations to be vulnerable to exceptional or sudden swings in volatility, according to a global survey conducted by the Economist Intelligence Unit.

Not all in the same boat

The financial crisis and the low/no return environment that has followed have taken their toll on the European asset management industry.

Defining “rogue”

In January 2008, Société Générale lost billions due to an alleged rogue trader named Jérôme Kerviel. During my time working at the Federal Reserve, I was part of a team sent to SocGen to investigate. (Very interesting times in retrospect.)

On the rocks

For the past two and a half years, European Union politicians have been caught in a catch 22. They seem to realise that the only way to save the euro is a more integrated, federal Europe, yet they face such opposition from their counterparts at home and their citizens, who fear a loss of economic sovereignty, that they cannot take the steps needed to make that necessity a reality.

Shelling out, but not in Europe

Bellwether Europe brought together the well-heeled elite of the world’s financial community. Brothers of recently ousted French presidents rubbed shoulders with trillion dollar investors; future governors of the Bank of England mingled with future European commissioners; past Chancellors of the Exchequer ate nibbles with past Presidents of the ECB. All in all it was a star-studded affair (for the world of finance).

Who will foot the bill?

With the focus in Europe on the capitalisation of banks, and the connection between the security of banks and nations, few outside of the financial industry are considering the capital adequacy of insurers. But just as Basel III will set new standards for banks, Solvency II will give European Union insurers new requirements.

Solvency II Survey 2012

The 2012 survey polled 60 insurers, of which 25 were non-life and 35 were life companies. Respondents were grouped in size from the very largest with more than £1bn in net written premiums (NWP); medium-sized-companies with between £300m and £1bn in NWP; and the smallest insurers with less than £300m in NWP. 

Our thanks to Tristan Garnons-Williams and Jonathan de Beer, policy advisers at the Association of British Insurers, for their insights.

Putting a price on regulatory experience

Peter Smith, the Financial Services Authority’s head of investment policy, is the latest high profile departure from the regulator. He will leave in June, along with chief executive Hector Sants, who announced his departure in March - when managing director Margaret Cole left the regulator.

Innovating our way out of the pensions crisis

Pensions and innovation are not usually two words you would put together, as the first generally makes people yawn while the second makes people think of whizz-bang gadgets like iPads.

UK must find financing solution before economy is starved of funding

Keeping an eye on the news of the financial world, this week I was struck by the number of often contradictory stories relating to financing. Governments everywhere are struggling to find the right balance between ensuring banks hold enough capital to be secure, while still being able to lend to people and businesses to help the economy expand.

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