X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
New era of global finance? - Views on News from Equitymaster
 
 
  • PRINT
  • E-MAIL
  • FEEDBACK
  • A  A  A
  • Sep 7, 2009

    New era of global finance?

    Is this the death of investment banking as we know it? After all, its bluff has already been called by the recent financial crisis. It is being widely believed that the bankers' pay structures that tend to reward short term performance and encourage excessive risk taking was largely responsible for the situation the global financial system is in today. And hence, if similar catastrophes were to be prevented in the future, bankers need to be reined in. A big step towards doing the same may have been achieved in the recently concluded G20 meeting for finance ministers and central bankers.

    As per Bloomberg, there appeared unanimity among finance officials of the G20 on a plan that would alter bonus structures of banks and force lenders to hold more capital to make them more crisis proof. "We have broad agreement on a very strong set of principles and objectives for building a more stable global financial system. We need to move now to put that framework in place," this is how Tim Geithner, the US Treasury Secretary chose to put it across.

    While the developed nations, most of all the US have indeed shown the right intentions, the question remains that how many of the new rules and regulations will find their way into the rule book for US banks. The US banking industry in recent years has become a very powerful entity and there have been widespread allegations that they do manage to pull a lot of strings in Washington. Whether they succeed in scuttling this latest attempt that seeks to curb their animal spirits and aims to bring their compensation structure in line with other industries, remains to be seen. If they don't then that would indeed mark the beginning of a new era of the global financial system.

    Monsoons: Better late than never
    A late surge in monsoons seems to have rekindled hopes that the growth in India's GDP this fiscal may not be that bad after all. As per a leading daily, the rainfall in the country over the past week has been 4% more than normal with even regions like Haryana, Punjab and Delhi that till the start of September had witnessed very scanty rainfall witnessing some sort of improvement. And with the spurt likely to continue over the next week or so, there could be notable improvement in the crop production in the country and also the income of rural India.

    It should be noted that a couple of weeks back, with weak monsoons as the backdrop, India's planning commission had projected a worst case scenario GDP growth of 5.5% for the current fiscal. A far cry from the 6.7% growth that we managed to achieve for the year ended March 09. Now, with monsoon deficit expected to come down, the number will most likely be revised upwards in the region of 6%-6.5%.

     

     

    Equitymaster requests your view! Post a comment on "New era of global finance?". Click here!

      
     

    More Views on News

    How to Ride Alongside India's Best Fund Managers (The 5 Minute Wrapup)

    Jun 10, 2017

    Forty Indian investing gurus, as worthy of imitation as the legendary Peter Lynch, can help you get rich in the stock market.

    Were You Lured By Mr Market's Bait? (The 5 Minute Wrapup)

    Aug 23, 2017

    Mr Market lured investors into believing they'd bitten into a crash. Did you take the bait?

    Deep State First (Vivek Kaul's Diary)

    Aug 23, 2017

    Nowhere was the darkness deeper than in the nation's capital. There, no light shone. No flicker of awareness...observation...learning...or reflection appeared.

    Why Hasn't Warren Buffett Rung the Bell Yet? (The 5 Minute Wrapup)

    Aug 22, 2017

    It's surprising Warren Buffett hasn't warned investors about the expensive stock market? Let us know why.

    Think Twice Before You Keep Money In A Savings Bank Account (Outside View)

    Aug 22, 2017

    Post demonetisation, a cut in bank savings deposits rates was in the offing.

    More Views on News

    Most Popular

    This Small Cap Can Drive Chinese Players Out of India (and Make a Fortune in the Process)(The 5 Minute Wrapup)

    Aug 17, 2017

    A small-cap Indian company with high-return potential and blue-chip-like stability is set to supplant the Chinese players in this niche segment.

    Dear PM Modi, India is Already Land of Self-Employed, and It Ain't Working(Vivek Kaul's Diary)

    Aug 21, 2017

    Most Indians who cannot find jobs, look at becoming self-employed.

    It's the Best Time to Buy IT Stocks(Daily Profit Hunter)

    Aug 16, 2017

    The IT Sector could be in an uptrend till February 2019. Are you prepared to ride the trend?

    5 Steps To Become Financially Independent(Outside View)

    Aug 16, 2017

    Ensure your financial Independence, and pledge to start the journey towards financial freedom today!

    Think Twice Before You Keep Money In A Savings Bank Account(Outside View)

    Aug 22, 2017

    Post demonetisation, a cut in bank savings deposits rates was in the offing.

    More
    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407
     

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms

    S&P BSE SENSEX


    Aug 24, 2017 09:10 AM

    MARKET STATS