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Category Archives: Financial System

Accounting-Based Downside Risk Cost of Capital and Macroeconomy

Konchitchki, Yaniv and Luo, Yan and Ma, Mary L. Z. and Wu, Feng, Accounting-Based Downside Risk, Cost of Capital, and the Macroeconomy (June 23, 2015). Available for download at SSRN: http://ssrn.com/abstract=2622180 “We develop an earnings downside risk measure that captures the expectation for future downward operating performance. We hypothesize that this measure contains distinct information aboutContinue Reading

Net Stable Funding Ratio disclosure standards

Bank for International Settlements, June 22, 2015: “Disclosure requirements for the Net Stable Funding Ratio (“NSFR”) have been developed to improve the transparency of regulatory funding requirements, reinforce the Principles for sound liquidity risk management and supervision, strengthen market discipline, and reduce uncertainty in the markets as the NSFR standard is implemented. Similar to the LCR disclosure framework, and to promote theContinue Reading

Placing Bank Supervision in the Central Bank

Melecky, Martin and Podpiera, Anca Maria, Placing Bank Supervision in the Central Bank: Implications for Financial Stability Based on Evidence from the Global Crisis (June 22, 2015). World Bank Policy Research Working Paper No. 7320. Available for download at SSRN: http://ssrn.com/abstract=2621874 “Although keeping bank supervision independent from macroprudential supervision may ensure more checks and balances, placingContinue Reading

OPM IG Report – Infrastructure and IT Controls Improvement

“The U.S. Office of Personnel Management (OPM) Office of the Inspector General (OIG) is issuing this Flash Audit Alert to bring to your immediate attention serious concerns we have regarding the Office of the Chief Information Officer’ s (OCIO) infrastructure improvement project (Project). This Project includes a full overhaul ofthe agency’s technical infrastructure by implementing additional information technologyContinue Reading

Survey – financial insecurity rises in America

Bankrate.com: “Wages may be on the rise, but a record-high percentage of Americans still aren’t socking away those gains for life’s unexpected crises. When asked about their emergency savings, 29 percent of Americans reported they had none, according to a survey that accompanied Bankrate’s Financial Security Index for June. That’s the highest level in five yearsContinue Reading

Quarterly Summary of State Local Government Tax Revenue

“This release provides quarterly estimates of state and local government tax revenue at a national level, as well as detailed tax revenue data for individual states. This report produces three tables: Tables 1 and 2 include income and sales data and Table 3 provides tax collections by state.”

SEC Re-Proposes Rules on Security-Based Swaps

Harvard Law School Forum on Corporate Governance and Financial Regulation:  SEC Re-Proposes Rules on Arranging, Negotiating or Executing Security-Based Swaps, Annette L. Nazareth, Davis Polk & Wardwell LLP,  June 21, 2015 “On May 13, 2015, the SEC published proposed amendments and re-proposed rules on the application of certain Title VII requirements to cross-border security-based swap activitiesContinue Reading

Federal Reserve Census of Finance Companies

“The Federal Reserve System will begin its 2015 Census of Finance Companies in June, as part of a larger effort to paint a complete and continuing picture of this important sector of the U.S. economy. “The Federal Reserve System conducts this census to collect basic information on the types and volume of financing provided by nonbankContinue Reading

In most EU Member States largest share of public debt is held by non-residents

Structure of government debt in 2014: “Among the Member States for which data are available, Sweden (29% of total government debt has a term below one year) and Bulgaria (21%) registered in 2014 the highest proportions of short-term initial maturities of debt. Italy (15%), Hungary (14%), Portugal (13%) and France (12%) also recorded shares ofContinue Reading

2015 Long-Term Budget Outlook

“The long-term outlook for the federal budget has worsened dramatically over the past several years, in the wake of the 2007–2009 recession and slow recovery. Between 2008 and 2012, financial turmoil and a severe drop in economic activity, combined with various policies implemented in response to those conditions, sharply reduced federal revenues and increased spending.Continue Reading

Budgetary and Economic Effects of Repealing Affordable Care Act

“CBO and the staff of the Joint Committee on Taxation estimate that, over the next decade, a repeal of the Affordable Care Act would probably increase budget deficits with or without considering the effects of macroeconomic feedback.”

Credit Ratings and Their Information Value

Kuvíková, Gabriela, Credit Ratings and Their Information Value: Evidence from the Recent Financial Crisis (June 1, 2015). CERGE-EI Working Paper Series No. 544. Available for download at SSRN: http://ssrn.com/abstract=2619423 “This paper examines the accuracy and timeliness of credit ratings in explaining the financial health of debt issuers over the recent financial crisis. Using annual financialContinue Reading