The most comprehensive educational resources for finance

Divorce Attorney Consultation: How it Should Benefit You

There are many situations when a person visits a divorce attorney and leave unsatisfied with the information that was given. With your marriage falling apart, it may seem as though the lawyer you are visiting does not even get it. However, when you call on the services of a network of divorce lawyers you can

Lecture 12 – Misbehavior, Crises, Regulation and Self Regulation

After talking about human failures and foibles in the last lecture, this lecture is concerned with regulation to minimize the impact of human errors. Professor Shiller outlines five different levels of regulation: Regulation on the firm level, on the level of trade groups, on the regional, the national, and the international level. Concerning the first

Regulatory Reforms – Can we make bankers more like pilots?

The banking industry today faces many challenges, and the need for strong internal governance and control has never been more important. Controls, rules and limits within a bank – and in particular, the interactions of those controls, rules and limits – do more than just limit risk; they also create incentives. The following speech by

HSBC: Active Non-Compliance of Anti-Money Laundering Standards

47,515 people are said to have been murdered from 2010 as a result of the Mexican drug war. (source: New York times). Others say the figure is closer to 60,000. Fear abounds and the latest news coming in states that the drug mafia has made deep inroads into the army, government machinery which the Mexican government

Volcker Rule

A proposal that bans banks from indulging in high risk speculative trading that endangers the deposits of average customers is being fiercely opposed by most banking institutions in the USA. The proposal which is on its way to its final draft is meeting with all kinds of resistance. The Volcker rule named after Paul Volcker,

Basel III Guidelines for India

India’s central bank, Reserve Bank of India, has issued the guidelines for implementation of Basel III capital regulations for banks in India. These guidelines will be effective from January 1, 2013 and the Basel III capital ratios will have to be fully implemented by March 31, 2018. This gives banks a period of 6 years.

Solvency II: Restructuring the Insurance Sector (Part 2)

The Solvency Act is going to have major ramifications for the Insurance sector in the European Union in particular, and is being watched keenly by governments of other nations. In part 1, we had a brief look at the directives that this directive is looking at amending. The Solvency Directive is an impending measure to

Solvency II: Restructuring the Insurance Sector (Part 1)

The European Parliament and the Council of the European Council is in the process of voting on the directive regarding Insurance and Reinsurance, better known as Solvency II. This directive is making substantial changes to the insurance sector with regards to the European Union. Since it is a directive, member states are expected to reach

What is the Directive MiFID?

Markets in Financial Instruments Directive (MiFID) is an EU directive that will replace the existing Investment Services Directive (ISD), that is, Directive 93/22/EEC. It aims to create an integrated structure for a pan-European market for investment products. In particular it aims to make cross-border trading in securities in Europe easier for financial institutions and investors

Anti-Money Laundering (AML) Training Requirements

Money Laundering refers to any act or attempted act conducted to conceal or disguise the identity of illegally obtained funds so that they appear to have originated from legitimate sources.  In other words, it is the process through which criminals convert “dirty” money appear “clean”. International Monetary Fund (IMF) estimates that atleast 3-5% of the