March 2010

Hanging in the balance

22 March 2010
Uncertainty continues to stalk the markets already rattled by the continuing Greek debt debacle. For instance, the Bank of England's trade-weighted sterling index dropped like a stone in the wake of the currency’s swift fall against major currencies, principally in response to concerns that the imminent general election will result in a hung parliament. Drew Hillier reports how the world’s delicate economic recovery remains dangling, literally, by a thread.

Greece is the word

22 March 2010
Greece may indeed be the word of the moment. But in actual fact the fiscal situation in that country became a hot topic of discussion late Autumn of last year. With Summer having come to an end, rough but charming Greece – topping the EU’s tax evasion league table, (according to sources, the black economy makes up 25% of Greek GDP), and the rest of the Euro zone – headed by financially upright Germany, suddenly realise they actually have little in common. With more than a whiff of contagion in the air, Drew Hillier hears from some key cast members in this song and dance of a sovereign debt crisis.

Different strokes

22 March 2010
The FX ECNs and multi-dealer platforms are consolidating and diversifying, but there are still two very distinct FX trader types. By Frances Maguire. The growth of electronic trading in FX has led to a growing use of ECNs and electronic trading platforms across the board. There are, however, still two distinct market participants – those looking for a relationship – trading basis with their banks and those looking for anonymous trading.

Banking on change

22 March 2010
Frances Maguire talks to Colin Digby, Head of Treasury Solutions & Markets, EMEA, at Deutsche Bank about how the changing landscape and the credit crisis have driven the demand for a fundamentally new approach to change management. Over the past 18 months there have been unprecedented levels of change in the market. The focus and priorities, for both banks and clients, in terms of risk management, controls and business priorities are fundamentally different. Colin Digby, Head of Treasury Solutions & Markets at Deutsche Bank, believes that the credit crisis has proven to be a catalyst for change in corporate banking, much of which requires a quantum shift in mindset and approach from practitioners – and that without this shift, many banks will struggle to even maintain the status quo.

What a difference a day makes

22 March 2010
For many financial institutions, the Grammy Award-winning song performed by Dinah Washington can ring painfully true; only for them the ‘day’ never seems to end. No sooner has funding been found to cover Monday’s positions in New York, than it has already begun again in Hong Kong. And that ‘day’ can feel like a lifetime for their cash management teams as they continually struggle with the poor quality and timeliness of the data they rely on to make funding decisions. According to analyst group Aite, 90% of banks are primarily dependant on manual processes for their nostro cash management, with 75% using Excel or Access.

Liquidity gains

22 March 2010
It is becoming increasingly clear that information is at the heart of liquidity risk management. With the spotlight on liquidity management, the most effective approaches to cash and liquidity management are now being sought following the regulatory requirement for banks to actively manage their intraday liquidity positions and risks.

Tax and the city

22 March 2010
Here in the UK, along with the onset of Spring, we also have the introduction of a new 50% tax rate to look forward to! So, now only weeks away from April 6 and the prospect of moving back to the realms of living in a high tax country, DREW HILLIER examines the likelihood of a widespread exodus from the City of London, hearing from some of the keys players, including the Capital’s mayor, Boris Johnson, The British Bankers Association’s head, Angela Knight, and Tullett Prebon’s Terry Smith. Happily, tax expert MARK WALTERS, MD of Frank Hirth, a leading US/UK specialist taxation and accounting practice, is also on hand to guide us through the unfolding landscape.

There’s gold in them thar mills!

22 March 2010
Now that George Soros, one of the planet’s richest people, has promised to invest $1 billion dollars into clean energy technologies, it suddenly got a lot easier to be green. Or has it? Drew Hillier investigates. George’s billion-dollar pledge includes $100 million into an environmental group, to help ensure that environmental policy kept in the spotlight, shaping policy, playing a watchdog role and advancing policies to prevent further environmental trouble. It also marks something of a departure for Soros, founder of $25 billion hedge-fund firm Soros Fund Management LLC, who usually focuses on issues such as promoting a free press, improving education and health care; certainly, it's signaling a new area that he thinks other philanthropists might be interested in. As he tells us: 'I'm investing the money in for-profit businesses, but I'm also doing things that only a non-profit organisation can probably do in this area that's so contentious.'"