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| Category: Financial Market Regulator This category includes articles that refer to a government body responsible for supervision and regulation of one or more financial markets, covering such areas as securities markets, banking, insurance, or the registry of corporations. [Capital Market Taxonomy] The McKinsey Heresy By John Schroy, on April 6th, 2009 |  2 comments  The root problem with big banks today is organizational and product line complexity. Excessive complexity in banks can be traced to the reorganization of Citibank in 1956, under Walter Wriston, following the advice of McKinsey and Company. Under the McKinsey structure, banks were transformed into industrial-type marketing institutions with matrix organization by product line. Bank managers were paid to meet budgetary targets, rather than for being prudent bankers. April 6th, 2009 | Print Article |  Email Article |  Topics: Alfred P. Sloan, Bank of America, Charles Wilson, Chase Manhattan, Citibank, complexity, General Motors, Glass-Steagall Act, matrix organization, McKinsey, nationalization, Peter Drucker, Sandy Weill, systemic risk, Walter Wriston | Category: Financial Market Regulator, featured | 2 comments |  Short urlThe decline of Citicorp By John Schroy, on April 5th, 2009 | One comment  It is no secret that Citicorp no longer earns the same respect in financial circles as in days of yore. The problem is excessive complexity. This article describes the simplicity of the Citibank operation in 1956 when the bank was the world’s most powerful financial institution. It will not be easy, maybe not possible, for Citicorp to simplify operations and relearn the principles of sound banking. April 5th, 2009 | Print Article | Email Article | Topics: Bank of England, Citibank, complexity, FDIC, Federal Reserve Bank, Mervyn King, Sheila Bair | Category: Financial Market Regulator, featured | One comment | Short urlThe 'insolvent bank' oxymoron By John Schroy, on April 1st, 2009 | Leave a comment  Banks, by their nature, are insolvent, requiring government guarantees of their liabilities to protect against bank runs. Over the last fifty years, the percentage of bank liabilities guaranteed by the government has fallen considerably, while banks, free from the shackles of the Glass-Steagall Act, have become increasingly complex. Mark-to-market rules do not provide useful information to either bank depositors or investors, but may increase bank capital requirements, reducing the capacity to lend in the midst of a recession. April 1st, 2009 | Print Article | Email Article | Topics: complexity, efficient market hypothesis, FDIC, Glass-Steagall Act, insolvency, liquidity, mark-to-market, New Deal, stress tests, Timothy Geithner, Walter Wriston | Category: Financial Market Regulator, featured | Leave a comment | Short urlFeatured articles on inside pages
|    Capital Flow Watch has hundreds of articles on economics and investments. Articles have excerpts on the front pages, and on tag, category, search and archive pages. 
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