By Greg Quinn Bloomberg Doug Alexander Tues., Feb. 5, 2019 Canada’s banking regulator defended tougher mortgage underwriting rules blamed recently for a slump in the nation’s housing market, but left open the possibility that regulations could ease if conditions change. Carolyn Rogers, the No. 2 at the Office of the Superintendent of Financial Institutions, said tougher mortgage lending rules remain a prudent way to guard against risks in the marketplace. Still, officials are continually assessing conditions. “OSFI monitors the environment on a continual basis and when we determine that adjustments to our standards and guidelines are warranted, we make them,” Rogers said Tuesday in a speech in Toronto. She acknowledged that the escalating cost of home ownership is a problem in Canada but said the answer can’t be more debt, in particular more consumer debt. The country’s banking regulator is under pressure to ease up on stress … [Read more...] about Regulator opens door to easing Canadian mortgage rules
Debt 7 year rule
By: John Stepek 13/09/2018 A decade on from the collapse of Lehman Brothers, it doesn’t look like we’ve learnt any of the lessons of the credit crunch. But the next crisis won’t look the same as the last one, says John Stepek. This month marks ten years since US investment bank Lehman Brothers collapsed. As our timeline below shows, this was far from the start of the financial crisis. However, it was the critical moment at which it became very clear to even the most disinterested observer that all was not well with the financial world. Banks around the world had enjoyed a tame regulatory framework and a complacent, Wall-Street-friendly central-bank regime under Federal Reserve chief Alan Greenspan. They exploited this overly forgiving backdrop by using financial engineering to create swathes of complex mortgage-backed products that could meet soaring global demand for high-yielding yet apparently “safe” assets. In the pursuit of … [Read more...] about Our progress since 2008? Ten years older, and deeper in debt
When John Taylor starts remembering the years leading up to the financial crisis, his fury wells up all over again. As president of the nonprofit National Community Reinvestment Coalition, he warned Congress about the predatory and fraudulent lending that was fueling a housing bubble as early as 2000. Lawmakers told the Federal Reserve to write rules that would have put a stop to the worst practices. But the crash came first. "Thinking about it now, I can feel myself being angry about it," says Taylor, in a soft accent left over from his upbringing in the housing projects of Boston. "Because we fought when we saw these things happening. We brought it to the attention of both Democrats and Republicans. In the end, it took the nation's economy having to collapse before they felt the need to do something." The mounting crisis turned into a full-blown crash nearly 10 years ago, when Lehman Brothers filed for the largest bankruptcy in United States history on September 15, 2008. … [Read more...] about 10 years after the financial crisis, have we learned anything?
By Francesco Guarascio and Francois Murphy VIENNA (Reuters) - Italy should cut its structural budget deficit in line with European Union rules it has committed to respect, top euro zone officials said on Friday, amid signals from Rome that it wants to spend more and tax less next year. Leaders of Italy's ruling coalition of the far-right League Matteo Salvini and the anti-establishment 5-Star Movement Luigi Di Maio have been promising to cut taxes, introduce a universal income, lower the pension age and forego a value added tax increase next year. To do that, Italy, which already has a debt of 132 percent of GDP, would have to increase its budget deficit, adding to market concern about its ability to repay. "Italy has to reduce its structural deficit," European Commissioner for Economic and Financial Affairs Pierre Moscovici told journalists on arrival for a meeting of euro zone ministers in Vienna. "I think it's in Italy's interest to have a budget that will allow Italy to reduce its … [Read more...] about Euro zone peers expect Italy to cut deficit, stick to EU budget rules
Union Bank of the Philippines (UnionBank) said Thursday that its board had given the green light for the bank to raise P20 billion from the issuance of bonds and/or commercial paper. In a filing, the bank said the issuance would be made in multiple tranches. UnionBank did not provide details as to when it would issue the debt paper and how it would use the proceeds.The bank reported net income of P4.7 billion in the first half of this year, an increase of 8 percent from the same period last year, driven by strong growth in its consumer businesses. Net revenues climbed 9 percent to P12.7 billion versus last year’s P11.7 billion. The Bangko Sentral ng Pilipinas (BSP) in July decided to relax rules on bond issuances to help lenders raise funds easier.“The issuance of bonds or commercial paper does not need prior approval of the Bangko Sentral,” the BSP said in August. “Universal, commercial and quasi-banks only need to submit a certification of … [Read more...] about UnionBank to raise P20B from debt paper issue