Ainnbeen

Socio economic division has widened in the world that created other ultimate problems. The current global financial crisis has revealed many flaws. 1) Unregulation in managment 2) Credit rating agencies 3) Audit firms 4) Liberlization or free market ( wild market) concept 5) Innovation did not allign with proper regulation 6) "Take care of the present" future was largely ignored

" During the currency crisis in East Asia & Banking crisis in Latin America in 1990s, Institutions serving poor customers generally performed better financially than mainstream Banks" http://www.cgap.org/gm/document-1.1.1305/FN_52%20ENG.pdf

February 02, 2009 By Mizuho Research Institute Ltd. http://www.saudichambers.org.sa/Images/Economy.pdf

Pakistan, Srilanka & Malidives are particularly vulnerable because difficult social, political environments prevented adequate policy measure to adjust to the terms of trade shock. http://siteresources.worldbank.org/SOUTHASIAEXT/Resources/223546-1171488994713/3455847-1232124140958/gfcsouthasiafeb172009.pdf

Current crisis also depict flaws of inadequate capital. wether we should follow Basel ii or more advance form, solvency ii, this article I think is helpful in this regard. " The aim of Solvency ii is not to increase overall capital but rather to ensure a high standard of risk assessment & efficient capital allocation. It should also contribute to increased transparency & help in the development of a level playing field across Europe" http://www.abi.org.uk/Display/File/Child/664/CEA_Guide_to_Solvency_II_tillinghast.pdf

By WILLIAM D. COHAN Published: March 11, 2009 IT’S been a year since Bear Stearns collapsed, kicking off Wall Street’s meltdown, and it’s more than time to debunk the myths that many Wall Street executives have perpetrated about what has happened and why. These tall tales — which tend to take the form of how their firms were the “victims” of a “once-in-a-lifetime tsunami” that nothing could have prevented — not only insult our collective intelligence but also do nothing to restore the confidence in the banking system that these executives’ actions helped to destroy. http://www.nytimes.com/2009/03/12/opinion/12cohan.html?em=&pagewanted=all

The 2nd International Financial Research Forum on "Risk Management & Financial Crisis" is an international Research Forum for academics and professionals organised by the Europlace Institute of Finance (EIF) Institut Louis Bachelier (ILB) and La Fondation du Risque with the support of Finance INNOVATION OBJECTIVES The forum pursues three objectives: to identify the main streams of researches that will structure the market evolution in the future; to organize presentations and debates on the content of these new contributions; to assess with professionals the market/regulatory impacts of those new trends. TOPIC: RISK MANAGEMENT AND FINANCIAL CRISES Crises Characteristics: typology of crises : liquidity crisis, financial bubbles, mispricing (fair value, mark-to-market, model risk); contagion, agent coordination, counterparty risk, ... Advanced indicators: risk measures, ratings, performance measures, early detection of crises Regulation: transparency, regulation of hedge

Quantitative easing is the creation of new money out of 'thin air' by a central bank, and its injection into the banking system. The aim is to increase the amount of deposits in private banks so that, by way of deposit multiplication , they can increase the money supply by increasing debt (lending). 'Quantitative' refers to the money supply; 'easing' refers to reducing the pressure on banks. [1] A central bank can do this by using this new money to buy government bonds ( Treasury securities in the United States) in the open market, or by lending the new money to deposit-taking institutions, or by buying assets from banks in exchange for currency, or any combination of these actions. These have the effects of reducing interest yields on government bonds, and reducing inter-bank overnight interest rates, and thereby encourage banks to loan money to higher interest-paying bodies http://en.wikipedia.org/wiki/Quantitative_easing

The purpose of this booklet is to describe the basic process of money creation in a " fractional reserve " banking system. The approach taken illustrates the changes in bank balance sheets that occur when deposits in banks change as a result of monetary action by the Federal Reserve System — the central bank of the United States. The relationships shown are based on simplifying assumptions. For the sake of simplicity, the relationships are shown as if they were mechanical, but they are not, as is described later in the booklet. Thus, they should not be interpreted to imply a close and predictable relationship between a specific central bank transaction and the quantity of money. http://en.wikisource.org/wiki/Modern_Money_Mechanics/Introduction#What_is_Money.3F

IN THE NAME OF ALLAH, MOST GRACIOUS, MOST MERCIFUL. 1. The mutual rivalry for piling up (the good things of this world) diverts you (from the more serious things), 2. Until ye visit the graves. 3. But nay, ye soon shall know (the reality). 4. Again, ye soon shall know! 5. Nay, were ye to know with certainty of mind, (ye would beware!) 6. Ye shall certainly see Hell-Fire! 7. Again, ye shall see it with certainty of sight! 8. Then, shall ye be questioned that Day about the joy (ye indulged in!).

In apportioning responsibility for the worldwide-credit crisis, readers did not all point to former U.S. Federal Reserve chairman Alan Greenspan . One called blaming Greenspan "simplistic," and another argued "banks were culpable." But after all is said and done, one wrote, "the real culprit is human greed." http://www.newsweek.com/id/172636