Welcome to Day 3 of SmartBrief’s roundup of financial news coming out of the World Economic Forum’s Annual Meeting in Davos, Switzerland.
Blankfein on the reality of regulation: Goldman Sachs chairman and CEO Lloyd Blankfein told CNBC his firm is always thinking about regulation and how it affects things like technology acquisition. On whether banks are under regulatory assault, Blankfien responded, “No choice, no problem. I don’t have to sit here and ruminate on about whether its good or its bad or I like it or not. It is what it is.”
‘Pandemic bonds’ could be a panacea for next pandemic: Gillian Tett writes in the Financial Times writes about the concept of ‘pandemic bonds’ aimed at helping finance more effective and efficient responses to global health crises. The idea, which is backed by World Bank boss Jim Kim, would see bonds issued to help governments, NGOs and other organization,. “This could help cash-strapped governments finance measures to beat disease,” Tett writes. (read more…)
Welcome to Day 2 of SmartBrief’s roundup of financial news coming out of the World Economic Forum Annual Meeting in Davos, Switzerland. Scroll to the bottom of this post to watch a selection of Thursday’s panel discussions related to finance.
The Lady and the Gentleman: German Chancellor Angela Merkel might have been talking in Davos on Thursday, but everyone was listening to European Central Bank President Mario Draghi. Merkel’s call for Europe to stay the course on structural reforms was drowned out by Draghi announcing the ECB’s plan to inject $1.37 trillion into the Eurozone economy via quantitative easing. USA Today describes how many attendees at Merkel’s speech in Davos became distracted a view minutes in when Draghi’s news was announced.
Yea and Nay on European QE: Morgan Stanley boss James Gorman told Bloomberg News the ECB’s move on quantitative easing is a good thing. But according to CITY A.M., Larry Summers is not sure it is enough. (read more…)
Swiss Franc-enstein: As if Switzerland wasn’t already expensive enough, the Swiss National Bank’s currency move just made it crazy costly. The Telegraph explains why the SNB did it … The Guardian weighs what a Swiss vacation will now cost tourists … and Bloomberg goes high-brow to dissect what it will mean for bar tabs at the upcoming World Economic Forum in Davos.
NYT explains who is that attacking Dodd-Frank: Legislation proposed in the House would reduce transparency in derivatives trading, allow large banks to keep certain risky securities two years longer than now permitted and prevent the Securities and Exchange Commission from regulating private equity firms involved in some securities transactions, writes Gretchen Morgenson.
And Jack Lew says Dodd-Frank should be protected: The Dodd-Frank Act needs protecting, not dismantling, Treasury Secretary Jack Lew writes in the Washington Post. He notes the progress the U.S. economy has made since the financial crisis and credits a substantial part of that to regulatory changes. (read more…)