Our main stories this week include …
I’ve been asked the same question twice this week in two separate conferences (one in Vienna, the other in San Francisco): “how will we deal with the corruptive forces when we are all on the net?” So here’s the plotline that I gave and the concern that the audience feel.
Another day and more news about blockchain, this time in the wholesale financial markets. I’m presenting at a conference later this week, and the organisers asked me to think about collateral management. This is a subject that has been perplexing our capital markets group in London, as EMIR (the European Markets Infrastructure Regulation) mandated that firms provide collateral against trading in real-time. Tough call when most markets have operated at T+3, which means settling three days after the trade.
I realised recently that my course of opinion is rather different to several other commentators and felt it worth noting where we agree and disagree. Where I agree with most FinTech people is that:
I attended a great meeting in Austria with Google yesterday. There were a number of Google Vision presentations and discussions, along with nice vignettes from Accenture and Raiffeisen Bank. One slide particularly caught my attention however, as I’ve just started to see a cycle in Fintech and this slide from Google’s Creative Evangelist (really?) Jeremy Abbett put this on screen:
We always want to complete things, and it makes everything interesting when it comes to the psychology of money. Part of the reason I mention this is that we are moving to a world of electronic ledgers. In so doing, we must remember the psychology of money, as money is a real thing. Money dominates our lives and allows us to reward our desires or to have to postpone them. How do we control our balance in a digital world?
This week’s major news headlines include …
The Greeks can’t live without the euro and they can’t live with it – The Independent
Das Capital: The Greeks gave up their trump card even before the negotiations commenced
Royal Bank of Scotland Trialing In-House Cryptocurrency – Coindesk
Royal Bank of Scotland (RBS) is experimenting with its own in-house cryptocurrency, says the bank's technology chief.
Deutsche Bank expects to lose €6bn in just three months – The Telegraph
German lender could suspend dividend this year after massive loss
Lloyds public share sale planned for spring – but should you buy? – The Independent
Lloyds shares amounting to £2 billion are to be make available to the public at a five per cent discount, according to Chancellor George Osborne
Challenger banks won't be hit if a big rival fails – The Telegraph
A new system of insurance removes the risk for small banks if their bigger rivals fail
The one chart that shows the world is on the brink of a new recession – The Independent
The IMF has cut its 2015 forecasts for world output to 3.1 per cent
Santander HQ evacuated after white powder sent to executives – The Telegraph
Twelve employees who handled the envelopes were being kept under medical observation, bank says
The two men taking on the banks – BBC
The two Estonians taking on the banks
Santander in court over 'the worst trade ever' – The Telegraph
A Portuguese rail company says it was misled by the Spanish bank into agreeing to a swap which has cost it €500m
Is this Government bank behind the alternative finance boom? – The Telegraph
The British Business Bank is funnelling cash into small firms through new lenders, but at what cost?
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