Subscribe to this blog's feedFailure has a thousand fathers
Just pausing to round up the last few big serious documents -
from the BIS, a credit risk transfer study (original document here)
from Sifma, a flogging for the credit rating agencies (original document here)
from Gerald Corrigan's CRMPG III, demands for better risk monitoring (original document here)
from the BBA, an announcement that Libor is super, thanks for asking! and doesn't need changing at all. (original document here) My favourite part has to be the discussion of possible underreporting of borrowing costs. Briefly, earlier this summer people started to distrust Libor - partly because there were rumours that contributing banks were underreporting their borrowing costs in order not to appear in trouble. Serious, if true.
But it can't be true, the BBA says - we know this because we asked the contributing banks and they all said they weren't doing it.
I think comment would be superfluous at this point.
