ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Market Scandals and Regulatory Governance

What has happened in Wall Street over the past 18 months raises several issues of regulatory governance which are immensely relevant for countries such as India that have embarked on reform of their financial and capital markets. There is deep concern that the regulating agencies are not adequately equipped and capable of discharging their primary responsibility of preserving the integrity of the market processes.

Globalisation, the IMF and Governance

Joseph Stiglitz's new book breathes moral outrage against the IMF. But any reform measures confined to the Bretton Woods institutions would not be an adequate response to the challenges of global capitalism. The scope and dimensions of collective action have to be much wider than redefining the role of the IMF and reforming its governance as recommended by Stiglitz.

The Unauthorised Code of Corporate Governance

Ten commandments - nothing in common with the authorised corporate governance code, of course - for a passage to the Fortune 500, distilled from the experience of Enron.

National Champions in the Financial Sector

To argue for development of national champions in the financial sector is not blind economic nationalism, nor is it protectionism or an alternative to competition. The authorities have to plan to develop and retain a few key institutions, but certainly it will serve no purpose if these institutions do not and are not enabled to come up to accepted international standards. Lessons from the story of the submission of the City, one-time symbol of British financial power and dominance.

Wall Street Entrepreneurs

The interrelationships between governments and markets in international finance are indeed complex. The international community has to veer round to some controlled and deliberate move to 'disintegrate' the international economy and curb the fluidity and volatility of international money flows causing extreme fluctuations in exchange rates and detracting from the benefits of international trade in goods and services. Cooperative crisis management would be the toughest challenge for the international financial community in the coming decade.

George Soros Phenomenon

The phenomenon of George Soros has to be evaluated in the historical context. The global economy without the discipline of a world government has become the breeding ground for adventures. It is throwing up men who know how to leverage their imaginations to satisfy their appetites for money and power.

Living Dangerously

As financial markets are getting more integrated, the moods and sentiments of Wall Street investment bankers and brokers have a huge impact on market behaviour in non-US stock markets. If concerted international action is taken now to discipline financial markets in the advanced countries, Wall Street particularly, the touchdown will be softer and the emerging markets will stand to benefit.

Weak Banks: A Strategy for Self-Renewal

The two approaches to 'weak' public sector banks, represented by the reports of the Verma Committee and the Task Force of the CII, have provoked high-pitched reactions. What is important, however, is that the different stakeholders - the government and the Reserve Bank, the managements of the banks and the unionised employees - agree on a framework within which the banks could be attempted to be rehabilitated. Three ground rules are suggested here for the purpose.

Globalisation and National Politics

Economic globalisation creates pressures as well as opportunities for all economies and it is for the political class in each polity to spot the opportunities and learn to mould the pressures to serve the particular country's needs and interests.

Parekh Report: Piercing the Veil in UTI

The Deepak Parekh report tells us what has happened, not why and how it happened. These questions have to be addressed and answered. The Parekh report will have served its purpose if it leads to this effort.

Debt Defaulters as Darlings of Society

The debtor-creditor relationship is becoming increasingly complex and the promise to pay is fast losing its sanctity.

Narrow Banking Fudging the Issue

If weak public sector banks have to be turned around and put on a sustainable path of growth and profitability, certain ingrained cultural characteristics of these banks have to be confronted, This can be done only with the support and understanding of the two critical stakeholders in these banks, the government and the employees who owe their allegiance to politicised unions. It is these stakeholders who hold the future of the public sector banks in their hands. The experience of some international banks who have resorted to narrow banking as a consolidation measure has little relevance to the highly politicised ambience of our public sector banks.

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