In today’s post the focus will be on the continuing crisis at Boeing, which started when two planes fell from the sky killing 346 people in total . In the business press recently, it has been suggested that Boeing may need to move to a ‘ Plan B ’ very soon before this crisis envelops the company, with a number of possible alternatives being put forward. However, in this post we will focus on the duopoly in the large jet airliner industry and seek to understand just how secure it is. In October 2018 a Lion Air Boeing 737 Max airplane crashed into the Java Sea shortly after taking off from Jakarta, killing 189 people . On the 10 th March 2019, a 737 Max plane flying under Ethiopian Airline colours crashed shortly after take off from Addis Ababa , killing all 157 people on board. Following the two crashes, that were connected by a failure of the Manoeuvring Characteristics Augmentation System (MCAS), all 737 Max planes were grounded and remain grounded to this day. Boeing initiall...

In this post, we will review a recent action by the EU that takes into account credit rating regulation, as well as Brexit. It was only last week when we reviewed the most recent regulatory manoeuvrings in relation to credit rating agency regulation , and yesterday it was announced in the business media that the EU have taken another step. However, whilst that step is having very little effect, it is being seen as a direct warning shot to the British as the new British Prime Minister, Boris Johnson, continues to reiterate that the UK will be leaving the EU on the 31 st October, with or without a negotiated exit deal. Rather than regulatory amendments, the EU has taken the unprecedented step of stripping five particular countries of its market rights . On the basis that the EU has warned Canada, Brazil, Singapore, Argentina, and Australia that, for the past 6 years, the rigour of its regulation of credit rating agencies is not equivalent to that of the EU’s regulation of the in...

The two elements of today’s post are common subjects here in Financial Regulation Matters . There are a variety of posts concerning credit rating agencies, on account of it being this author’s specialism, whilst there are also a number of posts concerning sustainable finance, and the incorporation of Environmental, Social, and Governance (ESG) concerns into the financial process. In the author’s most recent book The Role of Credit Rating Agencies in Responsible Finance , the continued and concerted entry of the leading CRAs into the growing field of sustainable finance was analysed, with one of the overarching sentiments being that regulatory oversight would be needed, and be needed soon. The EU has attempted to rise to that challenge and recently responded to orders from the EU Commission to put together a regulatory agenda in this field with their ‘ Technical Advice ’ on the matter. In this post we will look at these developments. Released on the 18 th July, The European Secu...

There is a risk in writing and publishing this post before 4pm GMT because as we await news of Britain’s new Prime Minister’s new cabinet, suggestions from the press may have guess wrongly. The strong rumour is that, as Boris Johnson begins to form his new Cabinet, which is likely to include such figures as the disgraced Priti Patel , current Home Secretary is in line to become Britain’s new Chancellor of the Exchequer. The reason for this post is based upon a theme that is currently being played out across the media, in that the past of a number of candidates are being reduced to mere footnotes in favour of a list of compliments regarding their past performances and this is being linked to ideas of what they will do in their new roles. This applies particularly to Sajid Javid who, whilst he is a son of a Pakistani bus driver and represents a ‘ rags-to-riches ’ story, also went to play a vital role in Deutsche Bank’s structured finance gluttonous uptake that both contributed to the...

RBS has taken up a large amount of space here in Financial Regulation Matters since the blog began, and also column inch after column inch in the business media. Financial Crisis-era transgressions, headline-catching financial penalties (whether large enough or not), a return to profitability, sell-offs that represent losses for the taxpayer, and also running businesses into the wall are all aspects that plague the recent and current era of the massive bank. However, now that Ross McEwan has made his move back to Australia after resigning in April , it is worth taking a closer look at the man that led the bank through one of the most difficult periods in its nearly 300-year history. The post-Crisis era for RBS has been, and arguably continues to be turbulent (despite returning to profitability). Going through those post-Crisis era developments is worthwhile, but we shall do that through the prism of understanding Ross McEwan more. Born in 1957 in New Zealand and educated at Has...

The issue of the British Railway system has taken up a few posts here in Financial Regulation Matters , with the majority being concerned with developments with the HS2 project . However, in relation to yesterday’s post on the concept of ‘capture’, this post will examine a suite of potential reforms that are heading towards the British Railway. In examining the proposals put forward to Government recently, we will look at this potential issue of developing an ‘arms-length’ body or entity, and also the effect of the proposals, which has been to completely ignore the question of nationalisation. The Government have commissioned a review of the rail system, to be undertaken by former British Airways CEO Keith Williams. This week the first signs of the reform proposals have been released and there are a number of issues the Williams’ Review intends to tackle. The main issue that has been picked up by the media is that a ‘ Fat Controller type figure would be key for regaining public...

Here in Financial Regulation Matters we have covered the concept of ‘capture’ from a number of different angles, including the audit , banking , and tobacco industries through to the concept of ‘ public private partnerships ’. Additionally, we have also looked at issues relating to money laundering , and economic crime more generally. It is for those reasons that the recent news that the British Government have put in place a number of plans to tackle the systemic issue of economic crime within the country – with London being consistently rated as one of the world’s leading economic crime ‘ hotspots ’ – is worth examining. Yet, rather than this being the headline, there is a glaring issue that the media have been quick to focus upon. The Independent ’s headline neatly sums up the story: “ Government criticised for giving banks key oversight role over fraud and money laundering ”. So, in this post we shall examine these developments and analyse the theory of ‘capture’ a little mor...

The National Trust, the UK and Europe’s largest conservation-based Charity , has this month declared that it will be divesting from all of its fossil fuel investment positions. Even though the investing in these positions is an important part of the Trust’s investment strategy, it has decided that the Oil, Gas, and Coal industries’ movement into greener technologies has not been quick enough, nor extensive enough. In this post we shall look at the Trust and its investment strategy a little closer, and position this recent movement against the backdrop of an increasing shift away from fossil fuel investment. Founded in 1895 and given statutory powers by the National Trust Act 1907 , the National Trust has a number of clear mandates. According to the 1907 Act, which has been updated several times since, the Trust exists to promote ‘ the permanent preservation for the benefit of nation of lands and tenements, including buildings, of beauty or historic interest, and as regards land...