A number of developments regarding stories that we have been covering for quite a while here in Financial Regulation Matters have taken place recently, so in this post we will look at some updates on each one to see how the issues are developing. Fiat-Chrysler Finally Merge with PSA Peugeot We last looked at developments within the automotive industry in September with the credit downgrade of Ford , but one of the underlying sentiments within the industry has been that companies may, or will need to merge in order to survive their environment. Tougher regulations, increased costs, potentially saturated marketplaces, the need to keep up with technological advancement, and inconsistent and unpredictable economic and social arenas are making the job of manufacturing and selling cars much harder. The three largest automotive players are Toyota, Volkswagen, and the Renault-Nissan alliance. Now, the fourth largest is this new PSA-Fiat Chrysler merged partnership which, according...

Today’s post looks at a recent article produced by credit rating experts Marc Joffe and Joe Pimbley. In the article entitled ‘Mall Shooting Highlights Folly of Single Asset CMBS Ratings’, Joffe and Pimbley discuss how recent events at the Destiny USA Mall in Syracuse have highlighted underlying and, arguably, fundamental issues within the credit rating arena in relation to CMBS – Commercial Mortgage-Backed Securities. In this review of their article, we will examine this issue more closely, along with the points made by the article in question. First, some context. On the most recent ‘Black Friday’, the Destiny USA Mall in Syracuse (New York) fell victim to a shooting attack, within which a victim received wounds in the leg . Then, only the very next day, ‘ at least one person was stabbed during a fight at Apex Entertainment inside Destiny USA ’. Here in Financial Regulation Matters we have, admittedly from a majoritively British perspective, analysed the diminishing health o...

Earlier this year we looked at the concept of large investors starting to take a stand with regards to the actions of those they invest in . In recent news, this trend is potentially continuing, with some of the world’s largest players now focusing on issues such as climate change and short-selling. In this short post we will review these stories and continue analysing the trend as it develops. We have looked at the concept of ESG many times, and the first story we shall assess focuses on the ‘E’ component. Yesterday the Independent ran with the story that Sir Christopher Hohn, the founder of TCI Fund Management, said that he will begin taking purposeful and potentially impactful action against firms he is invested in who do not take the issue of climate change seriously – his firm has more than £21 billion in assets under management. He has decided to focus on the issue of disclosure, stating that the firm would move to ‘vote against all directors of companies which do not p...