The Financial Crisis and the Regulation of Credit Rating Agencies : A European Banking Perspective

Credit rating agencies (CRAs) bear some responsibility for the financial crisis that started in 2007 and remains ongoing. This is acknowledged by policymakers, market participants, and by the agencies themselves. It soon became clear that, given the depth of the crisis, CRAs would not be able to satisfy policymakers by eliminating flaws in their rating methods and improving corporate governance. Although the CRAs were more or less unregulated before the outbreak of the financial crisis, after the crisis started, politicians became increasingly vocal in demanding regulation. Initially, these demands were confined to a more binding form of self-regulation. But as the crisis progressed, the calls for state regulation grew ever louder. It became apparent after the November 2008 G-20 summit in Washington that state regulation could no longer be avoided. In Europe, the course had been set in this direction even before then. Since European policymakers saw the crisis as evidence that the Anglo-Saxon approach to the financial markets had failed, they believed they were now strongly placed to have a decisive influence on shaping a new international financial order. It is remarkable to note the shift in European policy from a self-regulatory approach, which was comparatively liberal in international terms, to quite rigorous state regulation of CRAs. Both the European Commission and the European Parliament drew up far-reaching plans. Although European policymakers knew that only globally consistent regulation would be appropriate for a new world financial order, their initial draft legislation was geared more toward stand-alone European regulation. While the final version of the European Union Regulation on Credit Rating Agencies focuses firmly on the European arena, the key point for all market participants is that this is unlikely to have an adverse effect on the global ratings market. It must nevertheless be recognized that the scope of the selected regulatory approach is extremely narrow. Certainly, it has the potential to improve the corporate governance of CRAs and prevent conflicts of interests. But it can do nothing to address the repeated calls for greater competition or for CRAs to be made liable for their ratings.credit rating agencies, financial crisis, financial regulation, European Regulation

The Financial Crisis and the Regulation of Credit Rating Agencies: A European Banking Perspective

Credit rating agencies (CRAs) bear some responsibility for the financial crisis that started in 2007 and remains ongoing. This is acknowledged by policymakers, market participants, and by the agencies themselves. It soon became clear that, given the depth of the crisis, CRAs would not be able to satisfy policymakers by eliminating flaws in their rating methods and improving corporate governance. Although the CRAs were more or less unregulated before the outbreak of the financial crisis, after the crisis started, politicians became increasingly vocal in demanding regulation. Initially, these demands were confined to a more binding form of self-regulation. But as the crisis progressed, the calls for state regulation grew ever louder. It became apparent after the November 2008 G-20 summit in Washington that state regulation could no longer be avoided. In Europe, the course had been set in this direction even before then. Since European policymakers saw the crisis as evidence that the Anglo-Saxon approach to the financial markets had failed, they believed they were now strongly placed to have a decisive influence on shaping a new international financial order. It is remarkable to note the shift in European policy from a self-regulatory approach, which was comparatively liberal in international terms, to quite rigorous state regulation of CRAs. Both the European Commission and the European Parliament drew up far-reaching plans. Although European policymakers knew that only globally consistent regulation would be appropriate for a new world financial order, their initial draft legislation was geared more toward stand-alone European regulation. While the final version of the European Union Regulation on Credit Rating Agencies focuses firmly on the European arena, the key point for all market participants is that this is unlikely to have an adverse effect on the global ratings market. It must nevertheless be recognized that the scope of the selected regulatory approach is extremely narrow. Certainly, it has the potential to improve the corporate governance of CRAs and prevent conflicts of interests. But it can do nothing to address the repeated calls for greater competition or for CRAs to be made liable for their ratings.regulation credit rating agencies; europe credit rating agency; european bank financial crisis; financial crisis; credit rating agency

The path to European Monetary Union: An institutional economics approach

The planned broadening of the common internal market into an economic and monetary union as proposed in the Delors Plan means a significant qualitative leap in the process of European integration, which should ultimately lead to political union in Europe. Is this objective realistic? In what ways could it be achieved

The financial crisis and the regulation of credit rating agencies: A European banking perspective

Credit rating agencies (CRAs) bear some responsibility for the financial crisis that started in 2007 and remains ongoing. This is acknowledged by policymakers, market participants, and by the agencies themselves. It soon became clear that, given the depth of the crisis, CRAs would not be able to satisfy policymakers by eliminating flaws in their rating methods and improving corporate governance. Although the CRAs were more or less unregulated before the outbreak of the financial crisis, after the crisis started, politicians became increasingly vocal in demanding regulation. Initially, these demands were confined to a more binding form of self-regulation. But as the crisis progressed, the calls for state regulation grew ever louder. It became apparent after the November 2008 G-20 summit in Washington that state regulation could no longer be avoided. In Europe, the course had been set in this direction even before then. Since European policymakers saw the crisis as evidence that the Anglo-Saxon approach to the financial markets had failed, they believed they were now strongly placed to have a decisive influence on shaping a new international financial order. It is remarkable to note the shift in European policy from a self-regulatory approach, which was comparatively liberal in international terms, to quite rigorous state regulation of CRAs. Both the European Commission and the European Parliament drew up far-reaching plans. Although European policymakers knew that only globally consistent regulation would be appropriate for a new world financial order, their initial draft legislation was geared more toward stand-alone European regulation. While the final version of the European Union Regulation on Credit Rating Agencies focuses firmly on the European arena, the key point for all market participants is that this is unlikely to have an adverse effect on the global ratings market. It must nevertheless be recognized that the scope of the selected regulatory approach is extremely narrow. Certainly, it has the potential to improve the corporate governance of CRAs and prevent conflicts of interests. But it can do nothing to address the repeated calls for greater competition or for CRAs to be made liable for their ratings

Zróżnicowanie struktury wydatków konsumpcyjnych gospodarstw domowych w Polsce według grup społeczno-ekonomicznych

In the paper differentiation between household consumption pattern in Poland by socio-economic group on the basis of Household Budget Survey published by Central Statistical Office was presented. Changes in the span of 2005–2013 was showed. Structural measure of differentia-tion based on Bray-Curtis metrics was used to examine consumption pattern differentiation. Results was presented on the background of household disposable incomes. In the span of 2005–2013 real incomes of households increases, at most in farmers house-holds. In the analysed period farmers households consumption pattern conformed to households of employees in nonmanual labour positions, retirees and self-employed consumption pattern. As well as in 2005 as in 2013 pairs of socio-economic household types by similar consumption pattern occurred, the first pair was households of retirees and pensioners and the second pair was households of employees on non-manual positions and self-employed. The best consumption pattern, with the smallest share of expenditures on food and non-alcoholic beverages and on housing, water, electricity, gas and other fuels was observed in house-holds of employees on non-manual labour positions and self-employed while the worst consumption pattern was observed in pensioners households. Between 2005 and 2013 polarisation between households of pensioners and households of other socio-economic household types deepened.W artykule przedstawiono zróżnicowanie struktury wydatków konsumpcyjnych gospodarstw domowych w Polsce według grup społeczno-ekonomicznych w oparciu o dane z Budżetów go-spodarstw domowych GUS. Pokazano zmiany w tym zakresie, które zaszły w latach 2005–2013. Do określenia zróżnicowania struktury wydatków konsumpcyjnych wykorzystano miarę zróżni-cowania struktur opartą na metryce Braya-Curtisa. Otrzymane wyniki przedstawiono na tle kształ-towania się dochodów do dyspozycji gospodarstw domowych. W okresie 2005–2013 wzrosły dochody gospodarstw domowych w ujęciu realnym, najbar-dziej w gospodarstwach domowych rolników. W badanym okresie struktura wydatków konsump-cyjnych gospodarstw domowych rolników upodobniła się do struktury wydatków konsumpcyj-nych gospodarstw domowych pracowników na stanowiskach nierobotniczych, emerytów oraz pracujących na własny rachunek. Zarówno w roku 2005, jak i w 2013 r. występowały pary grup społeczno-ekonomicznych go-spodarstw domowych o podobnej strukturze wydatków konsumpcyjnych, pierwszą parę stanowiły gospodarstwa domowe emerytów i rencistów, a drugą gospodarstwa domowe pracowników na stanowiskach nierobotniczych oraz pracujących na własny rachunek. Najlepszą strukturą konsumpcji, o najmniejszym udziale wydatków na żywność i napoje bez-alkoholowe oraz na utrzymanie mieszkania i nośniki energii charakteryzowały się gospodarstwa domowe pracowników na stanowiskach nierobotniczych oraz pracujących na własny rachunek podczas gdy najgorsza struktura wydatków konsumpcyjnych występowała w gospodarstwach domowych rencistów. Pomiędzy rokiem 2005 a 2013 polaryzacja pomiędzy gospodarstwami domowymi rencistów a pozostałymi grupami społeczno-ekonomicznymi gospodarstw domowych uległa pogłębieniu. &nbsp

Particle phase dynamics in a circulating fluidized bed riser

This thesis is focused on the particle phase dynamics in a circulating fluidized bed riser (CFB). Fluidized beds are commonly encountered in many industrial applications such as drying and coating of particles, polimerizations, combustion and gasification of coal and biomass, gasoil fluid catalytic cracking. Given the importance of the physical understanding about CFBs, in this work experiments and simulations are carried out to explore, describe and predict the upward gas-solid flow in pilot scale. Therefore, the Pilot Unit of Riser and Cyclones was designed and built, as well as its control and optical measuring systems, the last one by using Phase Doppler Anemometry (PDA). Besides that, the flow was solved by Computational Fluid Dynamics, as the second pillar on which this thesis is based, through the solution of an Eulerian-Lagrangian unsteady point-particle model, with inter-particles collisions and impact on rough walls, implemented on the in-house code UNSCYFL3D. The results from both experiments and simulations have shown the macro- and meso-scale structures formation, caused by geometrical and fluid dynamics effects, respectively. Particle phase flow segregation occurs near the particle inlet and also recirculation at the top of the riser, due to the T shape outlet. The PDA results show the core-annulus structure formation from the bottom of the riser in the higher mass loadings, the tendency of radial and axial segregation of particle diameters and the particle deposition near the riser wall, where the discrete phase has higher velocity fluctuations. On the other hand, the simulation results show little influence of Saffman and Magnus forces over the particles flow, however great impact of the roughness wall model and of the turbophoresis effect. About the model validation, good agreement is found mainly to particle concentration at the riser centre and to the particle phase axial velocity.CNPq - Conselho Nacional de Desenvolvimento Científico e TecnológicoTese (Doutorado)A presente tese e voltada à investigação da dinâmica das partículas em um riser de leito fluidizado circulante (CFB). Os leitos fluidizados sao comumente encontrados em aplicações de diversas areas industriais, como na secagem e revestimento de partículas, na polimerizaçao, na combustao e gaseificacao de carvão ou biomassa, no craqueamento catalítico de gasóleo. Dada a importancia da compreensão fenomenologica dos mecanismos que ocorrem nestes equipamentos, este trabalho utiliza de experimentacães física material e numerica para investigar, descrever e prever o escoamento gas-solido ascendente em escala piloto. Para isso, a Unidade Piloto de Riser e Ciclones foi projetada e construída, bem como seu controle e sistema de medicão optica, a Anemometria por Efeito Doppler (PDA). O escoamento tambem foi avaliado por Fluidodinamica Computacional, como um segundo pilar sobre o qual a presente tese esta suportada, atraves da solucao de um modelo matematico euleriano-lagrangeano transiente de partícula pontual, que considera colisães entre partículas e delas com paredes rugosas do riser, implementado no codigo UNSCYFL3D. Os resultados de ambas simulacoes física material e numerica dos estudos de caso propostos, evidenciaram a formaçcaão de estruturas de macro e mesoescala, derivadas de efeitos geometricos e fluido dinâmicos, respectivamente. Ocorre segregacao do escoamento da fase sólida na base do riser e recirculacao no topo, devido a saída em T. A PDA evidenciou: a formacao da estrutura core-annulus desde a alimentacao das partículas nos maiores carregamentos, a tendâencia de segregaçcãao radial e axial de diametros de partículas e a deposiçao nas regioes próximas à parede, onde as partículas tem maior flutuacao de velocidade. As soluçoes numericas indicaram pouca influencia das forcas de Saffman e Magnus, porem grande influencia da rugosidade da parede e do efeito da turboforese. O modelo matematico foi comparado frente as mediçoes físicas, mostrando bom grau de validacao para concentraçao de partículas no centro do riser e para velocidade axial media das partículas

An Examination of Corporate Financial Performance Within Corporate Socially Responsible Standard & Poor 500 Companies

Many managers are failing to predict and respond to the evolutionary changes within their firm’s business environment. Some experts believe that any company not utilizing a corporate social responsibility (CSR) strategy will lose customers, which will have a direct impact on the firm’s financial performance. Managers lack a clear understanding of the impacts of CSR strategies on corporate financial performance. The purpose of this quantitative multiple regression-based study was to examine what relationship existed between an organization’s CSR strategy and its financial performance. The conceptual frameworks for this research were stakeholder and triple bottom line theories. These frameworks were selected because of their emphasis on CSR implementation. The completed multiple regression analyses focused on S&P 500 companies’ relationship of debt to equity, return on assets, and net profit margins with CSR scores to determine if any association existed. Four CSR categories were utilized as independent variables based on CSRHub’s reporting: (a) community, (b) employee, (c) environment, and (d) governance. Results from this study found a nonsignificant relationship between CSR and the dependent variables of return on assets and net profit margin. Debt to equity provided a mixed significance level with the independent variables of employees and governance proving insignificant, while community and environment represented a significant relationship. This research has forwarded the understanding of both stakeholder and triple bottom line theory by focusing new CSR research into the direction of the positive relationships and away from those that show no significance. Organizations that focus their CSR policies towards community engagement will benefit from a reduction in debt to equity and will promote social change through increased community improvement