Beware 2018, when the next perfect banking storm may hit

Those looking for when the next financial crisis might be should set a reminder for January 1, 2018.

That’s when a host of new rules are scheduled to come into force that are likely to further constrain lending ability and prompt banks to only advance money to the best borrowers, which could accelerate bankruptcies worldwide. As with any financial regulation, however, the effects will start to be felt sooner than the implementation date. Continue reading

U.S. system designed to prevent financial crisis ‘likely to fail,’ say experts

“The current U.S. institutional set-up is likely to fail in a crisis, and will be doing less to prevent a crisis than it should be,” said Adam Posen, president of the Peterson Institute for International Economics, at a two-day conference on financial stability sponsored by the Boston Federal Reserve.

Posen said that U.S. regulators, including the Fed, don’t have the tools or the mandates from Congress that they need. Continue reading