Public Inquisition of Rating Agencies may Accelerate Downturn
London, UK - 16 August 2007, 16:37 GMT
Dear ATCA Colleagues
[Please note that the views presented by individual contributors are not
necessarily representative of the views of ATCA, which is neutral. ATCA conducts
collective Socratic dialogue on global opportunities and threats.]
The worsening global credit situation has prompted French President Nicolas
Sarkozy to urge the Group of Seven (G7) industrial countries to monitor international
financial markets better. In a letter to German Chancellor, Angela Merkel,
he called for an investigation into the role of credit agencies in identifying
risks. The adverse situation at France's largest bank, BNP Paribas, played
a major role in forcing the European Central Bank's (ECB) interventions over
last week. Mr Sarkozy has repeatedly sought a greater role for governments
in managing the economy and has sought to wrest some control of monetary policy
from the ECB regulators.
Dear DK and Colleagues
Re: Watch out for Dramatic Winners
Much is being made of the role of leveraged hedge funds in the current credit
crisis, with the implicit assumption that these fellows are now getting their
comeuppance and that their role in the financial system will be smaller in
the future. Don't be so sure.
Dr George Feiger is President and CEO of of Contango Capital Advisors, based
in Berkeley, California. He brings to the firm a diverse background in the
banking, financial services and wealth-management industries. He is also Executive
Vice President of the firm's parent company, Zions Bancorporation listed on
Nasdaq and based in Salt Lake City, Utah. Prior to Contango, Dr Feiger served
in a number of senior positions in the financial services sector. He was a
Senior Advisor to the Monitor Group, Global Head of Onshore Private Banking
for UBS, Global Head of Investment Banking at SBC Warburg and was a Senior
Partner at McKinsey & Co during his time in Europe. He led the merger
integration of the corporate finance businesses of Swiss Bank Corp and SG
Warburg, and oversaw the consolidation of SBC Warburg's sales and trading
businesses. He was also a partner at Capco, a financial services consulting
firm. He holds a PhD in Economics from Harvard University and was an Associate
Professor of Finance at Stanford University's Graduate School of Business.
He has served as a director on several corporate boards and is a frequent
writer and speaker on a wide range of financial topics.
We are grateful to:
. Rudi Bogni, Chairman, Medinvest, and Director, Old Mutual, from Basel,
Switzerland, for, "Non-Stop Central Banks'
. Dr Ravi Batra, Professor of Economics, Southern Methodist University,
Dallas, Texas, USA, for, "Towards a Global
. Aurora Carlson, Founder, Open One Center, based on the West Coast, Sweden,
for "The Coming Storm of Change;"
. The ATCA Editorial Team, based in Canary Wharf, London, UK, for "Large
Quake hits Quants as Computer-Driven Quantitative Hedge Funds Short-Circuit;"
. Dr Harald Malmgren, CEO, Malmgren Global, based in Washington, DC, USA
for "Prolonged Credit Market Correction Ahead;"
. Prof Dr Norbert Walter, Chief Economist, Deutsche Bank Group, based in
Frankfurt, Germany, for "Economic Consequences
of The Sub-Prime Crisis;"
. Anthony Whitehouse based in Coppet and Geneva, Switzerland, for "Regulators,
Hedge Fund Lending and Cross-Selling;"
. The ATCA Editorial Team, based in Canary Wharf, London, UK, for "Perfect
Storm: Credit Freeze and Distress Selling by Hedge Funds;"
. Dr George Feiger, based in Berkeley, California, USA, for "Two
Faces of the Same Coin;"
. The ATCA Editorial Team, based in Canary Wharf, London, for "Contagion
and Systemic Risk? ECB Injects Record Euro 95bn post Major Disturbance;"
. The ATCA Editorial Team, for "Flight to Quality
as Markets finally Appreciate Risk;"
. Robert McNally, Chairman, London Chamber of Commerce Property and Construction
Group, for "Erosion of Commercial Real Estate
as a Solid Asset Class;"
. Alexander Hoare, CEO, C Hoare and Co, Private Bankers, based in the City
of London, for "Destructive
Creativity, Leverage and The Derivatives Market;" and
. Dr Harald Malmgren, CEO, Malmgren Global, based in Washington, DC, for
"The Fear of Central Bankers -- Flight from
Illiquidity, Derivatives and Heightened Risk of Contagion;"
in response to, "Are the Currency Markets Warning
that there is Trouble Ahead? The Precipitous Decline of the US Dollar and
its Impact on the World."
We look forward to your further thoughts, observations and views. Thank
For and on behalf of DK Matai, Chairman, Asymmetric Threats Contingency
ATCA: The Asymmetric Threats Contingency
Alliance is a philanthropic expert initiative founded in 2001
to resolve complex global challenges through collective Socratic
dialogue and joint executive action to build a wisdom based global
economy. Adhering to the doctrine of non-violence, ATCA addresses
asymmetric threats and social opportunities arising from climate
chaos and the environment; radical poverty and microfinance; geo-politics
and energy; organised crime & extremism; advanced technologies
-- bio, info, nano, robo & AI; demographic skews and resource
shortages; pandemics; financial systems and systemic risk; as
well as transhumanism and ethics. Present membership of ATCA is
by invitation only and has over 5,000 distinguished members from
over 120 countries: including 1,000 Parliamentarians; 1,500 Chairmen
and CEOs of corporations; 1,000 Heads of NGOs; 750 Directors at
Academic Centres of Excellence; 500 Inventors and Original thinkers;
as well as 250 Editors-in-Chief of major media.
The views presented by individual contributors are not necessarily
representative of the views of ATCA, which is neutral. Please
do not forward or use the material circulated without permission
and full attribution.
Intelligence Unit | mi2g | tel +44 (0) 20 7712 1782 fax +44
(0) 20 7712 1501 | internet www.mi2g.net
mi2g: Winner of the Queen's Award for Enterprise in the category