The Squam Lake Report: Observations from two policy professionals

The Squam Lake Report (SLR) contains a host of recommendations to “fix the financial sector.” A credible fix must take on the excessive risk-taking of financial institutions created when uninsured creditors of important financial institutions expect government protection from loss (i.e., the too-big-to-fail problem). The vast majority of SLR’s recommendations constitute important contributions to addressing TBTF; the analysis offered in support of recommendations is sound and brings modern economics and finance to bear. The clarity and focus of SLR offers a model for academics writing for a policy audience.We differ in emphasis with SLR on a few issues, including capital and living wills, but support moving forward with the core of SLR’s recommendations even in these cases.Legislation (i.e., “Dodd-Frank”) seeking to fix the financial sector became law around the time SLR was published. The legislation includes in one form or another the predominance of credible recommendations made to address TBTF, including the majority of those in SLR. The ultimate success of the legislation, however, depends on implementation. We hope the government focuses on a macroprudential regime that reduces fallout from financial spillovers, considers new efforts to measure and tax expected TBTF subsidies, and reconsiders aspects of Dodd-Frank that expand the safety net. Given the stakes, another SLR-caliber effort, this time centered on Dodd-Frank implementation, promises high returns.     

The Squam Lake Report: Fifteen economists in search of financial reform

The Squam Lake Report is a volume by economists for economists. It offers the fruits of the labors of 15 top economists who met at Squam Lake, New Hampshire, to discuss financial reform. While somewhat disjointed, and avoiding many important issues, the book is nonetheless a tour du force. Its many recommendations derive from two basic principles: that reformers need to think systemically, and that third-party costs stemming from systemic risk need to be internalized. And its approach is just what you would expect from a group of academic economists. It asks (and answers) questions like: Where did incentives go wrong? What were the sources of market failure? How can we better protect society against negative externalities?.     

Aligning Incentives at Systemically Important Financial Institutions: A Proposal by the Squam Lake Group

To address the moral hazard problem that can motivate bank executives to take excessive risks and to fail to raise capital when needed, a group of 13 distinguished financial economists recommends that systemically important financial institutions be required to issue contingent convertible debt (CoCos) and to hold back a substantial share—as much as 20%—of the compensation of employees who can have a meaningful impact on the survival of the firm. This holdback should be forfeited if the firm's capital ratio falls below a specified threshold. The deferral period should be long enough—the authors suggest five years—to allow much of the uncertainty about managers' activities to be resolved before the bonds mature. Except for forfeiture, the payoff on the bonds should not depend on the firm's performance, nor should managers be permitted to hedge the risk of forfeiture. The threshold for forfeiture should be crossed well before a firm violates its regulatory capital requirements and well before its contingent convertible securities convert into equity. The Swiss Bank UBS has paid bonuses to its top 6,500 executives that have been structured in exactly this way. Management forfeits its deferred compensation if the bank's regulatory capital ratio falls below 7.5%, and its contingent convertible debt is set up to convert into equity if the bank's capital ratio falls below 5%.     

新制度下财务报告的改进

财务报告的目的是为了满足会计信息使用者不同的需要.随着改革的深化,原来的"两则、两制"规定下的财务报告已不能满足不同会计信息使用者的要求,需要改进.新<条例>对财务报告的内部组成--会计要素和外部结构--报告体系进行了改进.     

XBRL环境下财务报告鉴证框架的建构——基于XBRL财务报告元素的角度

基于XBRL财务报告元素的角度,构建了由总体鉴证目标(XBRL财务报告真实恰当地反映了企业的经济事实或者纸质报告)、具体鉴证目标(XBRL财务报告的合规性和可靠性)和管理层认定组成的XBRL环境下财务报告的鉴证框架,并对XBRL财务报告进行了鉴证,发现在XBRL财务呈报中出现了违反基本元素标记的完整性和元素数据的金额准确性等的错报。在XBRL财务报告的推进过程中需要贯彻实施通用分类标准,加快制定行业扩展分类标准,并加强对XBRL财务报告质量的人工校验以及完善编制流程的内部控制等。     

The Financial Crisis: Causes and Lessons*

The author argues that the root cause of the recent crisis was a housing bubble whose origins can be traced to loose monetary policy and a government housing policy that continually pushed for lower lending standards to increase home ownership. The negative consequences of such policies were amplified when transmitted throughout the financial system by financial institutions through the process of securitization. In attempting to assess culpability for the crisis and identify possible reforms, the author focuses on three categories:

• 1 Defects in Financial Products: Without criticizing derivatives and the process of securitization, the author identifies the sheer complexity of the securities as a major source of the problem—for which the solution is a simpler security design combined with greater disclosure about the underlying assets being securitized.
• 2 Defects in Risk Management: Thanks in large part to agency and other incentive problems, there was universal underestimation of risks by mortgage originators and financial institutions throughout the securitization chain. Changing incentive pay structures is part of the solution, and so are better accounting rules for SPEs. But more effective regulatory oversight and ending “too big to fail” may well be the only way to curb excessive private risk-taking.
• 3 Defects in Government Policy and Regulation: While acknowledging the need for more effective oversight, the author argues that there was ample existing authority for U.S. regulators to have addressed these issues. Lack of power and authority to regulate was not at the heart of the problem—the real problem was lack of foresight and judgment about the unexpected. After expressing doubt that regulators can prevent major financial failures, the author recommends greater attention to devising better methods of resolving such failures when they occur. One of the main goals is to ensure that losses are borne not by taxpayers but by private investors in a way that maintains incentives for market discipline while limiting spillover costs to the entire system.

     

试论我国财务报告体系的改革

我国财务报告存在着目标偏差、信息披露不完整、过于强调信息的可靠性等问题。在满足有效披露、成本效益、财务报告体系表内优生的原则下，财务报告体系的改革应以完善体系、丰富披露内容、变革报告模式为目标。     

Financial Reporting for Private Companies: The Canadian Experience*

The issue of whether small and/or private companies should be allowed to use simplified accounting standards in financial reports has concerned the accounting profession for decades. It has been argued that preparing financial reports in accordance with the large volume of promulgated standards contained in generally accepted accounting principles (GAAP), some of which are relatively complex, has put a significant strain on the resources of small/private business. Moreover, information produced and presented in accordance with at least some accounting standards within GAAP may not be relevant for the users of small/private companies' financial statements. In this paper we look at differential reporting in Canadian GAAP, which gives nonpublicly accountable enterprises the ability to opt out of certain CICA Handbook requirements with unanimous consent of the shareholders. We look at lobbying activity in response to the proposed differential reporting standard and at nonpublicly accountable company experience with the differential reporting opportunity in the period since the standard was promulgated.     

会计报表中衍生产品的信息披露研究——美国的经验与启示

金融危机之后,美国修改了衍生产品的信息披露标准,提高了披露要求;同时,执法机构也加强了对金融机构滥用会计准则、规避信息披露义务的制裁力度。我国场外金融衍生工具市场尚处于发展初期,相关信息披露标准未臻完备。现行会计信息披露标准对于衍生工具的披露着墨不多,且主要集中于公允价值和风险披露两个方面。借鉴域外经验,我国应进一步完善衍生产品信息披露标准、防范准则滥用,以保护投资者的合法权益。     

论新经济时代财务报告体系的改进

面对经济全球化斟技创新以及信息网络化的新经济时代的来临,我国现行财务报告体系已不适应当前经济发展的要求,不能满足信息使用者对风险信息和不确定性信息披露的要求.为此,有必要对现行财务报告进行改进.完善财务会计报告体系是当前的热点问题.本文通过阐述现行财务报告体系的局限性,结合我国的实际情况,提出了改进思路,以满足日新月异的经济发展的需要.     

The Global Financial Architecture: Twenty‐First Century Solutions*

Twentieth‐century global financial architectural solutions are outdated and have been found wanting. They are fundamentally structural solutions and continuing to rely on them would be to run the risk of repeating our mistakes. We must look to twenty‐first century solutions. Solutions created post‐1945 need replacing with networked solutions, reflecting what we see in the Internet and its development. These are not fanciful notions but concepts that have already been successfully modelled, albeit in a relatively narrow sphere. What we need is a mechanism by which global financial standards can be implemented in every jurisdiction around the world. This paper proceeds from the premise that the nexus between investor confidence and financial market stability is a crucial one, and one that a regulatory approach can impact. It discusses the international regulatory environment and the role of key players in the emerging global financial architecture, in particular the International Organization of Securities Commissions ( IOSCO ). It also examines the potential that mutual recognition offers for the trans‐Tasman market.     

信息需求增长条件下财务报告的规范

现行财务报告是相关利益者的主要信息来源，由于其非财务信息、知识资源信息、现时成本信息等方面的披露尚不完善，无法适应多样化的信息需求。因此，加强对表外信息进行分类，扩充利润表的信息含量，重视财务情况说明书的编制等是提高现行财务报告质量的途径。     

2009年河南省金融稳定报告

2009年,面对金融危机背景下严峻的国际国内经济环境,河南省辖区金融机构认真贯彻执行适度宽松的货币政策,积极调整信贷结构,优化信贷投向,支持全省经济实现V型反转,经济金融呈现良性互动局面。银行业继续保持良好运行趋势,流动性充足,不良贷款持续双降,盈利水平大幅提升。资本市场运行平稳,证券期货业金融机构合规经营和风险控制能力得到有效提升。保险市场结构调整明显,保险业金融机构整体实力及运行规范性进一步提高。金融市场运行总体平稳,货币市场业务稳步发展。金融服务基础设施建设稳步推进,支付环境有效改善,反洗钱工作成效明显,社会信用体系建设取得新成效,金融生态环境不断优化,为促进河南经济金融健康发展、维护区域金融稳定提供了重要保障。但辖区经济增长方式转变和结构调整压力较为突出,金融业未来面临的困难和挑战仍然较多,金融运行中出现的新情况和潜在风险应引起足够重视。     

2010年河南省金融稳定报告

2010年,面对复杂的国际国内经济环境,河南省辖区金融业总体保持了健康平稳发展.银行业继续保持良好运行趋势,不良贷款持续"双降",盈利能力不断增强,防范和化解风险能力进一步增强.证券业呈现加快发展态势,市场经营主体数量快速增加,上市公司质量显著提高.保险业市场运行安全稳健,经营效益明显改善,市场秩序持续向好.金融市场运行总体平稳,货币市场业务稳步发展.金融服务基础设施建设稳步推进,金融生态环境建设长效机制进一步确立,为促进河南经济金融健康发展、维护区域金融稳定提供了重要保障.然而,辖区金融业稳定运行面临的困难和挑战仍然较多,经济发展方式转变和结构调整压力更为突出,尤其在宏观调控政策效应进一步释放、流动性趋紧、不确定因素增多的情况下,金融运行中的新旧问题和潜在风险应引起足够重视.     

The DIME System: A Preliminary Report

Investment management is a complex, yet promising, domain for the application of intelligent automation. In this paper we discuss the Diversified Investment Management Expert (DIME) system which is under development. DIME is designed to operate in a dynamic environment and hence one of its salient features is its knowledge acquisition via learning. The system starts out with some rules built into it, and machine-learning techniques are used to acquire further knowledge with time. In this paper we focus on how similarity-based learning (SBL) is used to acquire new rules and explanation-based learning (EBL) to refine the built-in rules and the newly acquired ones.