According to Avinash D. Persaud, chairman of Intelligence Capital Limited and senior fellow of the London Business School, a single banking supervisor for the European Union may actually increase the risks posed to its member nations. In a recent article published by The Economist, Persaud argued that “what may appear safe from the perspective of the operations of a bank operating across Europe could be unsafe seen through the lens of a national economy.”
Establishing the European Central Bank as the single supervisor of the euro zone’s largest banks could lead to bigger booms and more devastating busts at the national level, Persaud warns.
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Persaud has written about other contentious financial issues, including the European tax on financial transactions. In an article cited by Reuters columnist Felix Salmon, Persaud discussed the ways that a financial transaction tax imposed by the European Commission could be desirable for market participants.
Previously, Persaud was global head of currency and commodity research at J.P. Morgan, and he was appointed as a visiting scholar at the International Monetary Fund and the European Central Bank. His work has allowed him to study currency markets from a number of perspectives, and he shared some of his insights at the CFA Institute Asia Pacific Investment Conference by laying out his seven rules of foreign exchange.
At the Fourth Annual CFA Institute Middle East Investment Conference, Persaud will be discussing the investment implications of developments in the global currency markets, looking at some of the most dramatic changes that have occurred over the past year and ways that investment practitioners can respond to them. You can register to attend the event to hear Persaud in person, and follow this blog for conference news and updates.
Please note that the content of this site should not be construed as investment advice, nor do the opinions expressed necessarily reflect the views of CFA Institute.