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Tuesday, May 14

14th May - US Close: Finland's Greek Collateral

Finland was forced to publish the Greek collateral documents after a court ruling.

Previously on MoreLiver’s:

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Roundups & Commentary
Markets – Between The Hedges
The Closer – alphaville / FT
US: Late Ramp Pushes S&P To Close At Now Standard All Time High ZH

A Copernican Turn for Banking UnionCEPS (pdf)
Thomas Mayer / Deutsche Bank: Despite apparent consensus that the creation of a ‘Banking Union’ is essential for the survival of the euro, progress is painfully slow…a radically new approach is needed if there is any prospect of moving beyond this impasse to reach full Banking Union. Instead of trying to move from common bank supervision over to resolution and then on to deposit insurance, he argues that policy-makers should go backwards and start with deposit insurance, move from there to resolution, and end with supervision.

Finland’s got a secret… no longeralphaville / FT
Finland’s finance ministry has at last opened documents of its Greek transaction to proper public scrutiny.

Plosser on the ExitTim Duy’s Fed Watch
While the Fed is  moving closer to tapering asset purchases, tIming remains an issue.  I think that most policymakers will not be swayed to an early end by the "Fed's inflation credibility is at risk" argument.  But a subset is likely swayed by the "financial stability is at risk" argument.  And another subset may be swayed by the "communications credibility is at risk argument" that is an element of Plosser's speech.  In short, the majority favoring continuing asset purchases at the current pace is obviously shrinking.

Target broker-dealer capital in big-bank resolution process, U.S. Fed regional president saysThe Knowledge Effect
A senior Federal Reserve official wants broker-dealers to hold more capital, and be more closely watched by prudential regulators. He opposed as arbitrary recent proposals to sharply raise bank capital or restrict their size and activity. Regulators should instead ensure that capital is in place in the subsidiaries with the highest risk, such as trading, rather than seeking more debt issuance at the group holding company level.

361 Capital Weekly Research BriefingThe Reformed Broker

U.S. Deficit to Fall to $642 Billion, Says Budget AgencyBB
Rising revenues shrink deficit by $203 billionReuters
CBO Projects U.S. Budget Problem Solved For NowPeridot Capitalist
Fiscal consolidation, American styleFree exchange / The Economist

Fed Says U.S. Household Debt Declined to 2006 LevelBB

JGBs: “Yes I would, Kentalphaville / FT
The rise in JGB yields does not mean that the Bank of Japan’s policy is doomed to fail…If we start to see a weaker Nikkei and a stronger yen while yields keep heading up, maybe we should get worried. But right now it seems yields are rising as policy goals are met and as what might be termed ‘normal’ financial conditions return.

Will Shinzo Abe Succeed with Constitutional Changes to Militarize Japan and Further Destroy the Yen?Mish’s

Buy, buy, buyNordea
Going for carry very much continues to be the name of the game, while the consideration of the credit risks involved seems once again to be a secondary concern.

Shock and awesomeFree exchange / The Economist
From 2007 into 2012, there often seemed to be a commodity-price speed limit to global growth…But increased supply capacity may now mean that as economic activity improves production rises, thus turning commodities from a negative- to a positive-feedback mechanism…

New Normal ... MorphingPIMCO
Mohamed A. El-Erian:  The New Normal has morphed to include consequential elements of a “stable disequilibrium”. In the midst of notable multi-speed dynamics, the global economy as a whole is muddling along a road that will give way over the next three to five years to one of two stark alternatives: either sustainable global growth, institutional and political renewal in the West and safe deleveraging; or growth shortfalls that cause financial instability, fuel greater social tensions, accentuate political dysfunctions and complicate debt traps. Our Secular Forum analysis identified eight key themes for long-term investors, along with their portfolio implications.

Bloomberg is watching youFelix Salmon / Reuters
Many of Bloomberg’s clients, especially the Europeans, are likely to be unhappy about the fact that such sensitive information could continue to be widely available within the company. But, just like participants in other social networks, they don’t have a lot of choice in the matter.

Göran Persson: Ruotsin kruunu pitäisi kytkeä euroonMTV3
Ruotsin pitäisi eurokriisistä huolimatta kytkeytyä euroalueeseen, sillä vahva kruunu uhkaa vientiteollisuuden näkymiä. Näin arvioi Ruotsin entinen pääministeri Göran Persson.

Suomen ja Kreikan vakuussopimuksen osat julkiYLE
Korkein hallinto-oikeus velvoitti valtiovarainministeriön julkistamaan sopimuksen pankkien tunnistetietoja lukuun ottamatta.

Vakuussopimuksen puuttuvat tiedot julki – lue salattu aineistoHS

VM julkisti Kreikan vakuussopimuksen asiakirjatTalSa

Urpilaisen "vakuusjärjestelyssä" ei puhuta vakuuksista mitäänHS

Urpilainen ja Katainen sysäävät vastuuta virkamiehille YLE
"Virkamiesten tulkinta tilanteesta"....Valtiovarainministeri Jutta Urpilainen (sd.) kiittelee vuolaasti korkeimman hallinto-oikeuden päätöstä, jonka mukaan Suomen ja Kreikan välinen vakuussopimus on julkinen lukuunottamatta pankkien tunnistetietoja.
Asiantuntija: Suomen saamat vakuudet eivät niin hyviä kuin on luultuYLE
Suomen ja Kreikan valtioiden välisessä sopimuksessa ei mainita sanaa vakuudet lainkaan.

Kreikan vakuussopimuksesta ei löytynyt heti mörköjäMTV3
Ekonomistien ensiarviot julki tulleesta Kreikan vakuussopimuksesta ovat maltillisia. Mitään suuria salaisuuksia ei ainakaan tuoreeltaan ole papereista löytynyt.

Oikeusoppinut arvostelee viranomaisia salailukulttuuristaYLE
Viranomaiset salaavat yhä useammin yhteiskunnallisesti merkittäviä asiakirjoja, sanoo Helsingin yliopiston hallinto-oikeuden professori Olli Mäenpää. Hänen mukaansa julkisuuslain hyvät periaatteet on unohdettu. Muun muassa Suomen ja Kreikan vakuussopimuksen salaamiselle ei ole lainmukaisia perusteita. (kesäkuulta)