Economy
Moody's upbeat on draft bill on resolution of finance firms
Global credit rating agency Moody's Investors Service on Tuesday said the draft bill on the resolution of financial firms in India is a credit positive for banks in the country as it enhances overall systemic stability.
 
In a statement Moody's said it is an important step to having a comprehensive framework in place for the resolution of financial firms.
 
"Currently, the resolution of financial firms in India is based on minor parts of legislation enacted for other purposes," said Srikanth Vadlamani, a Moody's Vice President and Senior Credit Officer.
 
According to Moody's, as per the draft bill, bail-ins is not a preferred form of resolution, with significant restrictions in place for their usage.
 
These restrictions include contractual bail-in clauses for instruments that may be bailed in; and requirements that bail-ins should be used only after attempts at recovery have been made.
 
Consequently, Moody's expects that the Indian banking system will continue to function without an operational resolution regime, and banks should continue to be rated under a basic loss given failure framework.
 
Moody's also said that the bill ranks depositors above senior unsecured creditors in a liquidation scenario. In contrast, under existing laws, senior unsecured creditors rank pari passu with uninsured depositors.
 
Under the draft bill, public sector banks will be brought under the ambit of the resolution framework. By contrast, according to existing laws, public sector bank resolution can only happen under the direction of the government.
 
Moody's does not expect this change to have an impact on Moody's assumption of the level of systemic support for public sector banks, because the banks' core public sector character would remain unchanged.
 
The draft bill also provides for a significant delineation of regulatory powers between the Reserve Bank of India and the proposed Resolution Corporation.
 
This situation will be particularly apparent with respect to some key supervisory powers over banks, including criteria for classifying banks into the various risk categories.
 
Such a scenario would represent a change compared to the current structure, where the powers rest almost fully within India's central bank.
 
Consequently, there could be some execution risk, as the system transitions to the new arrangement takes place, Moody's said
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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2 killed in Mumbai apartment blaze
At least two persons were killed on Tuesday in a fire that broke out in an industrialist's apartment in a residential high-rise in Mumbai's Cuffe Parade area, officials said.
 
The 20th floor apartment belonged to Bajaj Electricals Chairman and Managing Director Shekhar Bajaj.
 
The blaze was reported around 6.30 a.m. and eight fire tenders brought it under control within an hour.
 
Bajaj's family of around 10 were rescued safely from the conflagration.
 
The victims were believed to be domestic helpers, the officials added.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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The Horror of another Stephen King

Will the real Stephen King please stand up?

 

In a post on his website this week, acclaimed horror writer Stephen King accuses Amazon of deceptively marketing the books of “some other” Stephen King as his own work for several years. The “Carrie” author points to eight titles listed on Amazon as authored by “Stephen King” and encourages fans (whom he refers to as Constant Readers) to demand a refund from Amazon if they purchased one of the books thinking it was written by him.

 

“As Amazon has failed to resolve this with only our requests, please drop them a line and let them know how you feel about their marketing of these books to you Constant Readers,” King writes.

 

The titles of the “other” Stephen King books that Amazon is selling include “Awaken,” “Grave Decisions,” and “Descendants.” About halfway down the Amazon listing for “Descendants” is a note that reads:

 

If you are looking for books by Stephen King, bestselling author of Doctor Sleep and The Shining, please visit his Author Page.

 

That author page ranks the acclaimed Stephen King third among horror authors in Kindle eBooks and sixteenth among all authors. In contrast, the only ranking for the lesser known Stephen King, who just also happens to write horror fiction, is 63rd in the genre in Kindle eBooks.

 

One tip for telling the two apart: The acclaimed Stephen King’s middle initial is E for Edwin; The other Stephen King’s middle initial is L for … something that begins with L.

 

Amazon did not respond to TINA.org’s request for comment.

 

UPDATE 10/17/16: In an update to the original post on his website, King says Amazon will be adding the lesser known Stephen King’s middle initial to all of his books going forward.

 

Find more of our coverage on Amazon here.

 

Courtesy: TruthInAdvertising.org

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