Mythili Bhusnurmath

As the periodic Punch & Judy show in US Congress over US govt's debt ceiling reaches its inevitable climax, fears of recession recede; but only temporarily, as limit on govt spending could raise the spectre 2 years down the line. Bottomline is no respite for the world economy!

Naïve to assume withdrawal of Rs 2000 notes, tho welcome, has no connection with govt’s mission to flush out black money. Cash deposit in banks in excess of Rs 50,000 leaves a potential audit trail, as extant IT rules require depositors to provide full deposit details. #RBI2000

No bank supervisor ever owns up to its role in bank failures. US Fed's report on SVB collapse sets rare example, admits its supervisory failure. Can we expect similar soul searching closer home? We've had our share of bank failures. #Bankfailure #RBI #SVB #banksupervision

RBI realizes rather late that nothing it does now can make up for time lost in its fight against inflation hence the pause in rates. Fall in inflation next year is only a statistical accident, ie high inflation in comparable period last yr, no credit to RBI or MPC #rbipolicy

RBI is back to its old game of doctoring markets, intervening in T bill auctions by rejecting all bids at last auction simply cos mkts demanded higher rates. So much for its claim that rates are market determined!#RBI #FIMDA

Sad govt is using scarce taxpayer money much needed elsewhere to set up a backstop facility to protect affluent investors from mkt risks. Remember AMFI tagline? Turmoil is part of risk. Franklin Templeton collapse was not due to mkt turmoil but mismanagement #Sebi #MFs #Amfi #FM

Supreme Court does it again! Enters areas best left to subject experts & are not matters of law. Ruling that borrowers must be heard before their accounts are classified as fraud gives borrowers 1 more reason to escape financial discipline #SC #RBI #bankfrauds

Kotak Bank Board reportedly approved Uday Kotak as director on completing 20 yrs as CEO. Will RBI exceptionalism to him continue despite its direction- "no involvement with the bank during 3 year cooling period after completing 15 yrs"? #RBI #BankSupervision #KotakBank

Unbelievable that meeting of MPC to discuss something as important as letter to govt explaining reasons for failure to achieve inflation target for 3 consecutive quarters has not been minuted! #RBI #financeminister #MPC

With shotgun marriage of UBS & credit suisse, Swiss regulators & govt do precisely what the west loves to lecture India against. Shows once again why large banks cannot be allowed to go under & why good supervision is the only answer. Is RBI listening?? #UBS #BankingCrisis #RBI

Fixing accountability key to avoiding bank failures.Apart from penalising bankers responsible for mismanagement, board members, regulators & supervisors tasked with oversight must also be made accountable. Aspects sorely missing in India.#SVBCollapse #Rbi #BankingCrisis

'Hindu nationalist' PM Modi gets rare praise from fierce critic London based Economist magazine for his focus on infra. Strange, can't recall when it spoke of former chancellor Merkel of Christian Democratic Party or Pres Biden as Christian nationalist! Did I hear bias?#pmmodi

Investors in banks will not be protected. They knowingly took a risk & when risk didn't pay off, they lose their money. That's how capitalism works, said Pres Biden on Mon. Wonder If expert com on hindenburg-advani will take same enlightened view? #svb #Hindenburg #Bankcollapse

All eyes on emergency meet of US Federal Reserve on Mon 13 Mar 23, presumably called to deal with fallout of collapse of 2 US banks SVB & Silvergate. As chances of 50 bps hike in Fed rate in Mar get tempered to 25 bps, question is will Fed be forced to pivot # Fed, SVB

Key takeaway from Lehman collapse leading to 2008 global financial crisis is folly of thinking there's an alternative to using taxpayer money to rescue a bank deemed too big to fail. There's none! Hope Fed does not repeat its mistake with Silcon Valley Bank # SiliconValleyBank

Supreme Court ruling on adani-hindenburg case does enormous damage to Sebi's credibility as capital mkts regulator as it seems to suggest Sebi is not doing its job, worse is not competent to do it, hence the need for a separate panel

Always unfortunate when judiciary steps into shoes of executive & regulators. Probe into hindenburg report should be left to sebi, capital markets regulator that has the proper domain knowledge