Trust Digest 70 (October 28, 2014)

Leveraged Lending Pullback Tied to Regulatory Scrutiny
Large U.S. banks cut back on leveraged lending in the third quarter of this year, a trend that likely reflects growing regulatory scrutiny, Fitch Ratings said Thursday. Last year, federal regulators warned that while leveraged lending declined during the financial crisis, volumes had since increased and prudent underwriting practices had deteriorated. Thursday’s bulletin from Fitch suggests large banks are taking heed of the warning.
Key Words: Federal Reserve, Leveraged Lending
Trust Issues: Regulation, Sustainability, Predictability

Experts Debate Legality of New Jersey’s Ebola Quarantine Policy
New Jersey Gov. Chris Christie said Monday that a nurse being held at a Newark hospital would be allowed to leave the state and be privately shuttled back to her home in Maine. Mr. Christie’s office, which had faced criticism after the nurse, Kaci Hickox, documented her isolation at University Hospital, Newark, said the woman would still be subject to a strict mandatory quarantine under New Jersey’s laws in Maine, but officials in Maine would regulate it, reports WSJ’s Josh Dawsey.
Key Words: Ebola, New Jersey, Quarantines
Trust Issues: Alignment of Interests, Capability

Tuna Firm's Bungled IPO Exposes China's Flouting of Global Fishing Rules
Reporting on international fishing can often feel like investigating organized crime. Everyone knows how things are run, but the truth is obscured by shell companies, back-door dealings, and plausible deniability. This is why it’s remarkable that a recent, bungled initial public stock offering from a major Chinese tuna firm accidentally revealed something close to the truth about China’s fishing industry.
Key Words: China Tuna Industry Group, Corruption
Trust Issues: Integrity, Transparency

To Revive the Trade Talks, Inject a Dose of Transparency
American cars have bigger bumpers than European ones. That may sound like a trivial detail but it, and others like it, have big ramifications for diplomats charged with negotiating a trade agreement between the US and the EU. Opening up markets once meant removing barriers that protected domestic producers from foreign competition. Authorities in Europe and America have given the impression that the Transatlantic Trade and Investment Partnership is just another trade agreement of that kind. In fact, the proposed agreement is a different beast.
Key Words: TTIP, US, EU
Trust Issues: Transparency, Communication, Alignment of Interests

European Stress-Test Results Have Isolated Errors, Inconsistencies
One of the main goals of Europe’s yearlong banking stress tests was to provide the public with reliable, comprehensive data about the finances of the continent’s lenders. But some errors and inconsistencies nonetheless crept into the test results, which were published Sunday.
Key Words: EU, Stress Tests
Trust Issues: Capability, Predictability

Deaths Linked to GM's Ignition Switch Rise to 30
A program to compensate victims of mishaps caused by a faulty ignition switch in General Motors' (GM.N) vehicles has approved one new death claim, bringing the total number of deaths linked to the switch so far to 30, according to a report released on Monday by the lawyer overseeing the program.
Key Words: GM, Ignition Switch Failures
Trust Issues: Responsibility, Accountability, Benevolence

With Big Data Comes Big Responsibility
Big data and the “internet of things”—in which everyday objects can send and receive data—promise revolutionary change to management and society. But their success rests on an assumption: that all the data being generated by internet companies and devices scattered across the planet belongs to the organizations collecting it. What if it doesn’t?
Key Words: Internet of Things, Data Privacy
Trust Issues: Regulation, Benevolence, Alignment of Interests

U.S. and Turkey’s Problems Run Deeper than a Failure to Communicate
Washington and Ankara are having trouble coming to an understanding; they can’t even agree on what they agree. On October 13, National Security Advisor Susan Rice announced that Turkey would allow the United States to use the Incirlik air base in the fight against the Islamic State (IS), only to have the deal denied by the Turkish foreign minister. This communications failure is not only the result of crossed diplomatic cables, but also is symptomatic of a much graver problem that has been festering for too long: the United States and Turkey, although treaty allies, no longer share the same interests.
Key Words: US, Turkey, Syria, IS
Trust Issues: Communication, Alignment of Interests

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