American International Group, under pressure from New York attorney general Andrew Cuomo, is trimming ousted CEO Martin Sullivan’s payout package valued at $68 million by $19 million. The troubled insurance giant, which has received a $85 billion bailout from the federal government, is also slashing perks, junkets and 160 conferences after drawing criticism from Congress. Dubbed the “Poster...
Financial Services Industry Archive
October 2008
The Find: Rather than being paralyzing, a hefty dose of uncertainty actually boosts bankers’ performance according to a new book. The Source: Bullish on Uncertainty: How Organizational Cultures Transform Participants from A. Alexandra Michel, assistant professor of management and organization at the USC Marshall School of Business, and Stanton Wortham of the School of Education at the...
Like many banks, Bank of America took a hit in this year’s third quarter. But it also had some good news. Despite a drop in net income to $1.18 billion from $3.7 billion for the quarter a year ago, the Charlotte-based bank showed steady progress in getting its customers to do their banking online. In fact, online bill payments spiked in the third quarter to $83.3 billion, up from $72.9...
Former Fed Chairman Greenspan speaks — Appearing before a House committee investigating the nation’s financial crisis, Alan Greenspan said the economy is “in the midst of a once-in-a century credit tsunami” but expressed confidence the $700 billion federal bailout will ease the storm. Greenspan added that he was “shocked” the financial system broke down,...
Big regional banks, hit with big third quarter losses, are quickly becoming merger bait. National City, Fifth Third Bancorp, and Keycorp have all have seen significant losses in the past quarter although none has been as staggering as the $23.7 billion quarterly loss racked up by soon-to-be-acquired Wachovia. The regionals’ weak performance and, in some cases low stock prices, make them...
Big regional banks look like merger bait — Non-megabanks such as National City, Fifth Third Bancorp and Keycorp all posted big losses in the third quarter, and that weak performance — combined in some cases with low stock prices — make them look a lot more like merger candidates. For more, see Peter Galuszka’s post on the merger sweepstakes among big regional banks. The...
If you want to hear about Wachovia’s third quarter earnings on Oct. 22, you’ll have to listen to a recording made by CFO David Ziener and Chief Risk Officer Ken Phelan. No questions, please. This stiff-armed approach is being adopted now that Wachovia is about to be taken over by Wells Fargo, which has declined questions during quarterly earnings reports for some time. Companies...
Banks unaffected by the financial bailout may be lining up to pick up deposits of the fallen, if BB&T Corp. is any example. BB&T, based in Winston-Salem, N.C., is poised to pick up deposits that might have going to Wells Fargo, which is buying troubled Wachovia. Chairman and CEO John Allison told analysts this week that his bank has already lapped up at least $1.2 billion in deposits...
A growing number of U.S. consumers, already depressed about the state of the economy, are beginning to worry that big banks are bad business. A recent Gallup Poll survey finds that two-thirds of Americans say they’ve been hurt by the credit crisis, stock market plunge and related economic upheaval being addressed by the massive taxpayer-backed bailout of the nation’s financial...
One of the next shoes to drop in the financial crisis will soon clunk down at a privately-held clearing house on Wall Street. The Depository Trust and Clearing Corp., which settles debts related to finance, will plow into resolving what could be trillions of dollars worth of unregulated credit default swap contracts. A CDS is a protection arrangement designed to insure against loan defaults....
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- Geithner's Not Going
- Barney Frank Aide Blasts Media Report Alleging Lack of Progress on Financial Reform
- Goldman Sachs, Shareholders Just Can't Get Along
- Geithner: Guilty Until Proven Innocent in AIG Debacle
- ECB President Cautions Interest Rate Hike, But Banks Are Ill-Prepared
- Inside Small Business Lending: Short Q&A With An Industry Chief Executive
- More Homeowners Face Mortgage Woes
- If Consumer Prices Are Down, Why Are Car Insurance Rates Up?
- As Income Mobility Falls, American Dream Fades
- Lawmakers Push Bill to Monitor Fed Lending Programs
- Eugene Fama Drinks His Own Brand of Kool-Aid
- Roubini Warns of New Financial Crisis
- Ex-Wells Fargo Loan Officer Details Shady Practices
- Bank of America, JPMorgan Chase are too Late in Moving to Curb Overdraft Fees
- Civil Rights Group Teams With Wells Fargo Despite Charges of Predatory Lending
- State Farm CEO Rust: Effective But Not Greedy
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- As Income Mobility Falls, American Dream Fades
- Creative Destruction and the new Money Trust
- Geithner Deal With Wall Street Over AIG Swaps Cost Taxpayers $13 Billion
- Civil Rights Group Teams With Wells Fargo Despite Charges of Predatory Lending
- Senator Dodd Is Saving Lenders From Themselves
- Citigroup Hit With Huge Credit Loss
- FDIC Chief Sheila Bair to Treasury Brat Geithner: Nyah!
- Private Equity Firms About To Gear Up The Small Banking Sector
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The financial industry meltdown has been the worst since the great depression. BNET Financial provides daily industry trends and news coverage with insights for managers and executives about the major financial services companies in the banking and finance sector. In addition to detailed company profiles, we bring you industry analysis on new mergers, partnerships, financial products, rates, investments, capital, and a host of other critical factors of success in the finance business.