“Nationalization” has become a very nasty word. Last Friday, for example, Senate Banking Committee Chairman Christopher Dodd, mentioned that a period of nationalization might be necessary, at least temporarily. Bank stocks roiled. Within minutes of Dodd’s remark, stocks of Bank of America, Citigroup and Wells Fargo plunged 25 percent. So what’s the deal with...
Financial Services Industry Archive
February 2009
Obama to unlock lending — President Barack Obama is drawing up a plan to subsidize the profits of big private investment firms in bond markets. As much as $1 trillion could be spent for guarantees to hedge funds and private equity firms so they will continue buying securitized consumer and business loans. [Source: The New York Times] SEC to quiz bank boards; Lewis subpoenaed – SEC...
The secrecy dam of Swiss banking is finally breaking. As part of a $780 million settlement with the U.S. Internal Revenue Service, Switzerland’s largest bank, UBS, is going to release the names of Americans who hold secret bank accounts. It isn’t known how many names are being released but the IRS wants about 19,000 of them. “The Swiss are saying that this is the end of Swiss...
Will housing really be shored up with President Barack Obama’s expected plan to aid homeowners coupled with his signature yesterday of the $787 billion economic stimulus bill? One school of thought says it will. Here’s how: The stimulus package will increase tax credits for home buyers to $8,000. Walter Molony of the National Association of Realtors told me that this should...
The few big banks left standing are again starting to raise money from the public. Last week, for instance, Morgan Stanley offered $750 million in notes due in 2011, as well as Hong Kong dollar notes due in 2012 and various other issues. So, Morgan Stanley is taking on more debt. Aren’t banks supposed to reduce their liabilities? But here’s a glass-half-full view: Institutions like...
Bank pay limits to be law today — Barack Obama will sign into law today a stimulus package that forces top executives at banks getting bailouts to forego bonuses. The last minute change by Sen. Christopher Dodd could have been even more stringent but bankers and financial experts say it will still stymie executive talents. [Source: Bloomberg.com] Obama to announce homeowners bailout...
Like hunting hounds on the prowl, private equity groups are picking up scents of profits in toxic bank assets. Will this help the Obama administration in its so-far confused search for a way to toxic bad debt off the market? Maybe some, but there are limits to what private equity can do by itself. A number of private equity groups such as Pine Brook Road Partners, Pacific Investment Management...
U.S. banking losses could be $3.6 trillion — Nouriel Roubini, the New York University business professor who accurately predicted the meltdown, now says that the total losses on loans and market value declines is $3.6 trillion. His earlier estimate had been $2 trillion. Roubini thinks the government needs to nationalize insolvent banks. [Source: GlobalEconMonitor] Obama may subsidize...
Mary Schapiro, the new chairman of the SEC, has plenty to do to invigorate her troubled agency which has been accused of doing little to prevent the financial meltdown and ignoring tips regarding the Bernie Madoff hedge fund scam. Now the U.S. Chamber of Commerce has given her some extra homework. They have sent her a report with 23 recommendations of how to “restructure” the SEC...
Steven Pearlstein of The Washington Post has an excellent story in his column today about how a little bank in North Carolina used its federal bailout money the right way. Instead of using $20.5 million in federal bailout funding for executive bonuses or some secret, nefarious purpose, little Citizens South, a community bank in the textile belt of Gastonia, N.C., actually put the money to...
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- As Income Mobility Falls, American Dream Fades
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- Civil Rights Group Teams With Wells Fargo Despite Charges of Predatory Lending
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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
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- Private Equity Firms About To Gear Up The Small Banking Sector
- Analyst: Banking Industry Risks "Implosion"
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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.