It’s a strange world when the same people who got you into a $180 billion mess become so indispensible that you can’t afford to kick them out the door with a foot firmly planted on their backsides. Instead they are given multimillion bonuses. It’s like waving the red cape in front of three charging bulls: the media, Congress, and the American taxpayer. So at some level you...
Financial Services Industry Archive
March 2009
There’s yet another hearing on “fair value” accounting today, this time in the House subcommittee on capital markets. But don’t expect a suspension of the rule that requires to mark-to-market valuation of financial instruments held by financial institutions. Earlier this week, Federal Reserve chairman Ben Bernanke said he doesn’t support such a suspension. SEC...
A recent report by the Aite Group, a research and advisory group to the financial services industry, found that community banks are well positioned to take advantage of new opportunities resulting from the financial crisis. Some of them, such as Hudson City Savings Bank and TCF Bank, have actually already started doing so. Sure, many community banks are struggling with challenges such as...
The government continues to help U.S. banks, most recently by increasing its stake in Citigroup to 36 percent, but it’s been less supportive on the tax front with those same financial institutions. Back in the fall, the Treasury Department and the IRS were being generous with banks. Remember the so-called Wells Fargo rule issued by the IRS back in late September? That notice, which came a...
The riskiness of hybrid securities — debt securities that institutions can use to meet capital requirements thanks to features that make them look more like equity shares — has risen sharply in recent months. Several banks have deferred or could soon defer interest payments. Dresdner Bank, for instance, has already deferred payments on hybrid securities (here’s a crude Google...
GE Capital, battered by the credit crisis and battling concerns about its short-term liquidity, faces a likely ratings downgrade that might cause parent General Electric to pay billions. Worse, fears that GE might default on its long-term bonds are also on the rise. Fairfield, Conn.-based GE Capital is the financial services arm of GE and the nation’s largest lender to mid-sized...
New York Insurance Superintendent Eric Dinallo is one of the few regulators who understands the chaos that has befallen American International Group (AIG). So his testimony before the U.S. Senate Banking Committee today (March 5) should give comfort to investors in other insurance companies, but might worry those who feel we’ve already sunk enough tax dollars into this failing giant....
Here’s a clue as to the future of the shadow banking system. Publicly-traded Blackstone Group gave credible indication that it’s likely to come out of the crisis not only intact but capable of taking advantage of the new financial environment — notwithstanding a loss of $1.33 billion in 2008, reflecting investment markdowns. All of Blackstone’s business lines —...
Could anything worse happen to American International Group this week? The answer is: yes, it could. AIG reported a record $61.7 billion fourth quarter loss today (March 2) and also got an additional $30 billion on top of the $150 billion it has already received from the U.S. Treasury and Federal Reserve. The Feds’ argument continues to be that AIG, the world’s largest insurer, is...
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- 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
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- Citigroup Hit With Huge Credit Loss
- 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.