Fitch Ratings in its report feels an increase in the interest rate would adversely impact bank’s capital under the proposed Basel III framework for U.S. banks. The recent increase in U.S. Treasury yields and speculation of Federal Reserve exiting bond buying program would accentuate potential risks faced by U.S. banks, according to Fitch Ratings. Interest Rate Rise Would Affect Banks’ Bond Portfolio U.S. banks are holding significantly large bank capital to conform to the...
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Via Goldman Sachs: We are in the third period of a loosening of bank underwriting standards in the past two decades. The outcomes of the first (1993-1998) and second (2004-2007) were materially different, as the former resulted in an acceleration in loan growth (9% per year) with minor implications for credit losses, while the latter contributed to the financial crisis. Lower leverage, new regulations (particularly capital) and limited demand could make this time different....
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A new round of job cuts has apparently been announced at JPMorgan Chase & Co. (NYSE:JPM). This new round of cuts will affect 1,800 positions in the company’s mortgage division, reports CNBC’s Kayla Tausche. Details On The Latest Cuts At JPMorgan CNBC’s source said JPMorgan Chase & Co. (NYSE:JPM) announced on Friday that it would slash the positions and that most of them would come from two main geographical areas: Albion, N.Y. and Tampa,...
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John Thain, former chairman and CEO of Merrill Lynch and COO at Goldman Sachs Group, Inc. (NYSE:GS), told Bloomberg Television’s Erik Schatzker and Sara Eisen on “Market Makers” today that a crisis like the one in 2008 could “absolutely” happen again.” Thain said, “If anything, too big to fail is a bigger problem because the biggest financial institutions are more concentrated today than they were. Dodd Frank did not solve too big to fail.”...
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Standard & Poor’s said Tuesday that most of the biggest U.S. banks are still “too big to fail.” The credit rating agency said that the U.S. government is unlikely to bail out big banks in the event of another crisis. That means the holding company creditors have to bear losses in the case of a collapse. S&P recently upgraded the U.S. credit outlook to stable from negative. Since the 2008 and 2009 bank rescues,...
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Analysts at Macquarie have issued reports today on three major U.S. financial institutions, handing out new ratings for all three. They’ve initiated coverage on Bank of America Corp (NYSE:BAC) at underperform and Morgan Stanley (NYSE:MS) at outperform. They also downgraded JPMorgan Chase & Co. (NYSE:JPM) from outperform to neutral. All three reports came from David Konrad and Russell Gunther. Initiating Coverage On Morgan Stanley Although the analysts are fairly positive on all three financial...
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Read this and just had to comment………. From Gigaom ExactTarget Inc (NYSE:ET), to put it crudely, is an email-based marketing platform, one whose usage has been on an upswing as consumer brands have turned to the internet for the marketing efforts. ExactTarget Inc (NYSE:ET) has big-name customers including folks like The Coca-Cola Company (NYSE:KO). It also adds more structure to salesforce.com, inc. (NYSE:CRM)’s ambiguous sounding marketing cloud. Acquisition and date Amount Sendia, April 2006...
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The decision by Goldman Sachs Group, Inc.(NYSE:GS) asset management arm (GSAM) to launch the Multi-Manager Alternatives Fund last month generated considerable interest in the industry due to the two unique prospects the fund proposed; for one, it was the first time Goldman targeted retail investors with an investment product, as anyone with $1,000 to spare could consider this fund, and secondly, the fact that the fund was the first of its kind, to offer retail investors...
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I’ve written this article for Institutional Investor Magazine. I feel very passionate about the topic and thus could not compress all my thoughts into 800 words. I expanded it and it was published in John Mauldin’s Outside the Box newsletter. “Expand” is an understatement as it is four times the original article. I suggest you skip John’s very kind intro (he is too kind) and go right into “Are We There Yet”? It is...
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Singapore Dollar (SGD) performs poorly as a safe haven under a stress test. The stress test shows a strong recovery posted by US Dollar against other Asian currencies, according to a latest report published by Bank of America Merrill Lynch. Singapore Dollar (SGD) Forecasts According to Global Emerging Markets (GEM) Fixed Income Strategy report on Asia Strategy Watch released recently by Bank of America Merrill Lynch (BofAML), the USD/Singapore Dollar (SGD) forecasts are facing...
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The world’s biggest banks have been quite vocal about their opposition to stricter regulatory requirements mandated under the Basel III norms over the last few years. But like it or not, tighter capital limits are here to stay and the only things really open to discussion are a few details concerning how and when to impose them – not leaving the banks with much room to push for changes to the rules, which will...
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