Losses at RBS and Lloyds highlight hamstrung government owners


While Lloyds has an operating profit of £2.7 billion, losses from mis-selling of payment protection insurance, new writedowns on loans made by HBOS  and restructuring costs mean the bank will suffer a loss of £3.5 billion.  This would normally be just another bad bank story, but the visibility surrounding Lloyds and RBS which demonstrates similar losses serves to highlight the payment of bonuses yet again.  £4bn losses for bailed-out banks | Sunday Times Nonetheless, he is due to receive shares worth about £660,000 that were awarded as part of the £2m bonus he was handed for his 2010 performance. Senior … Continue reading Losses at RBS and Lloyds highlight hamstrung government owners

Greece ponders the unthinkable


There is likely a little grandstanding for the benefit of the Euro leadership in Michalos comments, yet as a technocrat it only makes sense to consider the implications of all alternatives. Athens rehearses the nightmare of default | ft.com On Friday afternoon, Constantine Michalos, president of the Athens chamber of commerce, sat in his office – around the corner from where protesters were hurling chunks of marble at riot police – and contemplated what was once unthinkable: “All hell would break loose,” Mr Michalos said, sketching a society that would quickly run short of fuel, food, medicine and necessities. “You … Continue reading Greece ponders the unthinkable

QR code errors from Boeing demonstrates misunderstanding of the format by marketers


This is the page (below) that the QR code in the 2 page ad in new Foreign Affairs takes you to. QR is the most mis-used, most misunderstood import from Japan ever! The use in Japan takes you to an offer or coupon designed for your phone. By definition you have to be on a phone to use it. So why are North American marketers using it to link to their desktop format website? Then of course at least get the URL right. This should not be hard for one of the top technology companies in the world. Continue reading QR code errors from Boeing demonstrates misunderstanding of the format by marketers

RBC included in Moody’s watch list


Canada’s largest bank, Royal Bank of Canada is placed under review alongside other large banks by Moody’s.  The full report “Challenges for Firms with Global Capital Markets Operations” is a paid for report so I can only speculate that inclusion of RBC is related to its size and degree of inter-bank transactions, holdings and debts. Moody’s Reviews Ratings for Banks and Securities Firms with Global Capital Markets Operations LONG-TERM RATINGS AND STANDALONE CREDIT ASSESSMENTS– PLACED UNDER REVIEW Bank of America Citigroup Goldman Sachs JPMorgan Chase Morgan Stanley Royal Bank of Canada Continue reading RBC included in Moody’s watch list

Apple making headway with government and banks


RIM Blackberry just entered life support.  I know of one bank where the executive all use ipads now.  US Goverment starts saying goodbye to BlackBerry and hello to iPhone and Android The US Government’s General Services Administration, which handles about $500B worth of government assets including telecom and IT, is starting to pilot a project allowing its 17,000 employees to use their own personal devices on its network. While RIM products account for nearly 95% of the devices used by its workforce, the ability to use your own device on a different platform will most certainly take a major cut … Continue reading Apple making headway with government and banks

The rapidly evolving mobile market is still for banks to lose


The Next Web details a Forrester report on smartphones and tablets that quantifies what we are all seeing;  mobile is the future of computing.  There are some interesting takeaways after the graphic. Relevance to Bankwatch: Blackberry:  “Business users will factor heavily into these numbers, with some 350M employees using smartphones.” – this translates into very bad news for Research in Motion.  While that might be a statement of the obvious, RIM surely have just fallen off a cliff and don’t know it. Security:  Banks really need to develop a strategy beyond having an app.  More and more I find myself … Continue reading The rapidly evolving mobile market is still for banks to lose

A dangerous escalation in Israel / Iran tensions


Whomever was responsible for the killing of the Iranian nuclear scientists, the result is that the Iranians hold the Israelis responsible and the triple attempts on Israeli diplomats today represent a significant and dangerous escalation. There does not portend well for middle east stability, and may well translate into oil production disruption at some point.     Israel vows to strike back at Iran over twin attacks on diplomats The wife of an Israeli Defence Ministry attaché was seriously hurt when a hitman on a motorbike attached a magnetic bomb to her car as her driver was taking her to … Continue reading A dangerous escalation in Israel / Iran tensions

Europe: UK and others on downgrade watch


The situation in Europe just received another jolt with Moodys placing UK and France on downgrade alert.  This is a first for the UK but no surprise.  It is some sign though that medium term interest rates are not sustainable at current levels.  The situation has a long way to play out.     Moody’s shifts outlook for UK and France Moody’s put the UK, France and Austria on negative outlook late on Monday night, raising the prospect that the three countries would lose their triple A ratings due to exposure to the eurozone debt crisis. Moody’s places UK credit … Continue reading Europe: UK and others on downgrade watch

What is happening in Europe–do we really understand the undercurrents


We are all watching the situation in Greece.  At what cost will the country remain in the Eurozone? Athens ablaze as MPs vote to save the euro | The Times Rioters set Athens ablaze last night as Greek MPs approved a harsh new austerity package aimed at keeping their country in the euro. Tens of thousands of demonstrators besieged Parliament while MPs neared the historic vote, which opens the way for a €130 billion bailout by the EU and the IMF. Anarchists in crash helmets and black balaclavas smashed marble balustrades and threw rocks and petrol bombs at police. Riot … Continue reading What is happening in Europe–do we really understand the undercurrents