Category: Business Models

Business Models, Canada3 Comments

RBC p2p | an update

Colin Henderson

RBC have had their student blog up for a few months now, and thought I would check back in. About RBC p2p – Everything students need to know about money Ever notice that bank commercials tend to have a lot of grey haired people waxing poetic about retirement? Or suits conferring with more suits about leveraging assets? This isn’t for those people. The posts are smart and well written. Its difficult to know how much review occurs before posting but the result is a good collection of posts varying from speaker reviews, cultural events, to basic budgetting. The main quibble … Continue reading RBC p2p | an update

Business Models, sub prime

LIBOR and why it matters | risk that any bank could face a run on its deposits

Colin Henderson

There is a fascinating, though apparently esoteric debate going on in Banking circles. It is worth understanding the high level points though because it actually matters to bank employees, vendors, and bank customers. Libor (London Interbank Offerred Rate) is set daily, and represents the rate that banks will lend money to each other on the money market. It is one means of managing liquidity for Banks. Lately this rate has been much higher than expected and than historic rates. The going assumption was that Banks were afraid to lend to each other since the credit crisis due to inadequate risk … Continue reading LIBOR and why it matters | risk that any bank could face a run on its deposits

Business Models, sub prime

20,000 banking jobs to be lost in the London

Colin Henderson

The real effect of the credit crunch on once high flying London is now becoming apparent. Finextra: Credit crunch to cost 20,000 City jobs As many as 20,000 City jobs will be culled over the next two years as a result of the global credit crunch, according to a report from the centre for economics and business research (CEBR) which warns that the employment downturn will be worse than during the dotcom crash. Continue reading 20,000 banking jobs to be lost in the London

Business Models15 Comments

Carbon neutrality for Banks and Credit Unions is a hard question

Colin Henderson

Banks and Credit Unions are getting all green over the last two years, and it risks becoming a fad. I was surprised to see VanCity, whom I respect using what appears to be shadow accounting to accomodate a claim of carbon neutrality. I have to call VanCity out on this one. Using a ‘Social Audit’ they have calculated their degree of carbon usage. No problem there. In order to become carbon neutral, they have purchased ‘offsets from five alternative energy projects’. Huh? Vancity – Carbon Offsets Vancity carbon neutral offsets After all of this prep work, the time came for … Continue reading Carbon neutrality for Banks and Credit Unions is a hard question

Business Models

It made no sense, and JPMorgan ups the offer

Colin Henderson

It made no sense, and now the reality is coming through. Its impossible for a set of mortgages to be worth zero. This article also hints that the original ‘almost zero’ valuation was an out for the US Government to not appear to bailing Bear Stearns out. FT.com / Home UK / UK – How JPMorgan was forced into climbdown But with large investors such as Joseph Lewis, the UK-born billionaire who stood to lose hundreds of millions of dollars on his 9 per cent stake in Bear, vowing to do anything possible to engineer a higher bid, the momentum … Continue reading It made no sense, and JPMorgan ups the offer

Business Models, Profitability

Risk management under question at Canadian Banks

Colin Henderson

With these two quotes taken from various press, and summarised on the always complete Canadian Banks blog, it is clear we are entering a period of signficant mistrust amongst at least two of the Banks. Canadian Banks & Insurance Blog Canadian Imperial Bank of Commerce is putting its stock — and the fortunes of its shareholders — at the mercy of hedge funds and other sophisticated players because of the piecemeal way the bank is disclosing its exposure to investments in U.S. subprime mortgages and other complex securities, says a Bay Street analyst. Also not fully explained yesterday was how … Continue reading Risk management under question at Canadian Banks

Business Models

UK nationalises Northern Rock

Colin Henderson

With the stroke of a pen, the UK Labour Government takes us back to 3rd world thinking. Alternative offers from Virgin Money, and a management group were turned down in facour of a government takeover. A sad day for business. Northern Rock is Nationalised Alistair Darling will today introduce emergency legislation to nationalise Northern Rock after abandoning a five-month search for a private buyer for the stricken bank. Continue reading UK nationalises Northern Rock

Business Models1 Comment

Direct Banks exhibit 20% market penetration

Colin Henderson

This is a fascinating statistic, especially when we see that the income levels of the participants are 50% higher than the average. Net Banks Gain One in Five Internet Households – 02.01.2008 – Bank Technology News Article The survey of 1,032 Internet households found the average age of an direct-banking user is 47.8, with an average income of $99,200 a year – compared to the average online banking user who is 52.1 and earns $60,300 annually Continue reading Direct Banks exhibit 20% market penetration

Business Models3 Comments

Pertuity | another way to look at your finances

Colin Henderson

Pertuity strikes me as something different than the others we have seen, and their ‘anchor’ product, Dare to Compare is quite revolutionary, with potential to help people a lot especially as they build out the financial actions, that result. It would also fit nicely within or alongside something like Wesabe data for example. Our anchor product for our initial launch is Dare to Compare; a peer to peer financial comparison widget. You can try it out on our website via a quick and free registration. Users can compare themselves (around income, savings and debt) to (i) their peers in their … Continue reading Pertuity | another way to look at your finances

Business Models3 Comments

“Understanding the Decline and Demise of the Banking Industry”

Colin Henderson

This term paper is written by Tessa Johnson, dated July 20th, 2027.  [Ed note:  2027 is now the official date for the future] GonzoBanker – Article This term paper outlines a historical review of the banking industry and examines the underlying causes behind the turbulent past 20 years that led up to the Financial and Wealth Services Industry Act of 2024. This act has essentially eliminated “banking” as a distinct industry in the United States. Looking back at banking 20 years ago, it is clear that this industry became entrapped in “legacy” issues that resulted in slow action, poor risk … Continue reading “Understanding the Decline and Demise of the Banking Industry”