In a remarkable event that we will need to reflect on tomorrow, the Feds are going to remove bad investments from Banks Balance Sheets and take on the risk?  Am I reading this correctly?  That is tantamount to nationalisation of Banks.  More tomorrow. Bloomberg Sept. 19 (Bloomberg) — U.S. Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben S. Bernanke proposed moving troubled assets from the balance sheets of American financial companies into a new institution. Congressional leaders who met with Paulson and Bernanke late yesterday in Washington said they aim to pass legislation soon. The initiative, which may also … Continue reading Paulson, Bernanke Push New Proposal to Cleanse Balance Sheets | huh!!

HSBC are doing what Citi have failed at to date. They are forcing local business units to adopt the central standard. For the life of me, I cannot tell why global Banks or any Bank with multiple business units for that matter, do not lay the law down and do the same thing. Finextra: HSBC talks up IT integration initiative The bank’s One HSBC initiative aims to establish a common technology platform across business units and regions. HSBC says the programme aims to “re-engineer the company so that wherever possible we use global systems”. This is expected to drive down … Continue reading HSBC lay the law down with local business units

Umair writes some great stuff, but this post is a classic, and a keeper.  “We’re addicted to consumption”, and “Do we need razors with ten blades – or a single blade that never dulls?” are classic quotes that reverberate.  The key backdrop in this piece [for me] is the comment on the financial system. America’s Addiction and the New Economics of Strategy – Umair Haque Let’s re-examine the house of cards that is the global financial system. Emerging markets seek export-led growth: they undervalue their currencies, so their exports are more competitive purely in terms of price. That’s essentially a subsidy … Continue reading “Addicted to consumption” | where does that leave Banks

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