Category: Uncategorized

Innovation, Uncategorized2 Comments

Here to stay? | US Auto as an example of what not to do

Colin Henderson

This photo from the FT Monday exemplifies the state of the US Auto industry today.  The smiles, the protruding jaw, the “in your face” defiance in face of adversity – says it all – supported by the sub-headline “carmakers in drive for more government support”. Where is the quiet thoughtful strategy to re-invent themselves and accept that the opportunity that crystalised 34 years ago with the oil crisis has been woefully lost.  Instead of magically rolling out electric cars all of a suddden as if they were always on the plan, lets hear the overall plan to change, and describe … Continue reading Here to stay? | US Auto as an example of what not to do

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American Banker release a news blog

Colin Henderson

American Banker have released a blog.  It covers current news in the areas of new regulatory restructuring initiatives, housing policy and financial rescue efforts coming out of Washington.  I like the design, nice and clean, although I am not a fan of partial/ read more posts display.  Some of the posts are reviews and summaries of other newspapers – all good stuff.   If I read that in my Google Reader that means I have to come to the site to read it.  Pro blog readers will tend to read less with that view. Otherwise a nice start to opening … Continue reading American Banker release a news blog

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“UK interest rates cut to 315-year low” | historic headline

Colin Henderson

This has to be the classic historic headline. This means the lowest rates since 1693. UK interest rates cut to 315-year low Lets put that in perspective. …. Giovanni da Verrazzano, the first European explorer to enter New York Harbor, in 1524. 1693 in History October 5 Haarlem people’s revolution due to food shortages January 11 Mt. Etna erupts, Sicily February 6 Royal charter granted College of William and Mary, Williamsburg, Va February 8 William and Mary college is 2nd college chartered in US February 13 College of William and Mary opens June 27 1st sea battle of Lagos: England … Continue reading “UK interest rates cut to 315-year low” | historic headline

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The Centre for Future Banking blog | BofA – MIT

Colin Henderson

We noted a while back that BofA and MIT were organising a Future of Banking lab.  Well it is now in place apparently and they have a blog.  [ hat tip James @ Bankervision ] The Centre for Future Banking blog Over at the Centre for Future Banking, which is a joint initiative between Bank of America and MIT Media Labs, work is going on to “invent the future of banking”. That may or may not be aspirational, but the fact of the matter is something else is happening over there as well. They just launched a blog, written by … Continue reading The Centre for Future Banking blog | BofA – MIT

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“A bank is a bank and, if the security of its depositors is not its main concern, it should be required to adopt another name

Colin Henderson

Brilliant – the concept of bank has been completely lost. Banks’ crisis of identity leaves depositors in trauma | Financial Times “A bank is a bank,” he wrote, “and, if the security of its depositors is not its main concern, it should be required to adopt another name. The article goes on to say “At present – though this is to change – a UK bank is just another company. As such, its primary duty is to its owners.” Relevance to Bankwatch: There is much there to think on. A bank cannot be just another company. Alternatively a bank cannot … Continue reading “A bank is a bank and, if the security of its depositors is not its main concern, it should be required to adopt another name

Innovation, Social Media, Uncategorized

Wells Fargo first to use social media to help with a major merger

Colin Henderson

Wells Fargo have started a new blog that is the first example of a large company to use social media to help with a major merger and product integration of this size. They believe it is a great platform to introduce the Wachovia customer to Wells Fargo, many of whom aren’t familiar with Wells and I agree. This from the first post by John Stumpf, president and CEO of Wells Fargo & Company. The Wells Fargo – Wachovia Blog One way we’ll keep you updated on what’s happening with the integration of Wachovia and Wells Fargo is through this blog. … Continue reading Wells Fargo first to use social media to help with a major merger

Economy, Uncategorized

Significant shift in world trade settlements coming as China frees up Yuan

Colin Henderson

Another signal of changing times in world trade. implications of this shift will be far-reaching. China to allow freer yuan trades | BBC It means if the two parties to a trade have yuan available, they need not enter world exchange markets to pay. Most of China’s foreign trade is settled in US dollars or the euro, leaving exporters vulnerable to exchange rate fluctuations. Continue reading Significant shift in world trade settlements coming as China frees up Yuan

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Getting back to normal economic growth | we have it all wrong!

Colin Henderson

These two headlines tonight following the bank bailout and the auto bailout serve to validate my new view.  We are not going back to where we were.  Yet all activities of the governments’ to date are premised on the notion that after this hickup we will return to 1-2% annual growth in GDP reasonable interest rates, and increasing home prices. Who believes that now?  Where is the pragmatic thinking that plans for GDP at a fraction of what it was in 2007 ?  Where are the scenario plans for GDP at 75% and 50% of 2007 levels.  Such plans would … Continue reading Getting back to normal economic growth | we have it all wrong!

Economy, Uncategorized

Bank capital, economy, debt, and the true meaning of Jubilee

Colin Henderson

On the topic of Bank capital this chart embedded in Greenspans article shows just how much banks business model has evolved.  In economic terms this is the corollary to extreme business and personal debt. In the years following 1840 when bank capital was approaching 60%, as banks made loans, the borrower bought things that resulted in bank deposits which can then be lent again, and again.  The velocity of capital as it is know increased dramatically until 1940 and largely remained there – till now.  As banks re-capitalise the preachings of government to lend more is the ultimate paradox. Banks … Continue reading Bank capital, economy, debt, and the true meaning of Jubilee

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BofA apparently pressured by China

Colin Henderson

Fascinating high stakes pressure being exerted between Chinese government and Banks. BofA was ready to exercise its right to sell a part of its stake in the Chinese bank CCB but the Chinese government stepped in and suggested such a move would be detrimental to future BofA activities in China. BofA shelves $3bn plan to cut CCB stake | http://www.ft.com The share sale could have triggered a fall in CCB’s share price just as Beijing is trying to garner support for its largest banks and arrest a stock market slide. Foreign financial institutions, including Goldman Sachs, Dresdner Bank, Temasek and … Continue reading BofA apparently pressured by China