With RBS expected to get $15Bn, that emphasizes the extent to which the British government are apparently going to support British banks. State to save HBOS and RBS | Sunday Times The scale of the fundraising could lead to trading at the London stock market being suspended. This would give time for the market to digest the impact of the moves. Relevance to Bankwatch: How will this $35 Bn capital injection into RBS, HBOS, Lloyds, and Barclays help the immediate problem of frozen interbank lending? There are two problems with banks: 1) lack of capital to absorb bad loans 2) … Continue reading Unprecedented | UK Goverment to inject $35Bn into top banks

In a new bank that is truly national and the largest the Wells Fargo acquisition of Wachovia is expected to take three years to complete. Its an extraordinary scale of branches that are involved now, and will be interesting to see how that plays out with Wells internet focus. Wachovia deal not without its risks | FT.com The deal will dramatically expand Wells’ franchise east of the Mississippi River, creating a coast-to-coast network of 12,200 branches – larger than those ofBank of America and JPMorgan Chase. The combined bank will have $1,420bn in assets and $787bn in deposits. Continue reading Wells / Wachovia deal now official

Further to my earlier prediction, the trail of US small bank closures is heating up with the 14th and 15th this week, and the month just begun. FDIC Failed Bank Information On October 10, 2008, Meridian Bank, Eldred, Illinois was closed by the Department of Financial and Professional Regulation of the Illinois Division of Banking and the Federal Deposit Insurance Corporation (FDIC) was named Receiver. No advance notice is given to the public when a financial institution is closed. Continue reading Fifteenth bank closure of 2008 by FDIC

One positive outcome of the credit crisis, is hat Banks will be required to actually offer something different in order to attract and retain customers. This from the Financial TImes notes the level playing field that existed while small, new (and undercapitalised) Banks were able to comoete with large banks on the basis of free flowing cheap credit. Those days are long gone, with credit expensive, and liquidity dried up. These had the effect of levelling the playing field between large, financially strong financial institutions with large reservoirs of retail deposits to fund loan growth and smaller, upstart banks that … Continue reading Banks will no longer be able to attract customers with free flowing cheap credit

Bank of America raise capital on the same day their stock dropped 26%. Unusual, but also indicative of the basic trust that BofA will come back. BBofA rasies $10Bn Bank of America raised $10bn late on Tuesday by selling shares at a price far lower than the bank had hoped for after it weathered a difficult day in which its stock dropped by 26 per cent. Continue reading Bank of America muddle through a significant capital raise

Today it is banks – in 1873 it was railroads.  Today it is China – in 1873 it was America.  The more things change …….  no doubt we will survive …  and no doubt we will learn nothing. Panic of 1873 | Wikipedia The New York Stock Exchange closed for ten days starting September 20. Of the country’s 364 railroads, 89 went bankrupt. A total of 18,000 businesses failed between 1873 and 1875. Unemployment reached 14% by 1876, during a time which became known as the Long Depression. Construction work lagged, wages were cut, real estate values fell and corporate … Continue reading The (real) Great Depression of ….. 1873

In a novel move, HSBC combines the CIO and COO position. Certainly their motivation is appropriate, and their direction makes sense. One system, centralised around the customer experience. HSBC names Harvey chief technology and services officer “By combining our technology and worldwide operations more closely we can re-engineer customers’ experience of HSBC and at the same time drive down the unit cost of production,” says Geoghegan. Harvey will continue to lead the bank’s One HSBC initiative which will see the migration of the bank’s global operations onto a single technology platform. HSBC has said that the programme aims to “re-engineer … Continue reading HSBC press on with customer experience re-engineering and cost containment

Programmers are a little different, and Ruby Programmers extend that idea.  This video has bits about the simple power of meta-programming in Ruby, alongside some practical business principles.  Release early, and release often, for example.  Its a 500 page presentation in about 40 minutes.  Grab a coffee, and have a listen.  The most important video of 2008 Still, nobody really quite expected what happened when Giles Bowkett took the stage to show off his labour of love, Archaeopteryx. Watch “Archaeopteryx: A Ruby MIDI Generator” at InfoQ, now. Lots of threads here, but five things to listen for: computers are everywhere … Continue reading Something a little bit different | Giles Bowkett