American Banker have picked Lewis over a close second, JPMorgan Chase’s James Dimon. While the two accomplished significant takeovers this year, the decision centred on Lewis’s elevation of Bank of America into the ranks of ‘universal banks’ roughly defined as big, and covering all aspects of financial services.  And the Banker of the Year Award Goes to …  |NY Times Between Bank of America’s two crowning deals <Merrill Lynch and Countrywide Financial> and JPMorgan’s firesale purchases of Bear Stearns and Washington Mutual, the two have become by far the biggest universal banks in the country, with major presences in virtually … Continue reading Kenneth D. Lewis of Bank of America is "Banker of the year"

The Euro governments have agreed on what appears a sensible plan to re-assure depositors, yet keep the pressure on Banks to sort themselves out.  Included are measures to ‘sanction’ institutions that need help, something the Americans had trouble with. Europe agrees bank crisis action Europe’s biggest economies have agreed to work together to support financial institutions – but without forming a joint bail-out fund. French President Nicolas Sarkozy hosted the meeting of the leaders of Britain, Germany and Italy in Paris. … … Mr Sarkozy announced a series of allied measures – including unspecified action against the executives of failed … Continue reading Europe act smartly, but some additional information on the US bailout raises questions

A pleasant surprise this morning to read that Wachovia is being wholly taken over by Wells.  Wells Fargo in a Deal to Buy All of Wachovia | NY Times Wachovia’s deal with Wells Fargo will further concentrate Americans’ bank deposits in the hands of just three banks: Bank of America, JPMorgan Chase and Wells Fargo would control more than 30 percent of the industry’s deposits. Together, those three would be so large that they would dominate the industry, with unrivaled power to set prices for their loans and services. Given their size and reach, the institutions would probably come under … Continue reading Wells and Wachovia is a much better arrangement

American banking lies in an uncomfortable mix of three big banks, and 8,000 smaller ones (with apologies to Wells).  As the dust settles on the last two weeks the realisation of what has occurred with the disappearance of Wachovia, WaMu, and the investment Banks, will settle, and the result will not offer opportunities, and implications not forseen. US regional bank mergers The US banking food chain is a dangerous place to be. The minnows, though, have got off lightly, while bigger fish have made a meal of each other. Where does that leave prospects for consolidation among the 8,000-odd US … Continue reading What about the US regional banks ?

I would have posted this earlier this evening, but the US House Committee on Financial Services site was down due to the overwhelming response to download the act. Here is the full proposed Act emergency-economic-stabilization-act-2008-ayo08c04_xml (EESA) Here is the more useful part for most their one page summary – emergency-economic-stabilization-act-2008-summary-ayo08c04_xml There are five parts: Stabilizing the Economy Homeownership preservation Taxpayer Protection No Windfall for Executives Strong oversight I took away a few thoughts: Much of the rhetoric in the bill worded to protect the US taxpayer and punish the big bad banker, will do much of neither.  There is a … Continue reading Emergency Economic Stabilization Act of 2008, and the word that is missing