Uncategorized

Many banks still failing on implementing risk management | Deloitte survey & report

Colin Henderson

Deloitte have released a report based on a survey of banks and their approach to risk management, including the degree to which they have embedded risk into compensation decisions.  The survey includes financial institutions from around the world, with 27% being banks over $100 Bn. Slightly more than 50% have not integrated risk across the enterprise and into compensation.  This is somewhat surprising considering the public attention paid to the matter, and the lessons learned over the last two years about the disassociation of compensation from negative results Risk management in the spotlight | Deloitte Recent developments in the financial … Continue reading Many banks still failing on implementing risk management | Deloitte survey & report

Innovation

ETRADE have released a new Online Advisor service

Colin Henderson

ETRADE have released a new Online Advisor service, and let me take a look at a demo on the US site to review. It walks the user through a set of relevant questions that source and validate the users investment needs, then produces an asset allocation model at the end.  For the self service type who wish to move beyond gut feel, and assess one portfolio or their entire portfolio, this tool is a useful addition.  Its the kind of thing that is worth an afternoon, and taking the time to properly assess the approach you would wish to take. … Continue reading ETRADE have released a new Online Advisor service

Innovation

Skygrid introduces web based real time financial news platform with | [beta invites]

Colin Henderson

The folks at Skygrid have a beta financial news site that is focussed on financial news, real time.  It has been written up by Scoble and Techrunch so that was enough to pique my interest further when I was introduced to the service. To be clear it is probably not for everyone.  It is however useful for those who follow the markets closely and daily providing various filters for different news sources, including web, blogs, and EDGAR.  The interface is work in progress, and be sure to turn off the ‘bubbles’ so you can see what you are doing.  This … Continue reading Skygrid introduces web based real time financial news platform with | [beta invites]

Japan

Japanese exports beginning to slow less quickly

Colin Henderson

The slowing down of the slowdown continues everywhere, but still a long way to go.  We all rely on imports from countries such as Japan, and it seems we are beginning to buy again. April Curr Acct Surplus Shrinks But Export Fall Slows – Japan Japan’s current account, the broadest measure of the country’s trade with the rest of the world, logged in April a Y630.5 billion surplus, a decline of 54.5% on year, data released Monday by the Ministry of Finance showed. But in a positive sign that overseas demand is picking up slightly, exports fell less precipitously in … Continue reading Japanese exports beginning to slow less quickly

Economy

Japan, China Vow To Promote World Economic Recovery

Colin Henderson

In a headline few expected to see, Japan and China put mutual interest in world economic stability and their own economic futures ahead of disagreements and agree to co-operate on economic packages. Japan, China Vow To Promote World Economic Recovery | Nikkei TOKYO (Kyodo)–Japan and China pledged Sunday to promote recovery in the slumping world economy and called for an early conclusion to global trade liberalization negotiations, Foreign Minister Hirofumi Nakasone and Chinese Vice Premier Wang Qishan said after a one-day economic ministerial meeting in Tokyo. Asia’s two economic giants issued 11 sets of documents highlighting bilateral cooperation in areas … Continue reading Japan, China Vow To Promote World Economic Recovery

Uncategorized

Normal service has been removed – blog is back

Colin Henderson

Apologies to  anyone that was inconvenienced with the outage yesterday and earlier today.  The outage was an error as noted below by WordPress. I continue to have faith in their service and their attempts to ensure that there are no blogs that use ‘affiliate linking’ is welcome to me.   It turns out in 2007 I pasted a paragraph from another site that I was quoting, and it contained an errant link that a recent update at WordPress picked up.  It was hardly enough to suspend the blog, hence the apology which is accepted. A small thing, but important nontheless … Continue reading Normal service has been removed – blog is back

Economy

Cabinet Office Pegs Global Economic Growth At Just 1% In 2010

Colin Henderson

I have read enough economic forecasts over the last 2 years to realise that this forecast from the Japanese government is the first time that government has recognised the obvious that the situation we are in is not going to resolve quickly. I am a firm believer in this being an L shaped recovery, and this report points in that direction.  There is just too much lag built into the shift we have experienced.  With such a dramatic and permanent drop in asset values we have seen, the natural deleveraging impact will take years to work through the system. Cabinet … Continue reading Cabinet Office Pegs Global Economic Growth At Just 1% In 2010

AI1 Comment

Japanese online shopping site Rakuten to open eBank

Colin Henderson

Rakuten [wikipedia Site]  is a highly popular Japanese shopping destination online, where you can get anything, from laptops to shoes to travel, you name it.  Now they are adding their own bank in 2010. The aggregated model exemplified by Rakuten works well in Japan, and the addition of banking is one more innovation for traditional banks to contend with. Rakuten online shopping mall to open eBank TOKYO, Jun 04, 2009 (Kyodo News International – McClatchy-Tribune Information Services via COMTEX) — Internet mall operator Rakuten Inc. said Thursday it will rename its Internet banking unit eBANK Corp. as Rakuten Bank before … Continue reading Japanese online shopping site Rakuten to open eBank

AI

Bad economy, more insider trading & fraud

Colin Henderson

When the economic wheels fall off, thats when this kind of thing comes out of the woodwork in banking.  This is the second one in Japan recently, and in the US, we have seen Madoff, and Stanford. Aozora Bank Raided For Suspected Insider Trading TOKYO (Nikkei)–The Securities and Exchange Surveillance Commission on Thursday raided the main office of Aozora Bank (8304) in Tokyo’s Chiyoda Ward on suspicion that an employee of the bank traded shares using inside information obtained at work. あおぞら銀本店を強制調査 融資審査情報を悪用して株のインサイダー取引をした疑いがあるとして、証券取引等監視委員会は４日、金融商品取引法違反の疑いであおぞら銀行の男性行員 を任意で聴取、東京都千代田区の本店を強制調査した。今後の調査で容疑が固まれば、捜査当局に行員を告発する。関係者によると、聴取を受けたのは、融資審 査部門に所属する４０代後半の男性行員。利得額は、数年間で一千数百万円に上るとみられる。 Researched by Nobuyo Henderson Continue reading Bad economy, more insider trading & fraud

Innovation

BBVA pays staff to take 5 years off

Colin Henderson

A very unusual and novel cost cutting measure from BBVA, the Spanish bank.  The 70% cost reduction, with a guaranteed pool of employees after the period is up is certainly a new approach. Can’t help but think there will be unintended consequences after the 5 years are up, built certainly the immediate consequences will be more palatable than normal layoffs, which generate acrimony, as well as an expense one time charge.  This approach will drive accountants nuts. It will allow the bank to make future hiring plans, and attrition management with some knowledge of the future. Bank pays staff to … Continue reading BBVA pays staff to take 5 years off