Japan, Uncategorized

Banks and insider trading in foreign countries to influence stock prices

Colin Henderson

This from Japan might be a forerunner of things we might see in North America. A Foreign bank (French) involved in manufacturing information, based on insider information to improve a stock price. With the predicted problems in commercial real estate to come, there will be increased pressure on banks with such investments. 焦点：破たんのアーバン増資に批判、金融庁もパリバをヒアリング BNP Paribas suspected of making false report on Urban Corp. deal+ TOKYO, May 8 (AP) – (Kyodo)—The Japanese unit of France’s BNP Paribas is suspected to have made a false report to the Financial Services Agency regarding trading of shares in Urban Corp., a now failed Japanese … Continue reading Banks and insider trading in foreign countries to influence stock prices

Uncategorized

Whats next for luxury brands and wealth management

Colin Henderson

We came across this in the latest edition of Monocle. The luxury business or the business of wealth management is like everything else under serious pressure during these calamatous times. This particular years conference should be interesting and note that banks are well represented (Goldman Sachs, and Deutsche Bank) FT Business of Luxury Summit The FT Business of Luxury Summit, now in its fifth year, is the premier industry event for senior luxury executives, business leaders and financiers from around the world. This year’s Summit will debate the key issues facing the luxury industry in today’s turbulent global economic climate. … Continue reading Whats next for luxury brands and wealth management

Canada2 Comments

What makes Canadian Banks different in this crisis? | OECD

Colin Henderson

This 21 page document reviews the circumstances prior to the crisis of Canadian Banks and other OECD Banks.  The relative abundance of retail deposits (compared to more volatile wholesale deposits)  seems to have been key for the resilience of Canadian banks, supplemented by a risk averse financial culture. The differences from the summary were as follows – Canadian Banks were: better capitalised Capital ratios before the crisis were a key determinant of bank performance during the turmoil; and Canadian banks had ample capital more liquid Compared to OECD peers, Canadian banks had slightly above-average balance sheet liquidity enjoyed relatively more … Continue reading What makes Canadian Banks different in this crisis? | OECD

Uncategorized

Seven Bank logs solid earnings after specialising in ATM’s | Japan

Colin Henderson

Several new banks in Japan have announced results, and all but one have lost money.  What is apparent though is that the losses are not directly connected to their newness, and direct banking models, but rather poor investment choices.  Seven bank [7-11] on the other hand that specialises in ATM’s is doing well. What is also interesting here especially to North Americans is the involvement of 7-11 in banking. Seven Bank Is Sole New Bank To Log Solid FY08 Earnings | Nikkei.com TOKYO (Nikkei)–Of the new banks that released earnings reports for last fiscal year as of Friday, Seven Bank … Continue reading Seven Bank logs solid earnings after specialising in ATM’s | Japan

Uncategorized

Insider trading case at Nomura Securities

Colin Henderson

In a story that has not hit the english press yet, there is an insider trading situation involving employees of Nomura Trading in Japan. it appears from what I can glean, to involve Argo 21, which has some involvement apparently with Canon. Nomura were recently involved in purchasing assets of AIG. Nomura Securities – insider trading Courtesy Google Translate: It is assumed that a certified public accountant in his/her thirties repeated an illegal stock trading based on information of the unmaking public on merger/acquisition (M&A) of the listed company that obtains it from the employee of The Nomura Securities of … Continue reading Insider trading case at Nomura Securities

Business Models

“Even though we were in and looking you still couldn’t see [where the bottom was]” | KKR

Colin Henderson

Listening to this interview is interesting and sobering for banks. The highlighted quote below tells all. Henry Kravis and George Roberts (KKR) | FT Interview FT: How do you see the opportunities that have been thrown up by this incredible dislocation? Is the government a good partner for KKR? HK: We looked at quite a few of the banks over time and we turned them down because we couldn’t see what was in the banks. Even though we were in and looking you still couldn’t see [where the bottom was]. I think there may be some programmes where it will … Continue reading “Even though we were in and looking you still couldn’t see [where the bottom was]” | KKR

Business Models

We will not hear about bricks and clicks after this recession

Colin Henderson

Deloitte pick up on an interesting characteristic of banks here. Cost cutting occurs during downturns, but its spend spend spend when things are looking good. Banks rarely get to the point of incremental efficiencies that they note here. Citi are a classic example as noted in the FT this morning. This fits with the view that this change we are undergoing is not just another blip before we return to business as usual. There is no business as usual coming. The future is smaller, framed in different business models, contains a greater mix of small business, and smaller companies and … Continue reading We will not hear about bricks and clicks after this recession

Canada

Speculation mounts about Virgin next move for banking in Canada

Colin Henderson

There appears to be little more than speculation, and floating of ideas here, but nonetheless Virgin have just announced intention to launch a direct bank in UK, and Branson has noted his broad intention to get more involved in financials services. Something to keep our eyes on.  A move such as this is good for financial services, and good for the broader industry including system vendors, such as my friends at SIT, because any new set up will need the flexibility of a web based approach coupled with solid banking and investment systems. Virgin’s next chapter: Is now the time … Continue reading Speculation mounts about Virgin next move for banking in Canada

US

Bank of America plan to repay TARP money

Colin Henderson

The scramble continues to get out of hock with the Government and Bank of America speak about repaying $45Bn by end of year.  More power to them … this would be a good thing if they can pull it off. BofA seeks to repay $45bn by end of year | FT BofA is on track to raise more than $35bn in capital by the end of September, say people familiar with the matter, which it must do before paying back the $45bn bail-out money it received under the Troubled assets relief programme. Continue reading Bank of America plan to repay TARP money

Economy, Japan

How much do we understand the meaning of less GDP now and forseeable future

Colin Henderson

The fall in GDP for Japan appears nothing short of catastrophic, yet on a visit there last week by Nobuyo, the effects of this change are not obvious to the everyday Japanese person. One change that was noticeable in Tokyo is less foreigners (Gaizin).  The area around Roppongi and Azabajuban is normally where one can expect to see many western faces in the restaurants and bars.  No more.  Companies such as Lehman Brothers, Merrill Lynch, and AIG as well as numerous other western financial services companies had representation in Japan, however that is quickly shifting. This still does not appear … Continue reading How much do we understand the meaning of less GDP now and forseeable future