regulation

U.S. Planning to Reveal Data on Health of Top Banks

Colin Henderson

I saw somewhere earlier that the President was planning a major economic speech tomorrow, and now this below is finally coming after being delayed while some banks announced.  This probably explains the context. U.S. Planning to Reveal Data on Health of Top Banks | NYT WASHINGTON — The Obama administration is drawing up plans to disclose the conditions of the 19 biggest banks in the country, according to senior administration officials, as it tries to restore confidence in the financial system without unnerving investors. Continue reading U.S. Planning to Reveal Data on Health of Top Banks

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FDIC Quarterly Banking Profile offers some insight to banks’ status

Colin Henderson

As we await the results of the Federal Reserve Stress tests, the FDIC quarterly tells us much of what to expect.  This report is a roll up of all banks in the US, and it provides some interesting stats.  The numbers are broadly negative over the periods since 2002, and since last year.  Banks are highly levered, and at their most levered for the duration of the reporting periods back to 2002. FDIC The Quarterly Banking Profile is a quarterly publication that provides the earliest comprehensive summary of financial results for all FDIC-insured institutions. Capital – $ 1.3 Tn Loans  … Continue reading FDIC Quarterly Banking Profile offers some insight to banks’ status

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MasterCard Launches ATM iPhone App

Colin Henderson

Netbanker notes the new MAsterCard ATM app for iphone.  Nice move by MasterCard to try out the new platform. MasterCard Launches ATM Hunter iPhone App | Netbanker A few weeks ago there wasn’t a single dedicated ATM finder in Apple’s App Store, now there are three, not counting the bank-branded versions (more on that below). MasterCard is the latest entrant with a cute app called ATM Hunter (see inset; iTunes link) launched six days ago. Continue reading MasterCard Launches ATM iPhone App

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Wells Fargo mortgage business leaps ahead

Colin Henderson

The effect of low interest rates, low home prices, and elimination of ‘irrational’ lenders has paved the way for Wells, and likely the other recognised bank names to gather large amounts of new mortgage business in the US. I would estimate that banks are not taking undue risks and have tightened credit policies, however this is precisely the moment for regulators to perform that double check as part of their stress testing, both to ensure no re-occurrence of 2007/8, and to assure the public that this is based on solid growth. Incidentally that stress test result was due early in … Continue reading Wells Fargo mortgage business leaps ahead

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Water cut off in Mexican capital |BBC

Colin Henderson

Its a chilling example that the themes contained in the Homer-Dixon book The Upside of Down are happening with convergence of natural and human catastrophe bringing  results that will inevitably threaten world security and stability in unexpected ways. Water cut off in Mexican capital | BBC Mexico City officials have shut down a main pipeline providing fresh water to millions of residents because reserves have fallen to record low levels. The closure, due to last 36 hours, will affect five million people, or a quarter of the city’s population. Unusually low rainfall last year and major leakage are blamed for … Continue reading Water cut off in Mexican capital |BBC

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Success depends on failure| Kansas City Federal Reserve

Colin Henderson

Thomas M. Hoenig, President and Chief Executive Officer, of the Kansas City Fed offers up some sobering and pragmatic advice for allowing market forces to deal with banks. Success depends on failure| Kansas City Federal Reserve The first principle is to properly understand our goals and correctly identify the problems we are attempting to solve. This may sound  obvious. However, when we are  in the middle of a crisis where more than a half million people are losing their jobs every month, it is tempting to pour money into the institutions thinking that it will correct the problem and get … Continue reading Success depends on failure| Kansas City Federal Reserve

Security

Tokyo Mitsubishi UFJ employee charged with stealing 1.5 million customer records

Colin Henderson

An employee at Tokyo Mitsubishi UFJ (Tokyo, Japan) has been arrested, charged with stealing 1.5 million customer records, of which about 49,000 have been sold to criminal elements.  The remainder have been safely recovered. Mitsubishi UFJ says 49,159 customer records leaked | Reuters TOKYO, April 8 (Reuters) – Mitsubishi UFJ Financial Group’s (8306.T: Quote, Profile, Research) brokerage unit said on Wednesday records on 49,159 customers, including salary details, were leaked and sold to data list agents. Data stolen included customers’ names, addresses, dates of birth, occupation and rough salary figures, the brokerage said. (Reporting by Junko Fujita) Continue reading Tokyo Mitsubishi UFJ employee charged with stealing 1.5 million customer records

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What is fragile should break early while it is still small | Taleb – The Black Swan

Colin Henderson

This piece from Nasim, author of The Black Swan is simply too good a piece of advice not to replicate, with full attribution.  The first two points in particular are simply too precious. The message – a debt crisis is the worst kind, and leverage is one of the worst of all bad economic situations. Ten principles for a Black Swan-proof world | Financial Times By Nassim Nicholas Taleb Published: April 7 2009 20:02 | Last updated: April 7 2009 20:02 1. What is fragile should break early while it is still small. Nothing should ever become too big to … Continue reading What is fragile should break early while it is still small | Taleb – The Black Swan

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FSA steps up scrutiny in ‘get scary’ drive

Colin Henderson

The normally quiet FSA is becoming proactive, taking advantage of the current climate to do deeper assessments of market participants.  In fact they are getting deliberately personal in assessment of market participants. FSA steps up scrutiny in ‘get scary’ drive | FT The Financial Services Authority is delving deeper into the pasts of those it supervises in what solicitors see as a crackdown that could lead to more companies and individuals being excluded from the market. Executives and managers are being called for interviews more often, asked for more detail about their CVs and experience, and quizzed more closely on … Continue reading FSA steps up scrutiny in ‘get scary’ drive

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Toxic debts could reach $4 trillion, IMF to warn

Colin Henderson

In a much anticipated upward revision of earlier forcasts, the IMF is expected to increase its estimate of toxic assets, that is loans that should be written off, to $ 4 trillion. The new forecast is expected 21st April, and reported today by The Times. The forecast apparently will cover primarily US-originated assets but this forecast introduces European-originated assets. This represents the most ocnsequential statement of evidence yet, that this is a debt crisis which must be resolved before other elements of the banking system will return to any degree of normality. It will also require changes at the top … Continue reading Toxic debts could reach $4 trillion, IMF to warn