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When will it all end? | the answer has to begin with smart banking regulation

Colin Henderson

I just finished a conversation with a colleague on the West Coast of the US who it turns out is a reader of this blog, so thank you for that. The topic was the dire nature of the news, and in particular the emails from RBE (Nouriel Roubini) which are consistently bearish, and with the timing of those emails coming in late at night, this can contribute to sleep deprivation from worry. Aside from the potential for re-scheduling the emails, it made me reflect on what is missing in all this economic crisis, and how it is different than what … Continue reading When will it all end? | the answer has to begin with smart banking regulation

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The Turner Review: a regulatory response to the global banking crisis

Colin Henderson

Here is the Turner Review commissioned by the Chancellor of the Exchequer.  Martin Wolf reviews here at the Financial Times.  Wolf argues it is a watershed for finance making this excellent point – “The most important analytical points are that individual rationality does not ensure collective rationality, that individual behaviour is frequently less than rational and that, in consequence, markets can overshoot, in both directions. Above all, such failings create systemic risks: if everybody believes in the same (faulty) risk models, the system will become far more dangerous than any individual player appreciates; and if everybody relies on their ability … Continue reading The Turner Review: a regulatory response to the global banking crisis

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The Rosenkranz Foundation debate | Blame Washington more than Wall Street for the financial crisis

Colin Henderson

This is just plain fun.  Some of my own economist hero’s (Roubini, Ferguson) and others debating the blame for the crisis.  The result was a vote in favour of for the motion, that Washington is to blame, but the humour and the threads are fascinating for those interested – particularly the Ferguson / Minow, (Government is corrupt / Government are victims) bits.  I highlighted summary points, and full transcript is here.  financial-crisis-031709 Debate: BLAME WASHINGTON MORE THAN WALL STREET FOR THE FINANCIAL CRISIS | For the motion: Niall Ferguson, John Steele Gordon, Nouriel Roubini Against the motion: Alex Berenson, Jim … Continue reading The Rosenkranz Foundation debate | Blame Washington more than Wall Street for the financial crisis

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Global Economic Policies and Prospects | IMF note to G20

Colin Henderson

This is an excellent paper designed as a note the to G20 Finance Minister meeting which just occurred in Horsham last week.  It provides context and detailed analysis of the issues affecting the world economy, and with good detail on the risks and issues relative to banks. IMF Note to Group of 20 Some notes from their conclusions: while they conclude a return to GDP growth could occur in the 3rd quarter 2010, the conditions on that conclusion and the risks noted, make a return to growth by then unlikely. Deflation remains a fact for some time On banks and … Continue reading Global Economic Policies and Prospects | IMF note to G20

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Lending Club gains strength and momentum with new capital raise

Colin Henderson

P2P lender Lending Club announces their Series B raise of $12 million.  The money is to fund new growth and the announcement also indicates the hiring of Pamela Kramer as CMO. Lending Club continues to be the only regulated P2P lender in North America and this news appearing during these hard times for raising cash has to be indicative of the promise for the industry. Congrats to Renaud, Rob, and all the team at LC. Lending Club Closes Series B Financing Round  SUNNYVALE, Calif.–(BUSINESS WIRE)–LendingClub.com, the peer lending network that brings together investors and creditworthy borrowers, announced today that it … Continue reading Lending Club gains strength and momentum with new capital raise

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“Every transaction uploaded makes Wesabe smarter” | now banks’ are beginning to recognise that value

Colin Henderson

I always enjoy writing about Wesabe, and continue to believe they are one of the few game changing innovations in financial services.  So it was with great pleasure when I had the opportunity to chat with Marc Hedlund, CEO yesterday.  Marc gave me an update on their new application suite, Springboard.  Springboard offers banks the ability to provide Wesabe services to their online customers. When I wrote up The Great Unwinding one of the conclusions on outcomes of the banking crisis was the return of ‘back to basics’ banking and with the overriding level of regulation expected to increase, innovation … Continue reading “Every transaction uploaded makes Wesabe smarter” | now banks’ are beginning to recognise that value

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Bank of America helps recession-hit customers | new web site earns cash back

Colin Henderson

Nice to see a positive story with this release from BofA.  I have been critical of them recently, of their public face, so good to see the work is going on behind the scenes to create new ideas. Bank of America ‘online mall’ targets crunched online shoppers | finextra Bank of America is looking to attract recession-hit customers with the launch of a new Web site that allows users to earn cash back on purchases at a host of online retailers. Continue reading Bank of America helps recession-hit customers | new web site earns cash back

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A more pragmatic view of the near future for scenario planning

Colin Henderson

Right after I posted this piece, thinking that finally people were starting to look to the future with a more pragmatic eye,  I came across this from David Olive in The Star.  I am by nature an optimist, however rationalisations such as this piece cannot alter some obvious facts. David Olive: Will the economy get worse? | The Star No. The current market downturn is still small by historical standards and the seeds of recovery are already planted. By talking the crisis up, we’re only prolonging it. Here’s some ammunition for the optimists among us. First we can begin with … Continue reading A more pragmatic view of the near future for scenario planning

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“I’ve a feeling we’re not in Kansas any more” | Future of Capitalism

Colin Henderson

The Financial Times has kicked of a series on The Future of Capitalism and of course quite a bit of that is devoted to banking, and the implications for banking. The Introductory article from Senior Economist Martin Wolf sets the tone, and without making explicit predictions certainly suggests directionally where the near future may lie.  There are consequential implications captured in these snippets from the article.  It struck me as interesting and perverse that the thing I have been worrying about us losing is regarded as one of the causes for the collapse – innovation. It should be clear that … Continue reading “I’ve a feeling we’re not in Kansas any more” | Future of Capitalism

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“These jobs aren’t coming back”

Colin Henderson

Finally the realisation is sinking in that this is no longer business as usual.  The economy will come out of this recession looking different. Job Losses Hint at Vast Remaking of Economy | NY Times The unemployment rate surged to 8.1 percent, from 7.6 percent in January, its highest level in a quarter-century. In key industries — manufacturing, financial services and retail — layoffs have accelerated so quickly in recent months as to suggest that many companies are abandoning whole areas of business. “These jobs aren’t coming back,” said John E. Silvia, chief economist at Wachovia in Charlotte, N.C. “A … Continue reading “These jobs aren’t coming back”