Economy

Japan looked to by G20 for support

Colin Henderson

Japan is sitting with a tidy current account surplus that the others in the G20 are eyeing jealously.  Japan has to put itself first however. Japan’s $1 trillion to the rescue? | CS Monitor TOKYO – Can Japan, the world’s second largest economy, save the global financial system? As world leaders prepare to meet in Washington Saturday to seek a way out of the financial crisis, some are casting covetous eyes in the direction of Japan’s $1 trillion worth of foreign reserves as a source of salvation for troubled nations and banks. Continue reading Japan looked to by G20 for support

Economy6 Comments

Google – can I count on you ?

Colin Henderson

I have always been skeptical about online advertising.  I avoid it like the plague, and while I recognise I may not be the average, I also know I may be the view of things to come.  Google Analyst: “Worst Economic Environment In Our Collective Lifetimes” | Techcrunch Google’s stock price closed yesterday at $291, the first time it has dropped below $300 since 2005. It’s 44% off of its 52-week high of $725. Most analysts think its cheap and getting cheaper – the average price target is still over $500. Former analyst Henry Blodget, however, thinks it could fall to … Continue reading Google – can I count on you ?

regulation1 Comment

The G20 ought to consider only regulation that assesses the outcome of good and bad decisions

Colin Henderson

President Bush makes an important point and distinction here [emphasis mine].  The couch economists and newly found supporters of a new President are tempted by talk of new regulation and government control.  Bush defends free-market system | BBC Returning to the cause of the credit crunch, Mr Bush admitted that failures had been made "by lenders and borrowers, by financial firms, by governments and independent regulators". But that the answer was "not to try to reinvent the system". Instead, he said the solution was to "fix the problems we face, make the reforms we need, and move forward with the … Continue reading The G20 ought to consider only regulation that assesses the outcome of good and bad decisions

Uncategorized1 Comment

Google gmail picks up big corporate customer

Colin Henderson

If the numbers are right here, then the $ 3/4 million saving for 800 employees as a result of switching to Google Apps is true then this is significant.  Serena Dumping Microsoft Exchange for Google Gmail, The Cloud | eweek Serena Software expects to save $750,000 per year by shedding Microsoft Exchange Server in favor of Google’s Gmail application for its 800 employees, officials for the Web development software maker told eWEEK Nov. 12. We posted on this before.  I know from personal experience that working with gmail in a browser is exponentially faster and smoother than Exchange in Outlook.  … Continue reading Google gmail picks up big corporate customer

regulation

Some fresh thinking – The New American Bank Initiative (NABI)

Colin Henderson

I worry about the bailout plans led by newly famous Gordon Brown (Prime Minister UK), and which every other world leader is falling over themselves to adopt.  Such an approach is natural for Brown and his political leanings, but to see it occurring around the world to the extent it is happening is worrisome.  That worry is exacerbated now that we see proposals to help out the auto manufacturers.  This is protectionism by another name, and will result in worse companies with worse products.  The same can be said of Banks.  How can a bank with a financial tap opened … Continue reading Some fresh thinking – The New American Bank Initiative (NABI)

Innovation

RBC continue to do small things well

Colin Henderson

RBC continue to promote small incremental change online that flies in the face of traditional banks, and certainly more than we expect from the largest bank of any country. Check it out here.  What better way to learn and understand the Internet environment. Online Banking Rating and Reviews To my knowledge only Bank of America have dabbled in this kind of thing to date, and no bank in Canada. Continue reading RBC continue to do small things well

AI

Branch redesign – saviour or anchor?

Colin Henderson

The always insightful Paul Penrose picks up on a terrific theme here that should as they say have legs.  Out of crisis normally comes innovation usually driven by forced choice than desire.  Banks are being squeezed in many ways, and one major one is resorting to reliance on regular retail and commercial banking as their core business (imagine that!) The bank branch – weakest link or saving grace? | Finextra – Paul Penrose Sean Park’s Sixth Paradigm blog refers to a recent editorial piece in the FT bemoaning the poor standards of customer service in high street bank branches. Sean … Continue reading Branch redesign – saviour or anchor?

Uncategorized2 Comments

Eighteenth Bank to Close This Year – US

Colin Henderson

Bank # 18 is taken over by the FDIC Nov 7th. Failed Bank Information On November 7, 2008, Franklin Bank, SSB, Houston, TX was closed by the Texas Department of Savings and Mortgage Lending and the Federal Deposit Insurance Corporation (FDIC) was named Receiver.  No advance notice is given to the public when a financial institution is closed. Technorati Tags: FDIC Continue reading Eighteenth Bank to Close This Year – US

Web/Tech

ONE HSBC offers a plan to reduce complexity and cost in IT

Colin Henderson

HSBC recognise the inherent problem with multiple systems and disparate, complex, mainframe based processes – and they are doing something about it.  The presentation is worth the read.  It describes a situation that is not unlike most large Banks, and their approach to solve it is refreshing in that it recognises the fundamental role technology plays.  In particular it recognises the role the web, and web methods play in driving simplicity.  HSBC on the value of IT | Finextra More details on the project can be found in a Webcast and PDF presentation made to analysts on 28 October, and … Continue reading ONE HSBC offers a plan to reduce complexity and cost in IT

Business Models

If Planet Mars were banker to the world, this planets credit cards would be cut up

Colin Henderson

While this is an interesting article, the point of this post is only to capture the quotes that show the extent of the unreasonable and unsustainable runaway growth in various aspects of the financial markets, that have developed since the 1980’s. Stock markets in the world are valued at a paltry $51 trillion compared to the $400 trillion in derivatives. However the overall total of equities, bonds, and derivatives at $518 trillion was supported by a world economy of $49 trillion.  If Planet Mars were banker to the world, our credit cards would be cut up. The emergence of an … Continue reading If Planet Mars were banker to the world, this planets credit cards would be cut up