Web/Tech

Forrester: mild tech slowdown ahead

Colin Henderson

George at Forrester highlights the results of their research, that technology spend will reduce.  The relevance to Bankwatch is the data on spend by financial services.  In particular as much as we feel ‘owned’ by IBM their revenues from US are only 6% – fascinating! Forrester: mild tech slowdown ahead Some IT vendors focus on financial services, and could find their business mildly tightened. Tata Consultancy (TCS) gets 43% of its revenues from financial services; Infosys 34%; IBM 29% (but only 6% from US financial firms). … The financial services sector (investment banks, regional banks, local banks, mutual fund companies, … Continue reading Forrester: mild tech slowdown ahead

AI1 Comment

Most prevalent consumer device – mobile | Google Blog

Colin Henderson

While it makes sense the statistics here are mind boggling.  Of course mobile applications are the future.  Note to Banks … we just have to get the application to suit the medium.  Think about this statistic – more mobile phones that credit cards. The Future of Mobile | Google Blog There are currently about 3.2 billion mobile subscribers in the world, and that number is expected to grow by at least a billion in the next few years. Today, mobile phones are more prevalent than cars (about 800 million registered vehicles in the world) and credit cards (only 1.4 billion … Continue reading Most prevalent consumer device – mobile | Google Blog

AI

A brief review of the last 18 months in Banking, and what it means

Colin Henderson

Last night the news emerged that the US Government intends to somehow remove bad loans from Banks balance sheets, in what sounded like a bailout.  Thought I’d give it a bit before wading in.  Lots of hyperbole out there caught up in the stock market jump, that is cloaking the real story here.  We also have the Republican Presidential candidate noting that the focus is wrong here.  Thats for the political blogs. McCain criticises bank assistance | BBC US Republican presidential candidate John McCain has said he is against the state bailing out struggling banks and financial companies. Mr McCain … Continue reading A brief review of the last 18 months in Banking, and what it means

Business Models3 Comments

Paulson, Bernanke Push New Proposal to Cleanse Balance Sheets | huh!!

Colin Henderson

In a remarkable event that we will need to reflect on tomorrow, the Feds are going to remove bad investments from Banks Balance Sheets and take on the risk?  Am I reading this correctly?  That is tantamount to nationalisation of Banks.  More tomorrow. Bloomberg Sept. 19 (Bloomberg) — U.S. Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben S. Bernanke proposed moving troubled assets from the balance sheets of American financial companies into a new institution. Congressional leaders who met with Paulson and Bernanke late yesterday in Washington said they aim to pass legislation soon. The initiative, which may also … Continue reading Paulson, Bernanke Push New Proposal to Cleanse Balance Sheets | huh!!

UK

Lloyds takeover of HBOS is finalised at $12 bn | could be the new "worlds largest Bank"

Colin Henderson

Here are some background facts on the two banks.  The combined employee base is 142K now, with nearly $1 bn in assets. Their tier 1 capital if we take the % times the combined asset base, suggests the new Bank come in around $160 bn, which if I am correct, will make them the largest bank in the world, based on capital base.  However the accounting in a merger is not simply additive, so that isn’t definitive, but directionally the new UK Bank is enormous. Technorati Tags: Lloyds,HBOS,worlds biggest banks Continue reading Lloyds takeover of HBOS is finalised at $12 bn | could be the new "worlds largest Bank"

Profitability

A stunning day in financial markets | 17th September, 2008

Colin Henderson

Some selected quotes from the FT on today’s markets, sum it up: Panic grips credit markets | ft.com Yields on short-term US Treasuries hit their lowest level since the London Blitz gold had its biggest one-day gain ever in dollar terms All thought of profit was abandoned as traders piled in to the safety of short-term Treasuries the yield on three-month bills falling as low as 0.02 per cent – rates that characterised the “lost decade” in Japan. The last time US Treasuries were this low was January 1941. the so-called Ted spread, which tracks the difference between three-month Libor … Continue reading A stunning day in financial markets | 17th September, 2008

Uncategorized

HBOS handles 20% of UK Banking

Colin Henderson

What a difference 24 hours makes.  Now Lloyds are in advanced talks to takeover HBOS and avert this crisis.  What will the next crisis be though? FT.com / Lex / Financial services & property – HBOS That prospect is of course so terrifying for the UK government that it will do everything in its power to avert such an outcome. HBOS, after all, houses one pound in every five saved in the UK. If that means allowing Lloyds TSB to acquire a dominant position in UK retail banking – the combined group would control about a third of the UK … Continue reading HBOS handles 20% of UK Banking

Payments

Expedited Payments | Javelin report Sept 2008

Colin Henderson

Javelin are out with a timely report on expedited payments.  Judging by the preview it makes the point that Banks had better implement expedited payments or risk being cut out by others doing it for them. Javelin Strategy and Research September 2008 2008 Expedited Payments Forecast: Banks Must Add Expedited Payments Now or Lose $5 Billion in Fees to Billers Continue reading Expedited Payments | Javelin report Sept 2008

UK

HBOS … could they be next?

Colin Henderson

Serious concerns about my old alma mater Bank voiced from Citi analysts.  They have a significant funding gap apparently, although by my calculations they are very well capitalised.  Their issue appears to be liquidity.  The vultures are lurking.  In a related note, apparently 25% of WAMU shares are sold short at the moment.  HBOS falls on wholesale funding concerns Shares in the UK’s largest mortgage lender fell up to 40 per cent earlier in the session and settled 50½p lower at 182p, cutting its market capitalisation to £9.58bn ($17.1bn). The collapse of Lehman has made banks more reluctant to lend … Continue reading HBOS … could they be next?