Innovation

Globalisation, Tanger Med, and the case for innovation

Colin Henderson

Just in case you have trouble quantifying globalisation, and why it matters, I thought Tanger Med, a new container terminal, and commercial development in Morocco, is the ideal example, and offers staggering consequences for us all.  Stay with me here 🙂 Investment in the Mediterranean | The Med’s moment comes | Economist.com LOOK southward from the southern tip of Spain, across the strait of Gibraltar. There, only 14km (nine miles) away through the slight sea haze, arises the vast construction works of a new seaport to the east of Tangier in northern Morocco. Tanger Med (pictured) opened its first docks last July. … Continue reading Globalisation, Tanger Med, and the case for innovation

US2 Comments

Wells offers welcome surprise to the markets with their results

Colin Henderson

 Wells Fargo offerred a welcome surprise to the market today, by not succumbing to another round of subprime losses as many other Banks are experiencing.  I can imagine Wells will be popular with vendors and research companies now, unlike some of the others who are sufferring. The timing was good, as traders sought to cover short positions, in anticipapation of the SEC ruling that those must all be reported now.  ft.com  Wells Fargo cheer lifts banks  While earnings have declined at Wells Fargo for three straight quarters, the bank has stayed profitable amid the turmoil for much of the banking industry. … Continue reading Wells offers welcome surprise to the markets with their results

Uncategorized1 Comment

The a big shake-out is coming | ailing bank takeovers

Colin Henderson

Following up on the last couple of days of news on bank failures, already happened and those to come, what comes next? One easy one is bank takeovers. We noted yesterday the Dundee Securities tipped CIBC in Canada as a takeover candidate. Now the Economist today speaks about an expected big shakeout, naming rumoured acquirors here. Bank consolidation | Under the hammer | Economist.com Barclays, Deutsche Bank, HSBC and Royal Bank of Canada are among the names to have been bandied about as predators in recent weeks I would include RBS, BofA, in that list too, based on observation of … Continue reading The a big shake-out is coming | ailing bank takeovers

AI1 Comment

Large Scale Collaboration | Credit Union innovation

Colin Henderson

Large scale collaboration, as an alternative to mergers to allow Credit Unions to achieve scale. No details yet however. CU Brand Blog Large-scale collaboration is a legitimate alternative solution. It allows credit unions to remain smaller and independent, yet allows these credit unions to share, cooperate and, most importantly, innovate. If you are not involved in collaborating with other like-minded credit unions, it’s time to get started. Continue reading Large Scale Collaboration | Credit Union innovation

Canada1 Comment

CIBC a takeover candidate? | Dundee Securities

Colin Henderson

I have been waiting for mention of one of the Canadian Banks and merger/ takeover prospects, in the context of capital adequacy. This in light of never ending announcements of new sets of losses, some tied to subprime, and some tied to bad decision making and market speculation. Those losses have grown consequently since that 2007 post. CIBC a takeover candidate? – FP Trading Desk The possibility of more writedowns at CIBC could force the bank into another’s hands, says John Aiken, analyst at Dundee Securities. Following on the heels of the U.S. Federal Reserve’s Fannie Mae and Freddie Mac … Continue reading CIBC a takeover candidate? | Dundee Securities

subprime

More on the valuation of Freddie/ Fannie, and their capital requirement

Colin Henderson

UPDATE: to post 14th July 2008 Fannie/ Freddie collectively have $5,300 billion in mortgage credits against $ 81 bn in capital. Any revaluation of their mortgages by more than 1.5% discount will wipe out their capital base. More than half their loans are from the peak years of 2005 – 2007. Valuation of their mortgages is difficult, but it is certain they are worth something less than face value. While they had a rule of not lending greater than 80% of home value, this rule was broken through top up loans, and potentially through loans purchased from investment dealers. Fannie … Continue reading More on the valuation of Freddie/ Fannie, and their capital requirement

US

The US mortgage market and how it works

Colin Henderson

Thanks to the Financial Times for this guide to the US Mortgage market. Click through to use it interactively [registration required] FT.com / In depth – Freddie Mac and Fannie Mae Fannie Mae and Freddie MacAlthough these government-chartered mortgage financiers, they have roots in government policy. Fannie Mae was created in the Great Depression as a government agency to create a secondary market for mortgages. The aim was to boost banks’ capacity to offer home loans, by buying up their existing home loans in exchange for cash. In 1968 Fannie Mae was partially privatised and Freddie Mac was created, as … Continue reading The US mortgage market and how it works

Profitability, subprime, US

US Regional Banks listed as “problem” increasing, but still much less that 1980’s

Colin Henderson

As the IndyMac failure is taken care of, attention is turning to the next round, and the focus is squarely on the smaller regional US banks. The good news is that this is not expected to be as bad as the rates of failure that occurred in the late 80’s early 90’s and that is based on the record of non-performing loans at Banks. Currently there are 90 Banks noted in the ‘problem’ category. The key will be the strength of the economy, maintenance of employment levels, and continued ability to maintain debt payments. FT.com / Companies / Financial services … Continue reading US Regional Banks listed as “problem” increasing, but still much less that 1980’s

AI2 Comments

ebank Japan | designed to exploit internet channel

Colin Henderson

Chris posts about eBank in Japan. They are an exclusively internet Bank and some of the statistics are staggering. They have $8 bn in assets, and yet only 195 employees. swiftcommunity.net eBank purely exists as an internet bank, accessible via any internet-attached device which, these days, is predominantly the mobile phone. eBank, because of this exclusive channel focus upon internet-based banking, built a bank specifically to exploit this channel. This is radically different to most banks that built internet banking as an additional channel to exploit the existing bank. They are built for pure automation wherever possible. The account open … Continue reading ebank Japan | designed to exploit internet channel

Uncategorized

Santander is officially a world leader

Colin Henderson

If any of us require an example of an effective modern bank, Santander and Spanish Banks in general are terrific examples. To eliminate duplication, and centralise functions is always a good thing in achieving better customer results. Finextra: Santander to seek £65 million IT savings in A&L takeover Spain’s Banco Santander expects to save £180 million a year from cutting jobs and centralising IT systems as it merges the UK’s Abbey with newly-acquired high street rival Alliance & Leicester. Continue reading Santander is officially a world leader