Uncategorized2 Comments

“And now for some amazing insight!” | RBC p2p

Colin Henderson

I was intrigued enough by this email from RBC p2p the other day to click through and follow up on what RBC are up to. I pasted the whole email here for effect … its the antithesis of bankerspeak, with a colloquial approach, and dare I say a hint of fun. And now for some amazing insight! RBC p2ptm has launched, live with real students recounting their real experiences in real time! For many months, you’ve been following along. We’ve made some seemingly outlandish claims about bringing you a blog for students, by students. And now we’ve delivered. But don’t … Continue reading “And now for some amazing insight!” | RBC p2p

Security3 Comments

Customers don’t want authentication devices | Abbey

Colin Henderson

Finally someone stated the blindingly obvious point that people do NOT want to carry separate devices. Banks need to provide the required security in other ways. I blogged about these devices last year, and have been amazed by the extent of deployment by European Banks, that could turn out to be wasted investment. See here for my thoughts last year, and how two factor authentication is not well understood. Finextra: Customers don’t want authentication devices, says Abbey Despite continuing security concerns, two thirds of customers do not want their bank to provide chip and PIN-style authentication devices, according to UK … Continue reading Customers don’t want authentication devices | Abbey

subprime2 Comments

Damage to securities revealed in court

Colin Henderson

Incredible losses displayed in an Ontario court yesterday. FT.com / In depth – Damage to securities revealed in court Some securities have lost almost a third of their value – even though many were considered to be so safe that they carried top-notch ratings from the credit ratings agencies. Meanwhile, some subprime mortgage-linked securities issued by groups such as UBS have lost almost 95 per cent of their value Continue reading Damage to securities revealed in court

Business Models

It made no sense, and JPMorgan ups the offer

Colin Henderson

It made no sense, and now the reality is coming through. Its impossible for a set of mortgages to be worth zero. This article also hints that the original ‘almost zero’ valuation was an out for the US Government to not appear to bailing Bear Stearns out. FT.com / Home UK / UK – How JPMorgan was forced into climbdown But with large investors such as Joseph Lewis, the UK-born billionaire who stood to lose hundreds of millions of dollars on his 9 per cent stake in Bear, vowing to do anything possible to engineer a higher bid, the momentum … Continue reading It made no sense, and JPMorgan ups the offer

sub prime2 Comments

Indeed, nearly 300 years later, we have not learned that much

Colin Henderson

Interesting comparison with this company from 1700’s with today’s banking crisis. The South Sea Company traded on conversion of debt, into marketable securities. Sound familiar? Its the perfect definition of a derivative. Hogarthian image of the South Sea Bubble, by Edward Matthew Ward, Tate Gallery The South Sea Company – Wikipedia, the free encyclopedia However, its main function was always managing government debt, … … rather than trading with the Spanish colonies. The South Sea Company continued its management of the part of the National Debt until it was abolished in the 1850s. … … In a recent study Martin … Continue reading Indeed, nearly 300 years later, we have not learned that much

Profitability

Canadian Banks 2008: Perspectives on the Canadian banking industry | PWC

Colin Henderson

Aside from the press release that I just shot down in flames, I have to say the 92 page document behind the release is quite a different story and clearly worth the read, something I will do tomorrow. Its just very annoying when PR departments try to take one thing, and make it something else. The report is very detailed, and contains clear comparisons between the Canadian Banks, winners and losers. This will support another post later. Canadian Banks 2008: Perspectives on the Canadian banking industry This publication provides an analysis of the 2007 financial results for the Canadian banking … Continue reading Canadian Banks 2008: Perspectives on the Canadian banking industry | PWC

Profitability1 Comment

PWC miss the point completely trying to tie profitability to size

Colin Henderson

I hate these kinds of press releases, and PWC should really think carefully about it. Its a classic example of wanting to say something (pro mergers) and taking any fact that comes along and using it to support what they wanted to say anyway. CNW Group | PRICEWATERHOUSECOOPERS | Canadian banks manage 2.2% growth in 2007 – real test is on its way … net income was CDN$19.5 billion – a small increase in year-over-year growth of just 2.2%, compared to a record-breaking 50% increase in the previous year. …. …. “The growing size gap between Canadian and global banks … Continue reading PWC miss the point completely trying to tie profitability to size

AI1 Comment

Consolidation of Banking: Danielson | Book review

Colin Henderson

Consolidation of Banking was a genuine surprise to me. I expected this to be dry and academic. However the opposite turned out to be the case. The book covers the history and events in North American banking since the ’30’s and here is where the surprise came in. It details the changes and the reasons for the changes. It covers in some depth the impacts of foreign Banks, in the US and globally. The global aspect caught my attention, and this differs from the usual US centric view of the world in the US. The result is a good view … Continue reading Consolidation of Banking: Danielson | Book review