AI

BofA winner with iPhone compatible site

Colin Henderson

Jim does a nice review of iphone compatibility.  iPhone Compatibility at the Largest U.S. Banks (NetBanker) But the hands-down winner is Bank of America, the only top-20 U.S. bank with an iPhone-optimized homepage. While the runners up probably work reasonably only because of smart design, BofA has optimised their site to recognise the iPhone and display appropriately.  This suggests they are thinking about target markets and taking that thinking into their internet channel.  Smart. Continue reading BofA winner with iPhone compatible site

Social Lending

Social Lending in perspective | a diversification play

Colin Henderson

Nice description of his investment strategy from LazyMan – a Prosper investor.  Worth the read, and nice way to place Social Lending in perspective too. Prosper Blog: Prosper, the online marketplace for people-to-people lending » Blog Archive » Are You Diversified? The last 5% of my investment is with Prosper.com. One of the reasons I lend money on Prosper is that it further diversifies my portfolio. I have a few friends who got depressed when the Dow drops from 14,000 to 12,700. I slept very well at night knowing that 60% of my money was invested elsewhere. Continue reading Social Lending in perspective | a diversification play

subprime

Top economist says America could plunge into recession | The Times

Colin Henderson

Finally an economist calls it like it is in the US, with at least an acknowledgment that the potential impact of the sub prime crisis, is a genuine recession.  Interestingly he relates it to a Japan type slump, following their bubble of the late 80’s. Top economist says America could plunge into recession – Times Online Professor Shiller, author of Irrational Exuberance, a phrase later used by Alan Greenspan, the former Federal Reserve chairman, said: “This is a classic bubble scenario. A few years ago house prices got very high, pushed up because of investor expectations. Americans have fuelled the … Continue reading Top economist says America could plunge into recession | The Times

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SubPrime losses set to soar | double or more from previous estimates

Colin Henderson

The question that everyone is dancing around is whether a combination of business growth, profits, and Central Bank assistance can get the Banks through this crisis, without it spreading to the broader economy.  World losses now suggested at $140Bn +.  The question might be, just how large is the + …  At some point it could become relevant to individual country economies, through size, and through Banks having to constrain their customers credit, because of their own problems. SUBPRIME LOSSES SET TO SOAR Financial Post Goldman Sachs warned of deepening subprime woes for the world’s largest banks yesterday, forecasting that … Continue reading SubPrime losses set to soar | double or more from previous estimates

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Wincing going on these days as investors watch Canadian Imperial Bank of Commerce’s subprime mortgage-related losses pile up

Colin Henderson

With losses expected to exceed $3Bn related to subprime, CIBC is in for a tough road, and McCaughey is expected to go.  This makes the earlier view of $2Bn for Canadian bank losses laughably off.  Canada is looking at more like $6Bn + at this point.  In short, no-one knows.  As noted here this morning: “It reminds me of a time earlier in my career – junk bonds,” he said. “When they were run out of one man’s drawers [Michael Milken’s], it wasn’t a market. It wasn’t very transparent. Now high-yield bonds or junk bonds are a genuine asset class … Continue reading Wincing going on these days as investors watch Canadian Imperial Bank of Commerce’s subprime mortgage-related losses pile up

AI4 Comments

The declining value of loyalty plans

Colin Henderson

Shar’s experience is a classic example of how the whole loyalty model is broken.  Step by step the Airlines [just to pick on them] are eliminating and discounting benefits associated with loyalty.  Then you have situations like this, that frankly have no cost to fix, except a personality transplant for “Linda” and her ilk at American Airlines and others.  Forrester’s Marketing Blog: Customer Experience Matters More Than Points In Building Loyalty I *want* to do business with the firms who treat me like a person. Who try to recognize the things I care about. Frankly, I find my miles with … Continue reading The declining value of loyalty plans

unbanked

Significant differences between “subprime” and “underbanked/credit underserved.”

Colin Henderson

When you see new conferences begin and continue, it means there is a significant strategy moves afoot in the Banking industry.  This conference on the “Unbanked” is the 3rd annual.  3rd Annual Underbanked Financial Services Forum There has never been a better time to court the underbanked market, which continues to be one of the most promising areas of new and enhanced growth for the financial services industry. To achieve this, it is important to understand the significant differences between “subprime” and “underbanked/credit underserved.” Its interesting to read the kinds of topics, and that provides insight into what is happening, … Continue reading Significant differences between “subprime” and “underbanked/credit underserved.”

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“What we’re trying to do is save this $35-billion from a meltdown and destruction,” | Purdy Crawford

Colin Henderson

More on the Canadian plan to fix the $35bn ABCP market.  Turns out the Canadian Banks have indicated receptivity, but did not participate yet.  The $35Bn appears to represent ABCP owned by various private funds.  ABCP committee plans road show to sell deal Noticeably absent, however, were Canadian banks, which have yet to agree on their role in restructuring the market. There are three categories of ABCP involved. ABCP committee plans road show to sell deal About $3-billion of the total holdings in ABCP contain traditional assets, such as credit card receivables and auto loans, and those trusts will be … Continue reading “What we’re trying to do is save this $35-billion from a meltdown and destruction,” | Purdy Crawford

subprime

Canadian Banks restructure debt | Globe & Mail

Colin Henderson

Reported in the Business section today, the Canadian financial institutions have agreed on a restructure of $33 Bn in Asset Backed Commercial Paper (ABCP). That ABCP has been frozen and not able to be traded since August, when the US Subprime crunch hit. The deal includes a $14 Bn credit facility, and basically exchanges short term notes for longer dated paper. Interestingly the spokesperson for the group that arranged the deal, is a Toronto lawyer, Purdy Crawford. The group is called Pan-Canadian Investors. Based on conversations with a colleague, I suspect this is all a front for the Bank of … Continue reading Canadian Banks restructure debt | Globe & Mail