Tag: BofA

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The Good, the Bad and the Ugly | which is your bank?

Colin Henderson

In this video commentary on the US Banks results they note that while large profits are announced, any parts of the business related to the US consumer consumer is flat. This includes all retail banking and credit cards. The only bright spots are the fee based revenue from the investment banking units, hence JP Morgan and Goldman Sachs results, although poor old Citi did not even make it there. One quarter does not make or break anything in banking in and of itself. However the predictions of Roubini and Baker linked below are playing out as expected, so which banks … Continue reading The Good, the Bad and the Ugly | which is your bank?

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Bank of America Needs $33.9 Billion | NYT

Colin Henderson

As predicted yesterday, the amount of capital the banks need is far in excess of the amounts they were negotiating. This news just in from the NYT confirms what had to be the case.  If we do the math based on project bad debts, it had to be in the $20bn + range for the big banks.  Similar results will apply to Wells, Citi,  PNC and others in the group of 19.  Watch out for the stock market tomorrow.  Reality bites. Bank of America Needs $33.9 Billion, U.S. Determines The government has determined that Bank of America will need $33.9 … Continue reading Bank of America Needs $33.9 Billion | NYT

Business Models, Innovation1 Comment

Where are the bank visionaries when we need them?

Colin Henderson

As we watch for bank stress test results in the US and other countries efforts to deal with Banks’ asset valuation and capital levels, its useful to keep a track on the economic back drop, and assess the bank’s efforts to address their real problem, which is over-valued assets. The US stress tests specifically address the impact on banks under certain sets of future assumptions for economic growth and stability. Spring forecasts 2009-2010 | European commission The Commission forecasts a sharp contraction of the EU economy by 4% in 2009 (relative to a positive growth of 0.8% in 2008). Almost … Continue reading Where are the bank visionaries when we need them?

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Ken Lewis is gone

Colin Henderson

No surprise but dramatic nonetheless – Ken Lewis is gone as Chairman – the writing is on the wall for him. Unfortunately he did himself no favours, showing up in Washington looking more like a bling bling movie star, but he was also American Banker’s banker of the year just a few months ago. He left the shareholders no choice today. How quickly the world changes ……  being chief of a bank ain’t what it was! New York Times breaking news Bank of America shareholders stripped Kenneth D. Lewis of his chairman’s title on Wednesday while allowing him to remain … Continue reading Ken Lewis is gone

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Bank of America helps recession-hit customers | new web site earns cash back

Colin Henderson

Nice to see a positive story with this release from BofA.  I have been critical of them recently, of their public face, so good to see the work is going on behind the scenes to create new ideas. Bank of America ‘online mall’ targets crunched online shoppers | finextra Bank of America is looking to attract recession-hit customers with the launch of a new Web site that allows users to earn cash back on purchases at a host of online retailers. Continue reading Bank of America helps recession-hit customers | new web site earns cash back

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Ken Lewis – where are you getting your political advice?

Colin Henderson

Building on a post the other day about BofA, you might think its time to single out Ken Lewis here and his apparent inability to read the obvious.  [hat tip Paul]. It has been two weeks since those incredibly painful hearings with the House Finance Committee where no-one could doubt that corporate jets are the political hot potato of the day, right behind bonuses being paid by government bailout money. Well this piece adds visuals with the rented bling-mobile after a ride on one of the most expensive corporate jets in existence.  Add the almost $4bn in bonuses referred to … Continue reading Ken Lewis – where are you getting your political advice?

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The flaw in the House Financial Services hearings \ misalignment on the paradigm

Colin Henderson

The hearings are going on this morning in Washington. After my rant about Wells Fargo yesterday, it is clear to me that apparently ill timed newspaper ad on the weekend was in fact timed to coincide with these hearings. I still think it was ill timed though. Listening to the introduction today from Barney Frank, Chairman and the commentary on CNN, the general view is that Banks are receiving money, using it for perks and not working on “getting the economy back to working again”. On the other hand the banks are listing off how they are increasing lending, keeping … Continue reading The flaw in the House Financial Services hearings \ misalignment on the paradigm

US

Bank of America says Keep the Change customers have saved over $1bn

Colin Henderson

BofA offerred this service first in 2005, and the results have been good for the customers involved. Finextra: Bank of America says Keep the Change customers have saved over $1bn Who said a little change doesn’t add up? In just a little more than two years, Bank of America’s Keep the Change savings program has helped its customers save more than one billion dollars in customer round-ups and bank-matching funds, the bank announced today. Since the program was launched, these customers have accumulated approximately $10 billion in savings, including the $1 billion in customer round-ups and bank-matching funds. Continue reading Bank of America says Keep the Change customers have saved over $1bn