Archive for September, 2009
Citibank (NYSE: C) Executive Says $100 Million Compensation is Too Much
Vikram Pandit, chief executive of Citibank’s parent, CitiGroup Inc (NYSE: C) stated that a $100 million annual salary is far too much for a bank executive. Pandit made this statement during an interview with BusinessWeek Editor, Steven Alder, the 92nd St. Y Captains of Industry series in New York. Alder asked Pandit whether or not [...]
Account Reviews: UFB Direct’s 1.85% “US Savings” High-Yield Savings Account
UFB Direct, a banking center associated with Waterfield Bank, is offering a new 1.85% APY high-yield savings account that’s being marketed as the “US Savings” account. When the account was first opened in June, it had an APY of 2.00%, but as the Federal Reserve has continued to keep interest rates depressed, the rate has [...]
SEC To Increase Oversight Of Credit Rating Agencies
The Securities and Exchange Commission voted unanimously to adopt rules that will increase oversight of credit rating agencies and improve transparency. The rules will require greater disclosure, address conflicts of interest and promote competition for an industry that is dominated by three firms. Credit ratings agencies generally provide a given financial product or company with [...]
Editorial: Entangling Alliances: Another Reason the Federal Reserve Needs to be Abolished
There are many reasons why the Federal Reserve, at minimum, needs to be audited, and eventually, needs to be shut down. One of those reasons is the secret dealings it has with foreign nations’ central banks, which are done completely under the radar of the public, and many cases – government officials. How it works [...]
Bank of America (NYSE: BAC) Repositions itself in Credit Card Market
Bank of America (NYSE: BAC) is revamping its credit card offerings in hopes of drawing new consumers during a time where consumer protection is at the forefront. At the forefront of this move is Bank of America’s “BankAmericard Basic” Visa card. It aims to end the confusion about credit card rates and fees by offering [...]
Citibank (NYSE: C) Trims Overseas Operations
CitiGroup Inc. (NYSE: C) announced that it is cutting some of its overseas operations, in a move to generate capital and to get closer to getting out of the Federal government’s pocket. Chief Executive Vice President, Vikram Pandit, is working to shed some significant overseas operations, including its consumer lending business in Scandanavia and its [...]
Lending Club Originates $4.3 Million in Loans in August, Prosper.com Originates $905 Thousand
During the month of August 2009, Lending Club.com originated a total of $4.3 million in loans and its older brother Prosper.com only originated $905 thousand. Prosper.com pioneered the peer-to-peer lending industry in the United States in 2006, along with Zopa, which is no longer operating in the United States. It first brought forth the idea [...]
Foreign Appetite For U.S. Debt Takes Massive Dip In July
Worries over the impact of ever increasing federal deficits proved to be warranted as the Treasury Department reported Wednesday that foreign demand for long-term U.S. assets tumbled in July compared to June. Net buying of long-term notes and bonds only totaled $15.3 billion, much less than the $90.2 billion in net purchases for June. July’s [...]
Account Reviews: 1st Constitution Direct’s 1.95% APY Direct Savings Account
1st Constitution Bank’s “1st Constitution Direct” branch is offering a 1.95% APY online savings account. 1st Constitution Direct’s online savings account is available to consumers in all 50 states. Account holders will earn 1.95% on their money if they have balances greater than $3,000 and a 1.00% APY on their money if their balance drops [...]
WTDirect Review: WT Direct’s 1.41% APY High-Interest Savings Account
WT Direct, the online division of Wilmington Trust Federal Savings Bank (NYSE: WL), is offering a 1.41% APY High-Yield Savings Account. Customers opening an account will earn 1.41% APY on their money if they have a balance of $10,000 or more. If a customer’s account drops below the $10,000 limit, their rate of return will [...]
Commercial and Alt-A Loans Next Major Bank Problems
While the subprime and prime home mortgage loan problem is still far from being solved, there is the continual loan failures coming from commercial and Alt-A loans that will continue to put tremendous pressure on the banking industry for the next couple of years, and possibly longer. Interestingly, at this time the Federal Reserve is [...]
Fallout from Rejection of SEC/BofA Settlement
The rejection of the proposed $33 million settlement between the SEC and Bank of America (NYSE: BAC) has created a number of interesting scenarios and potential fallout from the decision. Included with that fallout will be the bringing to the surface of a number of participants in these types of deals to the public in [...]
CNN Highlights Peer-to-Peer Lending Industry
CNN’s Chrsitine Roman recently did a piece on the peer-to-peer lending industry. Roman highlighted a borrower that’s making use of these services and discusses the growth of the industry. Here’s the video: Embedded video from <a href=”http://www.cnn.com/video” mce_href=”http://www.cnn.com/video”>CNN Video</a>
Wells Fargo Fires Exec over Malibu Housing Scandal
After murmurs of a calling a boycott, Wells Fargo (NYSE: WFC) took steps to prevent a public relations disaster by firing Cheronda Guyton, a Wells Fargo vice president that was accused of using a luxurious beachfront Malibu home owned by the bank for large, extravagant private parties. Wells Fargo is acting quickly to suggest that [...]
Federal Reserve To Oversee Subprime Lenders Under New Policy
Under a new policy, the Federal Reserve announced Tuesday that it will begin a consumer compliance supervision program that will perform checks on non-bank subsidiaries of bank holding companies, such as home-equity loan businesses. The regulatory actions are covered by existing consumer protection laws that the Federal Reserve has the authority to enforce. The same [...]
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