Archive for December, 2009
Treasury Discloses New Bank Injections
The Treasury Department announced today that it has injected $29.3 Million into 10 banks on Tuesday, which will be the last institutions to receive investments from the taxpayer funded program established last year to fortify the financial system. At the height of the financial crisis during the fall of 2008, Congress adopted a $700 bailout [...]
Wells Fargo (NYSE: WFC) Execs Will Not Receive Cash Bonuses
As the year draws to a close, the bonuses earned on Wall Street receive significant attention. In past years, these funds trickled down and provided booms for high end real estate in New York, Ferrari dealerships in Greenwich, and in virtually every jewelry store on 47th Street. As bonus information trickles out, it seems unlikely [...]
Too Big to Fail? Fannie Mae (NYSE: FNM) and Freddie Mac (NYSE: FRE) are Apparently Too Big to Shrink
Last week, the government pledged essentially unlimited support to Fannie Mae (NYSE: FNM) and Freddie Mac (NYSE: FRE), in an effort to ensure the housing market does not unravel further. Through this effort, the Treasury Department has ensured that mortgage rates will stay low, and this should be a boon for economic activity as we enter [...]
New Credit Card Regulations Positive for Consumers, Negative for Bank of America (NYSE: BAC), JP Morgan Chase (NYSE: JPM) and Citigroup (NYSE: C)
2008 and 2009 have been painful years for consumers with rising unemployment, high-levels of consumer debt and an increasing number of foreclosures, but the skies are clearing for consumers in 2010 as new financial protections go into effect allowing consumers easier access their credit reports and additional protections on their credit cards. Although the year [...]
GMAC Getting Bailed Out (Again)
As all the major national banks have repaid the TARP funds, it could be easy to assume that the financial crisis is over and we’re on the front porch of normalcy – but, don’t be so fast. The recession and financial crisis in general continues to effect financial institutions, including those on the periphery of [...]
Credit Cards Find New Ways to Gouge Customers
It seems that the tale of their demise has been greatly exaggerated. The tale, of course, relates to predatory practices by credit card companies. Many were hopeful that the Credit Card Act of 2009 would finally put an end to the abusive tactics of card issuers. Some methods used to garner fees seem down right [...]
JP Morgan Chase (NYSE: JPM) CEO Jamie Dimon Critical of UK Tax on Executive Bonuses
JP Morgan Chase (NYSE: JPM) Chairman and CEO recently criticized a decision by the British government to impose a 50% tax on executive bonuses and called British Finance Minister Alistair Darling telling him that the bonus tax had punished the bank unfairly, according to a new report from Barrons. Dimon told the British Finance Minister [...]
Bank of America (NYSE: BAC) CEO Brian Moynihan to Shake-Up Company’ Credit Card Business
Incoming Bank of America CEO Brian Moynihan will face the task of shoring-up Bank of America’s struggling credit card business when he takes over next week. Bank of America’s credit card business under Moynihan’s helm in his previous position as president of consumer and small-business banking, but the executive had only been in the position [...]
GMAC May Receive An Additional $3.5 Billion In TARP Funds
GMAC Financial Services is likely to receive an additional $3.5 billion in financial aid from the U.S. government, according to recent reports. The official announcement could be made in the coming days and would add to a taxpayers’ outlay that has already hit $12.5 billion. The move would be in correspondence with GMAC making moves [...]
Banks Targeting Debit Cards for Additional Revenue Stream
With the Credit Card Accountability, Responsibility and Disclosure (CARD) Act to be instituted in February 2010, banks are starting to look at other revenue streams, as over the long term revenue from credit cards will be a smaller part of their overall business than in the past. It isn’t a stretch to understand there’s a [...]
Small Banks Resisting Interference of Federal Reserve in Executive Compensation
Even though the U.S. government acknowledges the compensation given by small banks to their executives had nothing to do with the banking crisis, they continue to pursue a policy of interfering with small banks by writing up compensation guidelines, which by their own admission, small banks don’t need. While small banks are exempt from the [...]
Alistair Not Jamie Dimon’s Darling, as Dimon Reconsiders Building European Headquarters in London’s Canary Wharf Financial District
A recent report from the London Telegraph has generated a lot of buzz and interest, as JPMorgan Chase & Co. (NYSE:JPM) CEO Jamie Dimon evidently called British Finance Minister Alistair Darling earlier in the month to let him know he didn’t like the arbitrary 50 percent tax levied by Darling on banking bonuses. Dimon let [...]
Troublesome November Credit Card Report Emerges
Throughout the financial crisis, we have been waiting for the last show to drop: credit card defaults. Nearly all of the major banks have entered the credit card industry in recent years, joining forces with Visa to issue cards regionally, and benefitting from windfall profits. With the rise of e-commerce, online shopping has provided a [...]
Robert Kelley, CEO of Bank of New York Mellon (NYSE: BK) Under Fire
The role of CEO for a bank has never come under such scrutiny in modern history. Venerable institutions like Citigroup (NYSE: C) replaced their CEO Chuck Prince just last year, Bank of America (NYSE: BAC) finally has Ken Lewis’ replacement just before the self-imposed deadline, and many other firms are confronted with retiring superstar CEO’s. [...]
JPMorgan (NYSE: JPM) Reconsidering London Presence?
Let’s tax those Wall Street pigs. They’ll stay here and just pay right? Well, not so fast… The populist vengeance aimed at Wall Street has brought on many policies that are grossly anti-capitalist, but the most egregious can be credit to our neighbor across the pond, the United Kingdom. The U.K. has adopted a bonus [...]
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