Just when the top banks put one wave of prosecutions behind them, another one is on the horizon. Justice Department prosecutors plan to bring mortgage fraud cases against financial institutions early...
It would be unwise to think that troubled home equity loans are a thing of the past. True, the economy is recovering along with the housing market. But once again, borrowers "are increasingly missing payments on home equity lines of credit they took out during the housing bubble, a trend that could deal another blow to the country's biggest banks," reports Reuters.
It is a time-honored notion that cutting the rate on reserves is expansionary because it prods banks to pass on the rate reduction to consumers. But in an era where rates are all too close to zero, that may no longer hold true.
Returns on equity for the biggest banks are not where they need to be. This could lead to a change in the industry, including the possibility of breaking up some of the larger, struggling operations, a move that seemed unfathomable until recently.
How important are CFOs to banks? Based on their compensation as a group in 2012, one could easily conclude that they are more critical than in most industries.
Will online betting take off soon in the United States? Some think it is bound to happen, sooner rather than later. Already, three states have moved to legalize such gaming, and more will likely...
Bank consultants, fairly or not, have been in the news lately, as people ponder the wisdom of their status as "shadow regulators." The likes of the Promontory Financial Group, Deloitte and...
Once the controversy really got hot, JPMorgan wasted no time in announcing that it would exit the business of physically storing metals commodities. The issue is alive for other banks, notably Goldman Sachs, which has taken its lumps over its controversial Metro warehousing facility in Detroit.
In the immediate aftermath of the mortgage meltdown, banks and regulators rushed to tighten credit standards. The prevailing view at the time was the banks had been profligate, handing money to anyone and everyone. But you can sense a new mindset taking hold, one that's much less focused on correcting the excesses of the past than on promoting more business now, which might be a good thing.
When Bank of America announced it would sell its remaining stake in China Construction Bank, the initial conclusion by many was that more western banks were bailing out of China, driven by disappointment.