Bank of America CEO Lewis Suggests US Should Split Functions

April 5, 2009

Bank of America Corp. Chief Executive Officer recently said that the US should consider separating commercial lenders from investment banking activities. Lewis made the comment on his way to a meeting with President Barack Obama and other peer US banking chiefs. Asked what he would tell Obama if given the chance, Lewis said it would be that “commercial banks are the fabric of any community in which they operate and we probably need to separate the commercial banks from the investment banking activities.” The remarks may reopen the debate on whether the U.S. should bring back laws put in place after the designed to insulate lenders from the risks of investment banking. Bank of America, the biggest US bank by , bought Merrill Lynch & Co. in January, helping the largest US brokerage avoid the financial collapse that drove Bear Stearns Cos. out of business.

Popularity: 5% [?]

US mobile banking market set for take-off

April 1, 2009

Technology companies like Sybase (SY) and VeriSign (VRSN) are looking to tap robust growth in the nascent US mobile banking market as text message use rises and banks aggressively explore ways to save. Mobile banking services typically allow users to make payments, check balances, transfer money between accounts and generate statements of recent transactions on their handsets. In the deepening recession, mobile banking is seen as a cost saver for banks, as customers who use mobile banking make fewer calls to customer service.”The big banks are all moving aggressively,” said Steve Kietz, chief executive of , a joint venture between Citigroup Inc (C) and top South Korean mobile carrier SK Telecom (017670.KS). Text messaging, initially slow to catch on in the , has been getting more popular with Americans, especially younger ones.

Popularity: 4% [?]

Hot Topic: Swiss party wants to punish U.S. for UBS probe

March 4, 2009

The right-wing Swiss People’s Party (SVP) called on Saturday for retaliation against the United States over a U.S. tax probe into the country’s biggest bank UBS that threatens prized banking secrecy. The populist SVP, the country’s biggest party, said should not take in any detainees from the US prison for terrorism suspects at Guantanamo Bay in Cuba, which the said last month it could consider helping shut the camp down.

should also reconsider its policy of representing the United States in countries where it has no diplomatic presence, the parliamentary SVP said in a statement. The SVP said Gold stored by the Swiss National Bank in the United States should be repatriated and should ban the sale of US funds in the country to protect Swiss investors after the failure of . The SVP has one minister in the seven-member which is made up of the biggest four parties, but its populist policies have shaken up usually consensual Swiss politics.

Popularity: 6% [?]

We are moving towards the final countdown of the global banking crisis

January 28, 2009

Photobucket

US banks now hold over US$1,000B of cash, which is an unprecedented level and more than five times the typical amount held over the past 40 years. The Big Q: Why? The Big A: Because the banks know that they are heavily exposed to bad loans/assets on their balance sheets and, therefore, they are very reluctant to commit capital to new lending. The European and US governments/central banks can expand borrowing/lending/asset guarantee programs and create asset management companies to buy the financial sector’s distressed loans/assets all they like, but these two courses of action augur serious problems, i.e. the calculation of the transfer price of the distressed loans/assets and the accompanying loss-sharing mechanism between bank owners, creditors and the government or taxpayers.

So, governments will have to inject still more huge amounts of new capital into banks, and perhaps the selective nationalization of weak or insolvent banks, and the sooner it happens, the quicker financial stability will return. An analyst at the Financial Times in London believes that the global banks require at least US$675B of new capital, of which half is probably needed yesterday. To date there is no hard evidence in either Europe or the USA that immediate, direct and decisive government action is taking place to resolve the global banking crisis and, therefore, the eventual economic outcome could still slide from a global recession, which is already largely anticipated by global stock markets, to a deflationary depression. Where are today’s Churchhills, Rosevelts and Thatchers?

Popularity: 7% [?]

Focus on Hollywood

January 25, 2009

; Hollywood is sitting on a storytelling Goldmine; not likely.

A host of film projects in the indie and studio worlds are gaining momentum as the biggest economic crisis in decades boils and bubbles the stories of economic woe are in development.

“I wouldn’t say it’s a feeding frenzy just yet,” one agent said. “But some development people I’ve talked to have let it be known that, if you do have these ideas, they will rise to the top of the pile.”

Unlike the world, where plot elements can go from conception to the screen in the film world takes much longer to see stories through, but that hasn’t stopped companies from pushing forward.

The word is that Fox has restarted long-rumored talk of a “” sequel, more than two decades after the era-defining original, though Oliver Stone’s picture was set in and released into a world still in a bubble of economic prosperity. The studio has hired Allan Loeb to write a new draft and sees the picture as a social comment of sorts: Gordon Gekko entering a world too cutthroat even for him.

“Australia” director Baz Luhrmann, meanwhile, is moving ahead with a “Gatsby” story he feels will be a parable of our times, and Participant Prods., always up for a socially relevant tale, is developing “Minimum Wage,” about a corrupt executive sentenced to live on the low wages of the people his greed exploited.

Many of the projects are in development partly as an insurance policy; when a story is so culturally dominant, executives feel a related project or two on the slate does not hurt, even if they do not intend to green-light it anytime soon.

We all are aware that the studios’ records for developing projects with a timely theme are mixed. While crises can give rise to great works, think “All the President’s Men” and , those examples are rare, and happen after the public has had several years to digest the events.

Experts say that while a zeitgeist can affect viewing habits, Hollywood can be too literal about trying to capitalize on it. “One of the most popular genres during the Depression was the gangster movie because people felt powerless and wanted a solution outside the system,” Syracuse University’s Robert Thompson said. “Good art packages and processes; it doesn’t copy, which is why it’s hard to develop stories about current events.”

Some producers and filmmakers are hoping that, in the right context, these tales can work.

“If you wanted to show a mirror to people that says ‘You’ve been drunk on money,’ they’re not going to want to see it,” said Luhrmann, who says he wants to move quickly on “Gatsby.” “But if you reflected it on another time, I think they’d be willing to.”

Studio Suits are saying that while they realize that the American public might not want to be reminded of troubled times as they’re overwhelmed by them, they also might want the onscreen catharsis of seeing executives brought low.

There may be a financial reason some of these projects could get fast-tracked: Some of the potential financiers are more interested in these stories because these are the stories close to their heart.

Still, observers and savvy execs like , CEO of Archer Entertainment, (www.archeremc.com) says that any project on audiences abandoning their usual tastes are misguided, and that aspirational entertainment has a role to play even in the toughest times. Nobody will be fascinated with shows that showcase the trials and tribulations of the foreclosed homeowner,” he said.’

Popularity: 6% [?]

The World Economic Forum says that Canada has the strongest Bank in the World

January 11, 2009

Photobucket

According to a recently released Global Competitiveness report from the World Economic Forum, Canada has the “soundest” banking system in the world. In 2nd place: Sweden, Luxembourg, Australia, Denmark, Netherlands, and coming in 3rd: Belgium, New Zealand, Ireland, Malta, and the United States, well the US was ranked 40th.

Popularity: 13% [?]

Clicky Web Analytics