BankThink

The Scan for Monday, August 1

08/02/11

Breaking News This Morning ... HSBC Earnings: The British bank said Monday it will cut up to 30,000 jobs and it reported a better-than-expected first-half profit. HSBC is selling 195 branches, mostly in upstate New York, to First Niagara (more on that below.) Wall Street Journal, New York Times Receiving Wide Coverage ... ...

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The Scan for Tuesday, August 2

08/02/11

Breaking News This Morning ... Barclays to Cut Jobs, Too: Following yesterday's announcement by fellow Londoner HSBC that it would fire as many as 30,000 people, Barclays said it intends to shed 3,000 jobs this year above and beyond the 1,400 the British bank eliminated in the first half. Barclays' first-half profit dropped by a third as it set aside money to compensate customers who bought dodgy payment protection insurance. Investment banking revenue declined as well....

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Time to Get Away from Flat Pricing

08/01/11

In a flat-fee model, most of the innovative energy goes into reducing costs rather than developing services customers value.

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QRM Rule Should Recognize Life's Full of Trade-Offs

08/01/11

Regulators need to abandon the proposed approach at defining QRM-eligibility and implement one that allows for prudent but flexible risk-taking.

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First Niagara Outbid Keycorp and M&T for HSBC Branches: FT

07/31/11

The paper quotes First Niagara CEO John Koelmel as saying it will eventually have to do a capital raise to support the larger balance sheet. Antitrust issues may also arise, FT says.

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140 Risky Characters You Don't Want on the Sales Force

07/29/11

Never, ever, give Twitter accounts to stockbrokers. If you give thousands of commission-based sales people access to broadcast media, someone is bound to say something stupid.

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Why Do Pundits Forget the Lender of Last Resort Function?

07/29/11

Many commentators ignore this part of the central bank's job and think any bank that gets central bank liquidity is a failed bank.

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Why Credit Scores Shouldn't Be Part of QRM

07/29/11

A minimum credit score would not cap or regulate risk, or even measure it consistently. Instead it would ensure that the risk floor for QRMs would actually fluctuate.

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A Professional Lender's Perspective on the Debt-Ceiling Crisis

07/29/11

If I came across a borrower who is deep in debt and whose obligations exceed their income and yet continues to borrow to service those obligations, I would not consider them a good risk.

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The Scan for Friday, July 29

07/29/11

Receiving Wide Coverage ... Fighting May Move to the Courts. House Republicans are calling on the Securities and Exchange Commission to provide an accounting of the time and money it spent on a failed plan that would make it easier for shareholders to fire members of corporate boards. A federal appeals court killed the SEC plan several days ago, the Post reported. But, the ruling could have greater implications, according to the Journal. The court ruling...

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