I2CREDIT Nº 5
Bank Of America Said To Need To Raise $36.6bn
Bloomberg reports that, according to analysts over at Oppenheimer (clearly trying to jump into the shoes left empty by Meredith Whitney), Bank of America will need to raise $36.6bn in equity, after a slew of expected additional writedowns...
Por: From: news.hereisthecity.com
Although saying that large 'universal banks' like Bank of America may look like they are making 'something of a recovery' when they post first-quarter earnings, a recent Oppenheimer research note says that 'the wave of problem credit is still rising rapidly. The big event of 2009, in our minds, is likely to be the ongoing erosion of loan-loss portfolios. On this score, we expect deterioration to continue in full swing'. Oppenheimer also says that it expects investment banks will make a quicker recovery than their commercial banking rivals.
In the meantime, The Financial Times reports that proxy adviser RiskMetrics has urged Citi stockholders to vote against the re-election to the company board of four of its 14 members - Michael Armstrong (former CEO at AT&A), Alain Belda (Chairman, Alcoa), John Deutch (former Director of CIA) and Anne Mulcahy (CEO, Xerox). Risk Metrics said that 'the pattern of chronic oversight failure at Citi and the magnitude of the corresponding shareholder losses warrant removal from the board of directors most responsible for risk oversight'. A spokesperson for Citi said that 'there is no basis for any recommendation against directors'.
And Reuters reports that Citi is said to have told potential buyers that it will listen to bids for its Japanese investment banking and asset management units. The firm was thought to be only interested in the sale of its brokerage business in the country. All three units, which are thought to now be valued at some $8bn, were originally acquired for $15bn.
Finally, the news agency also reports that the US Treasury is not planning to release details of the results of the so-called 'stress tests' on banks until after the completion of the first-quarter earnings season. It remains unclear whether the Treasury will release details on specific institutions, or whether is will simply publish a summary.
Ultimas Notas
I2CREDIT Nº 5
Consumer credit woes mean boom in debt collection.
Collection industry changing, debt collectors multiplying.
Have you ever been contacted by a debt collector? Chances are growing that you will, especially if you're among the millions of Americans in arrears on credit card debt, facing mortgage foreclosure or defaulting on student or auto loans...
Por: Connie Prater / Creditcards.com
Stress testing
The crisis is likely to make traders take riskier decisions to avoid losing money
IT HAS long been known in financial markets that people are so reluctant to lose money that they will take big risks to avoid it. If you give the average person a 90% chance of winning a little money or a 10% chance of winning a lot, he will most likely take the option that offers him at least a little bit of cash. But offer him a 90% chance of losing a little money or a 10% chance of losing a lot, and he will opt for the latter. A recent study finds that stress exacerbates this...
Por: The Economist print edition
Cycle-proof regulation
In a guest article, Raghuram Rajan argues for a regulatory system that is immune to boom and bust.
AS THE G20 summit showed, we typically regulate in the midst of a bust...
Por: The Economist print edition
Is America the new Russia?
Is the US Russia? The question seems provocative, if not outrageous. Yet the person asking it is Simon Johnson, former chief economist at the International Monetary Fund and a professor at the Sloan School of Management at the Massachusetts Institute of Technology...
Por: Martin Wolf / From: Finantial Times ft.com
Stock Pros Who Survived the Depression
Three money managers who invested during the Great Depression offer perspective on today's markets...
Por: Reshma Kapadia | Smart Money / From: The Wall Street Journal | www.online.wsj.com
Credit crunch Japanese style
As long as the system worked, few questioned it
Japan’s booming economy suffered a sharp shock in the 1990s. Ten years on, despite greater prudence, the current world crisis has caused another tumble due to the drastic drop in its exports...
Por: Odaira Namihei / From: LE Monde Diplomatique. English Edition.
Notas Destacadas
- 2012
- CREDIT PERFORMANCE Nº 36
- CREDIT PERFORMANCE Nº 35
- CREDIT PERFORMANCE Nº 34
- CREDIT PERFORMANCE Nº 33
- 2011
- CREDIT PERFORMANCE Nº 32
- CREDIT PERFORMANCE Nº 31
- CREDIT PERFORMANCE Nº 30
- CREDIT PERFORMANCE Nº 29
- CREDIT PERFORMANCE Nº 28
- CREDIT PERFORMANCE Nº 27
- CREDIT PERFORMANCE Nº 26
- CREDIT PERFORMANCE Nº 25
- CREDIT PERFORMANCE Nº 24
