Banking News Archives

The European Central Bank celebrates its 10th birthday Monday with its reputation burnished by a steadfast stance on interest rates and quick action to supply banks with cash during the credit crisis over mortgage-backed securities.

But the ECB now faces some of its biggest challenges as the euro economy faces an uncertain outlook this year. A recent economic boom appears to be trickling away and inflation _ usually low in euro nations _ has surged to recent record highs.

By refusing to slash interest rates, the bank and its president, Jean-Claude Trichet, have steered a different course from that chosen by the U.S. Federal Reserve and the Bank of England, following its mandate from the Maastricht Treaty, which paved the way for the single euro currency and the bank itself.

WASHINGTON -Federal regulators are six months into a wide-ranging investigation of U.S. oil markets, with a focus on possible price manipulation.

Reuters Friday, May 30, 2008; 12:52 PM LONDON - Europe's biggest bank HSBC fought off an investor backlash over a multi-million pound executive pay plan on Friday and dismissed claims its troubled U.S. unit ...

A person use an ATM machine inside the CIBC building on Friday, May 23, 2008 in downtown Toronto.

A photograph of the Royal Bank of Canada front building sign on Friday, May 23, 2008 in Toronto.

The Nelson Family of Companies - a leader in workforce management software and staffing - today announced that Jonathan " JP " Parker will join the company as Chief Executive Officer.

Bear Stearns Cos. Inc. stockholders today approved its acquisition by JPMorgan Chase & Co.

Community Banks have been profoundly affected by the current credit market difficulties.
Many will need to reposition their market focus and adopt innovative growth strategies to build its capital base and maintain profitability if it wishes to remain independent.

Bank of America says one of its own executives will run its consumer real-estate business after it acquires mortgage lender Countrywide Financial.

As banks work to preserve capital in this difficult financial environment, some analysts expected dividend increases would be on hold.

Interview with CEO Robert Hermance

On November 9, 2007 the OCC, Board, FDIC, OTS, NCUA and FTC (the Agencies) jointly issued the final rules and guidelines implementing section 114 of the Fair and Accurate Credit Transactions Act of 2003 (FACT Act) and final rules implementing section 315 of the FACT Act.

So, what does this mean to my bank?

Every financial institution or creditor that offers or maintains covered accounts must develop and implement a written Identity Theft Prevention Program that is designed to detect, prevent, and mitigate identity theft in connection with the opening of a covered account or any existing covered account by November 1, 2008.

Bank of Montreal, the first big Canadian bank to report second-quarter financial results, said Tuesday profit fell to $642-million, from $671-million a year earlier, as it put aside more funds to cover loans ...

Hey, read the rules! Bank of America plans to exercise part of the option it has to buy more common shares of China Construction Bank.

Michael Geoghegan said central banks were not yet committed to taming inflation, and predicted United States interest rates would rise after the presidential election in November.

INVESTORS might have to reveal whether shares they trade are borrowed, as part of a series of changes called for by the Reserve Bank of Australia to prevent a repeat of the Tricom settlement failure which ...

Mumbai: : With inflation close to the 8 per cent level, State Bank of India has revised upwards interest rates on deposits of two years and more with effect from June 1. The hike has come less than a month ...

Is the Canadian loonie preparing to take flight again? While betting on the up and down movements of a currency is risky, some economists are beginning to move off their bearish outlook for the Canadian dollar ...

It's Your Job to Get Respect at Work Workplace respect is earned, not given. That goes doubly if you're fresh out of school, you look younger than you really are, you're starting a new position or you work in ...

Federal Reserve Bank of New York President Timothy Geithner said the world economy is coping with the U.S. slowdown.

HSBC Holdings Plc may abandon its $6.2 billion purchase of Korea Exchange Bank if the South Korean government doesn't approve it soon, the Financial Times reported, without saying where it got the information.

One of the last locally owned banks in Williams County, the National Bank of Montpelier, is being purchased by an area rival, Rurban Financial Corp., after 75 years in operation, Defiance-based Rurban announced ...

In this May 15, 2008 file photo, Federal Reserve Chairman Ben Bernanke speaks during a Federal Reserve Bank of Chicago conference in Chicago.

China's $74 billion national pension fund is seeking asset management companies to help invest in global equity markets, according to its website.

The mortgage unit of National City Corp., Ohio's biggest bank, agreed to pay $4.6 million to settle civil allegations it defrauded a U.S. loan program for low- and moderate-income families.

Authorities say a man suspected of firing shots from a downtown Los Angeles hotel has been arrested.

By RACHEL BECK The Associated Press Friday, May 23, 2008; 12:49 PM NEW YORK -- Lewis Ranieri is credited with inventing mortgage-backed securities two decades ago, and recently he sounded warnings about ...

In this photo provided by Gotham shows the cover of "Once You're Lucky,Twice You're Good: The Rebirth of Silicon Valley and the Rise of Web 2.0," by Sarah Lacy.

Nationwide Building Society, Britain's second largest mortgage provider, will scale back lending for a second consecutive year if the wholesale markets do not come back to life in the next few months.

"The Bank of Nova Scotia says Canadians should get used to current record-high oil prices, because they'll be with us for the rest of the decade.

A former Army Ranger accused of masterminding the takeover-style robbery of a Tacoma bank has returned to the U.S. to face charges that include conspiracy, armed robbery and possession of a hand grenade.

A lender has filed a lawsuit against Regency Companies, seeking to foreclose on land in 10 of the homebuilder's developments.

There are an estimated 1.61 billion Muslims worldwide, making Islamic banking one of the fastest growing segments of the financial industry.

UBS AG said Thursday that it would raise $15.5 billion in a rights issue at a 31 percent discount below the current share price.

UBS, hard hit by its exposure to the U.S. mortgage market, said it will sell new shares at 21 francs ($20.09) each to existing shareholders, compared with the closing price of 30.64 francs on the Zurich exchange Wednesday.

Shareholders will receive one subscription right per share held, with 20 of the rights entitling the holder to buy seven new shares. The new rights will be tradeable, the bank said.

More than 7,600 Bear Stearns Cos' employees, about 55 percent of its staff, are expected to lose their jobs as the troubled investment bank is absorbed into JPMorgan Chase & Co , JPMorgan Chief Executive James ...

ZURICH, Switzerland : Swiss bank UBS AG said Wednesday it has sold subprime and other mortgage-based securities with a nominal value of US$22 million for US$15 billion to a newly created investment fund run by ...

Oil prices hit a record above $135 a barrel before falling back in Asia Thursday, with supply worries, rising global demand and a slumping dollar keeping crude futures on an upward track.

With gas and oil prices setting new records nearly every day, many analysts are beginning to wonder what might stop prices from rising. There are technical signals in the futures market, including price differences between near-term and longer-term contracts, that crude may soon fall. But with demand for oil growing in the developing world, and little end in sight to supply problems in producing countries such as Nigeria, few analysts are willing to call an end to crude's rally.

Willow Financial Bancorp Inc., a Wayne bank that recently gave up trying to figure out why its books were $6.2 million out of balance, is selling out to suburban competitor Harleysville National Corp.

According to Attorney General Richard Blumenthal, earlier this year Bridgeport-based People's United Bank safely and securely transferred information about depositors and stockholders with account and Social ...

Mumbai, May 21: Amid protests from political outfits and farmers across the country, India's largest lender, State Bank of India, on Wednesday reversed its decision to suspend financing of new tractor and farm ...

NEW DELHI: Despite mounting pressure from various quarters, the State Bank of India has decided to continue with its decision to freeze loans to farmers on farm equipment - ' tractor, combined harvester and ...

A faltering Citigroup Inc. hedge fund is the source of a big insurance-related writedown Wachovia Corp.

Retail stocks followed the major indexes down the tubes Tuesday, with Home Depot's slumping stock a particular drag.

Citigroup Shares of the financial-services behemoth slumped 3.8% on news that one of its hedge funds saw a 75% drop in value -- prompting a lawsuit against Citigroup.

By JEANNINE AVERSA The Associated Press Tuesday, May 20, 2008; 10:01 AM WASHINGTON -- Working to relieve stressed credit markets, the Federal Reserve has auctioned another $75 billion in loans to squeezed ...

NATIONAL Australia Bank chief executive John Stewart says his bank is looking over St George Bank before deciding whether to make a bid for it.

PRESIDENT of the European Central Bank Jean-Claude Trichet warned yesterday that the end of the credit crunch is not yet in sight.

Take away Exxon Mobil Corp., Chevron Corp. and ConocoPhillips and profits at U.S. companies are the worst in at least a decade.

The New Zealand dollar, the best- performing currency in the past decade, is losing support from the world's biggest investors, who are convinced that interest rates and commodity prices will fall.

“And we have been working since the deal was signed on all aspects of getting the transaction closed, on the basis of the terms set out in the agreement.”

BCE Inc. shares fell more than 5 per cent Monday as banks financing the takeover of the telecom giant were reportedly pushing for new terms, but the pension fund leading the $35-billion buyout said it expects ... via The Globe and Mail

Pays 474 million euros for remaining 26.4% News Video Comments NEWS: 19 May 2008 14:44 GMT by Amy-Mae Elliott Vodafone has announced that it has agreed to acquire the 26.4% interest in Arcor AG & Co. via Pocket-lint.co.uk

“Price stability and credibility in price stability in the medium term is the best way to have a high level of sustainable growth and sustainable job creation”

European Central Bank President Jean-Claude Trichet has warned that the end of the credit crunch is not yet in sight. via RTE.ie

“Good revenue can be generated by tapping affluent Indians locally and overseas,'' said Acharya. "Just about 4 percent of India's savings goes into equities.”

HSBC Holdings Plc plans to buy 73.2 percent of IL&FS Investsmart Ltd, an Indian brokerage, for 10.03 billion rupees to tap rising incomes in the world's fastest growing major economy after China. via Shanghai Daily

TOKYO : Sumitomo Mitsui Financial Group Inc. said Friday its profit rose 4.6 percent in the fiscal year through March, buoyed by improved lending, government bond sales and consolidation of a leasing unit. via International Herald Tribune

“I think that we are getting closer to the end of the financial crisis”

The end of the credit crisis is getting closer and the U.S. real estate market should recover in the second half of the year, Deutsche Bank chief executive Josef Ackermann said in a newspaper interview. via BNET

“Collaborating on market-leading payment capabilities and product solutions is the right thing to do for our shareholders and customers.”

Wells Fargo and Bank of America have announced the formation of a joint venture to operate a single, combined automated clearinghouse platform for both companies and their clients. via Payments News

“Things have changed. The numbers we've seen recently haven't been as bad as we were led to believe just a few months ago.”

A funny thing happened to the economy on its way to recession: It has taken a detour. via STLtoday

JPMorgan Chase & Co expects to liquidate or spin off much of the asset management arm of Bear Stearns Cos Inc after it takes over Bear next month, people familiar with the situation said Thursday. via Reuters RSS Reuters.com

“We're continuing to tighten our lending”

Posted by Teresa Dixon Murray May 15, 2008 15:41PM JPMorgan Chase & Co. said Thursday said it is eliminating 132 jobs at its home-equity processing center in Cleveland. via Cleveland.com

“Despite a slowdown in MLS(R) sales, demand remains strong by historical standards”

The Canadian housing boom is ending, but there is no "major correction" in the cards - and buyers are unlikely to see anything near the bargain-basement prices that currently characterize the United States ... via Globeinvestor.com

“In my view, we can expect these "upstream”

U.S. exports have been helped by a weaker dollar and this is providing a boost to an otherwise weak economy, Federal Reserve Bank of Atlanta President Dennis Lockhart said on Saturday. via MSN Money

“We are confident that the merits of our position will be demonstrated at the trial”

HACKENSACK, New Jersey : Testimony was set to begin Friday in a trial over a $7 billion negligence lawsuit against Citigroup. via International Herald Tribune

Citigroup Inc. , reeling from record losses, may sell its consumer-banking unit in Germany as part of Chief Executive Officer Vikram Pandit 's plan to replenish capital. via Bloomberg Business News

“Bank of America has made no determination in this regard, and there is no assurance that any of such debt would be redeemed, assumed or guaranteed”

A federal judge in Los Angeles has ruled that Countrywide Financial Corp. must face a shareholder lawsuit. via New Mexico Business Weekly

“It's not clear to me that there is something magic about a 6pc capital ratio. You don't want to be in a position where you have too much capital.”

Barclays refused to rule out a capital raising as it wrote down another 1bn of credit market assets, on top of the 1.6bn already taken, and said profits in the first quarter would not match those of last year. via Telegraph.co.uk

“People are buying the necessities, food and gas, and cutting back on other things.”

Gasoline prices are up more than 20 percent from a year ago and food prices have risen 5 percent, but inflation was fairly mild last month, the government reported Wednesday. via The Tennessean

Stock prices are mixed in early trading. The Dow Jones Industrial Average is down 19 points in today's early going. via Today's 6

“I don't think there is a trade-off between price stability and job creation and growth in the medium to long term”

Soaring global prices for energy and food drove euro-zone inflation to record levels this spring. via Globeinvestor.com

“India's attraction continues to be growth”

ICICI Bank Ltd, India's second biggest lender, plans to raise as much as US$3 billion for two funds as it competes with Morgan Stanley and Deutsche Bank AG to invest in the world's second-fastest growing major ... via Shanghai Daily

“I expect geographic consolidation to continue, leading to stronger, more diverse and more efficient institutions”

CHARLOTTE , N.C. - The head of the nation's largest consumer bank said Thursday the country's economic downturn will accelerate consolidation across the banking industry. via SavannahNow

“He was an athletic guy. He was gifted in that regard”

The way Sohale Siddiqi remembers it, he and his old roommate were walking his pug Charlie on Broadway when a large, scary bum approached them, stomping on the ground near the dog's head.This was in the 1980s, a ... via KansasCity.com

“Our 2008 performance continues to benefit from the diversification of our business in recent years. Our investment banking and investment management businesses were profitable in challenging market conditions.”

Barclays said profits will be down for the first quarter after writing down 1 billion in assets relating to the US subprime crisis. via Shropshire Star

“Our idea is to have our content wherever, whenever you can get it, and adding CNet just makes that happen faster”

Media and entertainment company CBS Corp. is buying CNet Networks Inc., an online news and information provider, for $1.8 billion in cash in its latest bid to expand its reach on the Internet, the companies ... via KCBY-TV Coos Bay

Wall Street looked to extend its gains Thursday after the Labor Department's report on first-time claims for unemployment benefits was mostly in line with expectations. via Canadian Business Magazine

People walk by a corporate sign of Mizuho Financial Group Inc. in Tokyo, Japan, Thursday, May 15, 2008. via WBT-AM Charlotte

Credit costs rise at Bank of America Bank of America Corp. reported rising credit costs as it continues to wade through a challenging economic cycle. via HeraldTribune.com

As part of the deal, Citigroup Inc., Morgan Stanley and four other banks agreed to fund a purchase price of $36 a share, below the $39.20 the buyout firms agreed to pay last year. via Worcester Telegram & Gazette

National Australia Bank chief executive John Stewart has not ruled out a counterbid for takeover target St George Bank, but analysts say it would take years for such an acquisition to pay off. via The Sydney Morning Herald

“RBC believes a significant portion of the writedowns reflect liquidity pressures on assets that we continue to hold, rather than underlying credit quality”

- Royal Bank of Canada (TSX:RY) disclosed Wednesday that its results for the February-April quarter will be hit by $855 million in writedowns "relating to market conditions."

The writedowns will be worth $420 million after tax, Canada's largest bank said.

"We are not happy about taking any writedowns and certainly do not take them lightly," president and CEO Gord Nixon said in a statement.

"That said, these writedowns are manageable and our risk profile continues to remain within our risk appetite. This is due to our disciplined risk management, our strong balance sheet and our business diversity." Read more

“We're going to get CPI, retail sales, and that really should give us some direction.”

Treasury prices slipped modestly Monday as the stock market rallied and fixed-income looked ahead to a number of key economic reports to be released in the coming days. via KFMB-TV San Diego

J.P. Morgan Chase & Co. will make room for about 40% of the 14,000 Bear Stearns Cos. via New York Business.com

“Ultimately, market participants themselves must address the fundamental sources of financial strains -- through deleveraging, raising new capital, and improving risk management -- and this process is likely to take some time”

Despite some signs of improvement, financial marke