Skip to main content

Home/ Finance-Banking-and-the-Shadow-Banking-System-Resources/ Group items tagged America

Rss Feed Group items tagged

Filter: All | Bookmarks | Topics Simple Middle
Kostya Golovan

RBC in the running for Bank of America wealth units - The Globe and Mail - 0 views

www.theglobeandmail.com/...page1

shared by Kostya Golovan on 17 May 12 - No Cached
  • | NATHAN DENETTE/THE CANADIAN PRESS
    Enlarge this image

    RBC in the running for Bank of America wealth units

    TARA PERKINS AND REUTERS

    Globe and Mail Update
    Published
    Last updated
    0 comments

    Canada’s largest bank, Royal Bank of Canada (RY-T

  • Canada’s largest bank, Royal Bank of Canada (RY-T51.90-1.13-2.13%), is among the financial institutions looking to pick up parts of Bank of America’s wealth management business
  • In 2010 it paid $1.6-billion for U.K.-based Blue Bay Asset Management.
  • ...11 more annotations...
  • Aside from Europe, executives have recently said that RBC has also been looking to buy operations in Asia. The assets that Bank of America is looking to sell include businesses in both those regions, as well as the Middle East and Latin America.
  • they require less capital to back them up.
  • ING Group sold its private banking assets in Europe and Asia in 2010 to Julius Baer and Singapore’s Oversea-Chinese Banking Corp, respectively, for a total of about $1.9-billion.
  • The units manage about $90-billion of an estimated $2-trillion that the wealth division oversees at the second-largest U.S. bank by total assets.
  • Consolidation in the wealth management industry has been a major theme in the banking sector since the 2008 financial crisis
  • Bank of America is selling because it is shrinking the company
  • Bank of America has lagged peers in recovering from the financial crisis, largely because of huge losses and lawsuits tied to its 2008 acquisition of subprime mortgage lender Countrywide Financial.
  • Canada’s largest bank, which will release second-quarter results on May 24, has been growing its wealth management business and made acquisitions that included British fund manager BlueBay Asset Management for $1.5-billion about two years ago.
  • RBC, which has said it wants to expand its wealth operations organically and with small- and medium-sized acquisitions
  • companies generally prefer to sell the entire group in one go
  • My view is that they are going to sell it as a whole and therefore the number of banks that actually can do it will be more limited
  • Kostya Golovan on 18 May 12
     
    RBC, Canada's largest bank, has for years been looking to expand its global wealth management outreach and is now eager to pick up part of Bank of America's wealth management operation which is going on sale. The prospects of such an en devour are great given the predicted growth in number of millionaires in Asia. RBC has for years been interested in such an expansion and is now very interested in acquiring the wealth unit of Bank of America
Kevin Mao

BofA to try converting foreclosures into rentals - Los Angeles Times - 1 views

articles.latimes.com/...la-fi-home-rental-20120324

foreclosures rentals Bank of America banking pilot project

shared by Kevin Mao on 17 May 12 - No Cached
  • Bank of America Corp. has tentatively joined a nascent housing industry movement in which homes in or near foreclosure are sold to investors as rental properties.
  • often would be better for homeowners, communities and the banks themselves to keep troubled borrowers on as renters rather than kick them out
  • Bank of America doesn't plan to become a longtime landlord for borrowers turned tenants
  • ...6 more annotations...
  • no more than three months before selling them
  • The bank wants to find out
  • whether getting a loan off its books with a quick sale at a deep discount is a better deal financially than the foreclosure process,
  • nd sign contracts agreeing to rent the home for up to three years at or below market rates
  • designed to test the market for homes ranging in current value from $75,000 to $1 million
  • TwinRock Partners, a private Newport Beach firm, recently told potential investors that more than 100 homes it has acquired and rented out over the last two years have produced annualized returns of 8.7%, with the potential for big resale profits if housing prices recover
  • Kevin Mao on 17 May 12
     
    Article about Bank of America's pilot project to convert foreclosures into investment opportunities for investors.
kevinan108

Key Facts - 10 views

Ina Drew- Chief Investment Officer of JP Morgan. She was one of the few women in leadership roles on Wall Street. She was fired after her actions cost JP Morgan $3 billion dollars. She may receive ...

started by Kevin Mao on 18 Apr 12 12 follow-ups, last by kevinan108 on 18 May 12
kevinan108

Why We Regulate - NYTimes.com - 0 views

www.nytimes.com/...krugman-why-we-regulate.html

banking America JP Morgan derivatives PaulKrugman

shared by kevinan108 on 18 May 12 - No Cached
  • He has, however, been fond of giving Gatewood-like speeches about how he and his colleagues know what they’re doing, and don’t need the government looking over their shoulders.
  • So there’s a large heap of poetic justice — and a major policy lesson — in JPMorgan’s shock announcement that it somehow managed to lose $2 billion in a failed bit of financial wheeling-dealing.
  • In the 1930s, after the mother of all banking panics, we arrived at a workable solution, involving both guarantees and oversight.
  • ...4 more annotations...
  • It probably won’t last; I expect Wall Street to be back to its usual arrogance within weeks if not days.
  • As far as we can tell, it used the market for derivatives — complex financial instruments — to make a huge bet on the safety of corporate debt, something like the bets that the insurer A.I.G. made on housing debt a few years ago.
  • This system gave us half a century of relative financial stability. Eventually, however, the lessons of history were forgotten.
  • No loopholes, no exemptions, no exceptions, no compromise, no ambiguous language. Until Congress reinstates it, moral hazard governs and the losers will be the Americans taxpayers. History will keep repeating itself unless politics and money are taken out of the equation.
kevinan108

JPMorgan's Trading Loss Is Said to Rise at Least 50% - 0 views

dealbook.nytimes.com/...ss-is-said-to-rise-at-least-50

banking America NYtimes JP Morgan derivatives

shared by kevinan108 on 18 May 12 - No Cached
  • The trading losses suffered by JPMorgan Chase have surged in recent days, surpassing the bank’s initial $2 billion estimate by at least $1 billion, according to people with knowledge of the losses.
  • In March, the company raised the quarterly dividend by 5 cents, to 30 cents, which will cost the bank about $190 million more this quarter.
  • At the bank’s annual meeting in Tampa, Fla., on Tuesday, Mr. Dimon did not definitively rule out cutting the dividend, although he said that he “hoped” it would not be cut.
  • ...2 more annotations...
  • “JPMorgan Chase has a big hedge fund inside a commercial bank,” said Mark Williams, a professor of finance at Boston University, who also served as a Federal Reserve bank examiner. “They should be taking in deposits and making loans, not taking large speculative bets.”
  • In its simplest form, traders said, the complex position assembled by the bank included a bullish bet on an index of investment-grade corporate debt, later paired with a bearish bet on high-yield securities, achieved by selling insurance contracts known as credit-default swaps.
  • kevinan108 on 18 May 12
     
    The trading losses suffered by JPMorgan Chase have surged in recent days, surpassing the bank's initial $2 billion estimate by at least $1 billion, according to people with knowledge of the losses. When Jamie Dimon, JPMorgan's chief executive, announced the losses last Thursday, he indicated they could double within the next few quarters.
1 - 5 of 5
Showing 20▼ items per page