On Monday, Sept. 13, trades on the U.S. stock market is rising quotations. Upbeat news came from all directions: fears of tighter monetary policy in China did not materialize (the rapid economic growth continues in the country) in Europe have adopted new capital requirements for banks, while the U.S. maintained a high level of activity in mergers and acquisitions, which points to an optimistic assessment of economic prospects for the representatives of big business. Against this backdrop, the Dow Jones up a gap updated monthly maximum, while trying to "Bears" to reduce the early morning gains and were not successful: too great confidence of investors in the continuation of the rally.
Following the auction on September 13, the Dow Jones rose 81.36 points (0.78%) - to 10,544.13 points, NASDAQ rose 43.23 points (1.93%) - to 2285.71 points, S & P rose by 12.35 points (1.11%) - up to 1121.9 points.
Stronger than the market on Monday looked banking sector. Positive in the segment was associated with the announcement of the final formulation of new standards of bank capital and liquidity, dubbed "Basel III" and designed to make the financial system more resilient to shocks. The transition to the new standards will be smooth: it begins in January 2013. And finally bank capital will be formed by January 2019. Smooth transition eliminates fears that banks will have even more to reduce lending and raise capital to meet the new requirements. Against this backdrop, the leading U.S. financial institutions have added considerably to the price: JPMorgan Chase & Co. - 3,42%, Bank of America Corp. - 2,95%, The Goldman Sachs Group Inc. - 2,65%, Wells Fargo & Co. - 2,91%, Citigroup Inc. - 2,05%, U.S. Bancorp - 3,27%, The Bank of New York Mellon Corp. - 2,24%, PNC Financial Services Group Inc. - 2,89%, Morgan Stanley - 2,13%.
Prices for raw materials rose by a weaker dollar and expectations of preservation demand from China. However, investors are oil companies increase the cost of a barrel of Brent crude for more than 1% were ignored. By the end of the capitalization of ConocoPhillips rose only by 1,15%, Occidental Petroleum Corp. - On 0,52%, Anadarko Petroleum Corp. - At 0.77%, while Exxon Mobil Corp. - Went in a minus on 0,33%. But the steel companies in demand: Alcoa Inc. increased by 3,13%, United States Steel Corp. - On 1,81%, AK Steel Holding Corp. - On 2,94%, Southern Copper Corp. - On 2,32%, Freeport-McMoRan Copper & Gold Inc. - At 3.11%.
With regard to activity in mergers and acquisitions, it became known, the American manufacturer of computer equipment Hewlett-Packard (HP) buys developer of security software - the company ArcSight Inc. - For 1.5 billion dollars Absorption ArcSight will provide HP customers a higher level of security at a relatively lower cost. According to executive vice president of HP Software and Solutions Bill Veta, combining HP and ArcSight enables customers to better protect their applications against malicious programs, as well as to respond quickly to emerging threats. On Monday, the company reached a definitive agreement for the transaction, the entire amount is scheduled to pay in cash at the rate of U.S. $ 43.5 per share ArcSight. Not surprisingly, the value of securities last Sept. 13 soared by 25.1% - up to $ 43.91 HP meanwhile among manufacturers of computers showed the weakest results, adding only 0.21%. Quotes Dell Inc. and International Business Machines Corp. Meanwhile, increased by 2.07% and 1.27% respectively.
In demand on Monday, representatives of the car rental sector. Segment between the two leaders - Hertz Global Holdings Inc. 'S and Avis Budget Group Inc. - The struggle for Dollar Thrifty Automotive Group Inc., Companies represented in 70 countries with a total fleet of more than 300 thousand cars. Absorption will allow one of its competitors significantly strengthen its position. Sept. 13 Dollar Thrifty Automotive Group announced that the offer of Hertz Global Holdings, as the latter agreed to pay 1.43 billion dollars, or $ 50 per share, which is more than yet to offer Avis Budget Group. On Monday, quotes Dollar Thrifty jumped 5.35% - up to $ 50.58 Shareholders of any of the competing firms do not remain dissatisfied: Hertz capitalization soared to 7,86%, Avis - on 7,14%.
Last Friday, the U.S. stock market closed at the maximum level in almost a month, which was a good "bullish signal. At the beginning of a new week to take a positive external background was in full, resulting in growth indices rose. The advantage is still on the side of the bulls: the market is aimed upward, and the index of Dow Jones, seems to still be able to reach their summer peak, which is located at 1,5% higher. Of course, we can expect that buyers will cool the ardor of a weak macroeconomic statistics, but, firstly, is currently on the market none of it prefers not to think, and secondly, in recent times players tend to ignore weak statistical data.
понедельник, 27 сентября 2010 г.
FT: One of the complaints the U.S. to China in the WTO is related to discrimination Visa
One of the complaints directed at the U.S. China into the World Trade Organization (WTO) concerning discrimination in respect of U.S. operator of credit cards Visa. Conflict with the local monopolist China Unionpay company does not develop in China, reports The Financial Time citing informed sources.
On the eve of the U.S. representative to the WTO, Ron Kirk, said Washington has asked the organization to hold consultations to settle the dispute with Beijing about U.S. exports to China ploskokatanoy electrical steels, as well as on cases of discrimination against U.S. companies that provide services to the electronic payment market. According to the U.S., the People's Bank of China Unionpay granted monopoly rights to conduct most transactions with credit and debit cards of Chinese consumers, it's unfair to deprive foreign companies access to Chinese markets, and violate the obligations of Beijing to open financial services market.
According to the FT, Visa for almost a year can not run any business project in China due to a conflict with Unionpay. He came about a year ago, when Visa demanded that Unionpay stopped processing international transactions Cobranding cards through its own billing system. Visa raises a similar claim when working with partners around the world. The conflict between the partners developed a creeping form until June, when Unionpay, under the auspices of the Chinese Central Bank, in a rigid form has rejected demands by Visa and he became known to the public. Visa and Unionpay does not comment.
As a result Unionpay refused to consider any new lines of business with Visa. At the same time Unionpay continues to gradually expand its cooperation with its rivals MasterCard and American Express, which apparently took less confrontational approach. On the eve of MasterCard announced the signing of a memorandum of understanding with Unionpay, aimed at "a mutually beneficial business cooperation."
On the eve of the U.S. representative to the WTO, Ron Kirk, said Washington has asked the organization to hold consultations to settle the dispute with Beijing about U.S. exports to China ploskokatanoy electrical steels, as well as on cases of discrimination against U.S. companies that provide services to the electronic payment market. According to the U.S., the People's Bank of China Unionpay granted monopoly rights to conduct most transactions with credit and debit cards of Chinese consumers, it's unfair to deprive foreign companies access to Chinese markets, and violate the obligations of Beijing to open financial services market.
According to the FT, Visa for almost a year can not run any business project in China due to a conflict with Unionpay. He came about a year ago, when Visa demanded that Unionpay stopped processing international transactions Cobranding cards through its own billing system. Visa raises a similar claim when working with partners around the world. The conflict between the partners developed a creeping form until June, when Unionpay, under the auspices of the Chinese Central Bank, in a rigid form has rejected demands by Visa and he became known to the public. Visa and Unionpay does not comment.
As a result Unionpay refused to consider any new lines of business with Visa. At the same time Unionpay continues to gradually expand its cooperation with its rivals MasterCard and American Express, which apparently took less confrontational approach. On the eve of MasterCard announced the signing of a memorandum of understanding with Unionpay, aimed at "a mutually beneficial business cooperation."
U.S. imposes sanctions against the European-Iranian bank
Großansicht des Bildes mit der Bildunterschrift: Hamburg bank accused of funding military programs of Iran
In the framework of existing sanctions against Iran, the U.S. had to blacklist the European-Iranian Trade Bank (EIH), located in Hamburg. Bank accused of involvement in the funding of military programs of Tehran.
The United States has imposed sanctions against the European-Iranian Trade Bank (EIH), whose headquarters is in Hamburg. As reported on Wednesday, September 8, the web-site channel n-tv referring to the representative of the Ministry of the Treasury Stuart Levey, the Hamburg bank has worked closely with Iranian financial institutions and exercised on their behalf by the numerous translations. EIH was the seventeenth to the foreign bank account made by Washington in the black list.
According to the U.S. Treasury, Bank of Hamburg in cooperation with Iranian financial institutions in 2007 contributed to the acquisition of materials and equipment for the implementation of missile programs totaling more than $ 3 million. Last year, EIH, interacting with the Iranian Bank Mellat, participated in the financing of contracts for the procurement of arms, worth about 350 thousand dollars.
U.S. Sanctions virtually make it impossible for EIH to cooperate with other international banks, like agency Reuters. In the framework of sanctions is also closed access to the U.S. banking system. U.S. authorities have agreed on actions against the Bank of Hamburg with the German government. For its part, in Berlin are also planning to take action against the EIH. Hamburg Bank in June accused of violating sanctions imposed against Iran. Guide EIH denied the allegations, stressing that no violation occurred.
In the framework of existing sanctions against Iran, the U.S. had to blacklist the European-Iranian Trade Bank (EIH), located in Hamburg. Bank accused of involvement in the funding of military programs of Tehran.
The United States has imposed sanctions against the European-Iranian Trade Bank (EIH), whose headquarters is in Hamburg. As reported on Wednesday, September 8, the web-site channel n-tv referring to the representative of the Ministry of the Treasury Stuart Levey, the Hamburg bank has worked closely with Iranian financial institutions and exercised on their behalf by the numerous translations. EIH was the seventeenth to the foreign bank account made by Washington in the black list.
According to the U.S. Treasury, Bank of Hamburg in cooperation with Iranian financial institutions in 2007 contributed to the acquisition of materials and equipment for the implementation of missile programs totaling more than $ 3 million. Last year, EIH, interacting with the Iranian Bank Mellat, participated in the financing of contracts for the procurement of arms, worth about 350 thousand dollars.
U.S. Sanctions virtually make it impossible for EIH to cooperate with other international banks, like agency Reuters. In the framework of sanctions is also closed access to the U.S. banking system. U.S. authorities have agreed on actions against the Bank of Hamburg with the German government. For its part, in Berlin are also planning to take action against the EIH. Hamburg Bank in June accused of violating sanctions imposed against Iran. Guide EIH denied the allegations, stressing that no violation occurred.
Former head of the bank, Richard Fuld blamed the U.S. government in inaction
Lehman Brothers ghost is haunting the United States, without giving no peace to financial regulators nor market participants. Both the former and the latter can not possibly put an end to the dispute that still has the once mighty bank to collapse - their own mistakes or omissions of the authorities. Former head of Lehman, Richard Fuld this week openly declared that the catastrophe contributed to the policy of U.S. authorities.
Richard Fuld on Wednesday, delivered at a regular meeting of the committee to investigate the causes of the financial crisis, which has been invited is not the first time. Veteran Wall Street has not missed a chance to accuse the authorities in absolute inaction on the eve of the loud bankruptcy. «Lehman was forced to begin bankruptcy proceedings, not because he was unable to responsibly approach the problem or find ways to get out of the crisis, but because the authorities decided not to give him assistance, which was subsequently provided to all competitors of the bank. This decision was based on an inferior amount of information that was in their possession, "- said Mr. Fuld.
The bankruptcy of Lehman in 2008 really looked strange against the background of the provision of large-scale state support other members of the sector. So, six months before the collapse of the Bank of the U.S. government took an active part in the fate of bank Bear Stearns, assisted him in finding a buyer (JP Morgan Chase received from the government a loan of 29 billion dollars for this transaction). The very next day after the bankruptcy of Lehman Government has provided 85 billion dollars of insurance company AIG.
Participated in the meeting of the committee representatives of the Federal Reserve System (Fed) did not agree with Mr. Faldo. In their view, the authorities did their utmost to rescue the bank, however, all prospective buyers refused to buy Lehman. To lend to distressed company, the authorities themselves decided not to. "If the Fed lent Lehman money on that fateful Monday, but now we have discussed with you then, as the authorities tolerate the loss of this amount of taxpayers' money," - said the representative of the Federal Reserve Board Scott Alvarez.
Despite the veneer of rigor and uncompromising representatives of the Federal Reserve, the government still regrets his inaction, experts say. "If the Fed was in this situation now, then there would know about the future consequences of their decisions, her leadership there would be no doubt on account of Lehman. Bank would be at the moment given all the necessary liquidity. True, the government is unlikely to ever accept "- said an analyst with RBC daily Economist Intelligence Unit Jason Kereyan.
Richard Fuld on Wednesday, delivered at a regular meeting of the committee to investigate the causes of the financial crisis, which has been invited is not the first time. Veteran Wall Street has not missed a chance to accuse the authorities in absolute inaction on the eve of the loud bankruptcy. «Lehman was forced to begin bankruptcy proceedings, not because he was unable to responsibly approach the problem or find ways to get out of the crisis, but because the authorities decided not to give him assistance, which was subsequently provided to all competitors of the bank. This decision was based on an inferior amount of information that was in their possession, "- said Mr. Fuld.
The bankruptcy of Lehman in 2008 really looked strange against the background of the provision of large-scale state support other members of the sector. So, six months before the collapse of the Bank of the U.S. government took an active part in the fate of bank Bear Stearns, assisted him in finding a buyer (JP Morgan Chase received from the government a loan of 29 billion dollars for this transaction). The very next day after the bankruptcy of Lehman Government has provided 85 billion dollars of insurance company AIG.
Participated in the meeting of the committee representatives of the Federal Reserve System (Fed) did not agree with Mr. Faldo. In their view, the authorities did their utmost to rescue the bank, however, all prospective buyers refused to buy Lehman. To lend to distressed company, the authorities themselves decided not to. "If the Fed lent Lehman money on that fateful Monday, but now we have discussed with you then, as the authorities tolerate the loss of this amount of taxpayers' money," - said the representative of the Federal Reserve Board Scott Alvarez.
Despite the veneer of rigor and uncompromising representatives of the Federal Reserve, the government still regrets his inaction, experts say. "If the Fed was in this situation now, then there would know about the future consequences of their decisions, her leadership there would be no doubt on account of Lehman. Bank would be at the moment given all the necessary liquidity. True, the government is unlikely to ever accept "- said an analyst with RBC daily Economist Intelligence Unit Jason Kereyan.
U.S. authorities have obliged companies to disclose the amount of debt
Commission on the Securities and Exchange Commission (SEC) the U.S. will require companies to disclose information about the average and total short-term debt for the entire reporting period, not just in the last quarter.
New measures for the adoption of which voted on Friday SEC, aimed at combating window dressing - the practice of temporary sharp decline in debt shortly before the publication of statements followed by reduction of the volume to its previous level. Arrangements have been made investors will have more complete data about the level of liquidity and leverage of the company, Interfax reported.
For more information on average and full-level short-term debt during the reporting period, and also used by companies financial schemes will be included in annual and quarterly reports of companies.
Measures will be taken by the SEC finally approved after studying the explanations and comments received during the two months.
Conducted previously by the newspaper The Wall Street Journal survey showed that the 18 largest banks in the U.S. has reduced the level of debt immediately before the promulgation of accounting at the end of each of the last six quarters. In this case, the average bank reduces the amount of debt by 42%.
In March the SEC is investigating the 24 largest U.S. financial companies, is subject to the financial reporting violations, such as those noted in the bank Lehman Brothers. The study of the circumstances of the collapse of Lehman Brothers revealed that the bank's management approves of misleading financial statements and applied the tricks to leveling quarterly.
Fraud included the use of the repo, which allowed Lehman Brothers to reduce the apparent level of loan debt, look better in the eyes of the market and have higher ratings. In 2008, the bank did not disclose details of financial transactions that allowed him to keep $ 50 billion in debt off-balance accounts.
New measures for the adoption of which voted on Friday SEC, aimed at combating window dressing - the practice of temporary sharp decline in debt shortly before the publication of statements followed by reduction of the volume to its previous level. Arrangements have been made investors will have more complete data about the level of liquidity and leverage of the company, Interfax reported.
For more information on average and full-level short-term debt during the reporting period, and also used by companies financial schemes will be included in annual and quarterly reports of companies.
Measures will be taken by the SEC finally approved after studying the explanations and comments received during the two months.
Conducted previously by the newspaper The Wall Street Journal survey showed that the 18 largest banks in the U.S. has reduced the level of debt immediately before the promulgation of accounting at the end of each of the last six quarters. In this case, the average bank reduces the amount of debt by 42%.
In March the SEC is investigating the 24 largest U.S. financial companies, is subject to the financial reporting violations, such as those noted in the bank Lehman Brothers. The study of the circumstances of the collapse of Lehman Brothers revealed that the bank's management approves of misleading financial statements and applied the tricks to leveling quarterly.
Fraud included the use of the repo, which allowed Lehman Brothers to reduce the apparent level of loan debt, look better in the eyes of the market and have higher ratings. In 2008, the bank did not disclose details of financial transactions that allowed him to keep $ 50 billion in debt off-balance accounts.
Number of problem banks in the U.S. is growing rapidly
Number of problem banks in the U.S., which threatens to bankrupt, in II quarter has increased to 829, representing 11% of the total number of U.S. banks. Assets of troubled banks is estimated at $ 403 billion
This was stated by the Federal Deposit Insurance Corporation U.S. (Federal Deposit Insurance Corporation, FDIC). According to the FDIC, in I quarter in the U.S. totaled 775 troubled banks.
U.S. authorities shut bank at the fastest pace since 1992. Since 2010 the U.S. closed 118 banks in the past year - 140, Interfax reported. The fact that the amount of assets of troubled banks in II quarter has decreased, says the worsening financial situation of small and medium-sized banks are working directly with the public.
Lending in the banking sector of the U.S. declined in II quarter on 1,4%.
The volume of bank reserves for possible loan losses decreased relative to II quarter 2009 on 40,5% - to $ 40.3 billion, and it happened at a time when American officials strenuously to "pump up" the banks and the financial system with liquidity. In this regard, experts believe that measures taken to maintain the banks did not work.
FDIC - the banking regulator, insures deposits of 7,830 financial institutions whose assets are estimated at $ 13.2 trillion.
This was stated by the Federal Deposit Insurance Corporation U.S. (Federal Deposit Insurance Corporation, FDIC). According to the FDIC, in I quarter in the U.S. totaled 775 troubled banks.
U.S. authorities shut bank at the fastest pace since 1992. Since 2010 the U.S. closed 118 banks in the past year - 140, Interfax reported. The fact that the amount of assets of troubled banks in II quarter has decreased, says the worsening financial situation of small and medium-sized banks are working directly with the public.
Lending in the banking sector of the U.S. declined in II quarter on 1,4%.
The volume of bank reserves for possible loan losses decreased relative to II quarter 2009 on 40,5% - to $ 40.3 billion, and it happened at a time when American officials strenuously to "pump up" the banks and the financial system with liquidity. In this regard, experts believe that measures taken to maintain the banks did not work.
FDIC - the banking regulator, insures deposits of 7,830 financial institutions whose assets are estimated at $ 13.2 trillion.
In the United States set a new record number of houses seized for debt
U.S. banks were seized in August, 95.4 thousand housing units for borrowers with overdue payments on mortgage loans. This figure is 2% above the previous absolute record set in May this year, writes Prian.ru.
Compared with July, the number of excluded sites grew by 3% and about August 2009 - 25%. For comparison, the entire pre-crisis in 2005 has registered about 100,000 mortgage exemptions.
It is reported that in August this year were appointed auctions for the sale of 147,000 objects foreclosure. This figure exceeded the July to 9%, reports Reuters referring to the research firm RealtyTrac.
According to the vice-president Rick Sharga, a positive sign is to reduce the number of notices of foreclosure by 1% from July to August. This suggests that in future the number of actual seizures may be reduced.
In addition, the April abolition of state incentives for the purchase of first home buyers in the U.S. force to draw their attention to mortgage auctions, where prices are usually much lower than the market in general. Ultimately, this may increase sales of residential property in the country. However, in order to sell all of the excluded items that are on the banks' balance sheets will need at least two years, said Sharga.
The overall situation in the U.S. housing market remains extremely fragile. The unemployment rate is still high, raising concerns both domestically and abroad.
Compared with July, the number of excluded sites grew by 3% and about August 2009 - 25%. For comparison, the entire pre-crisis in 2005 has registered about 100,000 mortgage exemptions.
It is reported that in August this year were appointed auctions for the sale of 147,000 objects foreclosure. This figure exceeded the July to 9%, reports Reuters referring to the research firm RealtyTrac.
According to the vice-president Rick Sharga, a positive sign is to reduce the number of notices of foreclosure by 1% from July to August. This suggests that in future the number of actual seizures may be reduced.
In addition, the April abolition of state incentives for the purchase of first home buyers in the U.S. force to draw their attention to mortgage auctions, where prices are usually much lower than the market in general. Ultimately, this may increase sales of residential property in the country. However, in order to sell all of the excluded items that are on the banks' balance sheets will need at least two years, said Sharga.
The overall situation in the U.S. housing market remains extremely fragile. The unemployment rate is still high, raising concerns both domestically and abroad.
Press Reviews
Banks and consumers: Who
Communicate with regulators by banks looks like a well-known game "Shmyakni mole, where a mole is hit in one burrow, he immediately leans out the other. And in the U.S.: Once banks forbid something, they immediately come up with something new.
The August law on cards introduced a ban on a number of commissions, including the fees for overdrafts and late fees. But already a month later, banks started to raise the existing committee and find ways to get customers to pay more for credit cards, so-called "free" current accounts and banking services.
Article on the website CNNMoney.com warned what to expect from the banks.
Just last week, Bank of America announced its intention to increase the requirements for a minimum amount of balance in the next 12 months and charge a monthly fee for maintaining accounts with customers who would be unable to support such a balance.
Customers who subscribe to the discovery of new current accounts eBanking, will pay $ 8.95 per month for the right to receive paper statements and contact the bank branch, instead of to solve financial matters online. Since launching the program in August, fall into this category for half of all new current accounts.
Earlier this year, some credit card accounts Bank of America were used in the commission of between $ 29 to $ 99.
Wells Fargo, which was once fiercely fought for the right to merge with Wachovia, now Wachovia teaches customers to new rules, raising committee. For obtaining a sample from a paper check cashed extract - $ 2. The use of savings as overdraft protection - $ 10 for each transfer. Previously, the commissions have already existed for clients Wells Fargo, but applied only to a small number of clients Wachovia.
Annual fee of $ 19 charge HSBC (HBC) to customers who open a credit line, with effect from 1 July, and an additional $ 10 daily for using this line of credit as overdraft protection on the account.
Other banks allow customers to combine payment and savings accounts for overdraft protection, but not HSBC. Here, customers either pay a fee for opening a credit (if they have bad credit history), or pay a fee for overdraft protection from another account or receive a denial of a credit card.
This month, Citibank announced the changes in policy regarding the settlement of accounts: now a monthly fee for service will be up to $ 30, depending on the type of accounts and compliance with customer specific requirements, such as committing a certain number of monthly transactions or maintain a certain minimum balance. Previously, the commissions were only about $ 3, depending on the type of account.
Earlier this year, Citi has introduced an annual fee of $ 60, which could be revoked if the customer spends about $ 2400 a year. But because of new regulations that prohibit charging fees for active accounts, the bank was forced to cancel this fee shortly after its introduction.
American Express added the commission in the amount of $ 29 for most of their cards.
In highly competitive environments, typical of an already tough industry, banks must still ensure that you do not go too far, as it is fraught with a loss of customers in which they now desperately need. In this regard, experts advise clients to benefit from this heightened competition, and discuss the commission with their banks.
Another interesting fact about credit cards results in The New York Times. Initially, a significant reduction in credit card debt in the U.S. since 2009 attributed to unusually frugal consumers. But analysts found that a substantial part of the recession is actually a result of the fact that financial institutions wrote off the debts as losses of billions of dollars.
In the past two years, the volume of consumer debt has been steadily decreasing. As the representatives of the Federal Reserve, in the second quarter of 2010, commitments for mortgage loans, credit-card accounts and the accounts of non-renewable, such as auto loans, totaled $ 13.9 trillion., A $ 200 billion compared with the same quarter in last year.
The volume of defaults on revolving credit, such as credit cards, down from $ 915 billion to $ 832.2 billion during the same period.
But economists say they have tried to calculate the extent to which the decline in credit-card debt is a result of bank writedowns.
Moody's analysts said that the study of accounts of private borrowers, he waited to find out which debtors to voluntarily pay their debts, who climbs to new and existing borrowers as reducing debt, making the sum greater than the minimum payment.
Although the study is not finished yet, it appears that most of the reduction of debt falls on write-offs.
Analyses CardHub.com, showed that the quarterly financial institutions wrote off nearly $ 20 billion since early 2009 to early 2010, roughly comparable to the decline in outstanding debt on credit cards. According to specialists, these write-offs also suggests that "many banks continue to suffer serious losses and are experiencing great difficulties."
However, according to Gregory Dacko, chief economist at IHS Global Insight, consumer behavior is not explained only debt indicators for revolving loans, which are only "give an overall picture of consumer credit."
In Asia, the banking secrecy
For centuries, Switzerland was a haven for many rich people who want to hide their condition and take shelter from taxes. Now, amid growing pressure on the Swiss Institute for the provision of banking services to private clients, wealthy people go to Singapore and Hong Kong, which still offer the most secret accounts in the world.
Authors of articles in The New York Times told about this phenomenon. As it turned out, many banks that grow in these oases of low taxes, of Swiss origin, and among their customers include not only Asian millionaires, but wealthy Americans and Europeans, fearful of increased control by the tax authorities in their own countries.
Develop in this region are going to Swiss bank accounts of different "caliber" of UBS, the control center for training in Singapore, to smaller private banks such as Julius Baer.
Experts note that in Singapore and Hong Kong has been a massive recruitment of hundreds of private bankers, as well as call these Asian regions "new alternative" to the Swiss bank secrecy laws after last year's attack on UBS in the United States.
Over the past two years, UBS, Switzerland's largest bank, has lost about 200 billion Swiss francs (about $ 200 billion) in client assets subdivisions private banking. But in Asia, the bank managed to earn more than he lost. Without providing, however, more precise figures, representatives of the bank's reported intention to hire 400 more "consultants" or private bankers, for units in the Asia-Pacific region, in addition to those already working there 867.
In February, UBS has increased the size of the premium for those unit employees in Singapore, which result in new customers. One of the largest shareholders are the Singapore government, whose share is about 9%.
Walter Berchtold, executive director of private banking Credit Suisse, said that the volume of new assets flowing into the banks of wealthy Asian clients, an increase of more than 20%, which is three times more than the average forecast for the bank around the world.
According to Ronen Pal, Professor of Political Economy and an expert on offshore finance at the University of Birmingham, "everything indicates that Singapore is working hard to become the new Switzerland.
Such a shift has occurred in connection with the attack on the Swiss industry of banking services for private clients. First, U.S. Department of Justice launched a criminal investigation against UBS, and then the other Swiss banks, for helping wealthy Americans in tax evasion. Then the European tax authorities, to obtain disks with information about several thousand customers stolen from banks in Switzerland, demanded that banks hold a minimum level of taxes, even with secret accounts.
Founder of the Tax Justice Network, Richard Murphy, described the recent changes: "Singapore has become a place where the Swiss could take the bank secrecy, which they lost at home." According to him, Hong Kong is in second place after Singapore.
Critics, which include and Murphy point to the secrecy in the Swiss style, which offers Singapore, the absence of taxes on capital gains and dividends, and most of the foreign system that allows depositors to open accounts under the guise of corporations, trusts and limited liability companies.
While in Hong Kong do not have formal bank secrecy laws, it allowed the creation of companies, which often serve as conduits for tax evasion. There is also no tax on capital gains or interest rate on deposit, in addition, tax is levied only income earned in Hong Kong.
However, the label of "tax haven" are worried about both countries. According to a representative of the central bank of Singapore, the law of this country "protects the mystery of the contribution of legitimate investors, while at the same time allow for the transfer of banking information to foreign authorities when it comes to crime or the conduct of the investigation."
The representative of the Hong Kong Office of Financial Services and the Treasury stressed that Hong Kong "can not be compared with countries that create conditions to make life easier for those who evaded taxes.
However, U.S. tax authorities are showing increasing concern. According to court documents, some customers are UBS, detained in a criminal investigation against the bank, used offshore companies in Hong Kong or to conclude the deal with unknown banks located in Singapore.
At least two banks
Last week, the number of banks in the U.S. declined for two more. According to Reuters, the Federal Deposit Insurance Corporation announced the closing of North County Bank, and Haven Trust Bank Florida, which is why the number of problem banks in the country was currently 127.
The volume of assets North County Bank, Washington, was $ 288.8 million, deposits - $ 276.1 million All deposits will go to the OU Washington Banking Company, Whidbey Island Bank.
Assets of Haven Trust Bank Florida, Florida, totaled approximately $ 148.6 million, while total deposits reached $ 133.6 million All deposits of the bank moved to First Southern Bank.
Bankruptcy of these banks have cost the corporation FDIC to $ 104.7 million projected Corporation, which insures individual accounts up to $ 250,000, the number of bankruptcies this year will exceed last year's figure, but the total assets of the bankrupt will be lower.
More dollar
In February 2009, Citigroup head Vikram Pandit said that as long as the bank does not return to earnings, his salary will not exceed $ 1.
However, since 2011, the board of directors intends to increase the salary of director general, regardless of his wishes. Write about it CNN Money and Reuters.
Chairman of the Board Richard Parsons noted that the amount of compensation to Pandit should be commensurate with his position. He duly appreciated the "tireless" work of CEO for the company's restructuring, through which the bank returned to profitability.
Guide Citi also announced plans to pay the salaries of 25 top managers of companies in the form of shares, despite the fact that the U.S. authorities no longer require banks to do so. The size of bonuses for these isotopes will determine at the end of the year.
Vikram Pandit has sold the assets of the bank, has cut some staff and tried to focus the activities of Citigroup's core area, including investment and retail banking for wealthy clients around the world.
For the first two quarters of 2010 earnings Citigroup is more than $ 7 billion
But all is not smooth in the Danish kingdom. According to Reuters, recently the central bank of Norway has filed a lawsuit against Citigroup Inc, accusing the bank of fraudulent concealment of information on the deteriorating financial condition, resulting in a loss of $ 835 million
Sued by Norges Bank are the 20 current and former employees and directors of Citigroup, including the CEO Vikram Pandit, his predecessor, Charles Prince and Chairman Richard Parsons.
The lawsuit alleges that the bank hid their investments in risky or illiquid securities such as mortgage-class subprime, collateralized debt obligations and so-called structured investment products that threaten its stability.
Norges representatives were told that the bank acquired the securities of Citigroup at inflated prices during the period from January 2007 to January 2009 period, and lost more than $ 735 million in common stock and $ 100 million in preferred stock and bonds. Bank accused of fraud and demanding compensation for damages.
The representative of Citigroup Danielle Romero-Apsilos said the bank believed the accusations baseless and intend to defend its position.
Communicate with regulators by banks looks like a well-known game "Shmyakni mole, where a mole is hit in one burrow, he immediately leans out the other. And in the U.S.: Once banks forbid something, they immediately come up with something new.
The August law on cards introduced a ban on a number of commissions, including the fees for overdrafts and late fees. But already a month later, banks started to raise the existing committee and find ways to get customers to pay more for credit cards, so-called "free" current accounts and banking services.
Article on the website CNNMoney.com warned what to expect from the banks.
Just last week, Bank of America announced its intention to increase the requirements for a minimum amount of balance in the next 12 months and charge a monthly fee for maintaining accounts with customers who would be unable to support such a balance.
Customers who subscribe to the discovery of new current accounts eBanking, will pay $ 8.95 per month for the right to receive paper statements and contact the bank branch, instead of to solve financial matters online. Since launching the program in August, fall into this category for half of all new current accounts.
Earlier this year, some credit card accounts Bank of America were used in the commission of between $ 29 to $ 99.
Wells Fargo, which was once fiercely fought for the right to merge with Wachovia, now Wachovia teaches customers to new rules, raising committee. For obtaining a sample from a paper check cashed extract - $ 2. The use of savings as overdraft protection - $ 10 for each transfer. Previously, the commissions have already existed for clients Wells Fargo, but applied only to a small number of clients Wachovia.
Annual fee of $ 19 charge HSBC (HBC) to customers who open a credit line, with effect from 1 July, and an additional $ 10 daily for using this line of credit as overdraft protection on the account.
Other banks allow customers to combine payment and savings accounts for overdraft protection, but not HSBC. Here, customers either pay a fee for opening a credit (if they have bad credit history), or pay a fee for overdraft protection from another account or receive a denial of a credit card.
This month, Citibank announced the changes in policy regarding the settlement of accounts: now a monthly fee for service will be up to $ 30, depending on the type of accounts and compliance with customer specific requirements, such as committing a certain number of monthly transactions or maintain a certain minimum balance. Previously, the commissions were only about $ 3, depending on the type of account.
Earlier this year, Citi has introduced an annual fee of $ 60, which could be revoked if the customer spends about $ 2400 a year. But because of new regulations that prohibit charging fees for active accounts, the bank was forced to cancel this fee shortly after its introduction.
American Express added the commission in the amount of $ 29 for most of their cards.
In highly competitive environments, typical of an already tough industry, banks must still ensure that you do not go too far, as it is fraught with a loss of customers in which they now desperately need. In this regard, experts advise clients to benefit from this heightened competition, and discuss the commission with their banks.
Another interesting fact about credit cards results in The New York Times. Initially, a significant reduction in credit card debt in the U.S. since 2009 attributed to unusually frugal consumers. But analysts found that a substantial part of the recession is actually a result of the fact that financial institutions wrote off the debts as losses of billions of dollars.
In the past two years, the volume of consumer debt has been steadily decreasing. As the representatives of the Federal Reserve, in the second quarter of 2010, commitments for mortgage loans, credit-card accounts and the accounts of non-renewable, such as auto loans, totaled $ 13.9 trillion., A $ 200 billion compared with the same quarter in last year.
The volume of defaults on revolving credit, such as credit cards, down from $ 915 billion to $ 832.2 billion during the same period.
But economists say they have tried to calculate the extent to which the decline in credit-card debt is a result of bank writedowns.
Moody's analysts said that the study of accounts of private borrowers, he waited to find out which debtors to voluntarily pay their debts, who climbs to new and existing borrowers as reducing debt, making the sum greater than the minimum payment.
Although the study is not finished yet, it appears that most of the reduction of debt falls on write-offs.
Analyses CardHub.com, showed that the quarterly financial institutions wrote off nearly $ 20 billion since early 2009 to early 2010, roughly comparable to the decline in outstanding debt on credit cards. According to specialists, these write-offs also suggests that "many banks continue to suffer serious losses and are experiencing great difficulties."
However, according to Gregory Dacko, chief economist at IHS Global Insight, consumer behavior is not explained only debt indicators for revolving loans, which are only "give an overall picture of consumer credit."
In Asia, the banking secrecy
For centuries, Switzerland was a haven for many rich people who want to hide their condition and take shelter from taxes. Now, amid growing pressure on the Swiss Institute for the provision of banking services to private clients, wealthy people go to Singapore and Hong Kong, which still offer the most secret accounts in the world.
Authors of articles in The New York Times told about this phenomenon. As it turned out, many banks that grow in these oases of low taxes, of Swiss origin, and among their customers include not only Asian millionaires, but wealthy Americans and Europeans, fearful of increased control by the tax authorities in their own countries.
Develop in this region are going to Swiss bank accounts of different "caliber" of UBS, the control center for training in Singapore, to smaller private banks such as Julius Baer.
Experts note that in Singapore and Hong Kong has been a massive recruitment of hundreds of private bankers, as well as call these Asian regions "new alternative" to the Swiss bank secrecy laws after last year's attack on UBS in the United States.
Over the past two years, UBS, Switzerland's largest bank, has lost about 200 billion Swiss francs (about $ 200 billion) in client assets subdivisions private banking. But in Asia, the bank managed to earn more than he lost. Without providing, however, more precise figures, representatives of the bank's reported intention to hire 400 more "consultants" or private bankers, for units in the Asia-Pacific region, in addition to those already working there 867.
In February, UBS has increased the size of the premium for those unit employees in Singapore, which result in new customers. One of the largest shareholders are the Singapore government, whose share is about 9%.
Walter Berchtold, executive director of private banking Credit Suisse, said that the volume of new assets flowing into the banks of wealthy Asian clients, an increase of more than 20%, which is three times more than the average forecast for the bank around the world.
According to Ronen Pal, Professor of Political Economy and an expert on offshore finance at the University of Birmingham, "everything indicates that Singapore is working hard to become the new Switzerland.
Such a shift has occurred in connection with the attack on the Swiss industry of banking services for private clients. First, U.S. Department of Justice launched a criminal investigation against UBS, and then the other Swiss banks, for helping wealthy Americans in tax evasion. Then the European tax authorities, to obtain disks with information about several thousand customers stolen from banks in Switzerland, demanded that banks hold a minimum level of taxes, even with secret accounts.
Founder of the Tax Justice Network, Richard Murphy, described the recent changes: "Singapore has become a place where the Swiss could take the bank secrecy, which they lost at home." According to him, Hong Kong is in second place after Singapore.
Critics, which include and Murphy point to the secrecy in the Swiss style, which offers Singapore, the absence of taxes on capital gains and dividends, and most of the foreign system that allows depositors to open accounts under the guise of corporations, trusts and limited liability companies.
While in Hong Kong do not have formal bank secrecy laws, it allowed the creation of companies, which often serve as conduits for tax evasion. There is also no tax on capital gains or interest rate on deposit, in addition, tax is levied only income earned in Hong Kong.
However, the label of "tax haven" are worried about both countries. According to a representative of the central bank of Singapore, the law of this country "protects the mystery of the contribution of legitimate investors, while at the same time allow for the transfer of banking information to foreign authorities when it comes to crime or the conduct of the investigation."
The representative of the Hong Kong Office of Financial Services and the Treasury stressed that Hong Kong "can not be compared with countries that create conditions to make life easier for those who evaded taxes.
However, U.S. tax authorities are showing increasing concern. According to court documents, some customers are UBS, detained in a criminal investigation against the bank, used offshore companies in Hong Kong or to conclude the deal with unknown banks located in Singapore.
At least two banks
Last week, the number of banks in the U.S. declined for two more. According to Reuters, the Federal Deposit Insurance Corporation announced the closing of North County Bank, and Haven Trust Bank Florida, which is why the number of problem banks in the country was currently 127.
The volume of assets North County Bank, Washington, was $ 288.8 million, deposits - $ 276.1 million All deposits will go to the OU Washington Banking Company, Whidbey Island Bank.
Assets of Haven Trust Bank Florida, Florida, totaled approximately $ 148.6 million, while total deposits reached $ 133.6 million All deposits of the bank moved to First Southern Bank.
Bankruptcy of these banks have cost the corporation FDIC to $ 104.7 million projected Corporation, which insures individual accounts up to $ 250,000, the number of bankruptcies this year will exceed last year's figure, but the total assets of the bankrupt will be lower.
More dollar
In February 2009, Citigroup head Vikram Pandit said that as long as the bank does not return to earnings, his salary will not exceed $ 1.
However, since 2011, the board of directors intends to increase the salary of director general, regardless of his wishes. Write about it CNN Money and Reuters.
Chairman of the Board Richard Parsons noted that the amount of compensation to Pandit should be commensurate with his position. He duly appreciated the "tireless" work of CEO for the company's restructuring, through which the bank returned to profitability.
Guide Citi also announced plans to pay the salaries of 25 top managers of companies in the form of shares, despite the fact that the U.S. authorities no longer require banks to do so. The size of bonuses for these isotopes will determine at the end of the year.
Vikram Pandit has sold the assets of the bank, has cut some staff and tried to focus the activities of Citigroup's core area, including investment and retail banking for wealthy clients around the world.
For the first two quarters of 2010 earnings Citigroup is more than $ 7 billion
But all is not smooth in the Danish kingdom. According to Reuters, recently the central bank of Norway has filed a lawsuit against Citigroup Inc, accusing the bank of fraudulent concealment of information on the deteriorating financial condition, resulting in a loss of $ 835 million
Sued by Norges Bank are the 20 current and former employees and directors of Citigroup, including the CEO Vikram Pandit, his predecessor, Charles Prince and Chairman Richard Parsons.
The lawsuit alleges that the bank hid their investments in risky or illiquid securities such as mortgage-class subprime, collateralized debt obligations and so-called structured investment products that threaten its stability.
Norges representatives were told that the bank acquired the securities of Citigroup at inflated prices during the period from January 2007 to January 2009 period, and lost more than $ 735 million in common stock and $ 100 million in preferred stock and bonds. Bank accused of fraud and demanding compensation for damages.
The representative of Citigroup Danielle Romero-Apsilos said the bank believed the accusations baseless and intend to defend its position.
Regulators shut down last week the two banks in Florida and Washington due to losses on loans for real estate. Thus, the total number of U.S. banks, c
Haven Trust Bank Florida and the Washington-based North County Bank closed last week, according to posts on the site FDIC, which was owned banks. The collapse of the banks' cost the Deposit Insurance Agency, $ 104.7 million, according to k2kapital.
"Deposits in these banks are still insured by FDIC, so there is no need for customers perepodpisyvat contracts for banking and insurance services.
Banks in the U.S. fail at a faster pace than a year earlier. This year a record number of bankruptcies since 1992, as the value of the property remains under pressure, but the recovery is weak.
Recall last year regulators closed 140 banks in the U.S.. FDIC list of problem banks grew to 829 with a total value of assets in the $ 403 billion at the end of the second quarter, up 7% higher than 775 banks at the end of the first quarter.
"Deposits in these banks are still insured by FDIC, so there is no need for customers perepodpisyvat contracts for banking and insurance services.
Banks in the U.S. fail at a faster pace than a year earlier. This year a record number of bankruptcies since 1992, as the value of the property remains under pressure, but the recovery is weak.
Recall last year regulators closed 140 banks in the U.S.. FDIC list of problem banks grew to 829 with a total value of assets in the $ 403 billion at the end of the second quarter, up 7% higher than 775 banks at the end of the first quarter.
U.S. banks will be able to meet the new capital requirements of the profits
U.S. banks will be able to use future earnings to meet ever-stricter international requirements for bank capital, said U.S. Treasury Secretary Timothy Geithner said in his address to Committee on Financial Services House of Representatives of the U.S. Congress.
This option is preferable to reduce lending volumes, which may have a negative impact on economic recovery, the minister added.
According to T. Geithner, new standards for banking regulation, known as Basel III, which will be agreed before the end of the year the countries of the "Group of Twenty, demand from the banks of the world a substantial increase in capital.
"U.S. financial system is in a better position to adopt new international rules - quoted statement T. Geithner agency Bloomberg. - Most of the banks will be able to fulfill the new requirements at the expense of future profits that will help maintain the continued economic recovery."
Banks will be given 8 years to comply with new capital requirements, which will become a major issue on the agenda for the November G20 meeting in Seoul.
This option is preferable to reduce lending volumes, which may have a negative impact on economic recovery, the minister added.
According to T. Geithner, new standards for banking regulation, known as Basel III, which will be agreed before the end of the year the countries of the "Group of Twenty, demand from the banks of the world a substantial increase in capital.
"U.S. financial system is in a better position to adopt new international rules - quoted statement T. Geithner agency Bloomberg. - Most of the banks will be able to fulfill the new requirements at the expense of future profits that will help maintain the continued economic recovery."
Banks will be given 8 years to comply with new capital requirements, which will become a major issue on the agenda for the November G20 meeting in Seoul.
In the United States is preparing tougher reporting requirements for banks
In the United States is preparing tougher reporting requirements for banks
U.S. regulators in the near future could offer new reporting rules for banks and finkompany aimed at countering the so-called "window dressing", in practice a sharp temporary decline in debt shortly before the publication of statements from his subsequent restoration to previous levels, the agency said Finmarket with referring to the Wall Street Journal.
"Window dressing" (literally - "window dressing") - are actions designed to make financial reporting a desired form, that is to create visibility of better financial position than it actually is.
In particular, the study by Wall Street Journal, showed that the 18 largest U.S. banks regularly reduced the level of debt immediately before the promulgation of accounting at the end of each of the last six quarters, while the average amount of debt decreased by 42% from peak values during the quarter .
Discussion of this issue happens at the meeting of the Securities and Exchange Commission (SEC) in the U.S. on Friday. As expected, after a meeting of SEC will submit its proposals to the public.
In March the SEC has conducted an investigation in respect of approximately 24 large U.S. financial companies in the preparation of financial statements allegedly admitted violations similar to those used by Lehman Brothers.
U.S. regulators in the near future could offer new reporting rules for banks and finkompany aimed at countering the so-called "window dressing", in practice a sharp temporary decline in debt shortly before the publication of statements from his subsequent restoration to previous levels, the agency said Finmarket with referring to the Wall Street Journal.
"Window dressing" (literally - "window dressing") - are actions designed to make financial reporting a desired form, that is to create visibility of better financial position than it actually is.
In particular, the study by Wall Street Journal, showed that the 18 largest U.S. banks regularly reduced the level of debt immediately before the promulgation of accounting at the end of each of the last six quarters, while the average amount of debt decreased by 42% from peak values during the quarter .
Discussion of this issue happens at the meeting of the Securities and Exchange Commission (SEC) in the U.S. on Friday. As expected, after a meeting of SEC will submit its proposals to the public.
In March the SEC has conducted an investigation in respect of approximately 24 large U.S. financial companies in the preparation of financial statements allegedly admitted violations similar to those used by Lehman Brothers.
Подписаться на:
Сообщения (Atom)