Banks Are Powerless Against The Biggest Threat To The Financial System

Just when it appears that the banking system is beginning to stabilize, a new ominous threat to financial stability has become a serious concern among the nation’s top bankers. In a speech at a Berlin conference, Dennis Lockhart, President of the Federal Reserve Bank of Atlanta, talked about the serious threat of cyber attacks against […]

Banks Were The Worst Place To Keep Your Savings This Year

Federal Reserve Chairman Ben Bernanke warned us repeatedly that he would repress interest rates indefinitely in order to help the economy and the housing market.  Interest rates on government treasury securities have reached all time lows and bank depositors are receiving close to a zero return on their savings.  Meanwhile, both housing and the economy […]

Banks Are A Financial Disaster For Both Shareholders And Depositors

In days gone by, shareholders of large banks viewed their investments as a source of income via dividends and potential capital gains via share appreciation.  In days gone by, depositors viewed banks as the safest place to harbor their hard earned dollars while earning a respectable amount of interest income. That was then, this is […]

Barclays Libor Scandal Expands – Why British Taxpayers Will Pay In The End

The Barclays Libor scandal continues to escalate after revelations that senior officials at the Bank of England pressured Barclays to artificially lower the Libor rate.  Documents released by Barclays suggest that U.K. treasury officials pressured Barclays to lower the Libor rate.  This latest development threatens to turn the Libor rate fixing scandal into a showdown […]

Ridiculous Divergence Between Bank CEO Pay And Shareholder Returns

The wide divergence between bank CEO compensation and shareholder returns is an embarrassment to the capitalist notion of linkage between performance and pay. Shareholders of banking stocks have seen the value of their investments pulverized over the past four years as the banking industry struggles to recover from the lending excesses of previous years.  Shareholders […]

Credit Ratings of 15 Global Banks Cut In Largest Downgrades Since 2007

In the most sweeping credit downgrades since 2007, Moody’s Investor Service lowered the credit ratings of fifteen global banks, including the five largest banks in the United States.  The scope of the credit downgrades left many wondering if we are entering a new phase of the global financial meltdown that started in 2008.  Despite trillions […]

Bank of America Executives Win, Shareholders Lose – It’s Not Supposed To Work This Way

Most shareholders understand that an investment in a public company entails risk – that’s what capitalism is all about.  Well managed companies with great products generally wind up enriching shareholders over time and no one begrudges the fact that executives of a successful enterprise are well paid. What a lot of shareholders don’t understand, however, […]

What Big Bank Stock Has The Largest Price Gain In 2012?

After getting pounded during 2011, bank stocks have soared this year, especially after the Federal Reserve completed its “stress tests” and said that almost every big bank could survive “extremely adverse” economic conditions. During 2011 bank stock shareholders experienced the biggest price declines since the financial panic of 2008.  As worries mounted over both the […]

Big Bank CEOs Take Home Massive Paychecks As Savers and Shareholders Get Crushed

Right or wrong, most consumers have an overwhelmingly negative opinion about big banks.   According to a survey by Research and Markets, 86% of social media comments about U.S. and European banks are negative. The negative perception of big banks by the public has become so pervasive that most bank executives probably just ignore it at […]

Fed Says Banks Can Withstand Financial Hurricane – Savers, Borrowers and Shareholders Not So Lucky

Stress tests of the largest banks in the country against a financial hurricane of “extremely adverse” economic conditions shows that almost all of the largest banks in the country would be able to maintain adequate capital levels.  The Federal Reserve said that 18 of the 19 banks stress tested would survive even if stock prices […]