Two U.S. Banks Included In “The World’s 20 Strongest Banks”

A short number of years ago the “too big to fail banks” had to be bailed out with trillions of dollars in financial aid from both the taxpayers and the Federal Reserve.  At one point there were serious discussions about nationalizing the entire U.S. banking industry. As a sign of how rapidly America’s largest banks […]

The Rally In Big Bank Stocks May Be Over

For over the past year, the stocks of big banks have rallied significantly.  Lower loan losses, a stabilization of the real estate market and a settlement with the government over shortcomings in foreclosure proceedings have all contributed to a growing conviction by investors that the worst is over for the banking industry. Here’s a look […]

Citigroup’s CEO Walks Off With A Quarter $Billion – Shareholders Down 89%

After being ousted by a proactive board of directors on Tuesday, Citigroup’s former chief executive Vikram Pandit is unlikely to suffer a decline in his standard of living. As CEO of Citigroup, a $1.9 trillion asset global banking giant, Mr. Pandit was paid a relatively modest base salary of $1.67 million during 2011.  During 2009 […]

Why Banks Will Continue To Blow Up

Although there were a multitude of factors involved in the banking collapse of 2008, many analysts believe that the repeal of Glass-Steagall was one of the major triggers.  No less an authority than Sandy Weill, former Citigroup CEO, joined the chorus of voices last week in calling for the reinstatement of the Glass-Steagall Act. Would […]

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 […]

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 […]

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 […]

Increase In Third Quarter Banking Profits Largely Due To Phony Accounting Gimmicks

The FDIC’s Quarterly Banking Profile for the third quarter of 2011 shows banking industry profits increasing by 48% from the third quarter of 2010.  Aggregate net income of the banking industry for the third quarter of 2011 totaled $35.3 billion compared to $23.8 billion in the third quarter of 2010. Although traditional news organization headlines proclaimed “Strong Profit Growth […]