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 […]
Banks Are A Financial Disaster For Both Shareholders And Depositors
July 27, 2012 By 3 Comments
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
June 30, 2012 By Leave a Comment
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
June 22, 2012 By Leave a Comment
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 […]