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Post Re: Banks
Citigroup Proving Irresistible to Hedge Funds Led by Paulson

By Nikolaj Gammeltoft and Whitney Kisling

Feb. 17 (Bloomberg) -- Firms run by John Paulson, Eric Mindich and George Soros purchased almost half a billion shares in Citigroup Inc. last quarter as more than 120 hedge funds said they bought stock in the bank.

Paulson & Co. reported a stake equal to 506.7 million shares in New York-based Citigroup, up from about 300 million at the end of the third quarter, according to a government filing yesterday. Mindich’s Eton Park Capital Management LP acquired 138 million shares, making the company its largest holding. Soros Fund Management LLC reported 94.7 million shares worth $313.4 million.

Investors may be betting on a rebound in Citigroup after it lost as much as 94 percent of its value during the credit crisis. The purchases came in the same quarter that the third- largest U.S. financial company sold more than 5 billion new shares to help repay government bailouts.

“It clearly doesn’t take a lot to get a decent amount of shares in Citi,” said Christian Thwaites, president and chief executive officer of Sentinel Investments in Montpelier, Vermont, which manages $23 billion. “If the hedge funds are taking any position in it, it’s a feeling that there might be some value to be had.”

Citigroup stock bought by hedge funds outnumbered the amount sold by a ratio of more than 10 to 1 in the October-to- December period, with about 1.2 billion shares added on a net basis, according to Securities and Exchange Commission filings compiled by Bloomberg.

Fairholme Capital Management LLC run by Bruce R. Berkowitz, named U.S. stock mutual-fund manager of the decade last month, bought 214.7 million shares valued at $710.7 million. Hedge fund manager Daniel Loeb’s 15-year-old Third Point LLC also took a new position, adding 25 million shares worth $82.8 million. Soros Fund, Fairholme Capital and Third Point didn’t respond to messages left after normal business hours yesterday.

Average Price

The shares traded for an average of $4.10 in the quarter, 24 percent above its closing price yesterday of $3.31, data compiled by Bloomberg show. The company had 28.5 billion shares outstanding as of Dec. 31, the data show.

Paulson, who earned about $2 billion last year in part by betting the housing market would collapse, started buying his Citigroup stake in the third quarter. His New York-based firm manages about $32 billion overall. Armel Leslie, a spokesman for Paulson, declined to comment.

Eton Park, the New York-based firm founded in 2004 by former Goldman Sachs Group Inc. executive Mindich, said its stake in the bank was valued at $457 million as of Dec. 31, according to a filing. Mary Beth Grover, a spokeswoman for Eton Park, declined to comment.

45 Days

Money managers who oversee more than $100 million in equities must file a Form 13F within 45 days of each quarter’s end to list their U.S.-traded stocks, options and convertible bonds. Hedge funds are mostly private pools of capital whose managers participate substantially in the profits from speculating on whether the price of assets will rise or fall.

Citigroup posted a $7.6 billion fourth-quarter loss on costs to exit the U.S. bailout program, giving the company its second straight unprofitable year. Chief Executive Officer Vikram S. Pandit booked an $8 billion pretax charge when he repaid $20 billion of bailout funds in December. Revenue missed analysts’ estimates as trading results fell from the third quarter, helping push the shares down 9.3 percent from their 2010 high.

“The stock has been beaten up,” said Matt McCormick, a banking-industry analyst and portfolio manager at Bahl & Gaynor Inc. in Cincinnati, which oversees $2.7 billion. “The bad news has been priced in.”

Taxpayers still own 7.7 billion Citigroup shares, and Pandit failed to restore the bank to profitability in his second full year in the top job. The 53-year-old took over in December 2007 following the ouster of Charles O. “Chuck” Prince.

New Shares

Citigroup is forecast to earn 9 cents a share this year, or 2 percent of what it made in 2005, based on Bloomberg’s analyst survey. That’s partly because Citigroup has had to issue almost 23 billion new shares to bolster a weakened capital base. Investors who were shareholders prior to the financial crisis were left with about one-fifth their original stakes.

Hedge funds may be speculating on a break-up of Citigroup into individual businesses, according to Diane Garnick, a New York-based investment strategist at Invesco Ltd., which manages about $400 billion.

“The sum of the parts is worth less than each individual part,” said Garnick. “It is easier for investors to assign value to a company if it is broken up into its many component parts. In this market environment people are starting to reward single business unit companies.”

http://www.bloomberg.com/apps/news?pid=20601087&sid=abdG5GkMSWfA&pos=7#

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The test of our progress is not whether we add more to the abundance of those who have much; it is whether we provide enough for those who have too little. - FDR


Wed Feb 17, 2010 8:07 am
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 Re: Banks
WARNING, WILL ROBERTSON!!

Citigroup Warns Customers It May Refuse To Allow Withdrawals


John Carney
Business Insider
Febraury 21, 2010

The image of banks locking their doors to keep customers from making withdrawals during a bank run is what immediately came to mind when we heard that Citigroup was telling customers it has the right to prevent any withdrawals from checking accounts for seven days.

Quote:
“Effective April 1, 2010, we reserve the right to require (7) days advance notice before permitting a withdrawal from all checking accounts. While we do not currently exercise this right and have not exercised it in the past, we are required by law to notify you of this change,”

Citigroup said on statements received by customers all over the country.

Read entire article:
http://www.infowars.com/citigroup-warns ... ithdrawals

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Sun Feb 21, 2010 9:56 pm
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Post Re: Banks
Europe bars Wall Street banks from government bond sales :spit

European countries are blocking Wall Street banks from lucrative deals to sell government debt worth hundreds of billions of euros in retaliation for their role in the credit crunch. :clap :banana

For the first time in five years, no big US investment bank appears among the top nine sovereign bond bookrunners in Europe, according to Dealogic data compiled for the Guardian. Only Morgan Stanley ranks at number 10.

Goldman Sachs doesn't make the table. Goldman made it to number five last year and in 2006, and number eight in 2007, the data shows. JP Morgan was in the top ten last year and in 2007 and 2006 but doesn't appear this year. :crylaugh :roflmao

"Governments do not have the confidence that the excessive risk-taking culture of the big Wall Street banks has changed and they still cannot be trusted to put the stability of the financial system before profit," said Arlene McCarthy, vice chair of the European parliament's economic and monetary affairs committee. "It is no surprise therefore that governments are reluctant to do business with banks that have failed to learn the lesson of the crisis. The banks need to acknowledge the mistakes that were made and behave in an ethical way to regain the trust and confidence of governments." :heart

European sovereign bond league tables are now dominated by European banks such as Barclays Capital, Deutsche Bank, and Société Générale, the Dealogic table shows. Their business model is usually seen as more relationship-based, while US investment banks have traditionally been focused on immediate deal-making.

Being left out of government bond sales means missing out on one of the top fee-earning opportunities this year, given the relative drought in mergers and acquisitions and stock market flotations. Western European governments need to raise an estimated half a trillion dollars this year to refinance debts and pay for bank bailouts and rising unemployment. :roflmao

Banks typically take a percentage of the total deal value for underwriting a bond issue, which could run into tens of millions given the ballooning sovereign debt sales this year. On a 1% fee, Barclays Capital would have pocketed $92m (£61m) from the $9.2bn European bonds it helped sell this year.

Barclays may have profited as a domestic anchor of UK debt sales, as a certain level of "nationalism" has surfaced according to Philip Augar, author of Chasing Alpha and other books about investment banking. "People have done as much as possible to take care of their own financial institutions," Augar said. :clap

The National Bank of Greece featured in the top 10 for the first time in at least five years, according to Dealogic. Greece left Goldman and Morgan Stanley out of its most recent bond sale, and also dropped hedge funds from its list. :clap :heart

Petros Christodoulou, the head of Greece's debt management office, told the Guardian the bond issue had been directed to more "long-term" investors as they were seeking market stability. Greece has had tense relationships with Goldman recently after it emerged that the US bank had helped hide the real level of the country's public debt with derivatives contracts. The country also denied reports about the bank selling a stake of its debt to the Chinese government fund.

Investment banks insist their business areas are separated by confidentiality walls, but countries have been furious about some of their trades appearing to conflict – either on their own books, or on behalf of clients.

Goldman Sachs said its overall position in the European sovereign bond market had improved this quarter once US dollar denominated deals were included. It said its own data showed it ranked fourth in European sovereign bond sales this year.

Greece, Spain, Germany and France are also pushing for changes in the credit default swap market, where investors can bet against the possible default of a country, ultimately bringing more instability.

Britain, Spain, Ireland and Belgium have not used Wall Street firms in the largest 10 deals of the year, according to Dealogic. :roflmao

Britain used Barclays, Deutsche, RBS and Royal Bank of Canada in its $7bn issue last month, the data shows. Spain has also used Santander, as well as Barclays, Citi and SocGen in recent issues.

Goldman Sachs, JP Morgan and Morgan Stanley have exploded in wealth and power over the past decade. In their glass towers in Canary Wharf, or in Goldman Sachs' European headquarters on Fleet Street, reception rooms regularly welcome prime ministers, world business leaders and multibillion-pound investors.

"The power of big investment banks was a factor in the banking crisis, and it's up to regulators and customers to stand up to them, and not picking them is one of the ways," Augar said. :heart :clap

But the power accumulated is too large to wane, the author said. "I doubt this will last," he said. "The US investment banks will be back in Europe before too long because they are very powerful and they have a very big footprint in Europe."

The EU is also trying to curb US financial power by creating its own monetary fund – a replica of the Washington-based IMF.The need of a European fund has emerged during the Greek crisis, as European politicians have insisted financial troubles should be resolved at home. :clap

http://www.guardian.co.uk/business/2010/mar/08/us-banks-european-bond-trading

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The test of our progress is not whether we add more to the abundance of those who have much; it is whether we provide enough for those who have too little. - FDR


Tue Mar 09, 2010 2:15 pm
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Post Re: Banks
First, I ain't the sharpest tack in the box when it comes to high finance.

Riddle me this - Joker:
1. Unemployment numbers surged last week.
2. Foreclosures remain at an all time high with more to come.

What's driving up the cost of mortgage money? Hmmmmmmmm?


Mortgage rates surge to highest in 8 months
Standard 30-year fixed loan is now 5.21 percent, up from 5.08 percent

The Associated Press
updated 10:45 a.m. CT, Thurs., April 8, 2010

Rates for 30-year home loans surged last week, rising to the highest level in eight months due to the improving economy and the end of a government push to keep rates low. :roflmao

The average rate on a 30-year fixed rate mortgage was 5.21 percent this week, up from 5.08 percent a week earlier, Freddie Mac said Thursday. That's the highest since mid-August, when the average rate was 5.29 percent.

Rates had dropped to a record low of 4.71 percent in December, pushed down by a campaign by the Federal Reserve to reduce borrowing costs for consumers. The program ended last week, but the Fed left the door open to reviving the program if the economy weakens. :roflmao

Freddie Mac collects mortgage rates on Monday through Wednesday of each week from lenders around the country. Rates often fluctuate significantly, even within a given day, often tracking the interest rate paid on long-term Treasury bonds. :hmm

Treasury yields have climbed steadily in recent weeks because of weak demand. The government has had to offer a better interest rate to sell its bonds as investors shift toward stocks and riskier corporate debt. :dunno

The 10-year yield rose above 4 percent on Monday for the first time since June, but fell back to 3.85 percent on Thursday.

This week, the average rate on a 15-year fixed-rate mortgage was 4.52 percent, up from 4.39 percent last week.

Rates on five-year, adjustable-rate mortgages averaged 4.25 percent, up from 4.1 percent a week earlier. Rates on one-year, adjustable-rate mortgages rose to 4.14 percent from 4.05 percent.

The rates do not include add-on fees known as points. One point is equal to 1 percent of the total loan amount.

The nationwide fee for loans in Freddie Mac's survey averaged 0.6 of a point for 30-year, 15-year and 5-year loans and 0.5 of a point for 1-year-loans.

http://www.msnbc.msn.com/id/7148582/ns/business-real_estate/

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The test of our progress is not whether we add more to the abundance of those who have much; it is whether we provide enough for those who have too little. - FDR


Thu Apr 08, 2010 10:12 am
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Post Re: Banks
Hat tip to Avian (aka Avian Phlu)

From Jim Sinclair:

Quote:
Jim Sinclair’s Commentary
I have been the recipient of some very disturbing changes in arrangements between clients and safety depositories. You will see herein that bullion and cash is being categorized with pornography.
Please note that the legal disclaimers are making this type of storage anything but safe keeping.
Be advised.

"you are prohibited from storing "cash" other than antique coins in the safety deposit box"


http://jsmineset.com/wp-content/uploads ... 4/Bank.pdf

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Sat Apr 10, 2010 4:17 pm
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Post Re: Banks
Banks Paying Colleges For Students Who Rack Up Credit Card Debt

Huffington Post Investigative Fund First Posted: 06- 8-10 08:57 AM | Updated: 06- 8-10 08:57 AM


By Ben Protess and Jeannette Neumann

Some of the nation's largest and most elite universities stand to gain millions of dollars from selling the names and addresses of students and alumni to credit card companies while granting the companies special access to school events, the Huffington Post Investigative Fund has found.

The schools and their alumni associations are entitled to receive payments that multiply as students use their cards. Some colleges can receive bonuses when students incur debt.

The little-known agreements have enriched schools and some banks at a time when young women and men already are borrowing at record levels, raising questions about whether such collegiate and corporate alliances are in the best interests of students.

"The fact that schools are getting paid for students to rack up debt is a disgrace," said congressman Patrick Murphy, a Pennsylvania Democrat and former professor at the U.S. Military Academy at West Point. He said that banks' payments to schools amount to "kickbacks."

KEY FINDINGS
Our examination of affinity agreements involving some of the nation's largest and most prestigious colleges revealed that schools and alumni associations:
Sell students' personal information. Many are contractually obligated to share students' names, phone numbers and addresses with banks.
Earn royalties: Banks typically pay schools $1 for each student who keeps a credit card open for 90 days. When students carry a balance, some schools can collect up to $3 more per card.
Cash in each time a student uses plastic: Many schools are entitled to receive 0.4 percent of all retail purchases made with student cards.
Benefit from marketing incentives: When a university or alumni association agrees to market cards to students itself, the payoff is greater -- sometimes up to $60 for each card opened through a school's own marketing.
Offer special perks: Banks sometimes gain special access to athletic events. Cornell University must provide Chase Bank with tickets and "priority" parking passes at football, basketball, hockey and lacrosse games.

Landmark credit card legislation signed by President Obama one year ago curbed some marketing tactics on campuses but didn't prohibit the arrangements between colleges and banks, known as "affinity" agreements.

The substance of these deals had been secret. A provision in the law, authored by Murphy, requires their disclosure. But even now, few schools post the contracts online or publicize their existence. Obtaining a copy can take two weeks or more.

Thus it's unclear how many of the nation's 2,700 four-year colleges have such agreements, or how many allow credit card companies to target students in addition to graduates. Bank of America, which dominates the market, said it has affinity contracts with some 700 schools and alumni associations, where marketing practices vary. At least 100 schools are believed to have affinity agreements with other financial institutions.

Seventeen contracts obtained by the Investigative Fund from schools and their alumni associations detail the special access granted to banks, such as allowing them to set up booths at football games. All of the agreements call for colleges to provide students' names, phone numbers and addresses.

For granting such access and information, schools can receive royalty payments based on the number of students opening accounts and the amount they spend, the contracts show.

Most of the schools are entitled to earn more whenever a student carries a balance from year to year.

Some consumer advocates question whether colleges participating in affinity agreements are failing to safeguard the young people in their care.

"Universities should place the welfare of their students as their highest priority and shouldn't sell them off for profit," said Ed Mierzwinski, consumer program director for the federation of state Public Interest Research Groups, or PIRG.

Three schools, after being contacted by the Investigative Fund, stopped allowing banks to market to students. Seven other schools and alumni associations, including alumni organizations at Brown University and the University of Michigan, said they have abandoned the practice, even though their contracts appear to require it.

The contracts call for a range of minimum payments by banks. At Brown, Bank of America agreed in 2006 to pay $2.3 million over seven years. At Michigan, the bank in 2003 agreed to pay $25.5 million over 11 years.

The bank says it's not taking advantage of students; it's amassing new customers whose loyalties can span a decade or more. :censor

"Our objective in serving the student market is to create the foundation for a long-term banking relationship," Bank of America spokeswoman Betty Riess said in an email, adding that the bank offers reasonable rates and low credit limits on student cards, and that it primarily solicits graduates and sports fans. :whistle

Many schools have renegotiated contracts with the bank to limit marketing to students, she said.

Schools still engaging in the practice defend selling access to students and their contact information. Colleges say the money helps them plug holes in budget shortfalls and shrinking endowments. Some say they use the money to grant more scholarships to students. :popcorn

Some colleges and alumni organizations also argue that students need to learn fiscal responsibility--and how better to do that than by having a credit card? :yamon

The University of Michigan alumni association, facing growing scrutiny from consumer groups, says it reached an agreement with Bank of America to stop marketing to students in early 2008. Jerry Sigler, chief financial officer of the alumni association, said he made the decision begrudgingly.

"Managing credit is as much a part of education and maturation as anything else going on campus," he said. "Credit isn't bad, it's a reality." :tounge

The benefits are not always so obvious for students whose families already face soaring tuition costs and hefty loan payments. College seniors graduated in 2008 with average credit card debt of more than $4,100, up from $2,900 four years earlier, according to data compiled by student lending company Sallie Mae.

On their own for the first time, young credit card users can quickly fall behind on payments.

Despite not having a full-time job or much in savings, Lisa Smith easily found her first credit card on campus--from bank marketers stationed outside her freshman dormitory. Once she racked up charges, new card applications poured in from other companies.

By the time she graduated in 2005, she had the average number of credit cards for a college student - four - as well as $15,000 in credit card debt. Now 28, Smith is still paying $500 monthly in credit card bills, some dating back to purchases from her college days.

"I know that I brought it on myself," said Smith, who attended High Point University in North Carolina, which says it now prohibits on-campus marketing. "But I really felt like I was preyed on. I didn't understand how long it was really going to take to pay them back."

Students 'Hugely Important'

On May 22, 2009, President Obama signed sweeping new consumer credit card protections into law. All too often, Obama noted at the time, Americans used credit cards as an anchor rather than a lifeline. Students were no exception.

The Credit Card Accountability, Responsibility and Disclosure Act prohibited banks from using some of their most aggressive marketing practices on students. For instance, banks can no longer require students to apply for a card to receive promotional gifts such as pizza or sweatshirts.

Nor can banks supply credit cards to anyone under age 21--most college underclassmen--unless the customer has a cosigner. The law requires only that the co-signer be over 21. The co-signer needn't be a parent or guardian. :gah

The law does not prevent credit card companies from paying schools for special access to students.

Chase Card Services, a division of JPMorgan Chase & Co., has a handful of such agreements, but Bank of America dominates. It became the market leader in 2006 when it acquired credit card giant MBNA, a pioneer in affinity agreements that often involved pro sports teams and professional associations.

Soon after the acquisition, Bank of America set its sights on colleges. At a March 2006 conference hosted by Goldman Sachs, Bank of America executive John Cochran described students as "an emerging market that we could really capitalize on," according to a transcript.

From a bank's perspective, students represent an important demographic: Not only do many first-time cardholders hunger for credit; they are likely to stay customers for quite some time - up to 15 years, according to a 2005 study by Ohio State University researchers.

"Student credit cards are hugely important to a bank," said Kerry Policy Groth, who negotiated collegiate affinity agreements as an MBNA account executive from 1998 to 2005. "Your first credit card is usually the one you keep."

Although Bank of America does not disclose how many student accounts it has or what it earns from student credit cards, Cochran, at the 2006 conference, characterized the collegiate affinity market - students, faculty, alumni and sports fans - as "an over $6 billion portfolio." The portfolio may have declined in recent months as the bank's entire credit card business has suffered from rising default rates. :roflmao

Bank of America spokeswoman Riess emphasized that the bank primarily targets alumni and fans as prospective customers, with students accounting for about 2 percent of all open collegiate accounts - likely representing thousands of young consumers.

'Students as Commodities'

Affinity agreements vary from school to school.

The University of Pennsylvania's agreement with Bank of America required the school to compile an initial list of 233,000 potential customers, including students, alumni, faculty and staff, to offer the bank. If requested, the school removes potential customers from the contact list.

When Princeton University signed its affinity agreement with Bank of America in 2004, it agreed to provide the names of at least 4,000 students and 75,000 graduates.

After a bank obtains the information, it can send an agreed-upon number of solicitation letters and emails. A 2008 PIRG survey of more than 1,500 undergraduate students found that about 80 percent received mailings from credit card companies.

Some affinity agreements also permit banks to advertise at school sporting events. Banks often have booths at football and basketball games where students 21 or older, alumni and fans can sign up for a card.

Colleges and alumni associations are entitled to rewards for providing special access and information. Bank of America typically pays schools $1 for each student who opens a credit card account and keeps it open for 90 days, according to contracts reviewed by the Investigative Fund.

Some schools also can earn more as students rack up charges--and debt. The University of Oklahoma, among other schools, is entitled to receive 0.4 percent of all retail purchases made with student cards. Most of the 17 contracts obtained by the Investigative Fund entitle schools to extra compensation--up to $3 a card--when students carry a balance from year to year.

"Essentially, contracts with credit card companies are using students as commodities to earn revenue for the universities from companies who don't necessarily have the students' best interest in mind," said PIRG's Mierzwinski.

As part of many agreements, banks also pay for rights to use school trademarks -mascots, logos and emblems - on their advertisements.

Banks often brand their cards with the familiar images. This marketing tool, known as co-branding, has its critics. Irene Leech, associate professor of consumer studies at Virginia Tech, said the practice leads some to believe that universities have negotiated favorable credit card rates for their students.

"Alumni and students both think that it's the best deal out there that [the school] could get for me," an assumption that is not always correct, she said.

Nor do students necessarily get the lowest rates. At Princeton, alumni cards carry an annual percentage rate of 11.9 percent, compared to 14.9 percent for student cards, according to the school's seven-year affinity agreement, signed in 2004. Rates may have changed since then.

Bank of America currently charges a 14.24 annual percentage rate on its Student Visa Platinum Card, the primary product it markets to students. Students are not locked in; the rate varies depending on the market's prime rate. The bank said it doesn't increase rates on students for reasons such as falling behind on their payments. Nor does it impose an annual fee.

"We take a conservative approach to lending to young adults," Bank of America's Riess said, noting that the bank limits a student's exposure to debt. The bank offers credit lines for students that "typically" start at $500 and are capped at $2,500, she said.

The bank, Riess said, also seeks to educate students. "We also provide a number of tools to help young adults better manage their finances," she added, including free identity theft protection, a student financial handbook and an online educational brochure about building good credit, called "The Essentials."

"Building a future customer--that was really the goal" of affinity agreements, said former MBNA executive Groth. "You're not out to gouge them; you want a positive experience."

Shifting Practices

This spring, Columbia University, the Iowa State University alumni association and Michigan State University all amended their affinity agreements to prohibit any marketing to students. They did so within a week of receiving phone and email inquires from the Investigative Fund. School officials said they had been working on the amendments for months.

The Investigative Fund requested Columbia's contract on March 22. Columbia officials signed the school's amended agreement two days later. The timing was "mostly coincidental," according to Michael Griffin, executive director of Columbia's alumni association. He said that the school had never allowed marketing directly to students.

Seven other schools contacted by the Investigative Fund said they no longer allow marketing to students, even though their affinity contracts would appear to obligate them to. School officials said they had no documentation backing up their assertions.

"A lot of schools have student access in their agreements" - but don't necessarily allow it anymore, said Peter Osborne, who managed the collegiate credit card business at Bank of America until 2007. Schools sometimes informally "just request that marketing stop rather than reopening their entire contract."

For instance, according to an affinity agreement between the University of Texas alumni association and Bank of America, the association is expected to provide the bank with students' names and addresses. But the alumni association says it has abandoned that practice.

"We are not marketing to students at this time and we haven't for some time," said Bill McCausland, chief operating officer for Texas Exes, the ex-students' association. "Whether the contract allows us to or not, we are not doing so."

He acknowledged that students could still sign up for credit cards without the school's involvement. Bank of America, he said, is "still marketing our card and they are doing a very good job of it."

At Harvard, the alumni association is supposed to provide a subsidiary of Barclays PLC with "as complete a list as possible of all Harvard alumni and students," according to the association's affinity contract. But Harvard spokesman Kevin Galvin said the card was never marketed to students. "We view this card as a service to alumni," he said.

Other schools acknowledged to the Investigative Fund that they release students' contact information. These schools staunchly defend their affinity agreements as important sources of revenue. And some royalties benefit students, according to school and bank officials.

"The revenues from this go to vital services that otherwise might not be free and otherwise might not be offered," said Osborne, the former bank official who now advises universities as they negotiate affinity agreements. Osborne said the revenues "support alumni programs, student scholarships and preserve jobs within alumni associations."

Some of the royalties from Penn's contract go to scholarships and helped pay for the development of Campus Express, an online system where students can order textbooks and manage their dining plans, according to university spokesman Ron Ozio.

Princeton uses its profits "to support alumni activities," school spokeswoman Emily Aronson wrote in an email.

Catherine Bishop, vice president of public affairs at the University of Oklahoma, said affinity agreements are beneficial because they limit the amount of marketing that goes on. "The contract that we have in place," she said, "is designed to keep multiple companies from soliciting on campus."

This story was reported in partnership with the Stabile Center for Investigative Journalism at Columbia University. Protess is a staff reporter with the Investigative Fund. Neumann graduated from the Stabile program in May. Amanda Zamora, Lauryn Smith and Joseph Frye also contributed to this story.


--------------------------------------------------------------------------------

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The test of our progress is not whether we add more to the abundance of those who have much; it is whether we provide enough for those who have too little. - FDR


Tue Jun 08, 2010 8:32 am
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Post Re: Banks
A small victory for the little guy. I'm lovin' it!


Wells Fargo loses overdraft fee case :roflmao
By Aaron Smith, CNNMoney.com staff writer
August 11, 2010: 8:49 AM ET


NEW YORK (CNNMoney.com) -- Wells Fargo was ordered to pay more than $200 million in restitution to California customers for manipulating and multiplying overdraft fees, a federal judge has ruled. :clap

U.S. District Court Judge William Alsup of Northern California, in his 90-page ruling Tuesday, said Wells Fargo used "a bookkeeping device" that turned one instance of overdrawing an account into as many as 10, allowing the bank to multiply the number of fees it could collect from a single mistake.

http://money.cnn.com/2010/08/11/news/companies/wells_fargo_overdraft/index.htm?source=cnn_bin&hpt=Sbin

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The test of our progress is not whether we add more to the abundance of those who have much; it is whether we provide enough for those who have too little. - FDR


Wed Aug 11, 2010 6:48 am
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Post Re: Banks
Meh - chicken feed! :whistle

Fed hits Wells Fargo with $85 million fine

NEW YORK (CNNMoney) -- The Federal Reserve announced a record $85 million fine Wednesday against Wells Fargo for allegedly pushing borrowers with good credit into expensive mortgages and falsifying loan applications.

The Fed accused the nation's fourth largest bank by assets of steering potential borrowers who could have qualified for prime rates into more expensive subprime loans.

The authorities also claimed that employees of Wells Fargo Financial, a non-bank subsidiary closed last year, doctored income information on mortgage applications to push through borrowers that would not have qualified for based on income.

The fine is the largest the Fed has ever issued under its consumer-protection authority and is the first action taken against a bank for predatory lending practices related to the housing bubble.

The loans in question were made between 2004 and 2008 and are estimated to involve up to 10,000 borrowers.

The Fed also ordered Wells Fargo to compensate borrowers who were affected by the alleged activities.

Wells Fargo (WFC, Fortune 500) agreed to pay the fine without admitting any wrongdoing.

Read more here: http://money.cnn.com/2011/07/20/news/companies/wells_fargo_fined/index.htm?hpt=hp_t2

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Thu Jul 21, 2011 6:10 am
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Post Re: Banks
Report: Bank of America cutting at least 3,500 jobs

Bank of America plans to cut at least is 3,500 jobs and possibly up to 10,000 in a major restructuring of one of the nation's largest banks, the Wall Street Journal reported. :shock:

In an article posted online late Thursday, the Journal said Bank of America would cut 3,500 of its approximately 300,000 positions by the end of September. The total number of cuts has not been determined but one person familiar with the situation said at least 10,000 jobs are likely to be eliminated.

"I know it is tough to have to manage through reductions but we owe it to our customers and our shareholders to remain competitive, efficient and manage our expenses carefully," CEO Brian Moynihan said in a memo to managers, according to the Journal. :roll

The bank is grappling with its $1 trillion problem-loan portfolio and growing economic concerns.

Bank of America had around 280,000 employees at the start of 2011, according to its annual report.

Many banks have been eliminating jobs as the global economy hits another slow patch after barely emerging from a recession that technically ended in 2009.

London-based HSBC Holdings recently announced plans to cut about 30,000 jobs worldwide by the end of 2013.

Read more here: http://www.msnbc.msn.com/id/44199241/ns/business-us_business/

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Fri Aug 19, 2011 6:31 am
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Post Re: Banks
I AM the 99% - hear me ROAR!

Bank Customers Flee to CUs
By Ed Roberts
NOV 3, 2011 10:40am EDT

WASHINGTON — An estimated 650,000 consumers have closed their bank accounts and opted for credit union membership over the past four weeks, according to CUNA, bringing the approach to Saturday’s Bank Transfer Day to a crescendo.

In a survey of 5,000 of its credit union members CUNA estimates that at least 650,000 consumers across the nation have joined credit unions since Sept. 29, the day Bank of America unveiled its now-rescinded $5 monthly debit card fee. Also during that time, CUNA estimates that credit unions have added $4.5 billion in new savings accounts, likely from the new members and existing members shifting their funds.

The survey results also show that more than four in every five credit unions experiencing member growth since Sept. 29 attributed the growth to consumer reaction to new fees imposed by banks, or a combination of consumer reactions to the new bank fees plus the social media-inspired "Bank Transfer Day," Nov. 5. :heart

Read more here: http://www.americanbanker.com/issues/176_214/customers-flee-for-credit-unions-1043783-1.html?zkPrintable=true

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Thu Nov 03, 2011 6:27 pm
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Post Re: Banks
AGH HAHAHAHA ROTFLTRDMF (Rolling on the floor laughing, Tears running down my face) that's not funny it's hysterical

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Thu Nov 03, 2011 9:15 pm
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Post Re: Banks
I just saw an interesting snippet on BofA:

Bank of America Cuts Off Credit to Some Small Businesses
Bank of America is severing lines of credit for some of its small-business owners and calling due full payment on existing debts.

The article goes on to say that if clients can't do that they will be offered a 5 year payment plan with VERY high interest rates.

http://nymag.com/daily/intel/2012/01/ba ... esses.html

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Tue Jan 03, 2012 9:12 am
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Post Re: Banks
Great catch, Ruts!

Here's a snippet from the LA Times story:


The capped credit lines stem from a corporate overhaul launched by Brian Moynihan, who became Bank of America's chief executive in 2010. He promised to address losses caused by loose lending and rapid expansion by reining in risks and shedding investments deemed non-core. :roll

BofA spokesman Jefferson George said a "very small percentage" of small-business customers have been affected by the changes. He would not provide exact numbers except to say it wasn't in the hundreds of thousands. Some of the affected businesses had been customers of other banks that Bank of America acquired, but most were BofA customers from the start, George said. :whistle

"These changes were explained in letters to customers, and they were necessary for Bank of America to continue prudent lending to viable businesses across the U.S.," he said. :crylaugh

The bank still has 3.5 million non-mortgage loans to small businesses on its books. The affected business owners were notified a year in advance that their credit lines were being called, George said, although Zahabi and several others said they had not received the early warnings.

The changes also include added annual reviews of borrowers and annual fees, and often reductions in the maximum amount of credit. George said the aim was to reduce Bank of America's risks and to bring the loan terms in line with more stringent standards imposed after the 2007 mortgage meltdown and 2008 credit crisis.

Scott Hauge, president of the advocacy group Small Business California, called the credit cuts "a tragedy" for longtime BofA clients left vulnerable by years of struggle in a sour economy.

"If small businesses are going to lead the way out of the economic doldrums we now face in this country, they must have access to capital, not only to hire more people but to protect the jobs they are currently providing," Hauge said. :yamon

Bank of America was a leader in the banking industry's abortive attempt to impose debit card fees. But it appears to be a laggard in tightening business lending standards. Most other banks, having tightened lending standards in the aftermath of the financial crisis, had eased credit last year as competition for small-business customers heats up, bank analysts say.

"Everyone … is targeting commercial and particularly small-business lending as the real focus area for growth," said Joe Morford, an analyst in San Francisco for RBC Capital Markets.

While Bank of America is advertising its own commitment to small businesses, it needs to send another message to its government supervisors because it has less of a capital cushion against losses than major rivals, said FBR Capital Markets bank analyst Paul Miller.

Restricting credit lines "is a way to show the regulators they are serious about addressing risks," Miller said. "Bank of America is under great pressure, especially with another round of [Federal Reserve] bank stress tests coming up, as the regulators say: 'We want you to tighten up.' " :sarcasism

snip

Read more here: http://www.latimes.com/business/la-fi-credit-cutoff-20120103,0,3538902.story

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Tue Jan 03, 2012 11:25 am
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Post Re: Banks
Audit of the Federal Reserve Reveals $16 Trillion in Secret Bailouts

Posted about 234 days ago | 3 comments

The first ever GAO(Government Accountability Office) audit of the Federal Reserve was carried out in the past few months due to the Ron Paul, Alan Grayson Amendment to the Dodd-Frank bill, which passed last year. Jim DeMint, a Republican Senator, and Bernie Sanders, an independent Senator, led the charge for a Federal Reserve audit in the Senate, but watered down the original language of the house bill(HR1207), so that a complete audit would not be carried out. Ben Bernanke(pictured to the left), Alan Greenspan, and various other bankers vehemently opposed the audit and lied to Congress about the effects an audit would have on markets. Nevertheless, the results of the first audit in the Federal Reserve’s nearly 100 year history were posted on Senator Sander’s webpage earlier this morning: http://sanders.senate.gov/newsroom/news/?id=9e2a4ea8-6e73-4be2-a753-62060dcbb3c3

What was revealed in the audit was startling: $16,000,000,000,000.00 had been secretly given out to US banks and corporations and foreign banks everywhere from France to Scotland. From the period between December 2007 and June 2010, the Federal Reserve had secretly bailed out many of the world’s banks, corporations, and governments. The Federal Reserve likes to refer to these secret bailouts as an all-inclusive loan program, but virtually none of the money has been returned and it was loaned out at 0% interest. Why the Federal Reserve had never been public about this or even informed the United States Congress about the $16 trillion dollar bailout is obvious — the American public would have been outraged to find out that the Federal Reserve bailed out foreign banks while Americans were struggling to find jobs.

To place $16 trillion into perspective, remember that GDP of the United States is only $14.12 trillion. The entire national debt of the United States government spanning its 200+ year history is “only” $14.5 trillion. The budget that is being debated so heavily in Congress and the Senate is “only” $3.5 trillion. Take all of the outrage and debate over the $1.5 trillion deficit into consideration, and swallow this Red pill: There was no debate about whether $16,000,000,000,000 would be given to failing banks and failing corporations around the world.

In late 2008, the TARP Bailout bill was passed and loans of $800 billion were given to failing banks and companies. That was a blatant lie considering the fact that Goldman Sachs alone received 814 billion dollars. As is turns out, the Federal Reserve donated $2.5 trillion to Citigroup, while Morgan Stanley received $2.04 trillion. The Royal Bank of Scotland and Deutsche Bank, a German bank, split about a trillion and numerous other banks received hefty chunks of the $16 trillion.


“This is a clear case of socialism for the rich and rugged, you’re-on-your-own individualism for everyone else.” – Bernie Sanders(I-VT)

When you have conservative Republican stalwarts like Jim DeMint(R-SC) and Ron Paul(R-TX) as well as self identified Democratic socialists like Bernie Sanders all fighting against the Federal Reserve, you know that it is no longer an issue of Right versus Left. When you have every single member of the Republican Party in Congress and progressive Congressmen like Dennis Kucinich sponsoring a bill to audit the Federal Reserve, you realize that the Federal Reserve is an entity onto itself, which has no oversight and no accountability.

Read more here: http://www.unelected.org/audit-of-the-federal-reserve-reveals-16-trillion-in-secret-bailouts

Yes, I realize this article only confirms what many of us long believed.

Don't you think, though, the fact it was published at all is amazing?

The truth shall set you free - someday. ;)

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Sun Mar 11, 2012 7:56 am
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Post Re: Banks
Stress Tests: Citigroup, Three Other Major Banks Fail

All is not well with the Too Big To Fail set.

Four of the biggest U.S. banks failed the latest round of Federal Reserve stress tests, the Fed said Tuesday, meaning they'll have to give up hopes of giving more money to shareholders, and may even have to go hat in hand to those shareholders for more cash. :crylaugh

The Fed's goal is to make sure the banks have enough cash to survive another financial crisis, making it less likely the government has to bail them out again. :yamon

The tests seemed fairly rigorous -- arguably more rigorous than other stress tests since the financial crisis. But those tests were based on certain models and assumptions about the strength of bank balance sheets, and as we learned in the financial crisis, models and assumptions can go out the window in a hurry.

For now, the Fed says banks have significantly bigger cash cushions than they did heading into the crisis. Still, the Fed said the financial plans of Citigroup, Ally Financial, SunTrust and MetLife left those banks without enough of a cash cushion to survive a severe economic downturn.

That means Citi, the third-biggest U.S. bank, won't be able to raise its dividend or buy back more of its stock from shareholders without first raising more capital.

Read more here: http://www.huffingtonpost.com/2012/03/13/stress-tests-citibank_n_1342928.html

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Tue Mar 13, 2012 5:28 pm
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Post Re: Banks
Drip, drip, drip...

Drop-by-drop the TRUTH is coming out.

Heh heh heh!


Italy Said to Pay Morgan Stanley $3.4 Billion

By Nicholas Dunbar and Elisa Martinuzzi - Mar 16, 2012 9:10 AM CT

When Morgan Stanley (MS) said in January it had cut its “net exposure” to Italy by $3.4 billion, it didn’t tell investors that the nation paid that entire amount to the bank to exit a bet on interest rates.

Italy, the second-most indebted nation in the European Union, paid the money to unwind derivative contracts from the 1990s that had backfired, said a person with direct knowledge of the Treasury’s payment. It was cheaper for Italy to cancel the transactions rather than to renew, said the person, who declined to be identified because the terms were private.

The cost, equal to half the amount to be raised by Italy’s sales tax increase this year, underscores the risk derivatives countries use to reduce borrowing costs and guard against swings in interest rates and currencies can sour and generate losses for taxpayers. Italy, with record debt of $2.5 trillion, has lost more than $31 billion on its derivatives at current market values, according to data compiled by the Bloomberg Brief Risk newsletter from regulatory filings. :censor :rant :flame

“These losses demonstrate the speculative nature of these deals and the supremacy of finance over government,” said Italian senator Elio Lannutti, chairman of the consumer group Adusbef.

The transaction may prompt regulators to push for greater transparency and regulation of how governments use derivatives, said the head of the European Parliament panel that deals with market rules. I doubt it!

‘Need to Know’

“This latest revelation shows that we need to know a lot more,” Sharon Bowles, chairwoman of the economic and monetary affairs committee, said in an interview today. “I’m reluctant to have quite as many exemptions for central banks and countries” from transaction-reporting rules, she said. :mrgreen:

snip

Read more here: http://www.bloomberg.com/news/2012-03-16/italy-said-to-pay-morgan-stanley-3-4-billion-to-exit-derivative.html

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Fri Mar 16, 2012 9:49 am
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Post Re: Banks
The Dallas Fed Is Calling For The Immediate Breakup Of Large Banks

It's hard not to think it's a big deal when a branch of the Federal Reserve system calls for the breakup of major American banks.

The bank has just released its annual report, and the title of the letter is: Choosing the Road to Prosperity Why We Must End Too Big to Fail—Now.

Here's the full letter from Dallas Fed President Richard Fisher, generally known as one of the most hawkish and conservative Fed Presidents.

Quote:
Letter from the
President
If you are running one of the “too-big- to-fail” (TBTF) banks—alternatively known as “systemically important financial institutions,” or SIFIs—I doubt you are going to like what you read in this annual report essay written by Harvey Rosenblum, the head of the Dallas Fed’s Research Department, a highly regarded Federal Reserve veteran of 40 years and the former president of the National Association for Business Economics.




Read more: http://www.businessinsider.com/dallas-fed-calls-for-breakup-of-big-banks-2012-3#ixzz1pr1USBpc

:mrgreen: :clap

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Thu Mar 22, 2012 7:06 am
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Post Re: Banks
BofA: Families facing foreclosure can rent
By Chris Isidore@CNNMoney March 23, 2012: 8:33 AM ET

NEW YORK (CNNMoney) -- Bank of America has announced a program that will let homeowners facing foreclosures stay in their homes as renters.

The "Mortgage to Lease" program will start as a limited pilot program for up to 1,000 homeowners in Arizona, Nevada and New York selected by the bank.

The bank said if the effort succeeds, it could be expanded to the broader group of at-risk homeowners with BofA mortgages. Homeowners can not apply to be part of the program at this time.

Those selected for this initial pilot program will be more than 60 days delinquent on their home loans, have high loan balances in relation to their current property value, have no other liens on their property, and have an income level high enough to afford the rent.

The homeowner will transfer title to their properties to the bank and have their outstanding mortgage debt forgiven. In exchange, they may lease their home for up to three years at or below the current market rental rate.


While Bank of America (BAC, Fortune 500) will retain ownership of the properties at first, homes in the pilot program will be transitioned to investor ownership. The bank will work with property management companies to oversee the rental properties.

Read more here: http://money.cnn.com/2012/03/23/real_estate/bofa-mortgages-foreclosures/index.htm?hpt=hp_t3

Why the heck didn't they do this a long time ago?

Why no lease-to-purchase option for the homeowners?

So, basically, BofA is shuffling homes off the for sale market and into the investment/rental market.

Yes, I get the fact that this may stablize some hard hit areas but what happens after 3 years? What happens when this flood of rental property goes on the market and no one leases these homes?

Or do the investors get to sell them after 3 years? If so, somebody sure thinks there will be a huge market turn around at that time.
:whistle

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Fri Mar 23, 2012 8:03 am
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Post Re: Banks
All good questions. It costs banks a lot of money to foreclose on a property and they won't recoup what was owed to them by selling it, at this point at least. With this plan they get possession of the property and still have mmonthly income. How that income compares to what the mortgage payment was I don't know, but they are saving the cost of foreclosing. People still lose their homes but the pain is put off temporarily and the banks look good and Obama looks good.. (Election year you know) they also are afraid of an imminent financial collapse and with this program they have some money coming in. Opeople who know they are going to lose their house anyway will probably stop paying. Another thing- more people are squatting in their homes after they lose the house. Now they will pay rent for squatting.

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Fri Mar 23, 2012 8:33 am
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Post Re: Banks
Americans stashing cash at home as mistrust of banks spreads

There's plenty of economic uncertainty to go around these days, and most of us know that the banking industry has taken it on the chin these past few years. But is it so bad that it's time to start stuffing mattresses with cash? Yes, say an increasing number of Americans.

snip

Safes, in fact, are becoming high-demand items, according to some reports, with retailers reporting a 40-percent increase in sales and installation from just a few years ago. And they aren't taking the shape of the typical boxy, square obvious-looking safe. Instead, a sort of boutique safe business has sprung up, giving people a wide range of options for where they can stash their cash.

Uncertainty, not crime, driving sales

Some are showpieces that appear to blend in with the rest of the decor. Others are decoys. ......

"None of our safes should be hidden in a closet," Markus Dottling, principle at a German specialty safe manufacture bearing his name, said. Some of his designs can cost more than most Americans pay for their homes.

It's not crime that is driving this craze for securing our most valuable commodity. U.S. burglary rates all over the country have been falling for years. No, what is driving it is a general feeling of fiscal uncertainty that has engulfed the country since the early days of the 2009 fiscal meltdown.

Tyler D. Nunnally, founder and CEO of Upside Risk, an Atlanta-based company that evaluates investor psychology, told SmartMoney.com that squirreling cash away in a safe - or somewhere safe - is just a natural reaction to volatile economic times.

Learn more: http://www.naturalnews.com/035831_cash_ ... z1uZ8ycCoR

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Fri May 11, 2012 6:03 am
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Post Re: Banks
Central Banks Have Gone Wild! Here’s What To Do…

A lot has happened over the past 24 hours, but I wouldn’t change your trading mindset any time soon…

A landmark healthcare decision, an early morning EU bank bailout and, oh yeah….China is still trying to secretly take over the world currency market. All in a day’s work!

snip

* According to the BBC, “China has said that it is planning to set up a special zone to experiment with the yuan’s convertibility, the latest step in its bid to open up its capital markets.”.... rest assured that China is stockpiling gold.


* Yesterday’s healthcare verdict created nothing more than a ho-hum market day. But the long-term implications could be massive. In fact, you’d be foolish to think that this government controlled health care program won’t need a little help from the Fed’s deep pockets.

* European Union summit meeting in Brussels

“After 13 1/2 hours of talks” Bloomberg reports, “ending at 4:30 a.m. in Brussels today, chiefs of the 17 euro countries dropped the requirement that taxpayers get preferred creditor status on aid to Spain’s blighted banks. They also opened the way to recapitalizing lenders directly with bailout funds once Europe sets up a single banking supervisor.”

Talk about trying to cover up the story! A 4:30am announcement? And on the heels of the landmark, headline-stealing, healthcare deal?

* All said, central banks across the globe have gone wild! The EU is set for a steroid-laced, bond-buying, money-printing fest. The U.S. is set to embark on its latest round of debt creation, which can only lead to an inflationary future. And the Chinese are laughing all the way to the gold bank.

Complete article here: http://beforeitsnews.com/story/2326/972 ... um=twitter

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Fri Jun 29, 2012 7:27 pm
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Post Re: Banks
Barclays bank CEO Diamond resigns amid scandal
By the CNN Wire Staff
updated 9:37 AM EDT, Tue July 3, 2012


London (CNN) -- The chief executive of Barclays, one of the world's largest banks, is resigning in the wake of a scandal, Barclays announced Tuesday.

Bob Diamond's resignation is effective immediately, the bank said.

Diamond has long been a controversial figure, and has been a vocal backer of huge bonuses for bankers.

"It's about pay for performance," he told CNN earlier this year, calling bonuses "rewards for success."

His bank's reputation has been hammered by a scandal involving the rates at which banks lend each other money, known as Libor.

That rate affects how much interest ordinary people pay on everything from credit card debt to home mortgages and student loans.

Former investment banker Ralph Silva says that is why the scandal has caused such fury.

"If they're manipulating Libor, what they're basically doing is taking money out of the public's pocket, because their mortgage rates change, because their interest rates change, their loans/credit cards change -- or their pension income changes," he said.

The chairman of the Financial Services Authority, Britain's banking regulator, last month blasted the "cynical greed of traders asking their colleagues to falsify their Libor submissions so that they could make bigger profits."

FSA chairman Adair Turner said the scandal "has caused a huge blow to the reputation of the banking industry" and "has justifiably shocked and angered people."

Diamond is due to to testify about the scandal before the British parliament's Treasury Committee Wednesday.

The bank was fined more than $450 million last week by British and American regulators for rate-fixing during the height of the global financial crisis, and is one of a host of banks facing lawsuits in New York over the scandal.

snip

Read more here: http://www.cnn.com/2012/07/03/business/barclays-diamond-resigns/index.html?hpt=hp_t2

I'm not even gonna comment on this one because if I do, it will be nothing but swear words.

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Tue Jul 03, 2012 7:20 am
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Post Re: Banks
JPMorgan knowingly sold investors inferior funds, report says

By msnbc.com staff

In search of lost profit after the financial crisis, JPMorgan Chase pushed investors to buy its own mutual funds even when competitors had better-performing or cheaper options, according to a report in the New York Times.

The article cites JPMorgan’s current and former financial advisers who said that, as the bank became one of the nation's largest mutual fund managers, they were encouraged, at times, to favor the company’s products.

The practice would have had a clear benefit to JP Morgan, the Times noted. It would have driven up the amount of fees the bank collected for managing the funds and would have allowed it to buck an industry trend that is seeing ordinary investors leave stock funds amid the ongoing volatility in the market, the newspaper said.

Crucially, the bank exaggerated the returns of what it was selling in marketing materials, according to documents reviewed by the Times.

The Times also noted JPMorgan is collecting assets in its stock funds at a rapid rate, even though the company has only a small number of top-performing mutual funds that are run by portfolio managers. Stock funds run by managers usually have higher fees than a simple index fund, which typically tracks the performance of a market index.

The report mentions research from Morningstar, a provider of mutual fund research, that shows nearly half of JPMorgan’s stock funds have failed to beat the average performance of funds making similar investments over the past three years.

The Times also cited one former JPMorgan financial adviser who said he sold “JPMorgan funds that often had weak performance records, and I was doing it for no other reason than to enrich the firm.”

snip

Read more here: http://marketday.msnbc.msn.com/_news/2012/07/03/12543134-jpmorgan-knowingly-sold-investors-inferior-funds-report-says?lite

Just sitting here drinking my coffee, reading the news and reporting it to you.

Hmmm - maybe the crop circle from June 25th is correct - what was stolen will be returned. :mrgreen:

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Tue Jul 03, 2012 7:36 am
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Post Re: Banks
Embattled banker drops out of Romney fund-raiser
Globe Staff
July 03, 2012

WASHINGTON – Mitt Romney’s campaign says that Bob Diamond, the embattled former chief executive of Barclays bank, will no longer be cohosting a London fund-raiser for the presumptive Republican nominee.

Diamond, a Concord, Mass., native who oversees one of the world’s largest banks, has been embroiled in a rate-fixing scandal in Britain that is threatening to expand.

The bank’s chairman resigned on Monday, and Diamond stepped down as CEO Tuesday amid pressure from some in Parliament. The government has launched an inquiry to find out if there was any criminal wrongdoing.

The scandal involves manipulating the London Interbank Offered Rate, or Libor, which is used to set the rates for a range of consumer products including mortgages, credit cards, and bank loans. Barclays has already been fined $453 million in a settlement with US and British authorities.

“Mr. Diamond decided to step aside as a cohost for the upcoming London reception to focus all his attention on Barclays,” Romney campaign spokeswoman Andrea Saul said. “We respect his decision.”

Romney was planning to attend the fund-raiser when he is in town for the opening ceremonies of the Olympics. The price for attending the dinner ranged from $25,000 to $75,000, according to the London Telegraph.

snip

Read more here: http://bostonglobe.com/news/nation/2012/07/02/embattled-bank-chief-pulls-out-mitt-romney-fund-raiser/feVhOSPx20n8IhsQEHexxH/story.html

Why is Romney raising money in London? Hmmm??????

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Tue Jul 03, 2012 7:48 am
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Post Re: Banks
The rats are finally being ousted for the thieves they truly are!!!!! :clap :clap :clap

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