Royal Bank of Scotland
Many times when investors buy shares of a company, they do so on the idea of one share equaling one vote. The idea of shareholders controlling the election of directors is one of the checks shareholders get on their companies and one of the powers they receive for their ownership. While most average investors will never play a major role in the affairs of their corporate investments, many still take more »
Note: This article has been amended to better reflect state ownership in Bank of Ireland.
Investors, or even everyday news watchers, will remember the actions taken by the American government to rescue the banking system and ensure it had sufficient capital in the wake of the 2008 financial crisis. But the process of bank recapitalizations continued in Europe for another few years and only recently was completed in Greece. The more »
About a month ago, I wrote an article about how political decisions in the U.K. are critical to the value of Royal Bank of Scotland Group (NYSE: RBS). Since then, the political winds have caused a downdraft in shares of RBS as uncertainty continues to surround this 81 percent state-owned institution.
So many plans
Like American politicians, the politicians across the pond do not always see eye to eye more »
Followers of the financial crisis in the United States are probably familiar with the federal recapitalization of the American banking industry. The biggest names in banking were partially owned by the taxpayer, at least until they repaid their debts, which the largest players have done and netted the taxpayer a significant profit on the deal. However, while government ownership of big bank shares has come to an end in the more »
As one of the big British banks that was partially nationalized in the midst of the financial crisis, Lloyds Banking Group (NYSE: LYG) has been working hard to recover profitability. Even though it has had a great run in the past few months, its stock price is still significantly below the price the British government paid for its shares. Slowly, however, both the bank's financials and its stock price more »
Followers of the markets over the past few years know the name American International Group (NYSE: AIG) all too well. For its investors, AIG was a painful blow to their portfolios and for taxpayers it showed how the largest financial institutions can demand public funds with the threat of destroying the economy otherwise. Fortunately for every taxpayer, AIG has been able to repay its government loans and even give the more »
In the United States, American banks have managed to repay their debts and emerge from partial government ownership. But the situation across the pond isn’t the same. Some U.K. based banks are still partially in government hands rendering their futures less certain than their foreign counterparts. However, the banks aren’t the only ones under new ownership. Two of the most famous British automakers are now owned by more »
HSBC Holdings (NYSE: HBC) is a British multinational banking giant. The bank has over 6,600 locations in 81 countries. Its core businesses include commercial banking, investment banking, retail banking and wealth management.
HSBC has a truly global footprint, and its business is evenly spread out among the Americas, Europe and Asia-Pacific. Each region contributes one third of HSBC's revenues. Besides its strong global brand and reach, the company more »
Two of the leading British banks, Barclays (NYSE: BCS) and Royal Bank of Scotland (NYSE: RBS) recently revealed that they have paid more than $1.5 million (£1 million) each to more than 500 of their employees. Meanwhile, the banks continue to post increasing losses as their inappropriate actions result in billions in litigation costs, and compensation and cost cutting measures seem to target thousands of jobs instead of salaries more »
When most people think of economic problems in Europe, they probably think of Greece’s debt problems, the uncertainty in Spain and Italy, or the more recent Cyprus bailout deal. But one country is also showing slow economic growth despite not being in the eurozone. Following a major banking system bust, the U.K. has implemented austerity measures designed to curb the country’s deficits even as the economy remains more »
One lasting result of the recession is the way that consumers now look upon the banking industry. There is a lot of mistrust now between consumers and the banks. However, that has not stopped consumers from opening bank accounts or requesting new loans. Credit did take a big hit during the recession, but that was just a temporary setback and now many banks are recovering nicely. It is good to more »
REIT (real estate investment trust) investors seeking fixed-income should be worried by interest rate risk. Currently, they are chasing yields by bidding up higher-risk securities. Instead, they should consider the idea that we are in a fixed-income bubble, and should avoid paying too much for yields.
REITs have seen their price multiples ascend beyond reason:
2 more »
Tighter banking regulations are being enforced in many different countries around the world. They will improve confidence in the stability of the global institutions at the cost of more capital needed for banks, layoffs, and closure of unprofitable foreign branches and foreign segments.
With these new regulatory hurdles in mind, investors should demand that banks trade at attractive valuations before considering them as investments.
Global Bank Regulations
Global banking was more »
What Investors Should Know And Do To Make Sure The Short Interest In Arena's Stock Is Playing By The Rules.
1. Arena (NASDAQ: ARNA) short-sellers using illegal short and distort-
As of November 15, 2012, Arena short interest is 61,748,793 shares. This is the highest it has ever been. How much of the short interest is illegal naked shorting? We believe its substantial. It is no secret Arena investors know illegal naked short selling and stock manipulation are being used to manipulate Arena's stock to some extent more »
The banking and finance industry has seen the need of controlling various types of risks. The Royal Bank of Scotland (NYSE: RBS) is one of the biggest banks in the world and has switched to better risk management strategies. The talented risk management team at RBS matches the risks with the return requirements of Stakeholders and the appetite for risk depends on the strategies used within the Bank.
Risk Management more »
Since the largest financial institutions melted down in 2008, investors have been given buying opportunities that present an amazing value. Those who bought at the lows have seen multibagger gains as a reward for their risk tolerance in the face of uncertainty and fear in the markets.
But there are still more gains that could be had over the next several years for investors in these companies. With low price-to-book more »
This hasn’t been a good year for Bank of America (NYSE: BAC).
In February, the bank paid a $1 billion dollar fine to the Feds for defrauding the FHA by underwriting loans to unqualified buyers. Just last month Bank of America joined Visa, MasterCard and other large banks to settle a price fixing case brought by retailers over credit card swipe fees. The bank’s portion of that fine more »
Capitalism has been taking a big hit lately.
Iowa-based futures trader Peregrine Financial Group Inc., which operates PFGBest, just filed for bankruptcy after two national industry watchdogs, the Commodity Futures Trading Commission and the National Futures Association, alleged fraud over $200 million in missing customer accounts. Peregrine owner Russell Wasendorf, meanwhile, faces charges of misappropriating these funds for more than two years and for falsifying records. He was reportedly arrested more »
Goldman Sach's (NYSE: GS) is the nation's largest investment banking firm. It owns a large commercial bank in New York State with a little over $100 billion in assets, but the vast majority of its nearly $1 trillion in assets are tied up in its investment bank, which operates in 30 countries across the globe. Goldman became a "bank holding company" in 2008 for the purposes of receiving more »
Whatever is needed to paper over the excesses of the banking industry will be provided. Frankly, I could end the article right there but I doubt I will have convinced you of it. That said, if the multiple dozens of trillions of dollars, endless scandals to protect certain well-heeled players (*cough* MFGlobal *cough* JPMorgan *cough*), and the denial of political sovereignty in the eurozone periphery have not been enough to more »
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