Category Archives: Banks

Clinton Is Said to Accept Offer of Secretary of State Position

Clinton Is Said to Accept Offer of Secretary of State Position

By PETER BAKER and HELENE COOPER
Published: November 21, 2008
WASHINGTON — Hillary Rodham Clinton has decided to give up her Senate seat to become secretary of state in the Obama administration, making her the public face to the world for the man who dashed her own hopes for the presidency, confidants of Mrs. Clinton said Friday.

The accord between the two leading figures of the Democratic Party was the culmination of a weeklong drama that riveted the nation’s capital. President-elect Barack Obama and Mrs. Clinton fought perhaps the most polarizing nomination battle in decades, but in recruiting her for his cabinet, Mr. Obama chose to turn a rival into a partner, and she concluded she could have a greater impact by saying yes than by remaining in the Senate.

Her selection is still to be formalized and will not be announced until after Thanksgiving. It would be yet another direction in the unlikely journey of a onetime political spouse in Arkansas who went on to build a political base of her own and become a symbol of achievement to many women.

The role, though a supporting one, would make her one of the most influential players on the international stage, and it would represent at least one more act for one of the nation’s most prominent public families, as former President Bill Clinton would also become an ad hoc member of the Obama team.

The sometimes awkward dance between Mr. Obama and Mrs. Clinton in the eight days since he invited her to Chicago for a meeting culminated in a telephone call on Thursday. Before the call, Mrs. Clinton was skeptical about the prospect of joining the cabinet, said her confidants, who insisted on anonymity to discuss the situation. But Mr. Obama addressed her concerns about access, personnel and other issues, leading her to conclude she should take the job, they said.

“She’s ready,” one of Mrs. Clinton’s confidants said. The first meeting in Chicago “was so general” that she needed to have a better sense of how she would fit into Mr. Obama’s administration, and the call helped her “just getting comfortable” with the idea of working together, the confidant said.

Mr. Obama’s advisers said that although no offer had been formally accepted, her nomination was “on track” and would probably be announced after the holiday. Mrs. Clinton’s Senate office broke a week of silence to acknowledge the talks but cautioned that they had not been made final. more

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BoE report puts global toxic asset writedowns at £1,800bn

BoE report puts global toxic asset writedowns at £1,800bn

The Bank of England has published new estimates of the amount of so called toxic debt that has been written down by global financial institutions, in relation to the credit crisis.

In its Financial Stability Report, the Bank puts the figure at £1,800 billion, adding that the size of its estimate of the collective writedowns facing banks, insurers and hedge funds, has more than doubled since April.

In the case of the UK High Street banks, Barclays, HBOS, HSBC, Lloyds TSB, Royal Bank of Scotland and Nationwide, the report estimates that losses from bad debt could reach a collective £130 billion over the next five years.

The estimate takes into account losses from toxic investments plus an allowance for bad debts on mortgages, credit cards and corporate loans, which are expected to rise.

According to the report, UK lenders have so far written down less than £20 billion in the credit crisis but latest calculations indicate that additional taxpayer support may be needed to shore up their balance sheets, over and above the £50 billion included in by the Government’s rescue package announced earlier this month.

Wachovia racks up massive $8.9 billion loss

Wachovia racks up massive $8.9 billion loss

The banking firm plans to shake up its mortgage unit, slash its dividend payout to shareholders, and cut thousands of jobs.

Chief executive Bob Steel, hired less than two weeks ago to bring the struggling bank back to its former glory, had hinted that he envisioned a smaller, leaner Wachovia.

Net loss for the quarter was $8.66 billion compared to a profit of $2.34 billion in the prior-year period. Net loss available to common stockholders was $8.86 billion, or $4.20 per share, compared to earnings of $2.34 billion, or $1.22 per share, a year ago. The company said that the current-year quarter included a noncash goodwill impairment charge of $6.1 billion in commercial-related subsegments, reflecting declining market valuations and asset values.

Excluding the goodwill impairment charge and net merger-related and restructuring expense of $128 million, second-quarter net loss available to common stockholders was $2.67 billion, or $1.27 per share. The company was expecting a loss, excluding goodwill impairment charges, in the range of $2.6 billion – $2.8 billion or $1.23-$1.33 per share.

Toronto Dominion To Purchase Hudson United

Toronto Dominion To Purchase Hudson United

Toronto-Dominion Bank has agreed to buy Hudson United Bancorp for $1.9 billion. The cash and stock offer is worth $42.78 per Hudson United share.

Hudson’s acquisition by Canada’s second largest lender, will increase its branch network in New England by about 50 percent, adding branches in New Jersey, Connecticut, Pennsylvania and more than 200 in the New York City area.

Hudson United is New Jersey’s fourth biggest bank by assets. Last year the financial institution had approximately $9.1 billion in assets and a net income of $128 million.

Toronto-Dominion CEO, Edmund Clark, hopes U.S. expansion will offset slower earnings growth in Canada where bank mergers are prohibited.

Toronto Dominion will pay 51 percent of the offer in TD Banknorth shares, and 49 percent in cash. The cash portion will be financed through the sale of 29.6 million TD Banknorth shares to Toronto-Dominion at $31.79 a share.

The offer represents a 14 percent premium over yesterday’s closing price for the U.S. bank.

The purchase will be TD Banknorth’s largest takeover, after a $694 million acquisition of American Financial Holdings Inc. in August 2002.

Bank Wikipedia

Bank
From Wikipedia, the free encyclopedia

A banker or bank is a financial institution whose primary activity is to act as a payment agent for customers and to borrow and lend money.

The first modern bank was founded in Italy in Genoa in 1406, its name was Banco di San Giorgio (Bank of St. George).

Many other financial activities were added over time. For example banks are important players in financial markets and offer financial services such as investment funds. In some countries such as Germany, banks are the primary owners of industrial corporations while in other countries such as the United States banks are prohibited from owning non-financial companies. In Japan, banks are usually the nexus of cross share holding entity known as zaibatsu. In France “Bancassurance” is highly present, as most banks offer insurance services (and now real estate services) to their clients.

Barclays looks beyond Government to bolster balance sheet

Barclays looks beyond Government to bolster balance sheet

Barclays has responded to the Government’s £500 billion rescue package for the UK’s High Street banks by saying it plans to raise capital from the markets.

In return for the support speedily prepared by Ministers earlier this week, the UK’s leading banks have pledged to increase their Tier 1 ratios by a combined £25 billion.

The move is aimed at increasing confidence in the sector and ultimately easing interbank lending.

Banks that turn to the Government’s programme for support will arguably become part-nationalised as funds will be exchanged for preference shares.

This will inevitably mean that restrictions on dividends, executive pay and bonuses will be applied.

The required improvements to banks’ capital positions should be made by the end of 2008 and Barclays is hopeful that its existing investors will support a fundraising in the meantime.

The bank took a different direction to its rivals back in the summer when there was a round of rights issues involving HBOS, RBS and Bradford & Bingley.

At that time, Barclays bolstered its balance sheet by raising capital from foreign investors, notably Qatar Investment Authority and Sumitomo Mitsui Banking Corporation.