US Banker articles from August 2006

US Banker archives from August 2006

Correction.(Correction notice)
August 1, 2006... In "Ready, Aim and Fire: Shareholders Get Armed" (June 2006), USB incorrectly reported that Wells Fargo shareholders approved a proposal requiring directors to be elected by a majority of shareholders casting votes. The proposal was voted down....

Bernanke to Paulson: Listen, We're in Charge: There's something intoxicating about the Greenspan-Rubin versus Bernanke-Paulson comparison. But the latter duo's performance will be as deeply affected by political pressures and world events as by intellect and good judgment.(Ben Bernanke and Henry Paulson )
August 1, 2006... Much can be argued about the Clinton Administration, but what few can refute is the impressive stewardship of the nation's economy by Alan Greenspan, former Federal Reserve chairman, and Robert Rubin, former U.S. Treasury secretary. Fed...

Executive Changes: New Goldman Sachs Head Is Like Bull in China Shop: After Paulson, can Blankfein establish Asian ties?(Henry Paulson)(Lloyd Blankfein)
August 1, 2006... Near the end of the second-quarter earnings call with analysts, Goldman Sachs CFO David Viniar finally got to the question on everyone's mind: When could analysts talk to newly named CEO and chairman Lloyd Blankfein? "I'm not sure what you mean...

Scene and Heard.
August 1, 2006... "Young or middle-aged executives think they have plenty of time. It's the way we're wired." - John Davis, professor at Harvard Business School, on why many bank CEOs don't create a succession plan. "Technology has lost a devilish 66.6...

Branch Performance: Profitability is in the Eye Of the (Bank) Beholder: Gathering the right data for the right measure.(profit/loss standards to branch-performance measurements )
August 1, 2006... Science, when applied to branch-performance measurement, can be blinding. So it comes as no surprise that applying simple profit/loss standards to branch-performance measurements can overstate a wealthy suburban site and overlook a slow, but...

Hits and Has-Beens.(Joseph R. Lizza joins Susquehanna Bancshares)(R. Hugh Rial promoted at American Partners Bank)(Thomas C. Mazzucco joins UBS)(Brief article)
August 1, 2006... Susquehanna Bancshares has named Joseph R. Lizza to president and CEO of Susquehanna Patriot Bank, its $2.7 billion subsidiary bank in Marlton, N.J. Deutsche Bank has hired HSBC alumnus Marilyn Spearing, right, as global head of trade...

Fresh Ink.(Banco Bilbao Vizcaya Argentaria buys Bancshares)(Barclays Bank buys HomEq Servicing Corp)(Nationwide Bank plans to buy National Federal Credit Union )(Brief article)
August 1, 2006... 1. Texas Regional Bancshares agreed to be bought by Banco Bilbao Vizcaya Argentaria of Spain for $2.16 billion. BBVA operates in 32 countries. The deal significantly increases BBVA's presence in the Lone Star State after its acquisition of...

Pipeline: How to move the line of the equator [principles].(rules of the Equator Principles)(Brief article)
August 1, 2006... The Equator Principles Financial Institutions revised the environmentally friendly rules of the Equator Principles, a move the group says underscores how far the financial sector has progressed in using best practices to manage social and...

Married Titles of Chairman/CEO Endure at Banks Like Citigroup.(Charles Prince )(chief executive officer)
August 1, 2006... Citigroup being Citigroup, its actions set an example for the industry like few other banks. So corporate-governance experts were especially disappointed when earlier this year CEO Charles Prince assumed the additional title of chairman,...

Noted and Noteworthy.(employee benefits and customer service)(Brief article)
August 1, 2006... One always knew Bank of America's favorite color was green. The Charlotte, NC, institution is offering employees $3,000 each when they buy a hybrid car. The bank announced the incentive program in June for the firm's 21,000 staffers in Boston,...

Hedge-Fund Regs Strike a Nerve: More public oversight of these private funds continues to be controversial. As lenders for many funds, banks balk at having to scrutinize the funds' strategies instead of the SEC.(Securities and Exchange Commission )
August 1, 2006... Bank executives, ever financially conservative, are allying with the Securities and Exchange Commission in their belief that the veil of secrecy over hedge funds should be lifted-as high as possible. But Federal Reserve chairman Ben Bernanke...

Card Processing: Caught Off Card: Faced with the loss of customers like JPMorgan Chase and BofA and stiffer competition from TSYS, First Data Corp. is reinventing itself. Its mission: sell off Western Union and refocus on card processing. Risky? Yes, but it's betting there's upside.(Company overview)
August 1, 2006... Ken Lewis is a master of many things, not the least of which is the art of implying a course of action when giving the rare interview to the press. But he borders on genius with his knack for getting people to infer something as matter of fact...

The Ivy League Mom's Awesome Prowess: Connecting with this demographic segment requires knowledge of the inherent conflict between the working mother and the stay-at-home mom. But she's worth the extra effort.(cross-selling target)
August 1, 2006... Move over, soccer moms. There's a new demographic on the block and she's formidable: the Ivy League mom, a group of 9.7 million households with investable assets of $6.5 trillion. What does she want from a bank? Everything-and she has no...

AD Beat: HomeStreet Bank's Claim: 'We Get It.' But Does It?: The campaign created buzz, but few marketers believe noise without substance is effective in the long term. Generating interest is one thing. Maintaining it is another.(HomeStreet has launched a clever ad campaign )
August 1, 2006... Does your bank get it? And if it didn't, would your clients know it? Family- and employee-owned HomeStreet believes it's figured out what irks customers most-and it's vowing a remedy. A $2.14 billion-asset private bank based in Seattle,...

Exit Strategy.(Succession planning)
August 1, 2006... With regulators pressing financial firms to create succession plans, banks realize the day of the omnipotent CEO is over. Today, it's about having a flexible management team and a workable succession plan. But one-third of banks surveyed by the...

Proposed Bill Would Cut Most Banks Free from SOX's 404: Small banks received no SEC relief in reducing Sarbanes-Oxley compliance requirements in May, but some in the banking industry hope for a congressional resolution as early as 2007.(Sarbanes-Oxley)
August 1, 2006... Banking officials, disappointed in their Securities and Exchange Commission quest to obtain regulatory relief from Sarbanes-Oxley, are optimistic a bill in the current or next congressional session will achieve the same objective. Chris...

America's 84 Million Underserved underbanked.(financial institutions )
August 1, 2006... Now that more banks and financial services companies have discovered the underbanked as a dynamic new source of revenue, the race is on to crack the code on the most effective business models. From slicing broad demographic segments into...

Turnkey Vendors Ease Entry Into New Markets.(Automated teller machines)
August 1, 2006... The fact that check cashing, remittances and prepaid cards have proved profitable for alternative providers has banks thinking they should be able to compete, too. Providing transactional services is both a strategy for acquiring new,...

New Banks Forming To Target Niche Markets: Number of US Ethnic-owned banks.(radical changes in demographics )
August 1, 2006... With the radical changes in demographics in this country, a new batch of de novo banks has cropped up to reach out to both recent immigrants and multi-generational ethnic markets. Though the strategy of niche marketing is by no means new, the...

Sizing The Market.(underbanked consumers )(Brief article)
August 1, 2006... As the financial services industry's interest in underbanked consumers has grown, so has the need for more and better data to help understand this marketplace. Three recent studies provide a particularly useful perspective on the opportunities....

The Center for Financial Services Innovation.(profitable for both company and customer)(Company overview)(Brief article)
August 1, 2006... An affiliate of ShoreBank Corporation, CFSI was founded in 2004 to assist the financial services industry to identify, develop, and implement innovative methods of delivering asset building opportunities to the underbanked market that are...

Retiree Demand Trumps A Once-Dismal Reputation: More retirees, who have woefully underfinanced retirement plans, are choosing reverse mortgages. Some bankers see a large market with growth potential, but they have their work cut out for them.
August 1, 2006... As an ill-prepared retiree market fuels a boost in reverse mortgages, some industry players see enormous growth potential-and major hurdles. Reverse mortgages allow seniors to use the equity in their homes as collateral for loans received...

With Easing of Lending Criteria, Loans Post Record High: While some types of commercial loans have come under fire, C&I loans have posted a record-high showing. Moreover, the number of defaults are down. But when will regulators become wary?
August 1, 2006... Commercial and industrial loans are posting record gains, becoming a reliable profit engine for banks, a welcome uptick given the slowing consumer loan market, notably in auto and mortgage financing. Bank C&I loans outstanding grew by $19.4...

Market Chatter Foretells Increased Regulation: There is growing concern that regulators are eyeballing the SMA market, especially distribution, but there is still time for banks to have an impact on the outcome. That is, if they don't ignore the issue.(separately managed account)(Michael Koffler- Sutherland Asbill & Brennan )
August 1, 2006... There has been an increasing buzz during the past three months over the possibility of additional regulation of the separately managed account market, according to industry observers. Regulators may be focusing on areas of the SMA market...

Buy and Hold? Oh, That's So '90s.: Today's market is characterized largely by volatility so the buy-and-hold strategy that worked so well through the '80s and '90s has been ineffective. Some now wonder if there is another shift in the offing.(Investment management)
August 1, 2006... While some investors are clinging to a buy-and-hold mentality as a backlash against the day-trading debacle of the New Economy days in the late 1990s, that strategy has been alarmingly ineffective in the past five years. Now the market swamis...

Walking the Talk: Interactive Chat.(economic sense to drive customers)
August 1, 2006... The banking industry is doing a good job OF promoting Web-based approaches to customer service. The industry understands it makes economic sense to drive customers to use online customer support tools instead of in-person or virtual teller...