US Banker articles from August 2007

US Banker archives from August 2007

This Month.
August 1, 2007... 28 Cover Story: Behind the Financing Glitz, More Money to Be Made JPMorgan Chase is still the king of film financing, commanding 95 percent of major Hollywood films. Now the investment bank is betting there's money to be made on the...

Vernon Hill's Magic as CEO Was Also His Downfall: Some sources question the OCC's timing, likening its action to a sort of slow burn accelerated by Hill's resistance to comply with its earlier requests.(CommerceBancorp.)
August 1, 2007... Vernon Hill is no stranger to controversy, or the waves that create it. A self-described maverick, he built $47 billion-asset Commerce Bancorp by making as many waves as possible and, in so doing, turning retail banking on its ear. But the cult...

World Wealth Report: The Army of Super-Rich Continues to Grow Globally: Number of investors surges 8.3% to 9.5 million.
August 1, 2007... The rich and super-rich benefited in 2006 by two driving forces-a soaring global gross national product and healthy capital markets, particularly in developing markets, according to the 11th annual World Wealth Report from Merrill Lynch and...

Scene and Heard.
August 1, 2007... "My project idea is to fund an annuity that allows for an annual competition, open to everyone from medical engineers to tool-bench hobbyists, with a cash prize for the best new innovation to 'Rock the Ride' of wheelchair users." Idea for...

Hits and Has-Beens.(Wells Fargo & Co)(Sovereign Bank)(CommerceBancorp)(Brief article)
August 1, 2007... UBS AG Deputy CEO Marcel Rohner has replaced Peter Wuffli as CEO. Vernon Hill, founder, chairman and CEO of Cherry Hill, NJ-based Commerce Bancorp has resigned. Dennis DiFlorio becomes chairman, Robert Falese becomes president and CEO and...

Compliance: Flood of State Laws Crack Down on Elder Abuse: Banks can be fined for ignoring warning signs.
August 1, 2007... With nearly 20 states imposing new laws holding banks accountable for willfully ignoring evidence of financial abuse of elderly clients-whether by family members, caregivers, con men or the bank itself-institutions are being forced to take the...

Fresh Ink.(National Penn Bancshares Inc plans to buy Christiana Bank & Trust co)(Pacific Capital Bancorp sells Leaf Financial)(People's United Financial plans to buy Chittenden Corp)(Brief article)
August 1, 2007... 1. People's United Financial announced plans to buy Chittenden Corp. in a stock and cash deal worth $1.9 billion. People's said the deal fulfills its goal of expanding into contiguous markets. The deal is expected to close in the first quarter...

Pipeline.(Ditech.com as a new direct competitor in the prime mortgage market)(North Shore Bank partnered with Irving)(survey reports of investment banks)
August 1, 2007... DITECH SLOUGHS OFF 'SUBPRIME' LABEL Banks now have a new direct competitor in the prime mortgage space. Ditech is renewing efforts to enhance its image as a Main Street player with a new marketing campaign and a unique mortgage product....

Amex Pledges Up to $5 Million For One Great Feel-Good Idea.(American Express Co.'s marketing)(case against Citigroup, Deutsche Bank, Morgan Stanley and UBS for market manipulation)
August 1, 2007... American Express has tapped into philanthropy in the past, but now it hopes to mine even deeper through a new community-centered on-line marketing initiative, "The Members Project." Amex will fund one winning idea, to be announced on August...

Noted and Noteworthy.
August 1, 2007... Who says enough is enough? A shareholder group led by the Louisiana Municipal Police Employees' Retirement System recently won an additional $475 million in class-action damages for Chicago Board of Trade shareholders-after already winning $1...

Paulson Advisory Sparks Questions: The Treasury secretary's recent missive on Bank Secrecy Act effectiveness is prompting head scratching on some fronts-and calls for more patience on others.
August 1, 2007... Treasury Secretary Henry Paulson's recent missive that community banks should face a lighter anti-laundering compliance burden than their larger brethren is a welcome respite for small banks, but they'll be left hanging until new rules are set...

Healthcare Payments: Fifth Third Seeks A Healthy Future: Banks are well-placed to be the nexus among payers, providers and patients. But to automate medical-payment documents, banks must cope with a new level of complexity.
August 1, 2007... If applying the principles behind check imaging and e-payments to the healthcare business seems like it should be a no-brainer for banks, then get ready for a CAT scan. "Unlike the business-to-business space, healthcare receivables are more...

Nanotechnology: Very, Very, Very, Very Small Code: Nanotechnology won't be tapped for commercial use like ATM keypads soon, but research shows information security will one day reach the molecular level.
August 1, 2007... Forty years ago, a smug family friend uttered the word "Plastics" to Ben Braddock, better known as The Graduate, in an attempt to guide Ben along the path of sure success. Today, there's plenty of sentiment that word would be "nanotechnology."...

Huntington's Catcall: 'To Furballs, With Love': The bank's popular microchipping events for the pets of customers and would-be clients may be a home run. The "emotional PR" the bank's racking in the communities up is priceless.
August 1, 2007... Ask any bank marketer how to touch customers' hearts and there will be plenty of suggestions, but Huntington Bank has hit a bull's eye by focusing on clients' fondness for their pets. The bank's new three-hour "Yappy Hour" microchipping...

AD Beat: Chittenden Taps An Iconoclastic Tone: Vermont's largest bank is telling its tale by unraveling colorful stories from its customers. It's hometown flavor from a firm just purchased by one of New England's largest bank chains.
August 1, 2007... Chittenden Bank seems to know something that other banks don't: Its client companies' achievements are a symbol of its own success. Customer testimonials are nothing new, of course, but Vermont's largest bank has taken the technique to a new...

Bankrolling Blockbusters.
August 1, 2007... In 2006, 607 movies were released in the U.S., 11 percent more than in 2005. A typical box-office hit can cost $30 million, but can pull in $350 million in domestic and international box-office, pay-per-view and DVD revenue. No bank knows...

Scramble For Loan Dollars On the Rural-Suburbia Border: Industry advocates are harshly critical of a farm-credit bill that would expand the Farm Credit System's ability to loan in larger communities. Banks fear a big hit-but bank lobbying is under way.(federal Farm Credit Administration)
August 1, 2007... The massive farm bill now before Congress could create, as one of its many effects, new government-backed competition to banks in suburbs and towns of up to 6,000 people. But is that what the Farm Credit System was created for 90 years ago? ...

America's Great Divide: About 73 million people in the U.S. are unbanked or underbanked, a population as diverse as it is unknown. They're often new to the U.S., frequently entrepreneurial and lacking credit histories.
August 1, 2007... The subprime mortgage troubles have grabbed a lot of headlines this year as delinquencies and foreclosures mount and lenders scramble to head off onerous new rules from Washington. But this story has masked another phenomenon: lending to...

After 54 years, Banks Ask: Is the SBA Still Relevant?: Some bankers argue the Small Business Administration is losing its importance in a changing business-financing environment. Community banks are feeling the pain most acutely.(Small Business Administration)
August 1, 2007... Growing criticism of the Small Business Administration is rising, as bankers and analysts worry whether the agency is fulfilling its mission of fostering a small-business community, particularly at small banks. Critics point to the doubling of...

With Firms on the Block, Watch for Culture Shock: Dealmaking in the money management sector brings reward and risk: the new business may be great, but fitting the pieces together is no easy task.
August 1, 2007... Recent acquisitions among wealth-management units point to a trend that banks in this lucrative market should heed: This market has become a "fill-in" game, as big players aim to beef up their product rosters. But a big caveat is the...

What Directors Should Know About Bank Laws, Regulations.
August 1, 2007... Recently, a community bank director of my acquaintance complained that so much board meeting time is being taken up with regulatory matters that there is hardly time left to discuss other business. One can sympathize with him. Things weren't...