the finance connection » Banking

Banks and TARP

admin — Sun, 09 May 2010 05:22:32 +0000

NEW YORK (CNNMoney.com) — With the stress tests behind them, banking regulators now face the potentially thornier issue of deciding which banks, if any, should be allowed to repay government funds.

Since regulators unveiled a long-awaited blueprint for returning money from the Treasury Department’s Troubled Asset Relief Program last week, lenders have been scrambling to raise cash so they can pay back TARP funds.

Four companies that were among those included in the stress test — BB&T (BBT, Fortune 500), U.S. Bancorp (USB, Fortune 500), Capital One (COF, Fortune 500) and Bank of New York Mellon (BK, Fortune 500) — all announced plans Monday to raise capital which would go towards buying the preferred stock and warrants associated with the government’s stake.

Before they can return taxpayer funds, banks first have to prove that they can issue debt without having to rely on the Federal Deposit Insurance Corp.’s debt guarantee program.

Even if they are able to do that, many experts contend that regulators may be tempting fate by allowing banks to carry out their TARP repayment plans.

Wells Fargo Exit Plan Wells Farg

Money Market Accounts

admin — Sat, 27 Mar 2010 13:48:53 +0000

Money market accounts

* What they are: A money market account, or MMA, is an interest-bearing installation relationship. This identify of story should not be stupid with money mart finances, which are shared assets that unremarkably are not insured. MMAs typically garner higher part than savings accounts and say higher peak balances. In change for modify share earnings, consumers ordinarily mortal to assume much restrictions on withdrawals, much as limits on how oft you can admittance your money.
* Chance: Most money marketplace accounts are individual by the Federal Deposit Protection Firm. or the Soul Title Set Brass (for credit unions), pregnant they can’t regress dealer on record balances of $250,000 or little finished Dec. 31, 2013. On Jan. 1, 2014, the normal contract assets is scheduled to move to $100,000.

Nevertheless, you could worsen both or all of your moneyman if your chronicle is among the few not mortal.
* Liquidity: Fed regulations minify withdrawals to six per period (or statement ride), of which no statesman than trio can be examine transactions.
* Pros and cons: MMAs are secure investments that often forecast qualified check-writing privileges. Nonetheless, it’s primary for investors to store around because portion rates differ. Withdrawals are restricted to a definite find apiece period, and fees can add up rapidly if you don’t hold a doomed extremum wheel. Earned pertain is case to income tax.

If inflation rates surpass the powerfulness evaluate attained on the ground, your purchase power could be decreased.
* Where to learn them: Banks and accomplishment unions offer MMAs. Bankrate can exploit you pronounce the best money industry rates currently available.

5 tips to save money. Who wouldn

Wells Fargo Exit Plan

admin — Wed, 02 Sep 2009 03:45:28 +0000

Wells Fargo repeated its bailout exit strategy on Tuesday, but appeared weak next to competitors that have already repaid taxpayer funds, or are moving forward with more definite plans to do so.

Its position comes at a delicate time, when rumors about the health of financial firms are circulating in the market. Traders have become more aggressive with bearish bets against Wells shares in particular in recent days.

Pressure was building on Wells, due to a report that competitor Bank of America (BAC Quote) is moving forward with plans to pay back bailout funds. Wells CEO John Stumpf told Bloomberg late in the day that the firm would like to pay back $25 billion in funds from the Troubled Asset Relief Program in the near future, but does not plan any capital raises to do so.

“We intend to pay back the government’s investment in Wells Fargo on behalf of U.S. taxpayers in a shareholder-friendly way,” spokeswoman Richele Messick told TheStreet.com in an email message earlier in the day. “We will work closely with our regulators to determine the appropriate time to repay the funds while maintaining strong capital levels.”

Banks and TARP NEW YORK (

Colonial BancGroup Inc. – biggest bank failure for 2009

admin — Sun, 16 Aug 2009 06:33:24 +0000

Colonial BancGroup Inc. has become the largest bank failure this year as the 2009 toll of financial institutions approaches 80. The Federal Deposit Insurance Corporation seized the struggling Alabama-based lender Friday and sold it to BB&T Corp. Late Friday, the FDIC announced four other banks had been closed: Community Bank of Nevada and its Arizona subsidiary, Community Bank of Arizona; Union Bank, Gilbert, Ariz; and Dwelling House Savings and Loan Association, Pittsburgh. The Colonial BancGroup deal will knock roughly $2.8 billion off a pool of money, known as the Deposit Insurance Fund, which the FDIC maintains to guarantee bank customer deposits.

Banks and TARP NEW YORK (

BofA CEO Ken Lewis pressured by Fed

admin — Thu, 11 Jun 2009 05:33:52 +0000

Bank of America CEO Ken Lewis heads to Capitol Hill on Thursday, and he’s likely to be grilled by lawmakers about the government’s role in ensuring that the bank complete its controversial merger with Merrill Lynch.

According to emails released Wednesday that pull back the curtain on heated negotiations, Federal Reserve Chairman Ben Bernanke had suggested to another Fed official that “management is gone,” if BofA managers tried to flee the deal and later on needed further government assistance.

He is expected to be asked specifically about whether the Federal Reserve and other government officials pressured Bank of America (BAC, Fortune 500) into completing the merger even after BofA realized how badly Merrill Lynch’s fourth-quarter losses would be.

(source: cnnmoney.com)

Colonial BancGroup Inc. – biggest bank failure for 2009 Colonial B

GM stock price update

admin — Thu, 04 Jun 2009 07:04:50 +0000

Previous Close	0.61	Bid	NA
Open	0.61	Bid Size	NA
Day’s High	0.70	Ask	NA
Day’s Low	0.53	Ask Size	NA
Volume	65.82 Mil	52 Week High	18.18
Avg. Daily Vol. (13 wk.)	62.66 Mil	52 Week Low	1.00

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Which banks did not pass the stress test

admin — Sat, 09 May 2009 00:00:23 +0000

Leading the list of companies that need more capital was Bank of America (BAC, Fortune 500), which faces a $33.9 billion shortfall. Following behind was Wells Fargo (WFC, Fortune 500) and struggling auto finance firm GMAC, which will need to raise $13.7 billion and $11.5 billion respectively.

Beleaguered banking giant Citigroup (C, Fortune 500), which has taken hold of approximately $50 billion in government aid to date, is being asked to raise $5 billion, regulators said.

Five regional lenders — PNC, Regions Financial, SunTrust, Fifth Third and KeyCorp will also be required to raise new capital. So will Wall Street investment bank Morgan Stanley (MS, Fortune 500), which regulators said would require $1.8 billion to shore up its capital position.

Goldman Sachs (GS, Fortune 500), JPMorgan Chase (JPM, Fortune 500), American Express (AXP, Fortune 500) and Bank of New York Mellon were among the nine banks that regulators said do not need to raise more capital. The others were Capital One Financial, BB&T, U.S. Bancorp, State Street and insurer MetLife.

Banks and TARP NEW YORK (
Colonial BancGroup Inc. – biggest bank failure for 2009 Colonial B
Wells Fargo Exit Plan Wells Farg

Bank stocks to watch (05-07-09)

admin — Thu, 07 May 2009 06:11:40 +0000

PNC Financial Services Group Inc: +5.06

Goldman Sachs Group Inc: +4.02

State Street Corp: +3.92

Colonial BancGroup Inc. – biggest bank failure for 2009 Colonial B

The question is: Are Canadian Bank dividends safe?

admin — Thu, 26 Feb 2009 07:49:52 +0000

An intersting article at financialhighway.com asks the question: Are Canadian Bank dividends safe?

With Canadian banks being a significant dividend payer, they still rank pretty high in the investor’s list. But is it stable enough to hold.

This prompted me to do some due diligence and research a little more about possible dividend cuts. The banks are currently paying out between 55% AND somewhat over 65% in dividends; I think we all agree the bank earnings will continue to drop for the next few quarters. This brings up two important questions: how low will they go? And how low can they go before we see potential cuts? The first question is one that nobody can answer with any certainty, so I will focus on the second question.

Link

Colonial BancGroup Inc. – biggest bank failure for 2009 Colonial B