(Dealbook, 26 April 2012) In Brief: Responding to a recent announcement by regulators that banks could wait until 2014 to comply with the Volcker Rule, 22 US senators urged adoption by July of a version “free from loopholes and concessions.” The five federal agencies responsible for writing the final rule have been slowed by its [...]
Read moreThe new risk environment is changing the way chief financial officers, corporate treasurers, risk officers, and other finance executives think about bank relationship management. The Treasury Leadership Roundtable has observed a trend of greater scrutiny of bank health as an important component of credit facility decisions as well as the distribution of corporate banking business. [...]
Read more(Reuters, 10 April 2012) In Brief: While US banks performed relatively well under the Federal Reserve’s stress tests earlier this year, some still have a “significant amount of work to do” before they have sufficient capital to withstand severe recessions, according to Fed Governor Daniel Tarullo. Our View: In an environment of heightened counterparty risks, [...]
Read more(Reuters, 3 April 2012) In Brief: Starting 21 July, under the Volcker Rule, US banks will be banned from proprietary trading. Consequently, many are shutting down their proprietary trading units and shifting their “high risk traders” into asset management, where they will be able to sell their strategies to clients. Our View: Fallout from the [...]
Read more(The China Post, 10 March 2012) In Brief: Despite moves by China’s government to ease restrictions on credit and boost growth, lending by that nation’s banks fell in January to 710.7 billion yuan (US $112.6 billion) in February from 738.1 billion yuan in January. Our View: We advise companies dealing with Chinese banks to alter [...]
Read moreMost of the companies that we work with in the Treasury Leadership Roundtable want to keep costs down in this uncertain economy. We hear from corporate treasurers that the increasing complexity of bank accounts coupled with lean staffing can lead to unnecessary bank expenses. This makes it imperative for treasurers to put in place preventive [...]
Read more(The Economist, 21 January 2012) In Brief: Big US banks struggled in 2011; although credit expanded marginally, revenue growth was “wretched,” and returns on equity were extremely low. Moreover, banks are facing “staggering” costs for regulatory compliance due to the Dodd-Frank Act and the legislative initiatives of other countries. Our View: Despite reduced credit availability, [...]
Read more(Wall Street Journal, 18 January 2012) In Brief: As Europe’s debt crisis continues, US companies are turning to non-European banks, including those based in Canada, Japan, and China for funding. The practice is expected to continue as more companies look to refinance their revolving credit lines. Our View: As banks contend with a difficult operating [...]
Read more(USA Today, 15 January 2012) In Brief: Over the past couple of years, big US banks have lost billions in revenue due to new laws that govern credit cards, debit card transactions, and overdraft fees. In an effort to recoup these losses, these banks are restructuring many of their existing products, creating new products, and [...]
Read more(The New York Times, 20 December 2011) In Brief: Earlier this week, the Federal Reserve proposed new rules that would require US banks to hold more capital to fend off future financial crises. However, it is unlikely that the final rules will be stricter than international capital requirements, which are still under development. Our View: [...]
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