Grand Prairie, Texas (PRWEB) February 22, 2012
Great things are happening in Grand Prairie, according to Neighborhood Credit Union, which broke ground this morning on its new location in Grand Prairie.
“We are excited to be in Grand Prairie today to mark the official launch of a new branch that will be ready to serve the people of this community in the next few months,” said Gerald Townsend, Chairman of the Board for Neighborhood Credit Union.
The new branch, at the intersection of West Bardin Road and Great Southwest Parkway, is due to open October 1, 2012. The Neighborhood Credit Union not only will provide a better way of banking to the Grand Prairie community, but also will focus on engaging students at nearby schools to establish a firm financial foundation for their future.
“Our mission is to build financial relationships in your neighborhood,” said Townsend. “We are not another big bank simply pushing products and services. We are a not-for-profit credit union that wants to help people from all walks of life improve their own financial life.”
Chet Kimmell, president and CEO of Neighborhood Credit Union, said the credit union hopes to be a draw to other businesses looking at or locating in Grand Prairie.
“This groundbreaking is symbolic of what we hope will be a trend: the decision by companies and organizations to invest in Grand Prairie and be part of this neighborhood,” said Kimmell. “We believe Grand Prairie is going places, given its forward-thinking leadership and the community’s focus on growth and economic development.”
Neighborhood Credit Union board members and staff were joined by State Rep. Rodney Anderson; Grand Prairie City Council members Bill Thorn and Richard Fregoe; City Manager Tom Hart; Gail Cannon, District Director for State Rep. Barbara Nash; Grand Prairie Chamber of Commerce officials Bill Moser and Greg Cashman, and other business leaders.
About Neighborhood Credit Union
Neighborhood Credit Union, the oldest credit union in Dallas (chartered April 18, 1930), is a not-for-profit financial organization serving Dallas and Ellis counties, as well as the city of Arlington. With branches in South Dallas, North Dallas, Richardson, Arlington, Mesquite, Duncanville, Waxahachie and Lancaster (and soon to be in Grand Prairie) and assets topping $300 million, Neighborhood Credit Union has a membership of 30,000 and continues to welcome new members daily. For more information on Neighborhood Credit Union, call (214) 748-9393 or visit http://www.myncu.com/.
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2012年2月23日星期四
2012年2月6日星期一
UK families £7,900 in debt
UK households owe an average of £7,900 on personal loans, overdrafts and credit cards.
UK families are typically £7,900 in debt from personal loans, overdrafts and credit cards, despite three years of paying them down, a report has found.
Meanwhile, credit card use could fall into permanent decline, with the rise of digital technology and payday lenders changing how people access credit, the Precious Plastic report from PricewaterhouseCoopers (PwC) said.
Each household paid off an average of around £355 of their unsecured debt in 2011, but UK households remain “among the most indebted in the world” despite three successive years of net repayments, the report said.
The report predicted UK consumers will continue their determination to pay down their debts, owing around £7,500 by 2013.
But it highlighted “worrying” signs in spending habits, particularly among the 25 to 34 age group, where a quarter have used credit to fund essential purchases in the last year.
Average incomes have fallen by nearly 3.5pc in real terms over the past year, squeezing budgets even further as consumers have faced soaring bills.
Simon Westcott, director in PwC’s financial services practice, said: “UK consumers are among the most indebted in the world, with the average UK household still saddled with nearly £8,000 of unsecured debt.
“Although the UK Government’s austerity drive appears to be hitting home, with households paying off an average of £355 worth of their debt in 2011, three years of austerity by UK consumers has only made a small dent in the total levels of borrowing.
“In addition to this, our credit confidence survey has shown that there is a growing reluctance to borrow in the future and a marked deterioration in confidence about meeting repayments, particularly among 18 to 24-year-olds.”
The report said that historically, the United States has been a strong indicator of what happens in the UK, but consumer credit in the US saw the largest increase in a decade in 2011.
It put the contrast in behaviour down to UK austerity policies, which have had “a strong influence on consumer confidence and attitudes towards debt in the UK”.
Bank of England figures showed last week that consumers cut their debts at the fastest rate in two decades during December, amid signs they dipped into savings to pay for Christmas.
Credit card borrowing was also flat for the third month in a row, despite the festive season.
The PwC report said that credit card borrowing fell by 5pc last year, leaving the average balance at around £1,000, with tightening credit conditions compounding the issue.
Meanwhile, debit cards grew by 10pc in 2011, to become used more frequently than cash in payments for the first time.
Mr Westcott continued: “Forty-five years since it was first introduced, the credit card is suffering a mid-life crisis.
“Consumers discarded nearly one million cards in 2011, taking the number of credit cards in circulation down to levels not seen for almost a decade.
“The longer term trend suggests that numbers will continue to decline, with the younger generation showing a preference for debit cards and emerging digital alternatives such as mobile payments.
“This generation seems unlikely to switch to increased credit card usage in later life, as perhaps they would have done in the past, suggesting that debit cards, mobile payments and other innovations will force the credit card into an ever decreasing market.”
He suggested there could be a general move towards charging annual fees as regulators push for more transparent ways of charging.
Mr Westcott said: “Other banking products are likely to go the same way as consumers and regulators look for simpler products and the free bank account may become a thing of the past.”
The report argued that the innovation and convenience offered by “alternative lenders” such as high interest payday loan companies was encouraging a broader selection of consumers to choose their services over banks.
Mr Westcott said: “Mainstream lenders need to be aware that what may have begun as a last resort could be an enduring relationship as consumers are pleasantly surprised at the convenient and innovative service they receive from these smaller, more agile providers.
“As these providers become more conventional, we are likely to see them venture further into the mainstream market with their own credit card, longer term loan products or even current accounts.”
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UK families are typically £7,900 in debt from personal loans, overdrafts and credit cards, despite three years of paying them down, a report has found.
Meanwhile, credit card use could fall into permanent decline, with the rise of digital technology and payday lenders changing how people access credit, the Precious Plastic report from PricewaterhouseCoopers (PwC) said.
Each household paid off an average of around £355 of their unsecured debt in 2011, but UK households remain “among the most indebted in the world” despite three successive years of net repayments, the report said.
The report predicted UK consumers will continue their determination to pay down their debts, owing around £7,500 by 2013.
But it highlighted “worrying” signs in spending habits, particularly among the 25 to 34 age group, where a quarter have used credit to fund essential purchases in the last year.
Average incomes have fallen by nearly 3.5pc in real terms over the past year, squeezing budgets even further as consumers have faced soaring bills.
Simon Westcott, director in PwC’s financial services practice, said: “UK consumers are among the most indebted in the world, with the average UK household still saddled with nearly £8,000 of unsecured debt.
“Although the UK Government’s austerity drive appears to be hitting home, with households paying off an average of £355 worth of their debt in 2011, three years of austerity by UK consumers has only made a small dent in the total levels of borrowing.
“In addition to this, our credit confidence survey has shown that there is a growing reluctance to borrow in the future and a marked deterioration in confidence about meeting repayments, particularly among 18 to 24-year-olds.”
The report said that historically, the United States has been a strong indicator of what happens in the UK, but consumer credit in the US saw the largest increase in a decade in 2011.
It put the contrast in behaviour down to UK austerity policies, which have had “a strong influence on consumer confidence and attitudes towards debt in the UK”.
Bank of England figures showed last week that consumers cut their debts at the fastest rate in two decades during December, amid signs they dipped into savings to pay for Christmas.
Credit card borrowing was also flat for the third month in a row, despite the festive season.
The PwC report said that credit card borrowing fell by 5pc last year, leaving the average balance at around £1,000, with tightening credit conditions compounding the issue.
Meanwhile, debit cards grew by 10pc in 2011, to become used more frequently than cash in payments for the first time.
Mr Westcott continued: “Forty-five years since it was first introduced, the credit card is suffering a mid-life crisis.
“Consumers discarded nearly one million cards in 2011, taking the number of credit cards in circulation down to levels not seen for almost a decade.
“The longer term trend suggests that numbers will continue to decline, with the younger generation showing a preference for debit cards and emerging digital alternatives such as mobile payments.
“This generation seems unlikely to switch to increased credit card usage in later life, as perhaps they would have done in the past, suggesting that debit cards, mobile payments and other innovations will force the credit card into an ever decreasing market.”
He suggested there could be a general move towards charging annual fees as regulators push for more transparent ways of charging.
Mr Westcott said: “Other banking products are likely to go the same way as consumers and regulators look for simpler products and the free bank account may become a thing of the past.”
The report argued that the innovation and convenience offered by “alternative lenders” such as high interest payday loan companies was encouraging a broader selection of consumers to choose their services over banks.
Mr Westcott said: “Mainstream lenders need to be aware that what may have begun as a last resort could be an enduring relationship as consumers are pleasantly surprised at the convenient and innovative service they receive from these smaller, more agile providers.
“As these providers become more conventional, we are likely to see them venture further into the mainstream market with their own credit card, longer term loan products or even current accounts.”
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Bank lending to shrink in 2012 – Ernst & Young
LONDON (Reuters) – Total bank lending in Britain is set to shrink for the first time since 2009 this year, and the lack of credit from mainstream banks will help payday loan firms grow further, a survey by the Ernst & Young ITEM club said on Monday.
The E&Y ITEM club forecast that total UK bank loans would shrink by 2.2 percent in 2012, having risen by an estimated 4.3 percent in 2011.
“We have been warning about the impact bank deleveraging could have on the economy for some time, but this is the first time there will be an annual contraction in total loans since 2009, when the UK economy was still suffering from the immediate effects of the global financial crisis,” said Neil Blake, senior economic adviser to the Ernst & Young ITEM Club.
Last year, Britain’s top banks, including the “Big Four” of Barclays, HSBC and part-nationalised lenders Lloyds and Royal Bank of Scotland, stuck a deal with the government in which they pledged to lend more to businesses in return for legislative restraint.
However, many small firms have said they are still not getting enough credit following the deal, known as “Project Merlin.”
As a result, both small businesses and consumers are turning increasingly to alternative lenders, such as firms that typically lend a few hundred pounds to clients for a week or two to tide them over until their next pay cheque.
Last month, payday loan companies Ferratum and Cash Converters both told Reuters they expected more growth this year, and the E&Y ITEM club said this sector was set to expand in 2012.
“Households that fall outside of the credit terms of traditional lenders are increasingly looking toward other credit providers, regardless of the cost. With banks expected to further tighten lending conditions, we expect the shift towards alternative lenders to continue unabated,” said Blake.
(Reporting by Sudip Kar-Gupta; Editing by Will Waterman)
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The E&Y ITEM club forecast that total UK bank loans would shrink by 2.2 percent in 2012, having risen by an estimated 4.3 percent in 2011.
“We have been warning about the impact bank deleveraging could have on the economy for some time, but this is the first time there will be an annual contraction in total loans since 2009, when the UK economy was still suffering from the immediate effects of the global financial crisis,” said Neil Blake, senior economic adviser to the Ernst & Young ITEM Club.
Last year, Britain’s top banks, including the “Big Four” of Barclays, HSBC and part-nationalised lenders Lloyds and Royal Bank of Scotland, stuck a deal with the government in which they pledged to lend more to businesses in return for legislative restraint.
However, many small firms have said they are still not getting enough credit following the deal, known as “Project Merlin.”
As a result, both small businesses and consumers are turning increasingly to alternative lenders, such as firms that typically lend a few hundred pounds to clients for a week or two to tide them over until their next pay cheque.
Last month, payday loan companies Ferratum and Cash Converters both told Reuters they expected more growth this year, and the E&Y ITEM club said this sector was set to expand in 2012.
“Households that fall outside of the credit terms of traditional lenders are increasingly looking toward other credit providers, regardless of the cost. With banks expected to further tighten lending conditions, we expect the shift towards alternative lenders to continue unabated,” said Blake.
(Reporting by Sudip Kar-Gupta; Editing by Will Waterman)
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2012年1月23日星期一
Anchorage condo king indicted on fraud, criminal charges
Four years after his financial world began collapsing, Anchorage condo king Lee Baker Jr. has been indicted by a federal grand jury on charges that he lied and cheated on federal credit union loans connected with his construction projects, the U.S. Attorney’s Office announced Friday.
The 14-count indictment accuses Baker, 55, of misleading Denali Alaskan Federal Credit Union in a number of transactions in 2005, including when he sought a loan to purchase and develop Lake View Estates in Wasilla.
Federal prosecutors allege that Baker created a series of land-sales transactions to obtain the loan under false pretenses, transferring Lake View Estates property from his company, Discovery Construction, to himself, then back to the company.
When he “sold” the land back to Discovery Construction, Baker told the credit union that a legitimate deal valued at $1.4 million had taken place, and sought the loan to finance it, prosecutors said. Instead, the indictment alleged, Baker used the money he obtained from the federally insured credit union to reduce his shareholder debt to Discovery Construction.
The indictment also accuses Baker of lying to the credit union when he drew down the proceeds of a $9.2 million construction loan for the Bryn Mawr apartment project on Northern Lights Boulevard in East Anchorage.
Normally, contractors tap into a construction loan as they complete phases of a project and the bills come due. Baker claimed to have completed 12 separate work phases, and each time obtained a chunk of the total loan.
In fact, the prosecutors alleged, “very little work had been done and the total amount completed in each request was false.”
Baker eventually defaulted on the loan, prosecutors said.
Baker also faces a count of money laundering for paying a subcontractor on a different project out of the Bryn Mawr money.
Baker faced a parade of lawsuits from subcontractors and suppliers in early 2008 as the local version of the national housing bubble began to burst and he stopped paying his bills.
Baker was known for building “site condos,” controversial developments where cheap houses were squeezed onto the smallest possible piece of land — in some cases, using access roads the size of alleys in which fire trucks were unable to maneuver.
In March 2008, the Denali credit union followed the contractors and other creditors, suing him and his company to recover $16 million in delinquent loans. The credit union said the delinquent loans were the main reason it lost $2.8 million in 2007.
In its lawsuit, the credit union accused Baker of fraud. Baker acknowledged that he defaulted on the loans, but denied fraud had anything to do with it.
Now it’s federal prosecutors accusing him of fraud and other criminal violations. The U.S. Attorney’s Office in Anchorage said the charges against Baker carry a maximum penalty of 30 years in prison and a $1 million fine, though judges rarely apply the maximum.
Baker couldn’t reached for comment.
In lawsuits and criminal cases filed across the country, the Justice Department has been targeting lenders, contractors, financial managers and others who contributed to the financial collapse associated with the burst U.S. housing bubble in the late 2000s.
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Federal prosecutors allege that Baker created a series of land-sales transactions to obtain the loan under false pretenses, transferring Lake View Estates property from his company, Discovery Construction, to himself, then back to the company.
When he “sold” the land back to Discovery Construction, Baker told the credit union that a legitimate deal valued at $1.4 million had taken place, and sought the loan to finance it, prosecutors said. Instead, the indictment alleged, Baker used the money he obtained from the federally insured credit union to reduce his shareholder debt to Discovery Construction.
The indictment also accuses Baker of lying to the credit union when he drew down the proceeds of a $9.2 million construction loan for the Bryn Mawr apartment project on Northern Lights Boulevard in East Anchorage.
Normally, contractors tap into a construction loan as they complete phases of a project and the bills come due. Baker claimed to have completed 12 separate work phases, and each time obtained a chunk of the total loan.
In fact, the prosecutors alleged, “very little work had been done and the total amount completed in each request was false.”
Baker eventually defaulted on the loan, prosecutors said.
Baker also faces a count of money laundering for paying a subcontractor on a different project out of the Bryn Mawr money.
Baker faced a parade of lawsuits from subcontractors and suppliers in early 2008 as the local version of the national housing bubble began to burst and he stopped paying his bills.
Baker was known for building “site condos,” controversial developments where cheap houses were squeezed onto the smallest possible piece of land — in some cases, using access roads the size of alleys in which fire trucks were unable to maneuver.
In March 2008, the Denali credit union followed the contractors and other creditors, suing him and his company to recover $16 million in delinquent loans. The credit union said the delinquent loans were the main reason it lost $2.8 million in 2007.
In its lawsuit, the credit union accused Baker of fraud. Baker acknowledged that he defaulted on the loans, but denied fraud had anything to do with it.
Now it’s federal prosecutors accusing him of fraud and other criminal violations. The U.S. Attorney’s Office in Anchorage said the charges against Baker carry a maximum penalty of 30 years in prison and a $1 million fine, though judges rarely apply the maximum.
Baker couldn’t reached for comment.
In lawsuits and criminal cases filed across the country, the Justice Department has been targeting lenders, contractors, financial managers and others who contributed to the financial collapse associated with the burst U.S. housing bubble in the late 2000s.
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2012年1月20日星期五
Credit Suisse Toxic Bonuses Rival Stock, Gold With 75% Returns
January 20, 2012, 12:44 AM EST
By Bradley Keoun
Jan. 20 (Bloomberg) — The toxic-asset bonuses given to senior Credit Suisse Group AG bankers at the depths of the 2008 financial crisis are turning out to be almost as good as gold.
Credit Suisse employees who got $5.05 billion of junk-grade loans and commercial-mortgage-backed bonds in late 2008 as part of annual bonuses have reaped gains of 75 percent on the payouts since the end of that year through Nov. 30, people with knowledge of the results said. Gold futures returned 98 percent in the period, while Credit Suisse’s shares declined 23 percent.
The gains, which also beat the 4.8 percent return of two- year Treasuries, show how the rebound in debt markets from the lows of 2008 has sweetened the Zurich-based bank’s executive bonuses compared with the cash and stock bonuses rivals paid.
“It worked out in favor of the employees,” said Ann Rutledge, a former Moody’s Investors Service analyst who’s now a principal at R&R Consulting in New York, which rates mortgage bonds and other asset-backed securities. Looking back, “market valuations would have been at all-time lows” when the internal asset pool was set up.
The stock-beating performance may help explain why Credit Suisse employees were eager to invest in a $450 million pool of residential mortgage bonds the bank created last month. Credit Suisse loaned employees the money to buy shares in the fund, and demand was so great that the bank could only fill 90 percent of the orders, the people said.
Chief Executive Officer Brady Dougan, now 52, said in December 2008 that the decision to transfer the assets to staff would position the firm “well for 2009” and strike the “appropriate balance” between employees, who might otherwise have suffered steeper pay cuts, and shareholders, who would have borne the risks of further declines.
Stock Slide
The company, which posted a loss of 8.2 billion francs ($8.8 billion) for 2008, recovered the following year with a 6.72 billion-franc profit. Suzanne Fleming, a company spokeswoman, said the fund’s results are private.
The Partner Asset Facility, or PAF, as the internal employee fund is known, has maintained gains even as the European sovereign-debt crisis weighed on Credit Suisse’s stock price. The bank’s shares, which surged 80 percent in 2009, tumbled 26 percent in 2010 and 41 percent last year.
Shares in PAF were given to about 2,000 senior Credit Suisse employees as part of their 2008 year-end bonuses, people with knowledge of the plan have said. The employees were given $800 million of equity in the fund, with Credit Suisse providing $4.25 billion of loans to bolster the fund’s buying power, the people said.
Drop Before Gain
While the plan relieved shareholders of risks, the timing proved to be a windfall for the employees. The S&P/LSTA U.S. Leveraged Loan 100 Index, which tracks prices for loans to companies with junk-grade credit ratings, fell that month to a record low of 59 cents on the dollar.
Initially, the value of the PAF shares fell, people with knowledge of the results said. As of February 2009, the equity in the PAF held 90 percent of its initial value, they said.
Then markets recovered. By May 2011, the value had doubled over the original, before sliding to the 75 percent gain estimated as of November, the people said.
The leveraged-loan index traded at 92 cents as of Jan. 13.
It could have turned out worse for the employees, said Anthony Sanders, a former Deutsche Bank AG analyst who’s now a finance professor at George Mason University in Fairfax, Virginia. Had the prices for leveraged loans or commercial mortgage-backed securities, known as CMBS, continued to plunge, “they would have gotten absolutely annihilated,” he said.
Subject to Change
The ultimate value of the PAF fund, overseen by Credit Suisse Managing Director Jonathan McHardy, won’t be determined until 2016, one person said. For now, employees’ investments are locked up, and their final payouts may change.
As of Nov. 30, assets in the PAF had been reduced to $2.6 billion, as some of the bonds and loans were paid off or sold, the people said. The equity is now estimated by the fund’s administrators at $1.4 billion.
In December, as the ratio of debt to equity in the fund shrank to less than 1-to-1 from more than 5-to-1, Credit Suisse set up the second fund, known as Expanded PAF. The move allows Credit Suisse to rid itself of residential mortgage bonds, while giving the employees a chance to use borrowed money to increase returns on their total investment, the people said.
As with the original fund, assets were transferred to the new fund at their estimated market value, people with knowledge of the matter said.
The mortgage market may be ripe for improvement, Sanders said.
“If you take a look at the data, housing prices are starting to stabilize,” Sanders said. “You’re starting to see a slowdown in serious delinquencies. So it’s like the CMBS play, it’s probably a good time.”
–With reporting by Christine Harper, Jody Shenn and Daniel Kruger in New York and Elena Logutenkova in Zurich. Editors: Peter Eichenbaum, David Scheer
To contact the reporter on this story: Bradley Keoun in New York at bkeoun@bloomberg.net.
To contact the editor responsible for this story: David Scheer at dscheer@bloomberg.net.
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By Bradley Keoun
Jan. 20 (Bloomberg) — The toxic-asset bonuses given to senior Credit Suisse Group AG bankers at the depths of the 2008 financial crisis are turning out to be almost as good as gold.
Credit Suisse employees who got $5.05 billion of junk-grade loans and commercial-mortgage-backed bonds in late 2008 as part of annual bonuses have reaped gains of 75 percent on the payouts since the end of that year through Nov. 30, people with knowledge of the results said. Gold futures returned 98 percent in the period, while Credit Suisse’s shares declined 23 percent.
The gains, which also beat the 4.8 percent return of two- year Treasuries, show how the rebound in debt markets from the lows of 2008 has sweetened the Zurich-based bank’s executive bonuses compared with the cash and stock bonuses rivals paid.
“It worked out in favor of the employees,” said Ann Rutledge, a former Moody’s Investors Service analyst who’s now a principal at R&R Consulting in New York, which rates mortgage bonds and other asset-backed securities. Looking back, “market valuations would have been at all-time lows” when the internal asset pool was set up.
The stock-beating performance may help explain why Credit Suisse employees were eager to invest in a $450 million pool of residential mortgage bonds the bank created last month. Credit Suisse loaned employees the money to buy shares in the fund, and demand was so great that the bank could only fill 90 percent of the orders, the people said.
Chief Executive Officer Brady Dougan, now 52, said in December 2008 that the decision to transfer the assets to staff would position the firm “well for 2009” and strike the “appropriate balance” between employees, who might otherwise have suffered steeper pay cuts, and shareholders, who would have borne the risks of further declines.
Stock Slide
The company, which posted a loss of 8.2 billion francs ($8.8 billion) for 2008, recovered the following year with a 6.72 billion-franc profit. Suzanne Fleming, a company spokeswoman, said the fund’s results are private.
The Partner Asset Facility, or PAF, as the internal employee fund is known, has maintained gains even as the European sovereign-debt crisis weighed on Credit Suisse’s stock price. The bank’s shares, which surged 80 percent in 2009, tumbled 26 percent in 2010 and 41 percent last year.
Shares in PAF were given to about 2,000 senior Credit Suisse employees as part of their 2008 year-end bonuses, people with knowledge of the plan have said. The employees were given $800 million of equity in the fund, with Credit Suisse providing $4.25 billion of loans to bolster the fund’s buying power, the people said.
Drop Before Gain
While the plan relieved shareholders of risks, the timing proved to be a windfall for the employees. The S&P/LSTA U.S. Leveraged Loan 100 Index, which tracks prices for loans to companies with junk-grade credit ratings, fell that month to a record low of 59 cents on the dollar.
Initially, the value of the PAF shares fell, people with knowledge of the results said. As of February 2009, the equity in the PAF held 90 percent of its initial value, they said.
Then markets recovered. By May 2011, the value had doubled over the original, before sliding to the 75 percent gain estimated as of November, the people said.
The leveraged-loan index traded at 92 cents as of Jan. 13.
It could have turned out worse for the employees, said Anthony Sanders, a former Deutsche Bank AG analyst who’s now a finance professor at George Mason University in Fairfax, Virginia. Had the prices for leveraged loans or commercial mortgage-backed securities, known as CMBS, continued to plunge, “they would have gotten absolutely annihilated,” he said.
Subject to Change
The ultimate value of the PAF fund, overseen by Credit Suisse Managing Director Jonathan McHardy, won’t be determined until 2016, one person said. For now, employees’ investments are locked up, and their final payouts may change.
As of Nov. 30, assets in the PAF had been reduced to $2.6 billion, as some of the bonds and loans were paid off or sold, the people said. The equity is now estimated by the fund’s administrators at $1.4 billion.
In December, as the ratio of debt to equity in the fund shrank to less than 1-to-1 from more than 5-to-1, Credit Suisse set up the second fund, known as Expanded PAF. The move allows Credit Suisse to rid itself of residential mortgage bonds, while giving the employees a chance to use borrowed money to increase returns on their total investment, the people said.
As with the original fund, assets were transferred to the new fund at their estimated market value, people with knowledge of the matter said.
The mortgage market may be ripe for improvement, Sanders said.
“If you take a look at the data, housing prices are starting to stabilize,” Sanders said. “You’re starting to see a slowdown in serious delinquencies. So it’s like the CMBS play, it’s probably a good time.”
–With reporting by Christine Harper, Jody Shenn and Daniel Kruger in New York and Elena Logutenkova in Zurich. Editors: Peter Eichenbaum, David Scheer
To contact the reporter on this story: Bradley Keoun in New York at bkeoun@bloomberg.net.
To contact the editor responsible for this story: David Scheer at dscheer@bloomberg.net.
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2012年1月17日星期二
Thai-ASEAN News Network – Financial Market Unaffected by Ratings Cut in EU and News on Terrorist Attacks
The central bank governor is confident that the credit rating downgrades of nine European nations and the news of possible terrorist attacks in Thailand will not have a significant impact on the country’s financial market.
Bank of Thailand, or BOT, Governor Prasarn Trairatworakul said that the credit rating downgrades of nine European nations by the leading credit rating agency Standard & Poor’s was in line with the global financial market’s expectation.
Prasarn further said that the ratings downgrade will have not much impact on Thailand’s financial markets since Thai financial institutions have invested a small amount of money in the bonds of the nine European countries.
As for the news of possible terrorist attacks in Bangkok, he said the situation would likely ease up soon and that investor confidence has not been affected.
Prasarn admitted that the rising energy cost resulting from the government’s planned energy structure adjustment will lead to an increase in food prices and that will push the inflation rate upward.
He noted that it is normal for people to come out and oppose against the energy price hike as they have used cheap energy, which is among the cost-saving measures, for a long time.
The central bank governor also gave an update on the BOT’s plan to repay the Financial Institutions Development Fund’s debt, saying the central bank plans to request state-run banks to contribute to the Deposit Protection Fund like private commercial banks do.
However, Prasarn stated that Finance Minister Thirachai Bhuvanartnaranubala disagreed with the plan, fearing its impact on the competition of financial institutions.
The BOT governor added that the finance minister has planned to control the scope of doing business and the expansion of state banks’ assets such as the issuance of loans to prevent inequality in financial institutions.
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Bank of Thailand, or BOT, Governor Prasarn Trairatworakul said that the credit rating downgrades of nine European nations by the leading credit rating agency Standard & Poor’s was in line with the global financial market’s expectation.
Prasarn further said that the ratings downgrade will have not much impact on Thailand’s financial markets since Thai financial institutions have invested a small amount of money in the bonds of the nine European countries.
As for the news of possible terrorist attacks in Bangkok, he said the situation would likely ease up soon and that investor confidence has not been affected.
Prasarn admitted that the rising energy cost resulting from the government’s planned energy structure adjustment will lead to an increase in food prices and that will push the inflation rate upward.
He noted that it is normal for people to come out and oppose against the energy price hike as they have used cheap energy, which is among the cost-saving measures, for a long time.
The central bank governor also gave an update on the BOT’s plan to repay the Financial Institutions Development Fund’s debt, saying the central bank plans to request state-run banks to contribute to the Deposit Protection Fund like private commercial banks do.
However, Prasarn stated that Finance Minister Thirachai Bhuvanartnaranubala disagreed with the plan, fearing its impact on the competition of financial institutions.
The BOT governor added that the finance minister has planned to control the scope of doing business and the expansion of state banks’ assets such as the issuance of loans to prevent inequality in financial institutions.
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2012年1月13日星期五
BSP microfinance support commended
Wednesday, January 11, 2012
CENTRAL Bank’s decision to extend until December 31, 2014 the regulatory exemption allowing small to medium enterprises (SMEs) to apply for bank loans without submitting audited financial statements and/or income tax returns will especially be beneficial to those living in rural areas.
“Micro, small and medium scale enterprises provide so many Filipinos with jobs and stable income so we should focus on providing them the funding they need to keep operating,” said Senator Edgardo Angara in yesterday’s statement to Sun.Star.
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“However, most of these small businesses lack the proper paperwork which prevents them from borrowing the capital they need so this extension is much needed.”
The Bangko Sentral ng Pilipinas said the three-year extension is aligned with the BSP’s long-standing thrust of providing support to micro-and small-enterprises by assisting these institutions gain greater access to credit from banks.
This is also to support entrepreneurs who are vital partners in the development of the financial market and of the broad economy. “This temporary exemption from existing regulations is aimed at finding ways to help these entrepreneurs obtain greater access to credit in terms of less documentary requirements that usually characterize bank loans.”
Angara said close to a million SMEs successfully borrowed from the BSP in 2011 with an average loan of P7,260 per proprietor but stressed that financial institutions should also strive to improve their credit information system so that loans are processed more efficiently. “With this, we can expect to improve the availability of credit especially to small borrower entrepreneurs.”
Angara authored the Credit Information System Act, which was signed into law in 2008 as Republic Act 9510. The law created the Credit Information Corporation, which aims to establish a comprehensive and centralized credit information scheme that will shorten processing time and reduce transaction costs.
“A reliable credit system will effectively address the need of financing institutions to check the track record of their borrowers, resulting in less credit risks and more stability,” he explained. (CGC)
CENTRAL Bank’s decision to extend until December 31, 2014 the regulatory exemption allowing small to medium enterprises (SMEs) to apply for bank loans without submitting audited financial statements and/or income tax returns will especially be beneficial to those living in rural areas.
“Micro, small and medium scale enterprises provide so many Filipinos with jobs and stable income so we should focus on providing them the funding they need to keep operating,” said Senator Edgardo Angara in yesterday’s statement to Sun.Star.
Ready for Sinulog 2012? Check here for updates.
“However, most of these small businesses lack the proper paperwork which prevents them from borrowing the capital they need so this extension is much needed.”
The Bangko Sentral ng Pilipinas said the three-year extension is aligned with the BSP’s long-standing thrust of providing support to micro-and small-enterprises by assisting these institutions gain greater access to credit from banks.
This is also to support entrepreneurs who are vital partners in the development of the financial market and of the broad economy. “This temporary exemption from existing regulations is aimed at finding ways to help these entrepreneurs obtain greater access to credit in terms of less documentary requirements that usually characterize bank loans.”
Angara said close to a million SMEs successfully borrowed from the BSP in 2011 with an average loan of P7,260 per proprietor but stressed that financial institutions should also strive to improve their credit information system so that loans are processed more efficiently. “With this, we can expect to improve the availability of credit especially to small borrower entrepreneurs.”
Angara authored the Credit Information System Act, which was signed into law in 2008 as Republic Act 9510. The law created the Credit Information Corporation, which aims to establish a comprehensive and centralized credit information scheme that will shorten processing time and reduce transaction costs.
“A reliable credit system will effectively address the need of financing institutions to check the track record of their borrowers, resulting in less credit risks and more stability,” he explained. (CGC)
Published in the Sun.Star Bacolod newspaper on January 11, 2012
2012年1月2日星期一
Financial Tips For A Budget Friendly New Year
(CBS Detroit) It’s almost the New Year and a challenging economy has taken a toll on many Americans, especially metro Detroiters, over the last few years.
Make 2012 the year you get a fresh start by making sound financial decisions and saving for the future to help weather financial storms. To start off the New Year right, the FINRA Investor Education Foundation is offering 12 practical tips that can help keep your finances on course in 2012.
Here are some of the 2012 financial education tips to consider:
Make 2012 the year you get a fresh start by making sound financial decisions and saving for the future to help weather financial storms. To start off the New Year right, the FINRA Investor Education Foundation is offering 12 practical tips that can help keep your finances on course in 2012.
Here are some of the 2012 financial education tips to consider:
- Start a Rainy Day Fund. Set aside at least one month of your current salary (and work your way up to three months) in a federally insured savings account. This will give you a cushion to handle medical bills, a short job loss, a surprise car repair or other financial emergency—and help keep your finances under control.
- Handle Credit Cards With Care. Keep your credit card spending in check and try to pay your credit cards in full. If you have accumulated holiday debt, pay it off as quickly as possible. If you cannot pay your whole monthly bill, at least pay more than the minimum due. Every dollar you pay above the minimum payment can reduce the amount of interest you will pay.
- Do a Background Check on Your Financial Professional. Far too few investors have reported checking the background of their investment professional with a state or federal regulator. Investing a few minutes of your time to take this free and easy step could save you time, money and other trouble down the road. FINRA BrokerCheck is a free tool that allows investors to check the professional background of brokerage firms and individual brokers.
- Shop Around For Financial Products. Comparison shopping for financial products—including credit cards, loans and investments—is as crucial as shopping around for a television or phone plan. Saving even a percentage point or two on a loan can make a big difference to your bottom line.
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Credit Agricole to cut jobs as loss looms
PARIS (Reuters) – Credit Agricole will make a 2011 loss, write off 2.5 billion euros ($3.2 billion) worth of assets and cut 2,350 jobs in a cull of its investment banking operations, the French bank said on Wednesday in its second profit warning of the year.
The warning reflects mounting pressure on lenders to curtail risky activities to meet tougher capital standards even as they wrestle worsening economies and slumping markets. The deepening euro zone debt crisis has slammed French banks in particular as traditional sources of dollar funding have evaporated.
“These are all things we would have expected to happen at some point, but putting it all in one quarter, in this kind of market, is unhelpful,” said a London based analyst who did not want to be named. “The stock is at bombed-out levels already … What will be key in how bad this gets is what they tell us about the ongoing business.”
The bank is following in the footsteps of larger domestic rivals BNP Paribasand Societe Generale , which have also announced job cuts primarily in investment banking as they seek to cut debt and wean themselves off funding markets frozen by the economic slump.
The pressure on the French banks’ capital and liquidity has led to recurring speculation that they could eventually seek a government bailout, but Credit Agricole Chief Executive Jean-Paul Chifflet denied that it would need any help in reaching stringent Basel III regulations.
“We will meet Basel III with our own resources,” he told a conference call.
That will call for some bitter medicine.
Credit Agricole, which in recent years abandoned its humble agricultural origins in favor of international growth, will exit 21 of the 55 countries where it operates and shutter entire businesses like equity derivatives and commodities.
MARKET TURMOIL
The writedown includes 1.3 billion euros to reflect the shrinkage of its investment banking division and 1.23 billion euros as writedowns of minority stakes, such as those in Spain’s Bankinterand Portugal’s Banco Espirito Santo .
Chifflet said in an interview with Les Echos newspaper that the bank was mulling the sale of stakes in both lenders, although he ruled out the sale of its holding in its Newedge joint venture with Societe Generale.
The bank also shelved its 2014 financial goals and eliminated its dividend for this year to preserve capital.
Analysts had expected France’s No. 3 lender to post a full-year profit of 2.4 billion euros after it was profitable in all previous quarters.
In July, Credit Agricole warned that deepening problems at its Emporiki Bank unit in Greece would wipe nearly 1 billion euros off its first-half results.
The job losses include 1,750 at Credit Agricole’s corporate and investment bank, which employs 13,000 people, and 600 at its factoring and consumer finance arms.
The bulk of the job losses will take place internationally, although 550 investment banking and 300 consumer finance jobs will be cut in France.
Credit Agricole shares slumped 6.7 percent to close at 4.23 euros, part of a wider rout in French banking shares which saw Societe Generaleslide 8 percent and BNP Paribas lose 7.4 percent.
More than six months of intense market turmoil sparked by the euro zone debt crisis is pummeling investment banks globally, denting their bond and stock trading income and sparking a wave of layoffs in Asia, the U.S. and Europe.
JOB LOSS TALLY GROWS
Citigroup was last week among the latest to press ahead with job cuts, while banks in some of the crisis hotspots — such as Italy’s UniCreditand Intesa Sanpaolo — are also laying off thousands of people.
More than 120,000 job losses have been announced this year, and many in the industry fear the tally will be greater than at the height of the financial crisis in 2008, as redundancies continue into 2012.
Like its French rivals, Credit Agricole is primarily pulling back in certain financing businesses, such as those in dollars, which have become harder for it to access, and will cut staff accordingly.
It also has a European equity broker, Chevreux, and a majority stake in Asian brokerage CLSA. But the bulk of cuts are likely to fall in fixed-income, which houses its rates and credit divisions, analysts said.
Credit trading in particular has come under pressure at all banks this year as wary investors shy away from the market and new regulation bites.
The recently appointed Chifflet has espoused a back-to-basics focus on retail banking in France and Europe after moves like the purchase of Emporiki backfired, rendering it deeply sensitive to turmoil in the eurozone economy.
Chifflet’s team is mulling various ways of bolstering the bank’s balance sheet, banking sources say, even though Credit Agricole’s robust parent network of regional banks has provided a cushion that has made raising additional capital unnecessary.
This may include more deal-making. The bank is close to announcing the sale of its private-equity activities, while it has also struck a $374 million deal to sell minority stakes in its CLSA and Cheuvreux brokerage brands to Chinese brokerage Citic Securities .
While Credit Agricole would be open to letting Citic increase its stake in the ventures — now at 19.9 percent — it aims to at least keep majority control, according to a person familiar with the bank’s thinking.
(Editing by David Holmes)
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The warning reflects mounting pressure on lenders to curtail risky activities to meet tougher capital standards even as they wrestle worsening economies and slumping markets. The deepening euro zone debt crisis has slammed French banks in particular as traditional sources of dollar funding have evaporated.
“These are all things we would have expected to happen at some point, but putting it all in one quarter, in this kind of market, is unhelpful,” said a London based analyst who did not want to be named. “The stock is at bombed-out levels already … What will be key in how bad this gets is what they tell us about the ongoing business.”
The bank is following in the footsteps of larger domestic rivals BNP Paribas
The pressure on the French banks’ capital and liquidity has led to recurring speculation that they could eventually seek a government bailout, but Credit Agricole Chief Executive Jean-Paul Chifflet denied that it would need any help in reaching stringent Basel III regulations.
“We will meet Basel III with our own resources,” he told a conference call.
That will call for some bitter medicine.
Credit Agricole, which in recent years abandoned its humble agricultural origins in favor of international growth, will exit 21 of the 55 countries where it operates and shutter entire businesses like equity derivatives and commodities.
MARKET TURMOIL
The writedown includes 1.3 billion euros to reflect the shrinkage of its investment banking division and 1.23 billion euros as writedowns of minority stakes, such as those in Spain’s Bankinter
Chifflet said in an interview with Les Echos newspaper that the bank was mulling the sale of stakes in both lenders, although he ruled out the sale of its holding in its Newedge joint venture with Societe Generale.
The bank also shelved its 2014 financial goals and eliminated its dividend for this year to preserve capital.
Analysts had expected France’s No. 3 lender to post a full-year profit of 2.4 billion euros after it was profitable in all previous quarters.
In July, Credit Agricole warned that deepening problems at its Emporiki Bank unit in Greece would wipe nearly 1 billion euros off its first-half results.
The job losses include 1,750 at Credit Agricole’s corporate and investment bank, which employs 13,000 people, and 600 at its factoring and consumer finance arms.
The bulk of the job losses will take place internationally, although 550 investment banking and 300 consumer finance jobs will be cut in France.
Credit Agricole shares slumped 6.7 percent to close at 4.23 euros, part of a wider rout in French banking shares which saw Societe Generale
More than six months of intense market turmoil sparked by the euro zone debt crisis is pummeling investment banks globally, denting their bond and stock trading income and sparking a wave of layoffs in Asia, the U.S. and Europe.
JOB LOSS TALLY GROWS
Citigroup was last week among the latest to press ahead with job cuts, while banks in some of the crisis hotspots — such as Italy’s UniCredit
More than 120,000 job losses have been announced this year, and many in the industry fear the tally will be greater than at the height of the financial crisis in 2008, as redundancies continue into 2012.
Like its French rivals, Credit Agricole is primarily pulling back in certain financing businesses, such as those in dollars, which have become harder for it to access, and will cut staff accordingly.
It also has a European equity broker, Chevreux, and a majority stake in Asian brokerage CLSA. But the bulk of cuts are likely to fall in fixed-income, which houses its rates and credit divisions, analysts said.
Credit trading in particular has come under pressure at all banks this year as wary investors shy away from the market and new regulation bites.
The recently appointed Chifflet has espoused a back-to-basics focus on retail banking in France and Europe after moves like the purchase of Emporiki backfired, rendering it deeply sensitive to turmoil in the eurozone economy.
Chifflet’s team is mulling various ways of bolstering the bank’s balance sheet, banking sources say, even though Credit Agricole’s robust parent network of regional banks has provided a cushion that has made raising additional capital unnecessary.
This may include more deal-making. The bank is close to announcing the sale of its private-equity activities, while it has also struck a $374 million deal to sell minority stakes in its CLSA and Cheuvreux brokerage brands to Chinese brokerage Citic Securities .
While Credit Agricole would be open to letting Citic increase its stake in the ventures — now at 19.9 percent — it aims to at least keep majority control, according to a person familiar with the bank’s thinking.
(Editing by David Holmes)
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Credit Agricole to cut 2,350 jobs: union source
PARIS (Reuters) – Credit Agricole is to cut 2,350 jobs, primarily in investment banking, a union source told Reuters Wednesday, as the French bank slashes costs and ploughs ahead with a back-to-basics strategy sped up by the eurozone debt crisis.
The job losses include 1,750 at Credit Agricole‘s corporate and investment bank, which employs 13,000 people, the source said, and 600 job at its factoring and consumer finance arms.
The source added 500 of the corporate and investment banking jobs would be shed in France.
A second trade union source confirmed the 1,750 figure.
A Credit Agricole spokeswoman declined to comment.
Banking sources have said the bank may exit up to 20 of the 50 countries where its corporate and investment bank is present.
The bank is following in the footsteps of larger domestic rivals BNP Paribasand Societe Generale , which have announced job cuts primarily in investment banking as they seek to cut debt and wean themselves off funding markets frozen by the economic slump.
Shares of Credit Agricole were down 1.7 percent, at 4.45 euros, at 1126 GMT, underperforming a 0.94 percent drop in the STOXX Europe bank index <.sx7p>. Its stock price has fallen 52.4 percent year to date, against a 34.2 percent drop in the sector.
More than six months of intense market turmoil sparked by the euro zone debt crisis is pummeling investment banks globally, denting their bond and stock trading income and sparking a wave of layoffs in Asia, the U.S. and Europe.
Citigroup was last week among the latest to press ahead with job cuts, while banks in some of the crisis hotspots — such as Italy’s UniCreditand Intesa Sanpaolo — are also laying off thousands of people.
More than 120,000 job losses have been announced this year, and many in the industry fear the tally will be greater than at the height of the financial crisis in 2008, as redundancies continue into 2012.
Like its French rivals, Credit Agricole is primarily pulling back in certain financing businesses, such as those in dollars, which have become harder for it to access, and will cut staff accordingly.
It also has a European equity broker, Chevreux, and a majority stake in Asian brokerage CLSA. But the bulk of cuts are likely to fall in fixed-income, which houses its rates and credit divisions, analysts said.
Credit trading in particular has come under pressure at all banks this year as wary investors shy away from the market and new regulation bites.
Credit Agricole’s strategy under new Chief Executive Jean-Paul Chifflet, who has espoused a back-to-basics focus on retail banking in France and Europe, is a retreat from previous management ambitions of being a global player in financial markets.
The bank is deeply sensitive to ongoing turmoil in the eurozone economy, not just because it holds a substantial amount of Italian government debt but also because it owns local bank subsidiaries in crisis-wracked Greece and Italy.
Chifflet’s team is mulling various ways of bolstering the bank’s balance sheet, banking sources say, even though Credit Agricole’s robust parent network of regional banks has provided a cushion that has made raising additional capital unnecessary.
This may include more deal-making. The bank is close to announcing the sale of its private-equity activities, while it has also struck a $374 million deal to sell minority stakes in its CLSA and Cheuvreux brokerage brands to Chinese brokerage Citic Securities .
While Credit Agricole would be open to letting Citic increase its stake in the ventures — now at 19.9 percent — it aims to at least keep majority control, according to a person familiar with the bank’s thinking.
(Additional reporting by Sarah White in London; Editing by Jodie Ginsberg and David Hulmes)
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The job losses include 1,750 at Credit Agricole‘s corporate and investment bank, which employs 13,000 people, the source said, and 600 job at its factoring and consumer finance arms.
The source added 500 of the corporate and investment banking jobs would be shed in France.
A second trade union source confirmed the 1,750 figure.
A Credit Agricole spokeswoman declined to comment.
Banking sources have said the bank may exit up to 20 of the 50 countries where its corporate and investment bank is present.
The bank is following in the footsteps of larger domestic rivals BNP Paribas
Shares of Credit Agricole were down 1.7 percent, at 4.45 euros, at 1126 GMT, underperforming a 0.94 percent drop in the STOXX Europe bank index <.sx7p>. Its stock price has fallen 52.4 percent year to date, against a 34.2 percent drop in the sector.
More than six months of intense market turmoil sparked by the euro zone debt crisis is pummeling investment banks globally, denting their bond and stock trading income and sparking a wave of layoffs in Asia, the U.S. and Europe.
Citigroup was last week among the latest to press ahead with job cuts, while banks in some of the crisis hotspots — such as Italy’s UniCredit
More than 120,000 job losses have been announced this year, and many in the industry fear the tally will be greater than at the height of the financial crisis in 2008, as redundancies continue into 2012.
Like its French rivals, Credit Agricole is primarily pulling back in certain financing businesses, such as those in dollars, which have become harder for it to access, and will cut staff accordingly.
It also has a European equity broker, Chevreux, and a majority stake in Asian brokerage CLSA. But the bulk of cuts are likely to fall in fixed-income, which houses its rates and credit divisions, analysts said.
Credit trading in particular has come under pressure at all banks this year as wary investors shy away from the market and new regulation bites.
Credit Agricole’s strategy under new Chief Executive Jean-Paul Chifflet, who has espoused a back-to-basics focus on retail banking in France and Europe, is a retreat from previous management ambitions of being a global player in financial markets.
The bank is deeply sensitive to ongoing turmoil in the eurozone economy, not just because it holds a substantial amount of Italian government debt but also because it owns local bank subsidiaries in crisis-wracked Greece and Italy.
Chifflet’s team is mulling various ways of bolstering the bank’s balance sheet, banking sources say, even though Credit Agricole’s robust parent network of regional banks has provided a cushion that has made raising additional capital unnecessary.
This may include more deal-making. The bank is close to announcing the sale of its private-equity activities, while it has also struck a $374 million deal to sell minority stakes in its CLSA and Cheuvreux brokerage brands to Chinese brokerage Citic Securities .
While Credit Agricole would be open to letting Citic increase its stake in the ventures — now at 19.9 percent — it aims to at least keep majority control, according to a person familiar with the bank’s thinking.
(Additional reporting by Sarah White in London; Editing by Jodie Ginsberg and David Hulmes)
http://tourism9.com/
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