Salient to Investors: Mark Calabria at the Cato Institute said the push for revisiting Dodd-Frank is absolutely driven by a sense that Dodd-Frank did not end too big to fail. Camden Fine at Independent Community Bankers of America said that before the end of 2016 we will get a significant step
READ MORE... →Salient to Investors: Climbing home prices are lifting household wealth and boosting the purchasing power of consumers. Declining mortgage delinquencies and foreclosures are giving banks greater leeway to lend. Rising property-tax revenue is alleviating pressure on state and local governments to cut budgets. Mark Zandi at Moody’s Analytics said the housing
READ MORE... →Salient to Investors: JPMorgan Chase Private Bank put individuals and families with more than $5 million into a partnership that bought over 5,000 single family homes to rent in Florida, Arizona, Nevada and California. David Lyon at JPMorgan said investors can expect returns of up to 8 percent annually from rental income as well
READ MORE... →Salient to Investors: Indonesian lenders are the most profitable among the 20 biggest economies with average return on equity is 23 percent for the country’s five biggest banks, versus 21 percent for Chinese banks of the same size, 20 percent for Canadian banks, and 9 percent for US banks. Indonesian banks are
READ MORE... →Salient to Investors: Economics Fanatic writes: The top 100 banks in the U.S. had an 88% market share in Q3 2012 versus 84% in 2010 – if this trend continues, the next banking crisis will be bigger than the 2008-09 crisis. Excessive risk taking is predominant in these institutions. Regulators
READ MORE... →Salient to Investors: Coalition Ltd say investment banks are cutting jobs in equities faster than any other division. Tabb Group says trades that require human involvement cost 2.05 cents per share versus 1.08 cent for those done by computer. Mike Di Iorio at Barclays Capital says the way the business has been run will
READ MORE... →Salient to Investors: Warren Buffett said banks have rebuilt capital and no longer poses a threat to the economy – capital ratios are huge and excesses on the asset side are largely gone . Berkshire invests in at least 4 of the 7 biggest U.S. lenders by assets, including Wells Fargo, Bank of America, Goldman Sachs,
READ MORE... →Salient to Investors: Barry Ritholtz at The Big Picture says: Obama has nowhere to go but up in selecting the new Treasury Secretary as Larry Summers and Tim Geithner were asleep at the switch when the crisis occurred and were there to help the banks and not service the taxpayers.
READ MORE... →Salient to Investors: Jay Schwister at Baird Advisors said Pimco underestimated how big the policy response would be and what type of positive impact it would have on financial markets, despite the new normal they forecast is playing out. Saumil Parikh at Pimco said policy distortions cannot continue indefinitely, so 2013
READ MORE... →Salient to Investors: Employees at the biggest Wall Street banks experienced job cuts, lower pay and tarnished reputations in 2012, while the S&P 500 Financial Index is up 27 percent year to date, its largest annual increase since 2003. Davide Serra at Algebris Investments said the pendulum has totally shifted and it’s better to be a bondholder
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