The Corner Office
Ron Hermance, Chairman and CEO of Hudson City Bancorp, is a bit of a rock star these days. US Banker Editorial Director Holly Sraeel gets to the bottom of why Hudson City's performance has been so stellar, and what Hermance sees in store for the rest of the industry.
Big Banks Tackle Environmental Responsibility
In this week's Project Green video segment, hear from Matt Arnold, co-founder of Sustainable Finance Ltd., about environmental initiatives the largest U.S. banks are taking, and the challenges they face.
May 2008
House of CARDS
After Bank of America’s rescue of Countrywide, few are feeling the pain more sharply than one of the nation’s largest lenders, Washington Mutual. Now stuck with a portfolio of bad loans, WaMu is depending on its sluggish retail bank for survival. Moreover, a recent injection of private-equity money and a new executive pay scheme are outraging investors. Can CEO Kerry Killinger right the ship? It’s a gamble shareholders might not be willing to take.
Mid-Tier Ranking
Playing Both Ends Against the Middle
The mid-tier performers that rode out the tumultuous waves of 2007 still have to contend with difficult market conditions this year. But despite the crisis of confidence prompting many institutions to pull back on credit, the smartest banks are those that choose their investments and loan partners wisely.
The Economy
Moral Hazard? A Greater Hazard Lurks.
The Fed’s involvement in Bear Stearns’ sale to JPMorgan Chase has created much concern about “moral hazard.” But the real hazard now is Treasury Secretary Henry Paulson’s proposed regulatory blueprint.
Main Street
Banks are Failing — But It’s Nothing Like the Old Days
Perhaps a little perspective is in order. During the height of the S&L crisis, hundreds of banks were dropping like flies each year. These days, a single bank failure in a fiscal quarter makes national news.
Front & Center
Extended Hours: Longer Hours Correlate To Higher Deposit Growth
TD Commerce is onto something, according to MapInfo, a Troy, NY-based branch-performance technology and consulting firm owned by Pitney Bowes. It estimates that the average U.S. branch gains 0.3 percent in deposits annually for each “extended” hour it’s open.
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Trading
JPMorgan's Big Score: Prime Brokerage Business
Bear Stearns deal adds 1,000 hedge fund clients
There are plenty of unknowns about how the acquisition of Bear Stearns by JPMorgan Chase will play out. But one aspect that seems pretty clear is that JPMorgan has established itself as a major prime brokerage player.
Word Is...
SEC Allows Shareholder Vote On Equator Principles Proposal
Shareholders of Citi and Bank of America have a right to know the green-washing policies of the banks’ lending policies, the Securities and Exchange Commission says. “In rejecting the banks’ efforts to block shareholder proposals ...the SEC decided they have the right to know whether banks are walking the walk or just talking the talk when it comes to environmental initiatives like the Equator Principles,” said Steve Milloy of Action Fund Management,
Hits and Has-Beens
Big moves afoot at Citi; former BofA, Countrywide execs land anew..
Fast Forward
Energy Conservation: How Green Is Green?
The Green movement is gaining momentum in financial services, but executives are finding that it’s far easier to cut off the financing of dirty industries like coal-fired power plants than it is to get their own houses in order—even when major cost savings beckon.
Inside Track
Plan Draws Lukewarm Response
Few industry observers believe Treasury Secretary Henry Paulson’s regulatory proposal is the answer to all that ails the marketplace. However, the blueprint may be the first key step.
When Banks Thrive, Clients Should Know
Marketers are promoting the good news that some institutions are doing just fine, lest they get caught in the downward spiral of negative press surrounding most banks.
Ad Beat
HSBC Trots the Globe To Pursue Mass Affluent
Airport ads target the globally minded with photographic images that cross cultures and geographic boundaries. But does the campaign succeed closer to home?
Creating a Haven of Comfort For the Rich to Do Business
The mass affluent know how to live and a bank looking to appeal to this segment simply cannot afford to have a branch whose look hasn't been updated in two decades.
Small Business
Seeing Where and When To Snag Future Retirees
When pitching retirement plans, banks often pass over small businesses with fewer than than 100 employees. That’s a big mistake. Getting in on the ground floor may yield decades-long relationships.
Consumer Finance
As the Credit Crisis Grinds On, Lending Falls Off the Cliff
Only those with pristine credit will have an easy time getting credit. In the home-equity sector, mortgage issuance is projected to drop a staggering 72 percent. And say goodbye to exotic mortgages.
Op-Ed
What Have You Done For Me Lately?
When it comes to choosing a credit card today, consumers — that means all of us — are sitting in the drivers’ seat. With dozens of competing offers to choose from, we can afford to be as selective as we like. Increasingly, that has meant selecting from rewards-based cards that pay us for our loyalty. This is great for us when we’re wearing our consumer hats. But as retail bankers, credit-card issuers, merchants and payments-network officials, it means the stakes for securing loyalty have rivesn.
Wealth Management
The Best Modern Advice Harkens from the Past
Is there room for yet another private bank in the hyper-affluent Northeast? Executives at The Modern Bank believe so, and they’re bringing the personal touch — and also a little star power.
