Search Results for 'Earnings'


Analysis of State Street Bank Puts Congress' Volcker Rule to the Financial Crisis Test July 19, 2010 A former bank executive contends that the controversial Volcker Rule would have greatly mitigated losses by many financial institutions during the economic crisis. The finding, which comes as the financial reform bill is about to head for President Obama’s signature, arises from an extensive... Continued... Indexed by: Earnings \| Legislation
Four Ways to Make Incentive Pay Sensitive to Risk June 28, 2010 Risk Adjustment of Awards: Adjust the employee's incentive pay based on measures that take into account the risk their activities pose to the bank. Use quantitative measures or your best judgment. Deferral of Payment: Delay the actual payout "significantly beyond the end of the performance... Continued... Indexed by: Earnings \| Management \| Regulation
Banking Regulators Take Fed’s Lead, Adopt New Compensation Guidelines June 28, 2010 Examiners will be examining your incentive compensation arrangements as part of their evaluation of your “risk-management, internal controls and corporate governance” and making their findings part of your CAMELS score, according to the Guidance on Sound Incentive Compensation Policies... Continued... Indexed by: Earnings \| Management \| Regulation
Alternative Proposal for Credit Agency Reform June 21, 2010 Though ratings inflation and low-quality ratings are “legitimate targets of reform,” the Congressional proposals would only “tinker” with the rating process in “ways that have little hope of fixing either,” warns Charles Calomiris, a professor of financial... Continued... Indexed by: Earnings \| Regulation
Credit Ratings Agency Overhaul Plan Would Impact Bank Capital, Lending, Investments June 21, 2010 A significant but largely overlooked piece of the financial reform bill being finalized over the next two weeks in Congress – reform of credit ratings agencies – could have a direct effect on bank capital, commercial real estate lending, investments and even correspondent... Continued... Indexed by: Capital Adequacy \| Earnings \| Regulation
An Example of Excess: Money Center Banks and Overdraft Fees June 14, 2010 The issue of overdraft fees, in particular, serves as an example for economist Mike Moebs of the danger of growing beyond your economy of scale. He points out that because expenses are out of line, many money center banks have increased such fees to $35. This has caused many consumers to substitute... Continued... Indexed by: Earnings \| Management
The Big 3 Benchmarks June 14, 2010 Economist Mike Moebs recommends these three benchmarks as ones that can turn any bankinto a powerhouse: *Non-interest expenses: 2.5% of assets or less. The average at the money center banks that received stress tests last year is about 3.28%, Moebs says, meaning there is $210 billion in excess... Continued... Indexed by: Earnings \| Management
With Fee Income Squeezed, Economist Pinpoints 3 Benchmarks for Success June 14, 2010 This summer offers a perfect storm for banks that rely on fee income. It begins with the July 1st implementation of a Fed rule limiting overdraft fees and continues days later with the likely passage of financial reform and its regulation of interchange fees. By late August, banks also will see... Continued... Indexed by: Earnings \| Management
Examiners Taking Hard Look at ALLL Methodologies and Assumptions April 12, 2010 Expect tough questions from your examiner about the quality of your loan portfolio and whether you relied on the right assumptions when setting aside your allowance for loan and lease losses (ALLL). If you primarily relied on historical loan loss rates to predict future losses, you could be in... Continued... Indexed by: Accounting \| Earnings \| Exams/Enforcement
Under the Stimulus Plan, SBA Loans can Become Less-Risky Earnings March 30, 2009 Banks looking for an avenue to boost lending - and share the risk - may want to take another look at SBA loans, particularly the 504 two-lender option rather than the more direct 7(a) program. The Obama Administration is offering SBA sweeteners as part of its stimulus plan to entice banks to begin lending. Continued... Indexed by: Earnings \| Legislation