The Financial Services Club's Blog

The Top Bank Ads of 2009

Various sites rate banking ads in different ways.  Here are a few of my favourites this year.

Probaby the one that garnered most attention from a traditional bank is this one from Barclays:

... immensely popular for some reason.  

However, most ads have been from mutuals and credit unions, having a cheap shot at the banks for obvious reasons. For example, here's a good one:

Then there's the ad series that gets all the plaudits. The series was created for the launch of Ally Bank, a division of GMAC, in the USA and uses children to illustrate the ridiculous terms that banks sometimes impose. 

Here is an example:

My favourite of these style of ads this year has to be this one from Associated Credit Union however:

Oink, oink!

Finally, there are the more "in your face" ads which was clearly won by this Aussie one from Virgin Money:

I just hope I'm as interested when I get to be that mature.

Happy New Year to all of you, and the blog's back up and running on Monday.

The Top Stories of 2009

The seventh most popular word on my list for 2009 of the most commonly used new words is 'hashtag'. 

The hashtag - '#' - is used to preface a word on twitter so you can show it's really relevant to that subject, rather than loosely related to it.

For example, searching for #lost should find things that are more likely about Lost, the TV Show, than people just tweeting "I lost my wallet", you would hope.

So I might talk about banks as '#banks'.  This creates an index category where, whenever anyone tweets about #banks, it will all be in a searchable list like so:

So what were the top hashtag subjects of 2009?

Well, here's the official list from Twitter:

 

... and you can see that there's a whole range of things in there from Susan Boyle to Harry Potter. Mashable then did a very nice analysis of these tags to come up with a view as to what these tweets tell us about our lives today.

Meanwhile, if you were wondering, here are the most searched for terms on Google from young users:

I do wonder why under seven-year olds are searching for 'porn', but there you go.

Meantime, being a banking oriented person, the top stories in 2009 related to banking according to Google includes:

• World markets stung by banking worries
• Man latest to plead guilty in federal probe of Swiss banking giant UBS
• House banking panel votes to regulate derivatives
• Bank of America to repay bailout
• World stocks hit by banking fears, Barclays slumps

Hmmm ... seems about right to me.

Finally, my favourite story of 2009 has to be this one:

The Mystery of Ireland's Worst Driver

Details of how police in the Irish Republic finally caught up with the country's most reckless driver have emerged, the Irish Times reports.

He had been wanted from counties Cork to Cavan after racking up scores of speeding tickets and parking fines.

However, each time the serial offender was stopped he managed to evade justice by giving a different address.

But then his cover was blown.

It was discovered that the man every member of the Irish police's rank and file had been looking for - a Mr Prawo Jazdy - wasn't exactly the sort of prized villain whose apprehension leads to an officer winning an award.

In fact he wasn't even human.

Prawo Jazdy is actually the Polish for driving licence and not the first and surname on the licence.

The Top Ten New Words of 2009

2009 has been a year that has seen a lot of hate, fuelled by anger towards banks that have taken taxpayer's bailouts and then paid big bonuses.  It's also a year that has seen a lot of sharing, thanks to the success of Twitter and social networks like Facebook.  

So it's no wonder that the top ten new words for 2009, according to my own recollection of the year, are:

#10 BAB 
A City acronym for “Bonuses Are Back”.

#9 Taxodus 
The threatened exodus of financiers scared of higher taxes on their multimillion pound bonuses.

#8 Unfriend
To drop someone from your social network.

#7 Hashtag 
The new twitter phenomena to categorise stuff.

#6 Tweet
Sure it was around in 2008 but, in 2009, tweets became part of our lingo

#5 The Funemployed 
Those out-of-work and enjoying it.

#4 Staycation 
The idea we were going to have a glorious summer so we vacationed at home.

#3 Vampire Squid
The new nickname for Goldman Sachs.

#2 Zombie Bank  
A bank that is no more. It has ceased to be. It is a former bank. 

#1 Bankster 
A combination of banker and gangster.

Things worth reading: 24th December 2009

It's Christmas.

Stop reading about banks.

But if you really want to read something then here's one last story for the year, courtesy of the Sunday Times:

Market-research firms such as Nielsen, Barb, Rajar and the Internet Advertising, along with stats from Google and Amazon, have identified the following lifestyle habits in Britain on Christmas Day:

• Half of us spend Christmas at home

• A third of us travel to spend it with another family member

• 1.2 million spend the day at a hotel (Britian has just over 60 million people)

• 1.8 million people surreptitiously work on Christmas Day

• 15 million (a quarter!) send e-mails on Christmas Day, while 12 million (a fifth) used social networking sites

• Facebook was the most popular site after Google, with six million people changing their status update on the day - roughly the same number who checked their bank balance online (that's 1 in 10 citizens checking their banking!)

• That is because six million people in Britain (1 in 10)  went shopping online on Christmas Day, spending £102 million last year — up 20% on 2007 – and that should reach £120 million this year according to Google

• Three million watch videos online, which might include the Queen’s Christmas message which was first posted on YouTube in 2007, where it was viewed one million times compared to its terrestrial TV viewing figures of seven million

• 24.4 million watch TV on Christmas Day, up by 600,000 viewers from 2007

• 94.2% of Christmas Day viewing by adults aged 16-24 took place in the living room, as did 95.2% of children’s viewing, although 16-24s usually watch 25% less telly than other adults and tend to watch on their bedroom systems

• 22% of us will have leave out carrots for Rudolph

• Those with family get up at about 8:00 and start present opening at 8:20

• Around 11.00 is when the first BlackBerrys fire up as people start secretly working

• The main meal is eaten at 15:24, and the first person falls asleep just before 17:00

• At about the same time, 17:30, we all get hit by waves of nostalgia which leads to getting the board games out at 17:46 (sales were up by 16.5% this year).

• Finally, we’re in bed by 23:39

Have a great Christmas folks and will be back here next week.

Oh yes, and just in case you need to be reminded, get off your facebook for Christmas.

The twelve banking days of Christmas

Thinking about Christmas now, so here's one of my last blogs to celebrate the festive season in a banking context.

Sing along ...

On the first day of Christmas my banker sent to me, nothing that I could get for free.

On the second day of Christmas my banker sent to me, two fingers raised and nothing that I could get for free.

On the third day of Christmas my banker sent to me, three percent for processing, two fingers raised and nothing that I could get for free.

On the fourth day of Christmas my banker sent to me, four requests for payment, three percent for processing, two fingers raised and nothing that I could get for free.

On the fifth day of Christmas my banker sent to me, FIVE BAIL OUTS ... four requests for payment, three percent for processing, two fingers raised and nothing that I could get for free.

On the sixth day of Christmas my banker sent to me, six sick employees,  FIVE BAIL OUTS ... four requests for payment, three percent for processing, two fingers raised and nothing that I could get for free.

On the seventh day of Christmas my banker sent to me, seven charges for borrowing, six sick employees,  FIVE BAIL OUTS ... four requests for payment, three percent for processing, two fingers raised and nothing that I could get for free.

On the eight day of Christmas my banker sent to me, eight points for debits, seven charges for borrowing, six sick employees,  FIVE BAIL OUTS ... four requests for payment, three percent for processing, two fingers raised and nothing that I could get for free.

On the ninth day of Christmas my banker sent to me, nine lost cheque stubs, eight points for debits, seven charges for borrowing, six sick employees, FIVE BAIL OUTS ... four requests for payment, three percent for processing, two fingers raised and nothing that I could get for free.

On the tenth day of Christmas my banker sent to me, ten years to make a change, nine lost cheque stubs, eight points for debits, seven charges for borrowing, six sick employees, FIVE BAIL OUTS ... four requests for payment, three percent for processing, two fingers raised and nothing that I could get for free.

On the eleventh day of Christmas my banker sent to me, eleven letters of credit, ten years to make a change, nine lost cheque stubs, eight points for debits, seven charges for borrowing, six sick employees, FIVE BAIL OUTS ... four requests for payment, three percent for processing, two fingers raised and nothing that I could get for free.

On the twelfth day of Christmas my banker sent to me, twelve percent loan interest rates, eleven letters of credit, ten years to make a change, nine lost cheque stubs, eight points for debits, seven charges for borrowing, six sick employees, FIVE BAIL OUTS ... four requests for payment, three percent for processing, two fingers raised and NOTHING THAT I COULD GET FOR FREE.

Zopa members' lending near £2 million a day

Just stumbled across the website Lendify - a tracking system for lending on Zopa UK, the P2P social lending service.

Here's the chart for the last 28 days (doubleclick to enlarge):

And here are the numbers:

Wed 23rd December
Total Offered £1,784,930 (+£178,090)
7 Day Demand £3,677,500 (+£150,400)
Avg Lender Rate 11.1% (-0.08%)

Tue 22nd December
Total Offered £1,606,840 (+£70,180)
7 Day Demand £3,527,100 (+£44,440)
Avg Lender Rate 11.1% (-0.09%)

Mon 21st December
Total Offered £1,536,660 (-£175,910)
7 Day Demand £3,482,660 (-£123,200)
Avg Lender Rate 11.2% (+0.07%)

Sun 20th December
Total Offered £1,712,570 (-£153,020)
7 Day Demand £3,605,860 (-£187,000)
Avg Lender Rate 11.1% (+0.04%)

Sat 19th December
Total Offered £1,865,590 (+£197,030)
7 Day Demand £3,792,860 (-£268,400)
Avg Lender Rate 11.1% (-0.09%)

Fri 18th December
Total Offered £1,668,560 (+£217,450)
7 Day Demand £4,061,260 (-£910,900)
Avg Lender Rate 11.2% (-0.03%)

Thu 17th December
Total Offered £1,451,110 (+£164,870)
7 Day Demand £4,972,160 (-£62,000)
Avg Lender Rate 11.2% (-0.04%)

Fascinating ...

(Hattip to the Pragmatist)

No wonder we're getting rid of cheques

With the announcement that the cheque is ending its existence in 2018, I wonder whether Gordon Brown inspired this decision.

This is because one of his cheques bounced way back in 1972, during his student days.

 

 

It was sold on eBay for £3,100 yesterday (double click to enlarge).

 

That's 1,000 times more than the value of the cheque itself which was for £3.

Here's the description from the eBay item:

"This is a cheque for £3 which Gordon Brown bounced in his student days. The Bank of Scotland cheque is marked 'refer to drawer', and is supported by a completed form from the Royal Bank of Scotland, advising the payee that the cheque has bounced, and debiting him 13p in charges. The cheque was payment for Brown's room rent in a student house at the University of Edinburgh; the payee was Bill Paterson (misspelt by Brown), who was the Warden. The cheque should have been made out to the University, not to the Warden. Failing to find Brown again, to get the cheque made out properly, Bill dealt with Brown's mistake by writing a cheque to the University himself, and paying Brown's cheque into his own account.. Bill demanded, and got, Gordon's repayment in cash. The cheque is currently owned by Kate Paterson, who was given it as a present by her husband, the ex-Warden."

It's amazing how your student days can set you up for the way you manage finances for life!

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The twelve economic days of Christmas

Pictorial representation of this year versus last year's Christmas, economically speaking (double click to enlarge):

 

Thanks to Go Banking Rates.

Things worth reading: 23rd December 2009

Things we're reading today include ...

*

Today's must read:

10 Big Ideas for 2010 - US Banker

• Back to Basics: Putting the Consumer First
• New Pathways to Capital 
• Principal Reductions Make Better Loan Mods
• Intelligent Limits on Overdrafts 
• Mobile's Moment Finally Arrives
• A Perfect Time to Reinvigorate the SBA 
• Rules and Regs Are Throttling M&A 
• Sticky Solution: Online Personal Financial Management
• Recovery Key: A Better Way to Unwind TBTF 
• Trading Derivatives on an Exchange

Bank charges challenge is dropped - BBC
Spotlight on credit search system - BBC
Russia's richest man sets up oligarch's bank - The Telegraph
CBOE chief plots the path to change - Financial Times
Financial reform is flawed, says CBOE chief - Financial Times
Could bank charges be good for customers? - The Telegraph
Who will be next year's most hated? - The Telegraph
UK stays in recession as output shrinks by 0.2% - The Times
Charles Goodhart warns of return to recession as bank lending falls - The Telegraph
Will the U.S. Repeat the Great Mistake of 1937? - Daily Finance
IBM forecasts the next 5 big ideas for the next 5 years - Gizmag 

*Quote of the Day:

"Gambling promises the poor what property performs for the rich - something for nothing."
George Bernard Shaw

*

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A few incorrect predictions for 2009

After reviewing how my five predictions for 2009 did, I was fascinated to get a note from Business Week  with the ten worst predictions made for the year.

Mine did not make the list, but my good friend Stephen Timewell from the Banker is on there:

"In short, under the robust leadership of Sheikh Mohammed, the UAE [United Arab Emirates] and Dubai are enjoying rapid change and development that is providing a clear lead in the Gulf."
Stephen Timewell, The Banker, October 2008

The psychics were better at forecasting when they said: “There will be a major terrorist attack in Dubai”.

There was ... it was the attack from Sheikh Mohammed on the UAE’s finances in order to get Dubai bailed out.

Mind you, Business Week aren’t much better at making predictions. Here’s one of theirs from the start of year:

"Declaring that his work is done, Federal Reserve Chairman Ben Bernanke will announce he'll leave the Fed upon the expiration of his four-year term as chairman on Jan. 31, 2010. While mostly not his fault, the recession has hurt his standing with the Obama Administration -- and it also has worn him down on a personal level. He'll be succeeded by Lawrence Summers, former Treasury Secretary under the Clinton Administration."

Funny how they left that one out (as Bernanke gets reappointed for another four year term).

So I looked up a few more.

For example, back in January, eMarketer projected that: “online ad spending will rise 8.9% in 2009, after an already ratcheted-down rate of 11.3% in 2008. That’s considerably lower than 25.6% growth in 2007.”

Funnily enough, their latest report genuflects some numbers slightly differently:

“Spending for US online advertising will decrease in 2009 by 4.6%—the first drop since 2002. However, the slowly recovering economy, combined with basic structural changes in how marketers and the public use media, will lead to Internet ad spending growth in early 2010.”

Not sure I would trust that statement too much as the next line reads: “eMarketer previously estimated that 2009 online adspending would grow by 4.5% ...”

Meanwhile, a regular forecast at start of year was to bash the Chinese economy. Fast Company put forward the view that: “China’s GDP is likely to plummet in 2009, and the West will revise its view of the country, recognizing it as a polluted place, rife with economic turmoil and starving people.”

That was about as accurate as the Hogue Prophecy - where John Hogue claims that he "writes about Nostradamus with the clarity and interpretive accuracy of a kindred prophet" - which thought that: “China's economic ascendancy will be in crisis and they may build a Great China Wall of a subtler sort to stop it.”

Not in 2009 I’m afraid. Nor in 2010 according to Channel News Asia:

Just as for other economies in the region, it was a rocky start to the year for China, caught in the turmoil of the global financial crisis. But with a strong rebound in the second half of 2009, the economy looks set to surpass the 8 per cent growth target for the year. According to some experts, the figures will show China contributing more than half of the world's GDP growth in 2009. And it looks set for another strong year in 2010.

So. What could be a good prediction for 2010?

Howsabout this one, from the January 2010 issue of Golf Digest:

"Woods is a good role model … Tiger never does anything that would make himself look ridiculous."

Apple through the years

Nothing to do with banking except that, as readers know, I am fascinated by how technology changes our lives and particuarly our relationship with each other and with our money.

Right now, the biggest innovation appears to be the iPhone and iPhone apps.

Only two years old, the iPhone has stormed the world and Apple is the innovator.

Gartner estimates that the Apple iPhone accounts for 17.1% of global Smartphone sales in Q3 2009, just behind Nokia and the Blackberry by Research In Motion. Apple shipped 7 million iPhones in the third quarter, whilst the Smartphone segment of the mobile market is growing 12.8% year-on-year .

Mind you, if the world's most sophisticated market - Japan - is anything to go by, things will become even better for Apple soon.  Take this news from 9to5mac:

Apple is big - really big - in Japan, where the iPhone now accounts for 46.1 percent of the smartphone market, according to the latest data from Impress. The company achieved sales accounting for almost half of the entire Japanese smartphone market across 2009, the analysts said. This drove the company’s iPhone 3G and 3GS to claim the top two slots in the sales charts, with the 3G model seizing 24.6 percent and the 3GS grabbing 21.5 percent.

So I was interested to see that Silicon.com had assembled a list of Steve Jobs speeches through the years, as Apple announce innovation after innovation, each a landmark of its time.

First, there was the Big Brother launch of the Mac way back in 1983 ...

Then there were the hard times after Steve Jobs left.  He returned in 1997 and committed the heinous crime of agreeing to partner with arch-enemy, Microsoft.  It did not go down well ...

Back then, Apple was struggling badly.  The origins of Apple today were seeded however when the company launched the new generation of Apple computers in 1998 with the iMac ...

And then the unit they probably did not realise would make Apple the most innovative and successful of technology firms was released into the world in 2001.  The iPod ...

Followed in 2007 by the iPhone ...

Now,the iPhone and iPod, along with iTunes and the iMac, have made Apple a powerhouse of technology innovation and leadership.

 

 

Source: MacWorld (latest Quarterly results here)

Can they keep it up?

Sure.

Have they made mistakes.

Sure - has anyone used the new iPod shuffle, the G4 Cube, a MacBook Air?

Will they maintain their position. 

As long as Steve Jobs is at the helm, it seems certain, although his abilty to stay at the helm is not so certain.  Equally, if we remember that the Wilderness Years almost bust the company, that was due to Steve's departure.

There needs to be a succession plan here ... and many cannot see one yet.

Nevertheless, if you are wondering what Steve Jobs will announce in 2010, then it should be a Kindle-killer.

The Kindle is Amazon's electronic book reader which has been a real money-spinner ... but Amazon recently licensed the Kindle software to Apple for the iPhone as an app.

So here's my prediction for MacWorld 2010.  One of these ...

Mag+ from Bonnier on Vimeo.

Now that, along with Apple through the years, is a story worth telling.

Things worth reading: 22nd December 2009

Things we're reading today include ...

Today's must read

FBI Probes Hack at Citibank - Wall Street Journal

The Federal Bureau of Investigation is probing a computer-security breach targeting Citigroup Inc. that resulted in a theft of tens of millions of dollars by computer hackers who appear linked to a Russian cyber gang, according to government officials.

Companies

Goldman on top in annual tussle for M&A jackpot - The Telegraph
London Stock Exchange seals Turquoise deal - The Telegraph
Turquoise will bolster the LSE's position - Financial Times
Icap to pay $25m over 'fictitious' trades - The Telegraph

Regulations

OFT drops case against banks' overdraft fees - The Times
Finance firms escape bonus tax - BBC
Hedge fund manager in line for $2.5bn payday - The Times
MPs criticise credit search rules - Financial Times

Economy

Britain's banks to hold back recovery, warns S&P - The Telegraph
British economy faces long hard slog to real recovery - The Independent

Looking for high returns? Follow the new moon - The Times

Quote of the Day:

"President Sarkozy has laid to rest once and for all the myth that EU commissioners, certainly French ones, when they go to Brussels, are expected to leave aside their home member state national interests and political priorities and act exclusively in the community interest."

Charlie McCreevy on his successor Michel Barnier
Sarkozy 'will use Michel Barnier to advance French interests' - The Telegraph

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Happy holidays from the Financial Services Club

I'm had a bunch of ecards this year, and sent a few me'self to Club members and, for a few, real cards (yes, I am that traditional!).

Anyways, thought it about time to share this year's ecard for all you lovely folks who are rushing off early for the holidays.

Five predictions: were they right?

Back in January, I made five firm predictions for banking in 2009. Those predictions were:

1. More major European and American banks disappear
2. There will be some spectacular failures in the BRIC economies
3. A Global Financial Regulatory Body is formed
4. The US will drop IFRS
5. Solvent banks gain major market share.

So what happened?

1) More major European and American banks disappear

With seven more failures last Friday, the total of US bank failures this year is now 140, wiping out the FDIC’s fund of $45 billion and way up on the mere 25 failures in 2008. Whilst none have been of the size of WaMu, there were some big ones. Here are the Top Ten:

#10 San Diego National Bank Closed : Oct. 30, 2009 Assets : $3.6 billion
#9 Silverton Bank Closed : May 1, 2009 Assets : $4.1 billion
#8 Park National Bank Closed : Oct. 30, 2009 Assets : $4.7 billion
#7 Corus Bank Closed : Sept. 11, 2009 Assets : $7 billion
#6 California National Bank Closed : Oct. 30, 2009 Assets : $7.8 billion
#5 United Commercial Bank Closed : Nov. 6, 2009 Assets : $11.2 billion
#4 AmTrust Bank Closed : Dec. 4, 2009 Assets : $12 billion
#3 Bank United FSB Closed : May 21, 2009 Assets : $12.80 billion
#2 Guaranty Bank Closed : Aug. 21, 2009 Assets : $13 billion
#1 Colonial Bank Closed : Aug. 14, 2009 Assets : $25 billion

In Europe, the story is not as transparent as there is no central list of failed banks, as there is with the USA. Nevertheless, several banks received governmental support or were soft landed into an acquirer, such as the story of Alliance & Leicester gifted to Santander. There was also news on regular occasions of stressed or failing banks, such as WestLB in Germany or, just this weekend, Hypo Group Alpe Adria in Austria.

More noticeable, in the European situation, has been the failure of countries, with Ireland, Latvia, Iceland and now Greece all looking wobbly.

As a result, expect more failures in Europe next year, with Spain looking particularly unstable ...

... and the result may be questions over the future of the European Union. After all, adhering to constraints set by one country which force another into bankruptcy just does not go down well.

2) There will be some spectacular failures in the BRIC economies

To be honest, Brazil has outshined everything, China has continued to do well and India’s economy is still booming. In fact, India now talks about a G3 – the USA, China and India. Such confidence!

So I called this one wrong.  Or did I as the last of the countires, Russia, was hit hard by this crisis and there are still major concerns about Russian banks.

The rouble has sailed close to collapse several times in the first quarter and, as President Medvedev said in October: “The real damage to our economy was far greater than anything predicted by ourselves, the World Bank and other expert organizations.”

So, although there has been no spectacular collapse in the BRICs this year, there has been a very shaky year in Russia.

3) A Global Financial Regulatory Body is formed

Wow! Now that was such an off-the-wall prediction wasn’t it?
Headline from September 2009: G-20 Summit: IMF as Global Financial Regulator
So that’s a done deal.

4) The US will drop IFRS

The SEC and others all believe that we need a global accounting standard, and are urging US firms to adopt IFRS accounting rules. However, many believe these are the wrong rules for US firms and, if you want to know why, read Professor David Albrecht’s blog.

In particular, in light of the crisis, IFRS rules just would not make sense for US firms. It would be far too costly as a massive departure from the GAAP rules. Therefore, the SEC may push for a change but:

(a) they’ve dropped the 2016 (previously 2014) target for IFRS; and
(b) they are now seeking a harmonised GAAP/IFRS compromise, rather than just getting firms to adopt IFRS.

This debate will continue.

5) Solvent banks gain major market share.

Again, a no-brainer. Just look at Santander’s last quarterly results release:

Santander (voted Bank of the Year by several media publications such as the Banker), JPMorgan, HSBC, Deutsche Bank, Goldman Sachs and more are not just big now, but set for hugeness, whilst Citi, Bank of America, RBS, Lloyds, Fortis, ING and others are still challenged in getting back to normality.

This will continue to serve the large banks’ agenda, and whilst more banks drop off the radar (point one), there will be several more ‘gifts’ to the big boys.

Should be fun.

Meanwhile, I’ll make a few more predictions for 2010 on return in first week of January, but one big prediction will be that the global regulations for the global IMF regulator will be firmed up.

In fact, Robert Peston’s blog today focuses upon the new Basel III, which corroborates that one.

Now that won’t be fun.

*

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Hank Paulson's new job ...

I've just heard that Hank Paulson, he who many blame for turning the financial drama into a crisis ...

... oh yes, and Tim Geithner's predecessor at the Treasury, has been appointed into a key new role in co-ordinating the world's resources.

Here's a clip of him at work in his new job ...

... apparently, it's all that was offered post the meltdown.

Things worth reading: 21st December 2009

Things we're reading include ...

Today's must read:

London Stock Exchange on cusp of Turquoise deal - The Telegraph
London Stock Exchange is poised to announce it has finally agreed a deal to take control of Turquoise, the loss-making trading platform set up by the world's leading investment banks.

Bonus row rumbles on

Goldman Sachs threatens Spanish move - The Independent
We can't afford to drive the City away - The Telegraph
British banks look to 'share the pain' of UK supertax on bonuses - The Independent
Foreign bankers start to flee UK bonus tax - The Telegraph

Markets

UK property black hole threatens banks' lending - The Telegraph
British bank shares continue to fall on Basel fears - The Telegraph
Ireland opens doors to hedge funds - Financial Times
New York challenge for City carbon market crown - The Times

Regulations

Cameron faces flak on SEC action - Financial Times
FSA warns of 'no let-up' in moves to clean up banks - The Independent
FSA fines double to record £35m in 2009 - The Telegraph

Review

Bad, but this year could have been a lot worse - The Times
Agenda: Challenges that lie ahead are very real indeed - The Times

Quote of the Day:

"F*** you, I won't do what you tell me."
Facebook beats the X-Factor - Guardian

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The Finanser's Week: 14th December - 20th December 2009

The biggest news stories of the week include ...

US House Passes Historic Wall St. Reform Act - News Junkie Post
UK banking sector 'more stable' - BBC
Copenhagen climate summit: How banks can help to save the planet - and make a profit - The Telegraph
Darling defies bank threats on bonus tax - Financial Times
Deutsche Bank to spread UK bonus tax pain worldwide - Telegraph
FT interview transcript: Josef Ackermann (CEO, Deutsche Bank) - Financial Times
Metro Bank presents quandary for FSA - Telegraph
Citi shares dive on botched sale - Independent
Goldman Fueled AIG Gambles - Wall Street Journal
Facebook CEO Shows How Not to Use Site's Privacy Settings (NBC)

And our biggest stories of the week are ...

Sberbank's Branch of the Future

There have been many attempts to create the branch of the future (Accenture, IBM, John Ryan ... Deutsche Bank, Barclays Bank, Umpqua Bank ...), and so I was intrigued to hear that Sberbank in Russia had made a major investment in creating a flagship branch in Moscow.  I meant to drop in during my recent visit, but didn't have time, so I was pleased to catch the announcement of the branch opening this week.

3,238 days to the end of the cheque

With the news that the cheque will end its life as a valid payments instrument in the UK on 31st October 2018, it's worth reminding all that it's not just old people who use them.

WaMu and MPs expenses

In the UK, we've been talking for a while about the issues with our politician's expenses being blanked out.  It's so refreshing to see how America does things so differently with the release this week of the  internal communications between Washington Mutual's (WaMu) regulators, the Office of Thrift Supervision (OTS), that led to the closure of WaMu.

What do bank failures look like?

With over 130 American banks closing so far this year, have you ever wondered what all of those American bank failures looked like?  Well, now you can ...

Lunch with Goldman Sachs' Chief Economist

Each year, the Evening Standard has an auction for charity.  This year it's for Kids UK, and the top City prize offer is to have lunch with Goldman Sachs' Chief Economist Jim O'Neill.

The PSD - not OUR, SHA, SHA, SHA

It's forty days since the introduction of the Payment Services Directive (PSD), so there has been lots of chat about the PSD this week, and how it’s working or not working.  Derogations and interpretations are rife, with the hottest and most contentious issue being the fact that charges are now meant to be shared (SHA in the SWIFT message exchange), except that many banks, institutions and even government administrations are insisting on OUR charging structures, where the sending bank pays all fees.

Britain's got a brand new bank

As discussed over a year ago, Vernon Hill - the creator of US cult bank Commerce Bank - has finally got the green light to launch Britain's first new retail bank for a long, long time: Metro Bank.  With the slogan "love your bank", it appears to be a view that when all around you are falling apart, it's a good time to attack and win  business.

How technology is changing our lives

In a recent speech, JP Rangaswami (Managing Director of Innovation and Strategy at BT Design and former CIO of Dresdner Kleinwort Wasserstein) made some interesting commentary about technology and millennials (also known as the Generation Y or Gen-Y, and born between 1982 and 1995).

The wonders of Google

I love Google's predictive texting, which often finishes my search idea before I get to the end of typing. It's also quite informative about what's on people's minds.  For example, as you start typing: "why do bank", you get a list of the most popular things people are asking about banks.

Bank of America's mobile numbers

This year has seen dramatic innovations in mobile usage, such as those of the Bank of America in the USA.  According to Doug Brown, SVP at Bank of America, they saw 300 percent growth in mobile customers from 2007 to 2008 and it looks like 350 percent plus growth from 2008 through 2009. 

Spank the Banker

After the Fat Cat Cash Back internet game comes Bailout Wars, the iPhone App, and Whack-a-Banker, the Pier Game.

Should I sell my house to a banker?

The Guardian asks readers to give advice on a dilemma each week. This week's dilemma is: "should I sell my house to the nice people or the banker?"  I'm fascinated by the reader's views.  Here's a selection, as well as the question in full.

Santa's in trouble, please help

Come on, banks have been bailed out.  Car manufacturers and all sorts of others have been bailed out.  Now Santa needs help. Come on, have a heart. 

And finally ...

Thanks to Private Eye

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Should I sell my house to a banker?

The Guardian asks readers to give advice on a dilemma each week. This week's dilemma is: "should I sell my house to the nice people or the banker?"  I'm fascinated by the reader's views.  Here's a selection, as well as the question in full:

After several lean financial years we are selling our £330,000 family home. A very nice young family has offered the asking price, but a banker has outbid them by £20,000. We need the money desperately, but are loath to hand the keys to a fat cat we don't like. Do we take the cash or help the couple?

Simian
18 Dec 2009, 11:50AM
Wont sell to a banker?! purely because they're a banker.....seriously!? is that not discrimination?
why would you even raise a question like this, have you met the banker and dont like him or are you purely basing your response on the fact that he's a banker and therefore must be a tw@t.
bankers need homes as well, i work as a banker if you hadn't guessed, and i feel that the amount of hate thrown around towards my chosen profession is hugely unfair. if i meet new people it has reached the point where i say i'm a statistician not a banker because i cant stand the comments that i'm a money grabbing barsteward who has stolen from all the honest tax payers in this country. all of which aren't true!

antonyob
18 Dec 2009, 11:59AM
yeh sell to them but put fishfingers behind every radiator.

garethsgate
18 Dec 2009, 12:10PM
Jesus no. It's all his fault personally. This man is entirely responsible for the global meltdown. I would get some local anti capitalist protestors around to drown him in his own tears, I mean, how dare he, HOW DARE HE have the nerve to work in the financial industry. I bet he strangles puppies at the weekend. I bet he personally structured sub prime deals. I bet all the money the government paid out to banks went straight to him, directly, and if he doesn't work for a British bank that has been bailed out, like say Deutsche Bank or Barcap that hasn't been bailed out by anybody then he's still guilty somehow. It's just greed. Unlike the rest of us that work purely for the love of our jobs and aren't in any way materialistic or interested in profit. He makes me sick. SICK. Do your hear me?

xThadd
18 Dec 2009, 12:32PM
This is a business deal. You need the money. I just don't get the dilemma. You can have no idea of the content of the banker's character, and it's silly even to speculate.

Scarlett6
18 Dec 2009, 12:35PM
Sell to the highest bidder - whatever their profession - it's a no brainer
Oh and hang on a bloody minute - the bankers who get those huge bonuses are a TINY proportion of bankers in general. Most people who work in banks earn a very average salary and MAY get "profit sharing" which will be less than 5% of their very average salary. You do the math - the majority of people who work in banks e.g. bankers are the same as the rest of us - sloggin their guts out for very little reward.  And for the record, I am NOT a banker

yonsok
18 Dec 2009, 1:05PM
Not unless you've primed it with six pounds of semtex.

giahosinn
18 Dec 2009, 6:47PM
perhaps the banker is not a genuine buyer and the family are, you are reacting with an unconscious feeling about this and it's not really a moral dilemma about what he does for a living..or actually it's your own guilt about wanting to accept more money and gazumping the family.. but what's the problem about accepting sale from a banker. What if he's a good banker a revolutionary, radical banker, or maybe just a neutral banker.

IvanaTinkle
18 Dec 2009, 7:38PM
It's probably a fair assumption that bankers getting million-pound bonuses don't live in £330,000 houses.

18 Dec 2009, 7:48PM
@antonyob: fishfingers? Nothing fat cats like more than fish and plenty of it.

JayZed
18 Dec 2009, 11:38PM
Is this a genuine question or is it some kind of Guardian Yuletide self-parody? If this "fat cat" banker is buying a £330,000 house he can't be that tubby a feline. You owe it to yourselves to get the best price you can for your home. Taking a dislike to someone because they're a banker is just infantile. For the record, I'm not a banker.

Santa's in trouble, please help

Come on, banks have been bailed out. 

Car manufacturers and all sorts of others have been bailed out. 

Now Santa needs help. 

Come on, have a heart. 

Give generously ...

I think Santa summed it up well when he said: "I personally would feel awkward asking for $26 billion.  That would be ridiculous.  But $25 billion really is quite reasonable."

And Ottowa?  How could you?

Sberbank's Branch of the Future

There have been many attempts to create the branch of the future (Accenture, IBM, John Ryan ... Deutsche Bank, Barclays Bank, Umpqua Bank ...), and so I was intrigued to hear that Sberbank in Russia had made a major investment in creating a flagship branch in Moscow.

I meant to drop in during my recent visit, but didn't have time, so I was pleased to catch the announcement of the branch opening this week.

Although it may look, on first impression, like a normal branch ...

With the lobby loaded with automated self-service machines, as you would expect, there are a few surprises.  For example, self-service contactless and remote advisor machines ...

And then, as you go into the advisory banking area, you get a totally different look and feel ...

With self-service advisory stations and 3D virtual advisors ...

There's also a major 'relaxation area', with coffee, magazines and games for the children.

The branch is also loaded with technology, including biometric pass identification where customers are scanned through the branch security systems using a special card.  This means that staff are aware of who is coming in for advice in advance through the facial recognition system.

The branch was designed by Fitch and, according to Sberbank President Herman Gref, will service customers in as personalised a manner as possible.

This is why the bank plans to open twenty branches of this type across Russia by September 2010, with all branches converted by 2016.

Sberbank is the largest bank in Russia with over 19,000 retail outlets, so that's a major challenge and significant investment.

Worth watching.

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