May 26 news, regulatory documents show that through the use of accounting standards will be acquired by Washington Mutual Inc.'s Bad debts to income, JP Morgan Chase will harvest 29 billion U.S. dollars of windfall.
JP Morgan Chase in September last year to 1.9 billion U.S. dollars acquisition of Washington Mutual Bank, based on the acquisition accounting method, in accordance with the fair value recorded 118.2 billion U.S. dollars, therefore impairment of assets by 25%. However, with the borrower to begin repayment, the loan is expected to generate cash flow after loan impairment charges and the value of differences in accounting can be charged to the income, JP Morgan Chase may have access to 29.1 billion U.S. dollars of pre-tax earnings.
Regulatory documents also show that Wells Fargo Bank, Bank of America and PNC Financial Services Group Inc. Will be the same as taking over Wachovia Wachovia Corp., Countrywide Financial Corp. And National City Corp. And benefit from a similar accounting arrangements will bring a total of 56 billion U.S. dollars of the proceeds.
Faced with the high 25 points in the United States the unemployment rate and rising housing foreclosure rates, banks will be designed to use a standardized accounting provisions of the loan account. Tax consulting firm, president of Robert Willens LLC, the former Lehman Brothers executives, said Robert Willens, through the application of the accounting provisions, the banks will offer mortgages and commercial loans, "the wreckage of" benefit.
May. 26, 2009
Royal Bank of Scotland to the £ 5,000,000 paid executives bonuses
News May 25, according to media reports, the Royal Bank of Scotland recently issued to the four executives close to five million pounds worth of stock bonuses, it is likely to incite the public's acceptance of aid banks pay excessive criticism of the new round.
In accordance with the bonus plan, Royal Bank of Scotland Americas Ellen Alemany operations will be nearly 600 million shares of the bank stocks, based on the closing price last Friday, the stock value of approximately 2.4 million pounds. The other three executives, including head of corporate banking Alan Dickinson, and Chris Sullivan as well as the chief administrative officer Ron Teerlink.
Vice-Chairman of the British Liberal Democrats Vince Cable said the Royal Bank of Scotland is a bonus behavior "completely unjustified, it is absolutely unacceptable."
Earlier this year, Royal Bank of Scotland a few weeks after receiving government assistance, announced plans to staff of nearly one billion pounds prize money, which triggered a political storm. Royal Bank of Scotland in 2008 a loss of as much as 28 billion pounds, are being forced to accept government aid. At present, the British Government to hold the bank more than 70% of the shares.
May. 25, 2009
In accordance with the bonus plan, Royal Bank of Scotland Americas Ellen Alemany operations will be nearly 600 million shares of the bank stocks, based on the closing price last Friday, the stock value of approximately 2.4 million pounds. The other three executives, including head of corporate banking Alan Dickinson, and Chris Sullivan as well as the chief administrative officer Ron Teerlink.
Vice-Chairman of the British Liberal Democrats Vince Cable said the Royal Bank of Scotland is a bonus behavior "completely unjustified, it is absolutely unacceptable."
Earlier this year, Royal Bank of Scotland a few weeks after receiving government assistance, announced plans to staff of nearly one billion pounds prize money, which triggered a political storm. Royal Bank of Scotland in 2008 a loss of as much as 28 billion pounds, are being forced to accept government aid. At present, the British Government to hold the bank more than 70% of the shares.
May. 25, 2009
American Express will be 4,000 job cuts
U.S. credit card giant American Express on the 18th the company announced that 4000 will be further reductions in jobs, accounting for the total number of its global workforce by 6%.
American Express said he hopes the layoffs in 2009 and then save the remainder of the time cost of 800 million U.S. dollars. In October last year, American Express had announced layoffs of 7,000 people in 2009 with a view to saving the cost of 1.8 billion U.S. dollars.
American Express also said that the layoffs will enable the companies included in the second quarter of this year, from 180,000,000 to 250,000,000 U.S. dollars of restructuring costs. In addition to layoffs, the company also plans to reduce investment spending and travel and other operating costs.
American Express Chairman and CEO of Solutia, said Kenneth Tse, although in some areas of the credit card industry has suffered serious losses remain profitable, but the future Yuntong cautious economic outlook, it was decided to implement further restructuring to reduce operating costs.
May. 24, 2009
American Express said he hopes the layoffs in 2009 and then save the remainder of the time cost of 800 million U.S. dollars. In October last year, American Express had announced layoffs of 7,000 people in 2009 with a view to saving the cost of 1.8 billion U.S. dollars.
American Express also said that the layoffs will enable the companies included in the second quarter of this year, from 180,000,000 to 250,000,000 U.S. dollars of restructuring costs. In addition to layoffs, the company also plans to reduce investment spending and travel and other operating costs.
American Express Chairman and CEO of Solutia, said Kenneth Tse, although in some areas of the credit card industry has suffered serious losses remain profitable, but the future Yuntong cautious economic outlook, it was decided to implement further restructuring to reduce operating costs.
May. 24, 2009
Obama signed the credit card reform bill
Washington, May 22 news, Obama 22, President of the United States Congress after the signing of the credit card reform bill passed. The bill seeks to prohibit all kinds of hidden fees provisions to protect consumer interests.
Obama held the same day at the White House signing ceremony, said that many credit card customers into the debt trap because of the economic downturn led to financial distress of their families, but the greedy credit card companies make their business practices from the efforts of the debt has become more difficult. He warned that the credit card industry should be held accountable for their actions, but also made it clear that he did not support those who do not live within our means, reckless consumers.
The bill prohibits credit card companies to raise interest rates credit card debts, unless the borrower defaults is more than 60 days. If the cardholder in the following six months of the repayment on time, and that interest rates credit card companies must be restored to their original levels. Bill also prohibits credit card companies to consumers by phone to receive repayment repayments additional cost.
The bill requires that credit card companies to the applicant under 21 years of age when credit card payment, must be the applicant himself has the ability to repay or the parents are prepared to offer proof of their repayment; and requested the credit card companies issuing credit cards to new promotional interest rate must be maintained for 6 months may not improve.
Although the U.S. banking industry opposed the bill, that it the situation in the economic downturn may further inhibit the flow of credit, but it was earlier in the week Congress passed smoothly. According to data from the White House, nearly 80% of Americans are credit card holders.
May. 22, 2009
Obama held the same day at the White House signing ceremony, said that many credit card customers into the debt trap because of the economic downturn led to financial distress of their families, but the greedy credit card companies make their business practices from the efforts of the debt has become more difficult. He warned that the credit card industry should be held accountable for their actions, but also made it clear that he did not support those who do not live within our means, reckless consumers.
The bill prohibits credit card companies to raise interest rates credit card debts, unless the borrower defaults is more than 60 days. If the cardholder in the following six months of the repayment on time, and that interest rates credit card companies must be restored to their original levels. Bill also prohibits credit card companies to consumers by phone to receive repayment repayments additional cost.
The bill requires that credit card companies to the applicant under 21 years of age when credit card payment, must be the applicant himself has the ability to repay or the parents are prepared to offer proof of their repayment; and requested the credit card companies issuing credit cards to new promotional interest rate must be maintained for 6 months may not improve.
Although the U.S. banking industry opposed the bill, that it the situation in the economic downturn may further inhibit the flow of credit, but it was earlier in the week Congress passed smoothly. According to data from the White House, nearly 80% of Americans are credit card holders.
May. 22, 2009
The largest bank failure in Florida
May 22 message, it is reported that the U.S. Federal Deposit Insurance Corporation (FDIC) said in a statement late Thursday, the biggest bank in Florida, BankUnited Financial Corp. Federal regulators have been under the supervision of the closure of the sale of its assets to the private equity investment group. This is the United States this year, the largest case of bank failures.
FDIC said in a statement, including WL Ross & Co. And The Carlyle Group private equity groups, including the acquisition of BankUnited is the "lowest cost" solution. Close BankUnited will spend 4.9 billion U.S. dollars about FDIC insurance fund to take over the banks so far this year will cost a total of more than 10 billion U.S. dollars.
FDIC said, BankUnited Friday will be under the management of the new owners to resume business, has served as North Fork Bancorp Bank CEO of John Kanas will become the new head of the bank.
May. 22, 2009
FDIC said in a statement, including WL Ross & Co. And The Carlyle Group private equity groups, including the acquisition of BankUnited is the "lowest cost" solution. Close BankUnited will spend 4.9 billion U.S. dollars about FDIC insurance fund to take over the banks so far this year will cost a total of more than 10 billion U.S. dollars.
FDIC said, BankUnited Friday will be under the management of the new owners to resume business, has served as North Fork Bancorp Bank CEO of John Kanas will become the new head of the bank.
May. 22, 2009
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