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Finance / Banking

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Lates updates and stories from the Banking & Finance Industry, Corporate Finance & on Business Finance, Finance India, Financial Institutions. Get connected with other finance / banking industry workers and find opportunities!
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  1. Flavio 🇯🇵 Souza 🐝
    Flavio 🇯🇵 Souza 🐝
    A bitcoin ATM for emerging Asia
    grendz.com Bitcoin holders can withdraw local currency from their virtual wallets with new ATMs from Oki Electric Industry, which is targeting China and other emerging nations where the cryptocurrency is on the rise. The ATM-Recycler G8 ships this month. It...
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  2. ProducerAnders Liu-Lindberg
    Building A Team Of Finance Business Partners
    Building A Team Of Finance Business PartnersLast week we discussed how to become a finance business partner and now we move on to discussing how you can build a team of finance business partners. This is pretty essential if Finance is to be successful with business partnering. Business...
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  3. ProducerBengt Hahlin

    Bengt Hahlin

    21/05/2017
    The U.S. banks huge exposure to derivatives-222 trillion dollars
    The U.S. banks huge exposure to derivatives-222 trillion dollarsThe recklessness of the “too big to fail” banks almost doomed them the last time around, but apparently they still haven’t learned from their past mistakes. Today, the top 25 U.S. banks have 222 trillion dollars of exposure to derivatives. In...
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    Comments

    Bengt Hahlin
    23/05/2017 #13 Anonymous
    #11 Hi Dean,
    I agree completely with you “but HFT is basically legal front running”
    Bengt Hahlin
    23/05/2017 #12 Anonymous
    #10 Hi Phil,
    I agree, why should they change when they are protected from failure and the consequence of their illegal actions.

    Banks globally have paid $321 billion in fines since 2008 for an abundance of regulatory failings from money laundering to market manipulation and terrorist financing. Banks paid $42 billion in fines in 2016 alone, a 68 percent rise on the previous year,

    And no one goes to jail.
    Dean Owen
    23/05/2017 #11 Dean Owen
    #6 You make some fair points. It certainly is not sustainable. With regard to HFTs, I fear politicians are blinded by one sided studies that show HFTs reduce commissions and provide for tighter spreads. It is a unfair game and has become a race to zero. HFTs with the fastest connections to data win, even if their connection is one nanosecond faster than their competitor. I've worked with many of the largest HFTs in the business implementing proximity hosting/co-location. I asked the Global CRO of one of the largest what their biggest losing month was and his reply "Losing month? We've not had a losing day since we were founded!". They "have zero market risk". All their risk is operational. My argument for the last few years has been, in a zero sum game (futures, not stocks), HFTs come in to the market and take big chunks of money out of the system and how can that be good for the market? They do it under the guise of "market making" and justify it by the "provide liquidity, tighten spreads, reduce commissions" argument. But the huge bucks they are making are coming out of someones pocket. Michael Lewis suggests that it comes from the hedge fund/pension fund users, but in actuality this money is taken from every other market user, including the guy on the street who placed an order to buy a stock and was puzzled as to why he couldn't buy it at the level shown on the screen and ends up buying at a higher price. A sweeping generalisation, but HFT is basically legal front running.
    Phil Friedman
    23/05/2017 #10 Phil Friedman
    #8 Bengt, my remark was intended to point out that you are talking to the wall, when it comes to the banking sector in the U.S. As long as they continue to be bailed out, and as long as they continued to be treated as too big to fail, and as long as they continue to profit from each and every crisis, and as long as no major banking executive goes to jail, they will contintue to do exactly as they have done in the past. Why not?
    Bengt Hahlin
    23/05/2017 #9 Anonymous
    #4 Hi Brian,
    Yes especially the car market. About a third of the risky car loans that are bundled into bonds are considered “deep subprime”. The percentage of subprime auto-loan securitizations considered deep subprime has risen to 32.5 percent from 5.1 percent since 2010, according to Morgan Stanley.
    And consumers are falling behind on most subprime car loans, but deep subprime borrowers have deteriorated the fastest.
    Bengt Hahlin
    23/05/2017 #8 Anonymous
    #3 Hi Phil,

    See my comment to David. Also this “Too big to fail” concept has been sold very effectively to our politicians.
    The Federal Reserve Bank in Richmond got it quite right when the defined TBTF:

    “The federal financial safety net is intended to protect large financial institutions and their creditors from failure and to reduce the possibility of "systemic risk" to the financial system. However, federal guarantees can encourage imprudent risk-taking, which ultimately may lead to instability in the very system that the safety net is designed to protect.”

    A history of emergency government loans to distressed institutions and markets deemed "too big to fail" has created an expectation that certain parts of the financial sector will be protected from losses.

    • This government safety net effectively subsidizes risk-taking. Investors that feel protected by the government will be less likely to demand higher yields as compensation for risk, and creditors will feel less urgency to monitor firms that are assumed to be protected.
    • Excessive risk-taking makes firms more likely to experience distress and require bailouts to remain solvent. Additional bailouts can then further erode market discipline.
    • This self-reinforcing cycle suggests that the safety net will grow ever larger over time. The safety net has increased by one-third since the Richmond Fed's first estimate in 1999. It covered 62 percent of financial sector liabilities as of 2015.
    • Resolution plans — "living wills" — could be an important tool for establishing credibility against bailouts by making the government safety net a less attractive option in a crisis.
    Bengt Hahlin
    23/05/2017 #7 Anonymous
    #2 Hi David,

    Well the “problem” is it is not going to be a bail out; it is going to be a bail in. They tried that for the first time in Cyprus in March 2013. Since then OECD, G20, the Financial Stability Board (FSB), EU, U.S. have been pushing massively for this. And now it’s the rule of most of the countries in the west.

    I.E. Bondholders, creditors and depositors are forced to bear some of the burden by having a portion of their debt written off and forced to write-off a portion of their holdings.

    The problem: a critical aspect of what the bail-in scheme is intended to do is to prioritize the payment of banks’ derivatives obligations to each other, ahead of depositors.
    Bengt Hahlin
    22/05/2017 #6 Anonymous
    #1 Part 2 The Fed’s QE1, QE2, and QE3 added a total of $4.5 trillion. The there’s ECB monthly purchases which started at €13 billion and increased to €60 billion. To add more fuel to this there the central banks ZIRP and NIRP policies.
    So there has been a lot of money created by central banks were most of it is not going to productive investments or loans to small and medium businesses but to speculations.

    Another example: the British government released statistics last week showing that debt judgments and bankruptcy filings across the UK soared 35% in the first quarter of 2017 to the highest level in a decade. British consumers are on a debt binge, borrowing (and now defaulting) at record levels. Does that sounds sustainable?
    So you can easily say that there are “some” problems in the U.S. economy. But they are not alone, a lot of western countries fit this “profile”.

    And yes the algos/HTF need to rein in. Credit Suisse wrote in a report that outlines the huge impact that high-frequency trading has had on Wall Street, resulting in much higher overall trading activity and a bias toward parts of the market that are easiest to trade with high-frequency strategies. In other words, high-frequency has reshaped the financial industry in its image.
    So the algobots are fighting against each other now, and those fights don't end in trades. They end in fakes quotes—or "spoofing"—that the algobots send to try to draw each other out. Indeed, Johannes Breckenfelder of the Institute for Financial Research found that HFTs change their strategies when they're competing against each other like this. They don't make markets as much, and make directional bets on stocks instead—because those are the kind of things they can actually beat each other on. The result is actually less liquidity and more volatility, at least within each trading day. (HFTs don't hold stock overnight, so interday volatility isn't affected).
    Bengt Hahlin
    22/05/2017 #5 Anonymous
    #1 Part 1 Hi Dean,

    No, it is not “alarmist”; I just want to point out the simple fact of the risk of undercapitalized Tier 1 banks. The president of the Federal Reserve Bank of Minneapolis, Neel Kashkari, two months ago blasted US banks, saying that they still lacked sufficient capital to withstand a major crisis. And if one or two of these open positions goes sour most of the assets of these banks are gone. Remember that Lehman Brothers had about 3% capital at the time of its collapse.

    And you just have to compare with Hong Kong (8-14%) and Singapore (10-40%) to find well capitalized banks.

    But at its core the United States still has $20 trillion in public debt (over 100% of GDP) and an additional $46.7 trillion in net, unfunded future social obligations (like Social Security and Medicare). Add to that all the grossly underfunded pension funds on State and local level (over $5 trillion). As one example: the amount of public pension underfunding for the state of California jumped to a staggering $92,748 per household in 2015.

    And of course the U.S. government spends a lot more than they collect in tax revenue. In 2016 their total net loss exceeded an incredible $1 TRILLION. Also 44 % of adults say they either could not cover an emergency expense costing $400, 25% of adults are not able to pay all of their current month’s bills in full. Etc. Etc.
    Even more specifically, margin debt, which is the amount of money that investors borrow to buy stocks, is at an all-time high. Think about that: investors are borrowing record amounts of money to buy stocks at all-time highs. This sounds like a “healthy trend” does it not?.

    Former Treasury Secretary Larry Summers summed it up when he quipped, “How long can the world’s biggest borrower remain the world’s biggest power?” A very good question I think.

    Yes you are right there are a lot of contributing factors here. I would like to add the Fed’s/ECB and many other central banks 'Quantitative Easing'.
    Brian McKenzie
    22/05/2017 #4 Brian McKenzie
    They only changed "Sub Prime" activities in name. They are now called "Non Prime" and have been used to float a new wave of toxic assets. Enjoy the show - the next crash yhey will say they need a war to recover - wait and see.
    Phil Friedman
    22/05/2017 #3 Phil Friedman
    "The recklessness of the “too big to fail” banks almost doomed them the last time around, but apparently they still haven’t learned from their past mistakes."

    Excuse me for asking, but what is it that they could have learned, since they were bailed out and ended up at the receiving end of one of the biggest transfers of wealth in the history of the U.S.?
    David Chappell
    22/05/2017 #2 David Chappell
    They are going to lose a lot very soon. Again! This time I don't see a bailout rescue. We can't bail them out and support the boomers at the same time.
    Dean Owen
    22/05/2017 #1 Dean Owen
    This is all very alarmist. The banks are issuers of warrants, i.e. they write options. Their positions are mostly hedged and overnight risk is kept to a minimum. Most plain vanilla derivatives are not a weapon of mass destruction. The 2008 Financial crisis was to do with one particular instrument, the credit default swaps against baskets of mortgages. There will be another financial crisis, no doubt. You'd have thought we learnt from the last one. The problem is that it resulted in heaps of regulation (Dodd Frank/Basel I/II, MIFID etc) that made keeping up with regulation a big boys game (the smaller firms could not afford the expense). As a result, the bigger banks have become even bigger and we have a too big to fail scenario once again. One cannot predict what the trigger will be but I doubt it that plain old futures and options will play a big part although they may exacerbate the problem. My bigger concern than market risk is operational risk. With a very high proportion of trading conducted by HFTs, we have already seen many instances of algorithms gone bad or exchange connectivity disruption (like the Flash crash). HFTs need to be reigned in.
  4. Matthew Rego

    Matthew Rego

    18/05/2017
    Matthew Rego
    Disruptive Electronic Payments Company GH Capital, Inc. (OTCQB: GHHC) - Forecasting 10,000 Merchants by 2018 - EmergingGrowth.com
    emerginggrowth.com In an aged bull market, investors must focus on economic trends in order to find alpha, or outperformance. While marijuana and lithium may be two of the major standout industries, there are others that are being overlooked and under-reported. Two...
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  5. ProducerMatthew Rego

    Matthew Rego

    18/05/2017
    Disruptive Electronic Payments Company GH Capital, Inc. (OTCQB: GHHC) – Forecasting 10,000 Merchants by 2018
    Disruptive Electronic Payments Company GH Capital, Inc. (OTCQB: GHHC) – Forecasting 10,000 Merchants by 2018In an aged bull market, investors must focus on economic trends in order to find alpha, or outperformance. While marijuana and lithium may be two of the major standout industries, there are others that are being overlooked and under-reported. Two...
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    Comments

  6. ProducerScott Leckie

    Scott Leckie

    16/05/2017
    The Take "Under" of Merus Labs
    The Take "Under" of Merus LabsMerus Labs is a specialty pharmaceuticals company primarily operating in the various European countries, and Canada.While Valeant and Concordia were rocketing to astronomical share prices, Merus was the unappreciated and undervalued cousin, making...
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  7. Philip Calvert

    Philip Calvert

    16/05/2017
    Three Ways Financial Advisers Fail at Content Marketing (and How You Can Succeed)

    Perhaps they should make a start by removing the word 'marketing'...
    Philip Calvert
    Three Ways Financial Advisers Fail at Content Marketing (and How You Can Succeed), Philip Calvert
    insights.ifalife.com There really is some excellent thinking in this post and well worth reading.At least in the UK, 'content marketing' is still a...
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  8. ProducerCharlie Brown

    Charlie Brown

    15/05/2017
    Getting Rid of Festive Financial Woes with Instant Approval Loans
    Getting Rid of Festive Financial Woes with Instant Approval LoansThe economic problems that have been plaguing the world during the recent times have overshadowed the Christmas budget of numerous households. However, there is always a ray of light towards the end of a dark tunnel and pay day cash advance for...
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  9. Lisa 🐝 Gallagher
    Is your currency under attack? By @John White, MBA. Well worth the read!
    www.inc.com It's a volatile world. To mitigate risk with your finances, never put all your eggs in one...
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    Comments

    Jan 🐝 Barbosa
    15/05/2017 #1 Jan 🐝 Barbosa
    #Millennials hardly even use #cash. Here's why that's brilliant. @juanblanco76 via @Inc @jbarbosapr @John White, MBA
  10. Dimitar Karamfilov
    Dimitar Karamfilov
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  11. ProducerJoe Barber

    Joe Barber

    12/05/2017
    Heard all about AI and still a little confused what it all means, watch this!
    Heard all about AI and still a little confused what it all means, watch this!Artificial Intelligence (AI) is complex in what it can do, but it doesn't need to be complex in understanding what it has done, does now and can do in the future.Watch this video to see just how it is affecting everything we...
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  12. Francisco Lopez

    Francisco Lopez

    11/05/2017
    Francisco Lopez
    Trump's firing of FBI Director Comey has huge implications for stocks
    www.businessinsider.com There’s a general sense in the market that this could be the calm before the storm, and there's certainly an expectation that the rally is running out...
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  13. Francisco Lopez

    Francisco Lopez

    11/05/2017
    Francisco Lopez
    Roubini: Trump tax plan is 'a joke' - CNN Video
    www.cnn.com Economist Nouriel Roubini explains to CNNMoney's Cristina Alesci why the market is overestimating what President Trump can do for the...
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  14. ProducerScott Leckie

    Scott Leckie

    10/05/2017
    One Year With My Own Takota Income & Arbitrage Account
    One Year With My Own Takota Income & Arbitrage AccountFrom time to time I have documented the evolution of my own Takota Income & Arbitrage Account as a kind of live example of what I am up to with my own capital in the area of income generation. My I Account, started March 1, 2016 is shown in the...
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  15. Zura Kakushadze

    Zura Kakushadze

    10/05/2017
    Decoding stock market with quant alphas?
    Brand new paper https://ssrn.com/abstract=2965224 gives explicit algorithm and source code for extracting expected returns for stocks from expected returns for alphas (trading signals). It provides a new method for trading alphas without combining them. We also arrive at our algorithm independently by explicitly constructing alpha risk models based on position data.
    Zura Kakushadze
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    Comments

    Dean Owen
    11/05/2017 #4 Dean Owen
    That potential 3% saving is very compelling indeed. Absolutely brilliant. Would love to know what other methods you use to construct ηis. I have bookmarked your Author page and look forward to working through the other 33 scholarly papers. Did you know Brad Katsuyama at RBC?
    Dean Owen
    10/05/2017 #3 Dean Owen
    It's almost 1:00am here and your paper had me captivated from start to finish. I do have some questions for you but they will have to wait until tomorrow....
    Zura Kakushadze
    10/05/2017 #2 Zura Kakushadze
    Decoding Stock Market with Quant Alphas
    Brand new paper https://ssrn.com/abstract=2965224 gives explicit algorithm and source code for extracting expected returns for stocks from expected returns for alphas (trading signals). It provides a new method for trading alphas without combining them. We also arrive at our algorithm independently by explicitly constructing alpha risk models based on position data.
    Zura Kakushadze
    10/05/2017 #1 Zura Kakushadze
    Decoding stock market with quant alphas
    Brand new paper https://ssrn.com/abstract=2965224 gives explicit algorithm and source code for extracting expected returns for stocks from expected returns for alphas (trading signals). It provides a new method for trading alphas without combining them. We also arrive at our algorithm independently by explicitly constructing alpha risk models based on position data.
  16. ProducerPhilip Calvert

    Philip Calvert

    10/05/2017
    Great news for Financial Advisors, IFAs, Financial Planners & Advisers Around the World..!
    Great news for Financial Advisors, IFAs, Financial Planners & Advisers Around the World..!For many years I’ve been hosting Social Media and Marketing training days for financial advisers... We normally hold them in Central London, and whilst many attendees are able to travel, these events have not always been convenient for IFAs/advisers...
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  17. ProducerAnders Liu-Lindberg
    Can I Get Hired With A Finance Degree Only?
    Can I Get Hired With A Finance Degree Only?What do you need to get a job in Finance? Quite a broad question with quite a broad answer as well. Obviously, there’s no one golden rule that applies to all situations, to all countries, or to all jobs. The answer is very much that it depends on...
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  18. Francisco Lopez

    Francisco Lopez

    09/05/2017
    Francisco Lopez
    The top 10 most powerful cities in the world
    www.weforum.org The Global Power City Index ranks the world’s most important cities according to their...
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  19. Bengt Hahlin

    Bengt Hahlin

    09/05/2017
    In 2016, the U.S. government spent $3.85 trillion dollars. Here is how:

    3 of the 19 total budget functions, accounted for about 1/2 of total spending. Social Security (23%), National Defense (14,9%), and Medicare (14,9%).

    And about 3/4 of total spending was awarded to individuals (30,3%), private contractors, and local governments.
    Bengt Hahlin
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  20. ProducerCarrie Wells

    Carrie Wells

    09/05/2017
    Podcast: The Future of Video Chat in Banking-w/ Scotiabank
    Podcast: The Future of Video Chat in Banking-w/ Scotiabank Carrie Chitsey Wells is joined by Shannon Burch of Scotiabank. They discuss the change in consumer behaviors and the desire for video chat. Shannon shares what other banking executives should be thinking in regards to the customer of "tomorrow"....
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  21. Francisco Lopez

    Francisco Lopez

    05/05/2017
    Francisco Lopez
    time.com The woman who invented the wildly popular fidget spinners isn't making a profit off them even though they are selling out at toy...
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  22. Francisco Lopez

    Francisco Lopez

    05/05/2017
    Francisco Lopez
    A powerful Trump cabinet member is proving a point economists have been trying to make for years
    www.businessinsider.com There's a reason why business and economics are two separate...
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  23. Francisco Lopez

    Francisco Lopez

    04/05/2017
    Francisco Lopez
    An American jobs threat worse than coal is coming to your hometown
    www.businessinsider.com The retail industry is bleeding jobs, and President Donald Trump hasn't addressed the...
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  24. ProducerBengt Hahlin

    Bengt Hahlin

    04/05/2017
    At the core of the banking system-old technology and low security
    At the core of the banking system-old technology and low securityThis is a story about a man in the business/finance sector who was so feed up by the incompetence and bureaucratic indignity of the banking system that he decides to start his own bank. And this is what he discovered regarding the core technology...
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  25. ProducerScott Leckie

    Scott Leckie

    03/05/2017
    Takota Income & Arbitrage 1st Q Report
    Takota Income & Arbitrage 1st Q ReportFIRST QUARTER 2017 A pause in the materials related sector.Dear Partners,Our results for the first quarter of 2017 were positive again (see details below), continuing the good returns that we were able to achieve in 2016. This was accomplished...
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