| August 28, 2012
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Today's Top Stories
1. Wells Fargo defensive about mortgage share
2. Swiss crackdown exposes numerous tax cheats
3. Form PF dawns on hedge funds
4. JPMorgan aims for stronger risk committee
5. Criticism for new Bank of America directors Also Noted: Spotlight On... The world's biggest market caps
M&T buys Hudson City; More banks deregister stock and much more... News From the Fierce Network:
1. Municipal advisor fiduciary rule in jeopardy
2. Bankers as political candidates
3. What's driving ERM?
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Events > Investment Consultants Forum - The Crowne Plaza Times Square, New York, NY - March 2, 2012
> NFC Ticketing Europe 2012 - March 20-21 - London
> NYIF Essentials of Project and Infrastructure Finance - September 10-12 - New York, NY
> Investment Trends Summit - September 12-14, 2012 - The Four Seasons, The Biltmore - Santa Barbara, CA
> Investment Trends Summit - September 12-14, 2012 - Santa Barbara, CA
> NYIF Wealth Management Program - October 29- November 16 - St. Petersburg/Tampa FL
> NFC Payments USA Unites NFC Experts in Boston Once Again - October 29-30 - Boston, MA
> The Mobile Wallet Summit - November 28-29 - London
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* General ad info: Click here | Today's Top News 1. Wells Fargo defensive about mortgage share Is Wells Fargo being unfairly penalized for growing its market share in residential mortgages? This much is for sure -- it's on the defensive just a bit. Bloomberg reports that the bank recently sent a two-page memo to employees, defending its operations and its size. "In a free economy, competition is essential," the bank told the news service. "We believe customers must have choices in where they bring their lending business." One executive was quoted saying that, "Market share for us is not a goal, it's not the be-all, end-all that we strive for." There are some who will be skeptical of such claims. Wells Fargo, as all banks do, has internal goals. At a recent sales conference, according to media reports, managers underscored to employees that it was "40 percent or bust," referring to mortgage market share. You can hardly blame the bank for seizing the opportunity to expand in mortgage markets. It was there for the taking, especially given the woes of Bank of America. Wells Fargo probably wasn't counting on as much criticism for filling the void. The fear is that Wells Fargo may be becoming too big of a player, which would leave the entire market vulnerable to the ups-and-downs of one bank. The issue has been flagged by many regulators and executives at GSEs. So, what is the alternative? You can't ask a bank to voluntarily give up market share. You can't force it to scale back for nebulous reasons. Hopefully, other lenders will be rise to the occasion. The market is starting to hum again, and hopefully that will incent local banks and credit unions just as much. For more:
- here's the article Related articles:
Wells Fargo now the big retail player
Wells Fargo eyes Ally in auto loans
Wells Fargo hit by higher costs of mortgage settlement Read more about: Wells Fargo, mortgages
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2. Swiss crackdown exposes numerous tax cheats The crackdown on Swiss banks that provide a haven for tax cheats has been a compelling story. The attention has been focused on the effect on the vaunted Swiss banking system, which can no longer lay claim to the title of the most discreet on the planet. The U.S. has been relentless in their pursuit of justice, and the Swiss system seems irrevocably changed. These banks must now reinvent themselves. The flipside of the story concerns Americans who had funds locked away in these numbered accounts. Each account would seem to hold a fascinating story in and of itself. This brings me to Jacques Wajsfelner , 83, who has admitted in court that he failed to file Foreign Bank and Financial Accounts Reports. He was hit with civil penalties of $2.84 million and restitution of $419,940. "Wajsfelner's former Swiss adviser, Beda Singenberger, was indicted last year on a charge of conspiring to help more than 60 U.S. taxpayers hide $184 million from the Internal Revenue Service in offshore accounts," according to Bloomberg. Wajsfelner faces 30 months to 37 months in prison. He remains free but was ordered to surrender his guns. "Wajsfelner was born in Germany and fled the Nazis as a teenager...He became a U.S. citizen and worked in real estate and advertising in New York and Boston." His lawyers hope his life-story and age will win him lenient treatment. There may be some fascinating stories here. What compels a person to open a Swiss account? Some may simply be driven by a desire to evade taxes, while others may have a more interesting story to tell. For more:
- here's the article Related articles:
Prosecutors seek names of Swiss bank employees
Swiss banks face bleak future Read more about: Swiss Banks, Tax Avoidance
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3. Form PF dawns on hedge funds Are you ready for Form PF? Hedge fund executives have had plenty of time to prepare for the once dreaded new filing. Their preparatory efforts will pay off soon, as the form becomes a regulatory reality. The deadline is August 29 for the largest funds. Bloomberg Businessweek quotes one executive about it, who says that, "Every year for many years, August was the month everybody went to the beach. There are a shocking number of people sitting in the office this month, plugging away at their homework." My sense is that this is hyperbolic to some degree. The compliance people have been plugging away at this for a while now. The requirement didn't exactly creep up on anyone. The industry has long since seemed resigned to not only Form PF but the new Form ADV Part 2 that preceded it. The big uncertainty about Form PF is what it will lead to. Giving information to regulators confidentially is one thing, but is it inevitable that limited partners will start asking for a look behind the once think hedge fund curtain? As long as the fund is posting strong gains, it will not likely be a concern, but at some point investors will be curious for whatever reason. Like it or not, however, this is the new reality in the industry. Transparency with investors is necessary. More funds and limited partners may try to negotiate the issue in more detail at the point of investment, laying out ground rules about what the fund will reveal and what it won't. For more:
- here's the article Related articles:
Hedge funds ready for Form PF
Can the alternatives industry live with Form PF? Read more about: Hedge Funds, Form PF
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4. JPMorgan aims for stronger risk committee In the wake of the London Whale "hedging" fiasco, JPMorgan's board found itself on the hot seat, suffering lots of chatter about how in the world it could have allowed such out-of-control trading to wreak havoc with the firm. The criticism has apparently hit home with CEO and chairman Jamie Dimon, who has placed former KPMG International Chairman Timothy Flynn on the risk committee, which has been specifically criticized. As of now, according to Bloomberg, the risk panel's three members includes only one with Wall Street experience, James Crown, "and he hadn't been employed in the industry for more than 25 years." The other members were Ellen Futter, 62, president of the American Museum of Natural History, who sat on AIG's governance committee in 2008, and David Cote, chief executive officer of Honeywell International. Futter is expected to step down from the panel, according to media reports. The risk committee certainly has some big decisions to make, and one would hope that Flynn will embark on an effort to get much more aggressive in its oversight. The committee has every right to seek direct access to employees, including risk managers, across the organization, including the trading floor, and set up new reporting and other processess. I can only hope that Dimon blesses such efforts, because they will not come to pass if he does not. For more:
- here's the article Related articles:
Lots of jockeying as JPMorgan's legal risks rise
Silver linings in JPMorgan's results Read more about: directors, board
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5. Criticism for new Bank of America directors Bank of America's board is in flux, with four new directors set to come aboard next year. On the surface at least, all four are independent, but that didn't stop analyst Richard Bove from leveling some criticism. "These are the type of people banks want on the board, and they tend to be sycophants, who go along with whatever [bank management] tells them," Bove said to TheStreet.com. More specifically, he believes "the directors in general lack expertise in technology and capital markets, which is where he believes the future of the institution lies." The new directors are Sharon Allen, former Deloitte chairman; Jack Bovender, former HCA chairman and chief executive; Linda Hudson, president and CEO of the U.S. subsidiary of defense contractor BAE Systems; and David Yost, former CEO of pharmaceuticals company AmerisourceBergen. The board now has 16 members, though that will decline as people step off within a year. It may be premature to pronounce them all spineless and it might be wise to give them some time to earn that reputation--or not. But I have noted that the new director nominees lack experience in the financial services industry. I would add that some academics have found a positive correlation between performance and independent directors with industry experience, but no correlation between performance and independent directors with no industry experiences. For more:
- here's the article Related articles:
Dispute over Bank of America's future
Bank of America adds four more directors Read more about: Bank of America, directors
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Also Noted SPOTLIGHT ON... The world's biggest market caps It was big news when Apple set a U.S. record for the largest market cap. Seen through a wider lens, U.S. firms are faring well in this regard. Apple, IBM, Wells Fargo, and four more U.S. companies joined the top 20 in globally since stocks peaked in 2007, bringing the total to 14, according to Bloomberg. They replaced the likes of Gazprom and China Petroleum & Chemical Corp. Article Company News:
> M&T buys Hudson City. Article
> Pandit against product control. Article
> Wells Fargo defends market share. Article
> CCB's better than expected profits. Article
Industry News:
> More banks deregister stock. Article
> Small banks dive into credit cards. Article
> Lending at new highs. Article
> Gold rally in place again. Article
> U.K. bank reputations decline. Article
> Libor lawsuits mount. Article
Regulatory News:
> SEC to review quiet period. Article
> A look at money fund reform. Article And Finally…Poker networking. Article > Controls for automated trading. Can you rely on the sell-side alone? Wednesday, August 29th, 11 am ET / 8 am PT Join us for this informative and thought-provoking webinar, lead by renowned Capital Markets expert Richard Bentley, VP of Capital Markets, Progress Software . And learn how you can better mitigate and manage the risk of automated trading. Register today! > Webinar: Network Security: Emerging threats require updated Best Practices- September 12, 2pm ET/ 11am PT The security picture at financial services seems to be getting cloudier by the day. While many banks have awoken to the risks imposed by possible network breaches, the landscape continues to morph, raising the stakes. Cyber criminals continue to refine their techniques and to develop more advance hacking methods to compromise corporate networks, and they are as sophisticated as ever. The very notion of Best Practices in the realm of network management and security continues to evolve. We take a look at current trends and up-to-date practices. Register today!
| > Investment Consultants Forum - The Crowne Plaza Times Square, New York, NY - March 2, 2012 This conference provides a unique environment for developing dialogue between plan sponsors, managers and consultants. This event will feature panel-driven discussions focused on specific investment techniques of fixed income and hedge fund managers, the evolving role of institutional consultants, the manager evaluation process and more. Register today. > NFC Ticketing Europe 2012 - March 20-21 - London Come and join MasterCard, Renfe, Deutsche Bahn, Visa Europe, Orange, Arriva Netherlands, O2 and many more for the first event to bring together the whole NFC Ticketing industry for discussion, debate and quality networking. Click here. > NYIF Essentials of Project and Infrastructure Finance - September 10-12 - New York, NY This is a practical course that provides executives, whether as financiers, sponsors, or professional support, an opportunity to understand the risk-return character of limited recourse projects from multiple perspectives. Case studies span a variety of sectors and geographical regions. This course will not use in-depth models involving Excel™, but the instructor (a broad-based finance and investment executive with global experience throughout the U.S., Europe and the emerging markets of Latin America and Asia who has negotiated numerous transactions, including mergers and acquisitions, public offerings, mezzanine financings, international bank syndications, corporate valuations and fairness opinions) will review modeling approaches with examples. Register today. > Investment Trends Summit - September 12-14, 2012 - The Four Seasons, The Biltmore - Santa Barbara, CA The Investment Trends Summit is an educational forum focused on analyzing trends for the future, and exploring ways to implement new strategies in investment plans. Speakers and attendees will discuss topics such as investor's perspectives, investment management theories, and more. Register Today! > Investment Trends Summit - September 12-14, 2012 - Santa Barbara, CA Opal Financial Group's Investment Trends Summit will serve as an educational forum focused on analyzing trends for the future, as well as exploring ways to implement new strategies in particular investment plans. As one of our Platinum Series Events, we have designed this investment trends conference to meet the needs of money managers, senior pension fund officers and trustees who prefer smaller, more structured programs. By limiting this event to select managers, participants will be able to more carefully examine a distinct set of topics specifically tailored to their interests. > NYIF Wealth Management Program - October 29- November 16 - St. Petersburg/Tampa FL The 3-week Program captures the best practices and insights from corporate thought leaders and wealth management firms. This modular suite of classes is designed to prepare client-facing professionals with the knowledge and skills to meet and add value to wealthy individuals and families. The Program explores the following topics: Global Economic Impact on Wealth, Consultative Discussions and Recommendations, Asset Allocation and Portfolio Optimization, Lending and Leverage, Tax and Intergenerational Planning, and Maintaining Good Relationships with Investment Clients. Register today. > NFC Payments USA Unites NFC Experts in Boston Once Again - October 29-30 - Boston, MA NFC Payments USA (Oct 29-30th)is back for its second year, hosting 150 senior level delegates to debate industry challenges and facilitate the roll out of NFC payments. Speakers include Best Buy, PayPal, Verizon, Barclaycard, T-Mobile, Best Buy, VISA, Capital One, MasterCard. Click here for more information. > The Mobile Wallet Summit - November 28-29 - London The Mobile Wallet Summit is the only show that looks at the future of mobile transactions. It brings together every industry you find in your physical wallet, loyalty, identity, ticketing and payments and provides a forum for debate on how they will fit on your mobile.
| > Get Subscriptions to the Leading Finance Magazines for FREE Mercury Magazines offers top Finance titles for Free to professionals. No Credit Card Required. Stay Ahead in your Industry. Sign up now. > Whitepaper: Using Modern CRM to Attract and Retain Advisors and Clients Learn how this “next generation” CRM delivers game-changing benefits over early CRM options and can help your organization attract and retain top tier talent, foster customer loyalty, and grow assets under management or increase share of wallet/household. Download here. > Whitepaper: Ten Effective Habits of Indispensable IT Departments It's no secret that responsibilities are growing while budgets continue to shrink. Enact these ten IT habits throughout your financial institution to help you cut costs, create operational efficiencies and align IT to business goals. Download Today! | ©2012 FierceMarkets This email was sent to kumaresan.selva.blogger@gmail.com as part of the FierceFinance email list which is administered by FierceMarkets, 1900 L Street NW, Suite 400, Washington, DC 20036, (202) 628-8778.
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