SEARCH

Entries in Bank (4)

Saturday
Mar302013

Bank of Cyprus Depositors Could Lose More Money Than Expected

Hemera/Thinkstock(NICOSIA, Cyprus) -- Wealthy depositors in the Bank of Cyprus could lose even more of their savings than initially expected.

According to BBC News, depositors with over 100,000 euros could lose as much as 60 percent of their money in order to pay for the bailout.

According to a statement from the bank, accounts that are over the 100,000 euro threshold will have 37.5 percent of their money converted into bank shares. Additionally, depositors could lose up to 22.5 percent more, depending on what experts deem necessary to support the bank's reserves.

The remaining 40 percent would continue to accrue interest, however the interest would only be paid if the bank "performs well," says BBC News.

The BBC report also states that depositors at Laiki -- Cyprus' second largest bank -- could face even larger losses, though no details have yet been released. Laiki is expected to eventually be absorbed by the Bank of Cyprus.

European and Cypriot government leaders reached a bailout deal this past week that averted a bank collapse. The $13 billion bailout calls for shrinking the banking system.

Banks in Cyprus reopened on Thursday with strict limits on transactions on withdrawals and a ban on cashing checks. Long lines of citizens waited to access their money on Thursday, but by Friday the lines were significantly shorter.

Copyright 2013 ABC News Radio

Thursday
Sep152011

Barney Frank Calls for Less Bank Industry Influence at Federal Reserve

United States Senate(WASHINGTON) -- Add Rep. Barney Frank, D-Mass., to a growing list of politicians who don't like how the Federal Reserve operates.

The congressman who helped co-write the Dodd Frank Wall Street Reform and Consumer Protection Act, Thursday proposed a bill that would require the Senate to confirm all members of the Federal Open Market Committee, a group of 12 policymakers who are responsible for setting interest rates.

Currently, the FOMC consists of seven politically appointed Fed governors and five regional Federal Reserve Bank presidents. Some, like Frank, believe that the banking industry holds too much power on the committee.

But others have sharply criticized Frank's proposal and worry that such changes would turn the Fed, whose decisions have a profound impact on the pace of the economy, into a politically motivated body.

"The end result of this bill would be to further politicize the conduct of monetary policy, which is the last thing our economy needs right now," said Spencer Bachus, chairman of the Republican controlled House Financial Services Committee, in a statement.

And many experts agree with Bachus. Interest rates set by the Fed have a direct impact on the amount of money commercial banks can lend, and the fear is that politicians with agendas could attempt to influence monetary policy, especially during an election year.

Many politicians have recently focused their Fed attacks on the central bank's Chairman Ben Bernanke.
Sarah Palin made a comment suggesting that Bernanke “cease and desist,” and Republican presidential hopeful Rick Perry called the chairman's activities "treasonous," recently promising to deny Bernanke another term if elected.

Copyright 2011 ABC News Radio

Tuesday
Aug232011

Swiss Bank UBS to Cut 3,500 Jobs

SEBASTIAN DERUNGS/AFP/Getty Images(ZURICH) -- UBS AG announced Tuesday that it will be cutting around 3,500 positions in an effort to help reduce its expenses by 2 billion Swiss francs, or $2.5 billion, each year.

The Swiss bank said the job cuts "will be achieved through redundancies as well as natural attrition."

Nearly 45 percent of the staff reductions will come from UBS' investment bank business, while 35 percent will come from its wealth management and Swiss bank business.  The remaining 20 percent will be divided evenly among the bank's global asset management unit and its wealth management Americas unit.

UBS hopes to achieve its savings by the end of 2013.

Copyright 2011 ABC News Radio

Monday
Aug012011

HSBC to Slash an Additional 25,000 Jobs by 2013

HSBC(LONDON) -- HSBC Holdings PLC says it will eliminate an additional 25,000 jobs worldwide by 2013 in an effort to cut costs and increase profits.

Europe's largest bank made the announcement Monday after reporting better-than-expected first-half profits as investment banking revenue continued to decrease. HSBC had previously announced it was slashing 5,000 jobs throughout the United States, United Kingdom, France, Latin America, and the Middle East, bringing the total number of employees out of work to 30,000.

First-half profits rose 36 percent, while the company announced a net income gain of more than $2 billion through June 30 as compared to 2010.

The bank says the cuts are expected to amount to savings of $3.5 billion over the next two years. A spokesperson for HSBC says the company has not ruled out new hires as a result of the cost-cutting moves, but cautioned as to the frequency it will recruit.

Copyright 2011 ABC News Radio







ABC News Radio