Bank Head Resigns: Antreas Artemis, former CEO of Cyprus’ largest bank, stepped down on Tuesday, citing government interference with the Bank of Cyprus as his primary cause of departure. Banks throughout Cyprus remain closed on Tuesday, following a government ordered 48-hour delay of the previously scheduled return to semi-normalcy. Officials in Cyprus are working to verify that recently adjusted systems will function smoothly when banking operations resume, amid fears of a bank run in the recently bailed-out nation. Many in Cyprus have vehemently opposed the bailout plan, which will see steep levies on those who have more than 100 thousand euros in the bank. (Photo via EuroNews)
Liberals rejoice, financial sector weeps: With her election to the Senate, Warren became one of the most powerful people in the country; now, she’s headed to one of the most powerful committees in the Senate. Financial regulation is Warren’s specialty; she helped oversee the distribution of TARP funds in 2009 and essentially created the Consumer Financial Protection Bureau. We can’t imagine the bank lobby wanted her on this committee, but then again, there’s probably not much they could have done to prevent it. (Photo: AP) source
![Warren to nab powerful committee seat? According to several Senate sources, Senator-elect and populist hero Elizabeth Warren has a good chance of getting a seat on the powerful Senate Banking Committee. This is a logical fit for Warren, architect of the Consumer Financial Protection Bureau, and would give her great power in her efforts to curb deceptive and unscrupulous practices on the part of financial institutions. “[G]iven her prominent work on those issues, she would certainly have a very good shot” at getting a spot on the committee, an aide tells Reuters. Having Warren on Banking is essentially the Republicans’ worst nightmare, but it’s worth noting that it’s a nightmare entirely of their own short-sited construction. source](http://25.media.tumblr.com/tumblr_md8mpzSxGQ1qas8z9o1_500.jpg)
Warren to nab powerful committee seat? According to several Senate sources, Senator-elect and populist hero Elizabeth Warren has a good chance of getting a seat on the powerful Senate Banking Committee. This is a logical fit for Warren, architect of the Consumer Financial Protection Bureau, and would give her great power in her efforts to curb deceptive and unscrupulous practices on the part of financial institutions. “[G]iven her prominent work on those issues, she would certainly have a very good shot” at getting a spot on the committee, an aide tells Reuters. Having Warren on Banking is essentially the Republicans’ worst nightmare, but it’s worth noting that it’s a nightmare entirely of their own short-sited construction. source
Follow ShortFormBlog • Find us on Twitter & Facebook
A big company with big problems: Reuters is reporting that HSBC is facing some tough allegations in the Senate, with the company reportedly getting investigated for its role in sketchy money-laundering practices. Reuters reports that while the scale of the investigation isn’t known, signs point to breakdowns in the company’s anti-money-laundering systems. In response to the Senate allegations, the company’s spokesman responded: ”We have ongoing discussions with officials on a number of regulatory and compliance matters. The nature of these discussions is confidential; in all cases, we are cooperating.” Read more at the link. (awesome, incredibly fitting photo by Flickr user Will Survive) source
Much credit to these protesters: In some ways, these protests were arguably more effective in one quick burst than the Occupy Wall Street protests have been in one long, slow-moving one. With a specific target (Bank of America) and a specific reason (their overly harsh handling of foreclosures) the result is a protest that plays well for the cameras and effectively encapsulates the point of what’s going on. People got arrested, but they did peacefully. It took a while to draw some reaction from Occupy Wall Street; Bank of America was forced to dismiss the protests as a PR stunt right away. But the fact they had to say anything at all is a big deal. source
» This is both the largest consumer protection fine ever levied by the Fed and the first time the institution has punished a bank for nudging customers into subprime loans. There’s more to come, too; in addition to the fine, the order also “requires that Wells Fargo compensate affected borrowers,” although it’s unclear how this will work. It’s better than nothing, but $85 million just seems a bit low; as a point of comparison, the bank made $2.5 billion in the first three months of 2010 alone.
Yahoo wants to buy Hulu now too. They’re going on an “I...
I’m moving back to New York in a few days. Unlike past...
OMG. I got so...
In this week’s Newsweek, a little...
Tumblr this morning. [h/t anne]
#@#$%!.tumblr.com
Here’s a hidden feature that shipped in...
» A fight that directly affects small businesses: We’ve been to many small businesses in our day that have gone out of their way to avoid using debit cards, specifically for this reason. We’re with them in this case; really high charges for every purchase, even tiny ones, is straight up greedy. Fortunately, a key senator, Dick Durbin, agrees with us: ”Honestly, are we going to stand here and say we can’t protect small businesses across America struggling to survive?” The fight for keeping the fees has bipartisan support; the main guys backing banks in the Senate are Bob Corker (R-TN) and Jon Tester (D-MT). They claim that banks will have to replace the interchange charges with higher fees on consumers. Maybe they should; the benefit to small business as an economic driver makes it worth it.
» Why such a big charge? Apparently, someone at Bank of America (or Countrywide) was really bad at doing paperwork, or was trying to push through half-baked mortgages. Because both were named as factors in creating the huge charges which resulted from investors making claims against them. Most of the fees are headed to Fannie Mae and Freddie Mac, by the way. Had this charge (and a separate $2 billion goodwill charge related to the Countrywide merger) not been there, Bank of America would’ve been profitable in the fourth quarter.
Copyright 2009-2013 Ernie Smith • Ask us stuff! • E-mail us • Follow us on Twitter • Follow us on Facebook
