The London 2012 Olympic Games was an undisputed success: record spectator participation, athletic excellence, few of the predicted logistics and travel problems and near-universal public approval around the world.
It’s easy to forget that the history of the Olympics is not without scandals – and not just doping and cheating. Allegations of bribery in the selection of Salt Lake City for the 2002 Winter Olympics led the International Olympics Committee (IOC) to expel 10 members and institute stricter rules about gifts to IOC members, and there were similar allegations about Nagano in 2006. Nevertheless, it would be difficult to find an organization or event as widely respected as the Olympics.
I see some lessons in this for the banking industry.
As the whole world knows, banking has been struggling to get on solid ground since the 2008 meltdown. It continues to struggle with crises from the euro to Liborgate, Mexico Gate and IranChartered Gate. Learn from the Olympics? Here are four actions or take aways for the banking industry: (more…)
Credit ratings agency Moody’s downgraded 15 global banks on Thursday after a months-long review. Today’s graphic is a summary of old and new long-term ratings for the bank holding companies and operating companies (including two downgraded earlier this years).
The Federal Reserve issued report cards scoring U.S.’s largest banks following an annual stress test. While BOA and JP Morgan earned high marks, Reuters’ Karey Wutkowski recaps the Fed’s findings.
Big banks report their earnings and bank profitability may have been permanently damaged from new regulations, according to Reuters Correspondent Jed Horowitz.
Although the economic slowdown has affected banks in Latin America, they still remain profitable and well capitalized.
The European Central Bank announced yesterday that it would begin a three month lending program to commercial banks aimed to ease funding issues during the sovereign debt crisis. The news acted as a catalyst for European banks’ stock prices, particularly those of French banks, given the added liquidity for the financial companies. Investors in these equities will enjoy these gains as the short-term fix comes after the banks have struggled to get dollar funding this year.
I’ve put together this ownership report that identifies the top institutional investors in the European and French banking sectors.
SocGen and Credit Argicole have bigger problems than Wednesday’s Moody’s debt downgrade, says Reuters analysts Ed Rombach and Mike Tarsala.