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There is no such thing as a safe deposit-taking bank on its own
There is no such thing as a safe deposit-taking bank on
its own, even if its assets are of good quality and it has
enough liquid assets to cope with normal variations in
the net flow of deposits and other short-term liabilities.
The events since August 2007, and in particular the
demise of Northern Rock in the United Kingdom and
Bear Stearns in the United States, have made it clear
that any highly leveraged institution with assets that are
mostly long term and illiquid and liabilities that are
mostly short term can be subject to a catastrophic liquidity
shortage.
FT.com / Columnists / Martin Wolf - What to do with Britain’s banks
Banking is a utility in which taxpayers bear much risk. Regulators have to represent the interests of these risk-bearers of last resort.
Next-Gen Currencies and Banks as Utilities - Umair Haque - HarvardBusiness.org
The simple answer for regulators is: regulate banking like a utility
Not a Great Depression, a Great Rebalancing - Umair Haque
The reason is that stagnation isn't a financial phenomenon, but an institutional one: it's a product of bad DNA. And so a resolution to the macro crisis demands nothing than less than new DNA across every segment and sector of the economy.
Let's reverse that insight to sharpen it. The striking thing about today's economy isn't that lame, soul-crushing industrial-era business is imploding into a black hole of economic nothingness. That was predictable. Rather, it's that while the so-called value created by, for example, investment banks, is proving to have been largely an illusion, revolutionaries bringing new DNA to the table are able to create authentic, durable, meaningful value.
By radically redefining how economic activities are organized and managed, a new generation of revolutionaries is rediscovering the long-lost art of real value creation. We've discussed many of them: Google, Threadless, Apple, and Zara, to name just a few.
Universal banks need careful monitoring | ft.com
By encouraging or allowing banks such as JPMorgan, Bank of America and Barclays to rescue weaker banks, useful as it is in the short term, they are also nurturing bigger universal banks.
The Reckoning - Agency’s ’04 Rule Let Banks Pile Up New Debt - Series - NYTimes.com
“We have a good deal of comfort about the capital cushions at these firms at the moment.” — Christopher Cox, chairman of the Securities and Exchange Commission, March 11, 2008.
History of banking - Wikipedia, the free encyclopedia
Major events in banking history
* Florentine banking — The Medicis and Pittis among others
* Knights Templar- earliest Euro wide /Mideast banking 1100-1300.
* Banknotes — Introduction of paper money
* 1602 - First joint-stock company, the Dutch East India Company founded
* 1720 - The South Sea Bubble and John Law's Mississippi Scheme, which caused a European financial crisis and forced many bankers out of business
* 1781 - The Bank of North America was found by the Continental Congress
* 1800 - Rothschild family founds Euro wide banking.
* 1803 - The Louisiana Purchase was the largest land deal in history
* 1929 - Stock market crash
* 1989 - junk bond scandal and charges against Michael Milken resulted in new legislation for investment banks
* 2001 - Enron bankruptcy, causing new legislation for annual reporting
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- Florentine banking — The Medicis and Pittis among others
- Knights Templar- earliest Euro wide /Mideast banking 1100-1300.
- Banknotes — Introduction of paper money
- 1602 - First joint-stock company, the Dutch East India Company founded
- 1720 - The South Sea Bubble and John Law's Mississippi Scheme, which caused a European financial crisis and forced many bankers out of business
- 1781 - The Bank of North America was found by the Continental Congress
- 1800 - Rothschild family founds Euro wide banking.
- 1803 - The Louisiana Purchase was the largest land deal in history
- 1929 - Stock market crash
- 1989 - junk bond scandal and charges against Michael Milken resulted in new legislation for investment banks
- 2001 - Enron bankruptcy, causing new legislation for annual reporting
Major events in banking history
BBC NEWS | Business | Banking's long revolution
The transformation of banking in the last half-century has been one of the biggest changes in the world of business.
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The transformation of banking in the last half-century has been one of the biggest changes in the world of business.
IBM Worldwide Banking Center of Excellence
What we offer:
IBM Banking Center of Excellence engagements: Working together to turn obstacles into opportunities A broad range of services and support to help IBM financial institution clients achieve success across a wide variety of IT transformation scenarios, available Banking Center of Excellence engagements will include initial technical design, application prototyping and benchmarking activities for a number of use cases that provide unique value propositions
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What we offer:
IBM Banking Center of Excellence engagements: Working together to turn obstacles into opportunities
A broad range of services and support to help IBM financial institution clients achieve success across a wide variety of IT transformation scenarios, available Banking Center of Excellence engagements will include initial technical design, application prototyping and benchmarking activities for a number of use cases that provide unique value propositions
Banking Technology Blog Spot » Waiting for Web 2.0
Comentary of lack of progress amongst Banks, while non banks such as Paypal thrive.
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When you look at the way the internet has impacted the way we consume music and news, or the way we shop, it may seem that financial services is perhaps one of the industries on which the web has had the most limited impact.
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