Posts

Showing posts with the label banks

Bank Transfer Day - November 5, 2011

According to one site on the internet (must be logged into Facebook to follow this link):

"Together we can ensure that these banking institutions will ALWAYS remember the 5th of November!! If the 99% removes our funds from the major banking institutions to non-profit credit unions on or by this date, we will send a clear message to the 1% that conscious consumers won't support companies with unethical business practices.

• Research your local credit union options
• Open an account with the one that best suits your needs
• Cancel all automatic withdrawals & deposits
• Transfer your funds to the new account
• Follow your bank's procedures to close your account before 11/05


FIND A CREDIT UNION
USA: http://www.findacreditunion.com/
CANADA: http://locator.cucentral.com/
UK: http://www.findyourcreditunion.co.uk/"

We think this is an interesting idea. If there is a free market for the provision of financial services, then this should be a welcomed initiative. If consumers are …

FDIC revises rules on private equity investments

According to the New York Times, "The Federal Insurance Deposit Corporation imposed(new rules governing investments by) private equity firms seeking to buy failed institutions, although they eased more onerous proposals in hopes of luring them to the table." The new rules are designed to address concerns that "private equity buyers might engage in aggressive practices that could put its deposit insurance fund at risk."

"The rules..require private equity-controlled banks to pour enough capital into a failed bank so that it has a cushion of at least 10 percent of its assets for three years. The F.D.I.C. dropped a requirement that private equity firms supply additional capital in the event of a severe downturn, required private equity firms not sell an acquired bank for at least three years, imposed restrictions barring the acquired bank from lending to companies affiliated with the private equity buyer, and exempted private equity firms from complying with the h…

OCC Interim Final Rule Encourages Public Welfare Investments by National Banks

According to the Comptroller of the Currency,

"WASHINGTON — The Office of the Comptroller of the Currency (OCC) issued a banking bulletin on an interim final rule to implement the changes to national banks’ public welfare investment authority enacted in the Housing and Economic Recovery Act of 2008 (HERA), which the President signed into law on July 30, 2008."

Public welfare investments are investments that promote the public welfare. (Sorry to be circular, but it is what it is.) These are investments that primarily benefit low and moderate income individuals, low and moderate income areas, or other areas targeted for redevelopment. They include debt or equity investments that finance small businesses, provide credit counseling, job training, community development research. We believe the law and resulting regulation timely.

The OCC goes on to state that "This provision in HERA restored national banks’ full authority to make investments designed primarily to promote the p…