Shed a tear - Banks not making as much.

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yobob1's picture
yobob1
Status: Silver Member (Offline)
Joined: Apr 20 2009
Posts: 132
Shed a tear - Banks not making as much.

Income slipping, defaults piling up under the rug, inadequate loss reserves - what's not to like?

 

Even after taxpayer bailouts restored bankers’ profits and pay, the great Wall Street money machine is decelerating. Big financial institutions, including commercial banks, are still making a lot of money. But given unease in the financial markets and the economy, brokerages and investment banks are not making nearly as much as their executives, employees and investors had hoped.

After an unusually sharp slowdown in trading this summer, analysts are rethinking their profit forecasts for 2010.

The activities at the heart of what Wall Street does — selling and trading stocks and bonds, and advising on mergers — are running at levels well below where they were at this point last year, said Meredith Whitney, a bank analyst who was among the first to warn of the subprime mortgage disaster and its impact on big banks.

Worldwide, the number of stock offerings is down 15 percent from this time last year, while bond issuance is off 25 percent, according to Capital IQ, a research firm. Based on these trends, Ms. Whitney predicts that annual revenue from Wall Street’s main businesses will drop 25 percent, to around $42 billion in 2010, from $56 billion last year.

While the numbers will not be known until after the third quarter ends and financial companies begin reporting earnings in October, the pace of trading this summer was slow even by normal summer standards. Trading in shares listed on the New York Stock Exchange was down by 11 percent in July from 2009 levels, and August volume was off nearly 30 percent.

“What’s happened in the third quarter is that after a very slow summer, people expected things to come back,” said Ms. Whitney. “But they haven’t, and the inactivity is really squeezing everyone.”

http://www.nytimes.com/2010/09/20/business/20wall.html

machinehead's picture
machinehead
Status: Diamond Member (Offline)
Joined: Mar 18 2008
Posts: 1077
Re: Shed a tear - Banks not making as much.
yobob1 wrote:

Income slipping, defaults piling up under the rug, inadequate loss reserves - what's not to like?

http://www.nytimes.com/2010/09/20/business/20wall.html

As our Stasi overlords try to outlaw cash, there's a pushback to use it for everything -- because it deprives banksters of fee income. Here is a site with more details:

http://www.usecashmovement.org/

I've drastically cut back on credit cards, paying cash for fuel and all small purchases. 

Cool PAY CASH, STARVE A BANKSTER! Cool

yobob1's picture
yobob1
Status: Silver Member (Offline)
Joined: Apr 20 2009
Posts: 132
Re: Shed a tear - Banks not making as much.

I currently don't have much choice - my Visa card ( I only keep one and often leave home without it.) is temporarily suspended due to fraud.  I'm pretty careful with who I use it with and so I'm very curious as to how someone obtained the number etc..  Has there been a security breach at Amazon?

I'm going to cancel my auto-pay for the phone bill and one other I have to close those "gaps" and strictly use the card in a very limited way.  I went to all cash for daily expenses (food, fuel, msc.) years ago.  My checks and account are free and I earn .00000001% to boot!  I have a debit card that I have used twice in a year.

Starving them just doesn't seem painful or cruel enough. Smile

machinehead's picture
machinehead
Status: Diamond Member (Offline)
Joined: Mar 18 2008
Posts: 1077
Re: Shed a tear - Banks not making as much.
yobob1 wrote:

My Visa card ( I only keep one and often leave home without it.) is temporarily suspended due to fraud.  I'm pretty careful with who I use it with and so I'm very curious as to how someone obtained the number etc..  Has there been a security breach at Amazon?

Amazon? You're telling me you still read smelly old books?

Ever heard of Fahrenheit 451? People who read books often read the Constitution too. Subversives, in other words. Undesirables.

Probably the CIA disabled your credit card. It's for your own safety. If you see something, say something.

yobob1's picture
yobob1
Status: Silver Member (Offline)
Joined: Apr 20 2009
Posts: 132
Re: Shed a tear - Banks not making as much.
machinehead wrote:

 

Amazon? You're telling me you still read smelly old books?

Ever heard of Fahrenheit 451? People who read books often read the Constitution too. Subversives, in other words. Undesirables.

Probably the CIA disabled your credit card. It's for your own safety. If you see something, say something.

Only if they have lots of pretty color pictures.  The last purchased was Peterson Field Guide to Birds of Western North America. The plot and character build are without parallel.

Fahrenheit 451 sounds like a hot book. Is it illustrated, man?

I'll probably never be clued in as to the "source" of the fraud - unless it is part of a larger breach at a vendor I've used.  Considering I'm pretty careful with whom and when I use the card, it is a bit of a puzzler.  Over the last 6 months the list of vendors is only 6 long - all "trusted" entities.

OnwardThruTheFog's picture
OnwardThruTheFog
Status: Member (Offline)
Joined: Sep 8 2010
Posts: 1
Re: Shed a tear - Banks not making as much.

It's possible that your card number was never exposed.  A Visa card number (the last 10 digits) can be created to pass the "mod 10" check and then is "pre-authed" against the system (using a point of sale device) to determine the numbers validity.  Once they get an approval to the pre-auth they know they have a good card. 

On the debit card side I would suggest you make sure it does not have a Visa or Mastercard logo on it.   I would never carry a card that put's me in the position of trying to get the money back into my account.

 

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