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Leveraging Relationships Between Bulge Bracket Banks & Startups

The Wharton Entrepreneurs Workshop, developed jointly by Wharton | San Francisco and Wilson Sonsini Goodrich & Rosati, features Gary Johnson, Vice President at Credit Suisse, discussing the current and projected state of the U.S. public equity markets, the financial and business attributes of a startup that are essential for a successful IPO or acquisition, and investment areas that are attracting the most attention in the technology sector.

Johnson also outlines what startups can expect to gain by establishing early relationships with traditional investment banks and how those relationships evolve.

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The Dallas Fed has recently called for the immediate breakup of large banks. The recent recession has enlightened us that we are doomed to repeat history unless we ensure that no single corporation/ major bank has too much power. The unionization of banks has unduely given the banks a colossal amount of leverage where main street will continue to cater to the whims of wall street. Just review the infographic below and judge for yourself.

The Dallas Fed has recently called for the immediate breakup of large banks. The recent recession has enlightened us that we are doomed to repeat history unless we ensure that no single corporation/ major bank has too much power. The unionization of banks has unduely given the banks a colossal amount of leverage where main street will continue to cater to the whims of wall street. Just review the infographic below and judge for yourself.

[Flash 9 is required to listen to audio.]

Bank.

Can we have a banking system that provides good services to people at reasonable rates? A banking system that doesn’t bring down the global economy every few decades?

Anat Admati thinks we can. She’s a finance professor at Stanford, but she never paid much attention to banks until the financial crisis. (This is not unusual in the superspecialized world of academia.)

After the crisis hit, Admati started reading up on banks. And, in a basic banking textbook, she came upon a single line that changed her career.

“I sat in my office and I thought, ‘Something is really wrong in banking.’ “

In this podcast (Source: NPR), Admati tells us what she thinks is wrong in banking — and how she thinks we can fix it.

Simon Johnson explores the liquidity versus capital debate issue in further detail on Bloomberg. 

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The Civil Spring | City Of Berkeley Plans To Pull $300M Out Of Wells Fargo

In what may be the most damaging blow to Big Banks since the overwhelming success of Bank Transfer Day in late 2011, the City of Berkeley recently announced its intention to withdraw all financial assets from Wells Fargo.

On Tuesday night, the City Council voted unanimously to find a more socially-minded institution to hold approximately $300 million in city assets. Council members said that they hoped the decision would send a very strong message to the Big Banks ultimately responsible for the housing crisis that sent the economy spiraling…

As might be expected, the local Wells Fargo branch was shocked and somewhat defensive following the City Council’s announcement.

“Over the past three years, Wells Fargo has donated more than $3 million to 89 nonprofits in Berkeley… And less than two percent of homeowner-occupied loans in our servicing portfolio have proceeded to foreclosure sale,” said Wells Fargo spokesman Ruben Pulido.

While that may be true on a local level, there is no denying the dubious actions of the Wells Fargo corporation:

  • Wells Fargo was a significant player in the subprime crisis. In 2006, the last year before the subprime bubble started to burst, Wells originated or co-issued $74.2 billion worth of subprime loans, making it one of the top subprime lenders in the country.
  • As recently as September 2008, Wells still held $48 billion worth of subprime mortgages in its servicing portfolio, making it the nation’s sixth largest subprime servicer.
  • Despite its large portfolio of at risk mortgages, Wells Fargo has started trial mortgage modifications for only 11% of its 292,515 borrowers who are eligible for the Obama Administration’s Making Home Affordable Program (and are at least 60 days past due). At Wachovia, which Wells Fargo acquired in 2008, the number is even lower, 2% of 74,231 eligible borrowers.
  • Wells Fargo put taxpayers on the hook for up to $36.9 billion in bailout funds and programs plus an unknown amount from the Federal Reserve’s $8 trillion in emergency programs. This money was supposed to help the banks get the economy going again. But little of this money has gone to relieve struggling homeowners and increase the flow of credit to small businesses (bullet points sourced via SEIU).

The City of Berkeley should be applauded for its decision to take bold action against the Big Banks, many of which have yet to face any significant consequences for their negligent and often illegal actions. Let the politicians form their task forces and sub committees. In the mean time, intelligent citizens like those on the Berkeley City Council will continue to take action in the most powerful manner possible: voting with their dollars.

(via emergentfutures)

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A 375-Year-Old French Bank Forgives Debts of Paris’ Poorest The Crédit Municipal de Paris, also known as the “Mont-de-piété,” the bank of the poor, has allowed the needy to get loans against their valuables for centuries—acting as a kind of ethical pawnshop, or the original microlender. To celebrate its 375th anniversary, thousands of lucky French people had their financial obligations forgiven after the country’s oldest bank decided to simply wipe their slates clean. Read more on GOOD→ 

A 375-Year-Old French Bank Forgives Debts of Paris’ Poorest

The Crédit Municipal de Paris, also known as the “Mont-de-piété,” the bank of the poor, has allowed the needy to get loans against their valuables for centuries—acting as a kind of ethical pawnshop, or the original microlender. To celebrate its 375th anniversary, thousands of lucky French people had their financial obligations forgiven after the country’s oldest bank decided to simply wipe their slates clean.

Read more on GOOD→ 

Source good

The History of Banking

 

A quick satirical digital short that looks at the probabilities of the 2008 recession and the influence of bankers on the crisis, explained in terms of sigmas. 

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