Our biggest stories of the past week are …
The times we live in are confusing. Just as we think we have clarity of direction, the direction changes. Take Facebook. That mighty social network, that links over a billion people in a massively sharing global hive. Facebook almost died. Yep, it missed a beat and almost died.
As I blogged yesterday about how Facebook almost died after missing the mobile wave, it’s interesting that PayPal could have also followed a similar path. PayPal are not an innovator or disruptor, but they are a machine. A growth machine.
Talking of how fast things change, here are a few Friday facts to make you smile (or feel ill). The UK Office of Communications (Ofcom) run regular surveys on our digital lifestyles. This year the impact of smartphone and tablet computing hits the radar and shows how things have changed fast.
When I first started working in banking, I didn't have much idea about risk. Then I was told about market and credit risk, the two major forms of trading risk in the mainstream markets. Put simply: market risk is the risk of losses from trading whilst credit risk is the risk of the counterparty being unable to pay.
After outlining the four main buckets of risk that banks have to tame: market, credit, liquidity and operational; the real issue is the bank’s structure. Historically, banks have been built in product silos and hence there is no sense of enterprise risk.
The BBC recently asked me about the impact Russian sanctions would have on the City of London last week, followed up by European CEO, who interviewed me on the subject. My view is that sanctions are no good for anyone.
The major general news stories of the past week include …
Lloyds share price decline deals blow to Osborne privatisation plans – The Telegraph
Bank trading close to bailout price means sale to retail investors is deemed untenable before the election
Amazon launches credit-card reader – BBC
Amazon launches a credit and debit card reader for tablets and smartphones that poses a challenge to Square and PayPal.
Legal & General 'quitting Association of British Insurers' – The Telegraph
Nigel Wilson, L&G's chief executive, will also step down from the trade association's board, according to reports
British banks fall behind in European race – The Telegraph
Analysis of lenders in Europe shows those in Spain, Italy and France have seen their stock market values soar in the last year
The era of the mega-bank is over – it's time to let them fail – The Telegraph
By seeking to beef up capital to prevent failure, regulators only further reduce the propensity to lend – just look at the devastating effect this is having on Europe
Exclusive: Standard Chartered to scour records for money laundering, with penalty at stake – Reuters
(Reuters) – Standard Chartered Plc will soon begin sifting through a mountain of data for signs of possible money laundering or other criminal activity, as a result of faults in the software critical to its anti-money laundering compliance program, two sources with knowledge of the matter said.
Lloyds Bank manager falsely accused customer of being a RACIST when he complained about blunder – The Mirror
Bank customer Brian Packham has been offered £300 after complaining his branch manager called him a racist.
More UK bank accounts held by Muslim organisations risk closure – The Guardian
An increasing number of Muslim NGOs are likely to suffer the same fate as three groups that were told their bank accounts are to close because they are too risky, a finance and security expert has warned.
High-speed traders flee investment banks – Financial Times
Move to specialised trading firms comes amid regulatory crackdown on proprietary trading and curbs on bonus payments
Man 'who had been refused overdraft extension' is Tasered by armed police after bursting into bank with a homemade FLAMETHROWER – Daily Mail
A man was Tasered and arrested by police today after he allegedly burst into a bank with a makeshift flamethrower and threatened to burn it to the ground because he was refused an overdraft.
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