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Using financial data, Mark Sibthorpe compares the performance of TD bank to its rivals. TD grew faster in 2017 than its rivals, but was cited for aggressive sales practices.

Mr. Michael R. King, Tangerine Chair in Finance and Co-Director, Scotiabank Digital Banking Lab / Ivey Business School at Western University

This video covers XE.com's presentation at the AI, Big Data and Analytics event which took place in Toronto February 7/8, 2018. Cecelia Tamez and Jean Louis provide insights into their evolution and winning strategy.

Greenpeace's campaign to stop TD financing the oil sands is delusional. Trillions of dollars are at stake for the banks and the Canadian economy. This video explores the related financial issues.

This video provides an overview of the main differences between Canada's approach to overland flooding versus the US approach.

Canadian bank overview part 5, medium-large banks. Banks include Manulife, Tangerine and Laurentian Bank.

Canadian banking industry overview of Canadian Tire Bank, Presidents Choice Financial, Equitable Bank, B2B Bank

Overview of small-medium size banks in Canada. Banks covered include Versabank, Hollis Bank, Equity Bank and Caisse Populaire Acadienne.

Review of small banks including Bridgewater,Vancity Bank, Concentra, Wealth One, Zag...

Jamie Dimon calls bitcoin a fraud used by criminals, yet he has jumped into the blockchain with both feet.

RBC invested $24 million into Wave Technologies and now they will roll out Waves accounting, invoicing, reporting and billing platform to SMEs.

Overview of Canadian banking industry. This multi-part series looks at issues facing Canadian banks from a variety of angles. Part 1 examines the types of banks and scale using ROE and EBITDA as measures.


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Research

Observations and overview of 2018 NB flood support from government and insurance companies.  

banknews.tv/docs/Observations and overview of 2018 NB flood support from government and insurance companies..pdf

Mark Sibthorpe

 


Flood aftermath is linked to post traumatic stress. Here are some findings from a study conducted by Queensland University following a flood:

"The findings showed that aftermath stress contributed to poor mental health outcomes over and above the flood itself, prior mental health issues and demographic factors," Ms Dixon said.

 

"Aftermath stress was the strongest predictor of post-traumatic stress symptoms with 75 per cent of people saying the most difficult aspect was the aftermath and dealing with insurance companies," she said.

 

With this in mind, I felt it was important to understand how New Brunswick flood victims were treated.

 


Update Argentina: a sign of the times  

banknews.tv/docs/Update Argentina_ a sign of the times.pdf

Mark Sibthorpe

Argentina is in the news daily because the situation is dire, and may be an indication of further contagion. The most dramatic story that speaks of the a leading cause of its troubles was the recent arrest of the public works secretary, Jose Lopez. June 15th he was caught hiding millions in cash in a monastery. No this is not a plot for a comedy.


Summary of Canada's flood news, 2017 to present  

banknews.tv/docs/Summary-of-flood-news-2017-present.pdf

Mark Sibthorpe

This report covers flood news in Canada from 2017 to present and highlights the relevent issues for home-owners and the insurance industry.


Banking on Pot  

banknews.tv/docs/c10191_banking-on-pot.pdf

SBS

As states across the US legalize marijuana for both medicinal and recreational purposes, it has fueled a growing industry of marijuana related businesses (MRBs).


Canadian banking industry overview  

Mark Sibthorpe

The industry overview is divided into 5 parts:

Introduction
Small banks
Small medium sized banks
Medium sized banks
Medium large banks


2014 Mobile payments the Apple pay way  

banknews.tv/docs/Mobile_Payments_Apple_Pay_2014.pdf

Mark Sibthorpe

With Walmart Pay about to userp Apple Pay, I thought I would share my 2014 book on mobile payments and loyalty. The guilde was written for Merchants that want to understand loyalty, credit, mobile payments and Apple Pay, but anyone involved with credit and loyalty might find it useful.
The book is a prelude to Walmart leaving MCX, and chronicles the evolution that led to Walmart Pay. There is an extensive case study of Walmart that looks into its efforts to become an ILC and to avoid paying credit card transaction fees ('merchant discount').
It offers readers a step-by-step methodology for evaluating and transforming credit and loyalty programs. The strategies are based on proven examples and industry facts. The Nectar, Target, Canadian Tire and Walmart case studies are examples of the practical approach I have taken, written with the intent that merchants can use them as blueprints for their own initiatives. 


Death to bitcoin, long live the blockchain   (See full report)

Mark Sibthorpe

Jamie Dimon calls bitcoin a fraud used by criminals, yet he has jumped into the blockchain with both feet.


TD bank industry conduct  

banknews.tv/docs/tdind2.pdf

Mark Sibthorpe

TD’s share price recently collapsed by $7 bn in one day due to CBC’s allegations of aggressive selling tactics. A huge fall from a bank that was trading at a premium as recently as January. This was even before the most recent allegation of TD attempting to avoid paying taxes on advertising.
This report chronicles the events leading up to the collapse, shows TD's performance, analyses other related issues.


Book review: Back from the Brink  

banknews.tv/docs/backbrink.pdf

Mark Sibthorpe

This is a book review of the book Back from the Brink by Paul Halpern, Caroline Cakebread, Christopher C. Nicholls and Poonam Puri.


Footnote 151  

banknews.tv/docs/footnote151.pdf

Mark Sibthorpe

Footnote 151 implies an important regulatory change related to derivative contracts. It means that US Banks will not be required to hold as much capital against commodities. If you want to understand the implications of this regulatory change in more detail, see the enclosed related article detailing the changes. For contextual purposes, I have also included two Rolling Stones Magazines reports from 2010 and 2014 that chronicle the role large US banks have played in manipulating commodities. You might question the credibility of these sources, but rest assured, these reports are based on United States Senate hearings which outline the issues in a 396 page report related to the implied risks. 


Save the Canadian economy now  

banknews.tv/docs/helecopter-money.pdf

Mark Sibthorpe

Consumer debt spending appears to have insulated Canada from the worst of the credit crisis, but now the alarming magnitude of consumer debt ($1.92-trillion) could exacerbate a day of reckoning.
This report assesses the issues at hand and recommends the solution to get Canada's economy on track.


Reasons financial service companies should consider gamification  

banknews.tv/docs/Gamfin.pdf

Mark Sibthorpe

Gamification of business processes resulted on Mint.com growing to 10 million users within 4 years. This report explains how.


National Bank Special Report  

banknews.tv/docs/NatBSpec.pdf

Mark Sibthorpe

According to Bloomberg, National Bank of Canada will take a C$64 million ($48 million) restructuring charge in the fourth quarter and said its investment in Maple Financial Group Inc., which is being probed by German regulators, may be at risk of a “substantial loss.”


Will Canadian banks charge companies for deposits?  

banknews.tv/docs/depgrowthimpact2.pdf

Mark Sibthorpe

In light of today’s possible rate cut, this report discusses how a bank rate cut and capital ratio pressure could precipitate negative corporate deposit interest rates in Canada.


Canadian Tire's (CTC) - Canadian Tire Financial Services (CTFS) Scotia deal overview and risk assess  

banknews.tv/docs/ctfsfinal.pdf

Mark Sibthorpe

Review of the Canadian Tire Financial Services deal with Scotiabank, risks, opportunity and benefits.


Finance minisiter scorecard August 26, 2015  

banknews.tv/docs/Scorejo-August-2015.pdf

Mark Sibthorpe

This report looks at Joe Oliver, minister of finance’s progress to date, and assigns a grade to his government’s performance to date.


Xtreme Branch  

banknews.tv/docs/xbranch.pdf

Mark Sibthorpe

Branches are evolving to meet the digital age. This documents tracks the evolution with real-world examples.


Canadian Nudge  

banknews.tv/docs/nudge.pdf

Mark Sibthorpe

Whether he knew it or not, Tom Reid, a senior vice-president at Sun Life, made a case for the behavior modification concept ‘Nudging’ when he recently proposed auto-enrolling Canadians in his company’s pension plans. Sun life cover 1.2 million Canadians, about 60% of the eligible employees.
According to Reid,


CWB cause for concern  

banknews.tv/docs/cwbupdate.pdf

Mark Sibthorpe

In an earlier report BankNews.TV expressed concerns about CWB. Here are 5 charts that show cause:
1. First earnings drop in years;
2. Deposits dropping which will increase cost of funds in the future.


BNTV Overview  

banknews.tv/docs/overviewpdf.pdf

BNTV

BankNews.TV Publishing Corp services overview document:

  • Analytics
  • Financial services industry monitor (FSIM) industry briefings and developments reports
  • Research


Challenger banks not a threat to big banks  

banknews.tv/docs/challenger.pdf

Mark Sibthorpe

This report looks at Canadian challenger banks (apart from merchant led banks) and explains why they have not threatened larger institutions. It also looks at ways in which these upstarts have achieved success.


Gamification of financial data project  

banknews.tv/docs/GamingEventProposal-printsample--en-final.pdf

Mark Sibthorpe

This document contains details on how BankNews.TV is helping kids learn programming via gamification of financial data.


The impact a rate rise will have for Canadian banks  

banknews.tv/docs/irr-f.pdf

Mark Sibthorpe

Canadian banks have made money throughout the credit crisis, but this trend may be about to reverse. The rational supporting this prediction is that revenue has grown despite a declining net interest margin (NIM). It has grown in spite of this fact because Canadian debt (loan lease volume) has risen significantly, as shown in chart 2.

This report looks at the issues facing Canadian banks in the event of a Bank Rate rise.  


FIFA: the new goldenballs  

banknews.tv/docs/goldenballs.pdf

Mark Sibthorpe

Yesterday, the Attorney General of Switzerland (OAG) opened criminal proceedings related to the FIFA scandal. This report outlines some of the events related to the criminal investigation, with a particular focus on banking.


Scorecard Minister of Finance: JIm Flaherty  

banknews.tv/docs/Scorecard Min Fin Flaherty April 8 2014.pdf

Mark Sibthorpe

March 18, Finance Minister Jim Flaherty resigned from cabinet after having endured a difficult year due to health issues. This report looks at his legacy and attempts to grade his government’s performance to date.


Sample RFP for a Loyalty Program  

banknews.tv/docs/sample RFP for a loyalty program.pdf

Mark Sibthorpe


Merchants extend financial services  

banknews.tv/docs/merchantfs.pdf

Mark Sibthorpe

Merchant led financial services are growing in importance once again. This is exemplified in the ongoing UK rivalry between ASDA, Sainsbury and Tesco. Together these merchant/financial service companies provide the backstop for three different approaches for merchants looking to extend their financial services.


Hot Money: real-estate  

banknews.tv/docs/hotmoney.pdf

Mark Sibthorpe

Canadian and London real estate, like Macau, may also be a convenient means for China’s elite to move money offshore; with the deleterious effect of driving up home values. Louise Shelley`s research concurs. In a published paper written for the National Defense University, Shelley argues that money laundering in real estate (MLRE) increases prices.


Currency Cheat Sheet: a guide for the rest of us  

banknews.tv/docs/currencycheatsheet.pdf

Mark Sibthorpe

Readers of this document will be presented with monetary policy issues and facts
that show the USD will likely remain the dominant reserve currency, despite
questionable Chinese practices, record US debt levels, and a shaky economy.


Riches to Rags? Summary of possible risks for Genworth MI CANADA, INC.  

banknews.tv/docs/gq4risk.pdf

Mark Sibthorpe

Genworth had its Q4 2014 earnings call. Genworth own about 30% of the mortgage default insurance in Canada. Not surprisingly, the earnings call became focussed on Alberta; and for good reason, with 20% of its outstanding insured mortgage balance in Alberta, sensitivity to the oil shock and how Genworth plan to manage related risks were discussed in detail.


Canadian Western Bank Competitive Forecast  

banknews.tv/docs/cwbf.pdf

Mark Sibthorpe

Based on historical financial data (see detailed charts pages 5-8), the oil based recession in Alberta, and comparison against two of its peers, this document outlines my observation with respect to CWB’s future performances.


Liquid Canada: the tipping point  

banknews.tv/docs/Liquid.pdf

Mark Sibthorpe

This report examines liquidity issues in the Canadian financial service industry.


Bank Fees  

banknews.tv/docs/Bank fees.pdf

Mark Sibthorpe

Recently the CBC and The Globe and Mail both reported on what has been referred to as a consumer “bank fee outcry”. CBC compares banks to cable and phone companies, standing accused of trying to gouge customers with service fees. The backlash appears to have originated in conjunction with the NDP and the Consumers Council of Canada which argues that there is anxiety ‘among consumers about banking fees’.


Cheap Oil Report  

banknews.tv/docs/co2.pdf

Cheap oil has pushed the Bank of Canada's governor, Stephen Poloz onto a slippery slope. For some background on this, take October 22nd, when Poloz bid farewell to forward guidance, resulting in yesterday's surprise rate cut. A cut that has enraged TD and other banks, which see this as eroding profits.
 


Canada's Economy, a strategic solution  

banknews.tv/docs/ces.pdf

This report explores Canada's strategies to compete globally. The report begins with an analyses of the housing market, because housing is the canary in the coal mine; explores what happens in the event of collapse; and analyses the underlying problem causing Canada to be uncompetitive.
 


Complete loyalty RFP  

banknews.tv/docs/booksample.pdf

Merchants that want to understand loyalty, credit and mobile payments should read this book. It offers readers a step-by-step methodology for evaluating and transforming credit and loyalty programs. The strategies are based on proven examples and facts. The Nectar, Target, Canadian Tire and Walmart case studies are examples of the practical approach I have taken, written with the intent that merchants can use them as blueprints for their own initiatives.
 


Mobile Payments Blueprint: guide to credit and loyalty transformation for merchants  

banknews.tv/docs/booksample.pdf

Merchants that want to understand loyalty, credit and mobile payments should read this book. It offers readers a step-by-step methodology for evaluating and transforming credit and loyalty programs. The strategies are based on proven examples and facts. The Nectar, Target, Canadian Tire and Walmart case studies are examples of the practical approach I have taken, written with the intent that merchants can use them as blueprints for their own initiatives.
 


Report on merchants extending financial services  

banknews.tv/docs/

Special report explaining why some merchants in the UK, U.S. and Canada are expanding their financial services. The paper discusses the structural and regulatory pressures facing merchants and explains the rational behind key decisions. This is an 8 page high level report
 


Guide to system selection  

banknews.tv/docs/gssnow.pdf

Read sample report: Guide to system selection. This sample would normally cost $99 but is available free as a sample. Click here view sample report.


News feed

POSTCRISIS REFORMS HAVE STRENGTHENED THE GLOBAL FINANCIAL SYSTEM, BUT THE JOB IS FAR FROM COMPLETE

G&M - BABAK ABBASZADEH (2018-09-21)

The 2008-09 financial crisis that erupted following Lehman Brothers’ collapse could easily have developed into a 1930s-style depression. Even as it was, the crisis caused serious damage in many countries, including job losses, mortgage foreclosures, GDP contraction and sharp drops in equity markets.


ALL JOHN HANCOCK LIFE INSURANCE POLICIES TO INCLUDE FITNESS INCENTIVES

CBC - Reuters (2018-09-21)

John Hancock, one of the oldest and largest North American life insurers, will stop underwriting traditional life insurance and instead sell only interactive policies that include optional fitness tracking through tools including wearable devices and smartphones, the company said on Wednesday.


MORE CANADIAN BANKS MEASURING CARBON RISK AS CLIENTS DEMAND MORE ANALYSIS

FP - Geoffrey Morgan (2018-09-21)

 Investors are paying closer attention to the environmental footprint of Canada’s publicly-listed companies, and major banks are responding by offering tools and services to meet growing demand for transparency on carbon emissions.


ABANDONED IT INTEGRATION LINKED TO DANSKE BANK FAILURES

WSJ - Samuel Rubenfeld (2018-09-21)

The bank in 2008 decided it was too expensive to migrate its Estonian branch onto group-level systems


SWISS PARADOX: BOOMING ECONOMY, NEGATIVE INTEREST RATES

WSJ - Brian Blackstone (2018-09-21)

At a time when most rich countries are following the U.S. Federal Reserve in moving away from crisis-era policies, Switzerland stands apart.


WELLS FARGO TO CUT HEADCOUNT BY 5-10 PERCENT IN NEXT 3 YEARS

Reuters - Reuters (2018-09-21)

The cuts will help Wells reach its goal of reducing costs by $4 billion by 2020 as it tries to grow profits and recover from a series of scandals while operating under the Federal Reserve’s asset cap.


CANADIANS WITHDRAWING HOME EQUITY IS PICKING UP AGAIN

Better Dwelling - Daniel Wong (2018-09-21)

The balance of property secured by property ripped to a new high. The outstanding balance stood at $289.68 billion at the end of July, up $2.87 billion from the previous month. The annual increase works out to 2.58%, an increase from the month before. Yup, the balance of debt may have just accelerated in growth. Let’s break it down and see what people are doing with this cash.


OUTAGE FEVER STRIKES UK BANKS

Finextra - Finextra (2018-09-21)

The latest problems emerged at 5am this morning and the time of writing remained unresolved. An RBS spokesperson said: "We are aware that customers are experiencing issues and are working to fix it. "Customers can still use ATMs and telephone banking or visit their local branch."


BANK CUSTOMERS INCREASINGLY OPEN TO BIG TECH ALTERNATIVES

Finextra - Finextra (2018-09-21)

The results are concerning for bankers, with extensive investment failing to translate into positive customer experiences. Just 51% of those surveyed say that their branch banking experience is positive, but this is better than the 47% who are happy with their mobile interactions.


DAZED AND CONFUSED: HOW LEGAL CANNABIS WILL ‘ARTIFICIALLY BOOST’ CANADA’S ECONOMY

G&M - Michael Babad (2018-09-20)

“On Oct. 17, the consumption of cannabis will be become legal, and shortly thereafter Statistics Canada will include both licenced and unlicenced cannabis activity in the official economic statistics.”


TILRAY SHARES FINISH UP 38% AFTER WILD DAY OF TRADING THAT SAW MULTIPLE HALTS

G&M - David Milstead (2018-09-20)

Shares in Tilray Inc., the most valuable marijuana company in the world, swung dramatically Wednesday as fervour in the cannabis sector reached new heights, raising fresh questions about skyrocketing valuations in the nascent industry.


HIGHER INTEREST RATES, DEBT PUTTING PRESSURE ON CANADIANS' FINANCES

FP - CP (2018-09-20)

The research firm estimates the average Canadian’s net worth rose by 8.5 per cent to almost $808,000 in 2017, but much of that wealth was tied up in assets that are difficult to cash in, such as real estate.


'WILD WEST' CRYPTOCURRENCIES NEED REGULATION, SAY U.K. LAWMAKERS

CBC - AP (2018-09-20)

In Paris, Marshall Billingslea, an assistant Treasury secretary who deals with terror financing, said the Islamic State group has used virtual currencies and published instructions on Twitter on how to move bitcoin to recipients in Syria.


NEW NATIONAL BANK SITE ENABLES CLIENTS TO VIEW ACCOUNTS HELD AT OTHER FINANCIAL INSTITUTIONS

Insurance Journal - IIJ (2018-09-20)

"The new online bank reflects our desire to offer our clients a state-of-the-art digital experience. We're doing that by giving them a 360-degree view of all their bank accounts, even those held at other financial institutions, plus tools to help them manage their day-to-day banking and plan the milestones in their lives," stated Lionel Pimpin, Senior Vice-President – Digital Channels at National Bank.


LLOYD’S BRUSSELS RECEIVES POLICY DOCUMENTATION

Insurance Business - Terry Gancuangco (2018-09-20)

Its Brussels subsidiary, which received licence approval from the National Bank of Belgium back in May, now has a new suite of policy documentation to support its underwriting of risks from the European Economic Area (EEA). The documents include generic coverholder certificates and open market policies, ancillary clauses, and complaints notices.


MILLENNIALS ARE FLOCKING TO THE INSURANCE SECTOR - REPORT

Insurance Business - Lyle Adriano (2018-09-20)

Millennials are not only playing a bigger role in the insurance workforce, but are needed by insurers in order to drive innovation in the digital market, two recent studies have found.


MORE COMMERCIAL BROKERAGE CONSOLIDATION COULD FOLLOW MARSH-JLT COMBO

Canadian Underwriter - Greg Mechbach (2018-09-20)

A US$6-billion merger between Marsh & McLennan Companies Inc. and Jardine Lloyd Thompson Group Plc could form the world’s largest commercial brokerage, and more mergers and acquisitions among commercial brokerages will likely to follow, a Canadian M&A expert suggests.


THE PLOT TO SUBVERT AN ELECTION

NY Times - SCOTT SHANE and MARK MAZZETTI (2018-09-20)

For two years, Americans have tried to absorb the details of the 2016 attack: hacked emails, social media fraud, suspected spies — and President Trump’s claims that it’s all a hoax. The Times explores what we know and what it means.


EUROPE TO INVESTIGATE AMAZON’S DUAL ROLE OF MERCHANT AND PLATFORM

NY Times - Adam Santariano (2018-09-20)

For many independent merchants who sell their goods on Amazon, there has long been deep concern that if the e-commerce giant saw a particular product selling well, the company would duplicate it, but at a lower price.


BMO ACQUIRES $3 BILLION IN OIL AND GAS LOANS FROM DEUTSCHE BANK

Bloomberg - Kiel Porter (2018-09-20)

"We are one of the leading energy investment banks in North America and we got there by continuously investing in our franchise to support our clients -- including by growing our lending portfolio with this acquisition," John Armstrong, deputy head of investment banking at BMO Capital Markets, said in an emailed statement.


“LACK OF SKILLED DEVELOPERS” MAY HAVE LED TO EQUIFAX BREACH

Bobsguide - Bobsguide (2018-09-20)

“The solution is not to rely on the ability to hire good developers so they write good software – there just aren’t enough skilled developers with whole-system vision to go around,” said Lev Lesokhin, SVP Strategy at CAST. “We need to take our most senior developers, have them design the architectures for data protection, and then ensure these architectural constructs are followed by the developer plebiscite with every build.”


NEW REPORT CLAIMS CRYPTOCURRENCY EXCHANGES AT RISK OF MANIPULATION

G&M - Anna Irrera (2018-09-19)

Several cryptocurrency exchanges are plagued by poor market surveillance, pervasive conflicts of interest and lack sufficient customer protections, the New York Attorney General’s office said in a report published on Tuesday.


DELOITTE SOUNDS ALARM ABOUT CANADA'S 'ZOMBIE' COMPANIES

FP - James McLeod (2018-09-19)

The concept comes from a 2017 report by the Organization for Economic Co-operation and Development (OECD) that explored how inappropriate insolvency structures in Europe kept companies intact when a competitive marketplace would have forced them to liquidate or restructure.


AVIVA DROPS CRITICAL ILLNESS INSURANCE PRODUCT LAUNCHED IN MAY

Insurance Journal - Alain Theriault (2018-09-19)

At the time, Aviva stated that its goal was to be a one-stop for the personal and professional insurance needs of Canadians. The person who drove the product launch, Terri Mitchell,Executive Director of Accident and Health, has recently retired.


SIMPLIFIED ISSUE IS EXPANDING THE LIMITS OF UNDERWRITING

Insurance Journal - Alain Theriault (2018-09-19)

Pierre Vincent, Senior Vice-President, Individual Insurance and Sales, at iA Financial Group and President of iA Excellence, says that you need to distinguish simplified products based on a limited set of closed questions (traditional) and simplified products based on automation. “With automation, an inference engine consults databases in real time. This means that clients are asked only the questions that concern their condition,” he explains.


THE CO-OPERATORS LAUNCHES ON-DEMAND INSURANCE PRODUCT FOR HOMESHARING HOSTS

Insurance Business - Lyle Adriano (2018-09-19)

The pay-per-use insurance product is available to homeowners who rent their properties such as through Airbnb, HomeAway, VRBO, and others. A release said that the duuo product – purchasable only for the nights that guests are renting a property – is intended to cover additional risks to hosts for sharing their homes, particularly risks that are not normally covered by standard homeowners insurance.


IBC: NATURAL INFRASTRUCTURE IS NEEDED IN ORDER TO MITIGATE RISING FLOOD COSTS

Insurance Business - Lyle Adriano (2018-09-19)

To address the rising costs of flooding across Canada, the Insurance Bureau of Canada (IBC) has released a new report that calls for communities to consider smarter “green” infrastructure.


MARINE INSURANCE PREMIUMS RISE BY 2%, BUT CHALLENGES REMAIN

Insurance Business - Gabriel Olano (2018-09-19)

However, IUMI warned that it is not all smooth sailing for the industry. According to the insurance association, there is a growing mismatch between premium income, covered risk, and claims costs.


HOW BASEMENT FLOODING DEVALUED THIS PROPERTY

Canadian Underwriter - Greg Mechbach (2018-09-19)

Recurring basement flooding means a homeowner’s property is worth about $35,000 less than it would otherwise be valued at for tax purposes, says an official from the board that hears Ontario property tax appeals.


CIBC LATEST CANADIAN BANK TO FACE TRAILING-FEE LAWSUIT

G&M - Clare O'Hara (2018-09-19)

Canadian Imperial Bank of Commerce is the latest Big Six lender to receive a proposed class-action suit against its investment-management arm, alleging investors in its funds paid millions of dollars for advice they did not receive.


QUEBEC NEEDS NEW INNOVATION STRATEGIES TO LEVEL THE PLAYING FIELD FOR DOMESTIC TECH

G&M - LOUIS TÊTU, ERIC BOYKO, DAX DASILVA AND FREDERIC LALONDE (2018-09-19)

There are more than 250,000 technology workers employed across all industries in Quebec. In Montreal and Quebec City, the tech sector is the third largest private-sector employer. Around the world, Quebec is known for being a hub of research and innovation, especially in fields of artificial intelligence and video-game technologies.

Despite the sizable contribution domestic technology companies make toward Quebec’s economic prosperity, government policies regarding innovation have featured incentivizing for the expansion of foreign branch plants in Quebec over the growth and success of homegrown companies locally and around the world. This has had a negative effect on Quebec’s ability to scale domestic companies into global giants.


DANSKE BANK CEO RESIGNS OVER $300B MONEY-LAUNDERING INQUIRY

CBC - Reuters (2018-09-19)

Danske Bank chief executive Thomas Borgen has quit following an investigation into payments totalling some 200 billion euros ($302 billion) through its Estonian branch, with the Danish bank saying many of them were suspicious.


NUMBER OF MORTGAGES FELL 3.4% IN SECOND QUARTER AS STRESS TEST RULES KEEP YOUNG BUYERS OUT

CBC - CBC (2018-09-19)

There was a decrease of 18 per cent in millennial borrowers (aged 24 to 38) and 22 per cent in Generation Z borrowers (aged 18-23), TransUnion found. The number of Generation Z mortgage holders is small, but more than 11,600 fewer millennials either applied for new mortgages or renewed a mortgage in the quarter.


VERBATIM: DIMON WOULD BE 'PHENOMENAL PRESIDENT'

Reuters - Reuters Video (2018-09-18)

Gary Cohn, the former top White House economic advisor, said Monday that Jamie Dimon would make a 'phenomenal president' days after the J.P. Morgan Chase CEO said he could beat President Donald Trump in an election.


LEAN TIMES FOR REINSURERS COULD TRIGGER A WAVE OF M.&A.

NY Times - Aimee Donnellan (2018-09-18)

Insurers are still recovering from the worst year on record for catastrophe losses. In 2017, hurricanes Harvey, Irma and Maria, as well as other natural perils, caused $135 billion of damage globally, according to the reinsurance company Munich Re.


PAYTM MAY NEED MORE THAN A WARREN BUFFETT THUMBS UP

FT - Simon Mundy (2018-09-18)

The $300m cheque from Berkshire Hathaway came at a convenient time for Vijay Shekhar Sharma, the gregarious founder of Indian fintech group Paytm.


BANK WATCHDOG RULES OUT ‘BACK-TO-BACK’ TRADING BAN

FT - Caroline Binham and Claire Jones (2018-09-18)

A top European financial watchdog has softened its position on a practice that many London-based banks hope will help them access EU markets after Brexit, putting it at odds with other regulators within the bloc.


PREVENTIVE MEASURES WILL NOT STOP THE NEXT CRISIS

FT - Axel Weber (2018-09-18)

Following the global financial crisis, we have significantly improved the resilience of the financial system, strengthened the capital and liquidity positions of banks and increased our ability to deal with failing lenders.


2018 HAS BEEN UNRULY FOR HOUSING MARKETS: WHAT’S AHEAD FOR YOUR PROVINCE

G&M - Michael Babad (2018-09-18)

Here’s what CREA now forecasts for sales this year and next


WATCHDOGS STILL DON’T PAY ENOUGH ATTENTION TO SUBPRIME LENDING

G&M - Rita Trichur (2018-09-18)

A year after he was appointed Canada’s top banking watchdog, Jeremy Rudin shared his reflections on the challenges of the postcrisis era. Speaking to a Toronto business crowd back in June, 2015, Mr. Rudin said the failure of Lehman Brothers and its aftermath opened eyes around the world to lapses in banking regulation.


ORGANIZATION FORMED TO ESTABLISH CYBERSECURITY TALENT COLLECTIVE

Insurance Journal - IIJ (2018-09-18)

"Hackers and scammers are always coming up with new schemes. That's why cybersecurity and innovation are strategically important, stated Guy Cormier, president and CEO of Desjardins Group in a Sept. 12 announcement. "CyberEco's expertise will help us on many fronts in the fight against cybercrime and will enhance our prevention initiatives."


AMAZON WILL FILE FOR INSURANCE LICENCE

Insurance Business - Gabriel Olano (2018-09-18)

The Seattle-based retail and technology giant has filed with India’s Register of Companies to enter the business of soliciting, procuring and servicing insurance as a corporate agent, according to a report by BloombergQuint


SANTANDER PLANS £150M MILTON KEYNES TECH HUB

Finextra - Finextra (2018-09-18)

The new site will house more than 5000 staffers, replacing existing offices, when it opens in 2022, subject to planning permission.


VISA, MASTERCARD REACH $6.2-BILLION SETTLEMENT OVER MERCHANTS’ CREDIT CARD FEES

Reuters - Reuters (2018-09-18)

Visa Inc., Mastercard Inc., and a number of banks on Tuesday agreed to pay US$6.2-billion to settle a long-running lawsuit brought by merchants over the fees they pay when they accept card payments.


ZEB VS. RBNK: HERE’S THE BETTER ETF FOR INVESTING IN CANADIAN BANKS

G&M - David Berman (2018-09-18)

There are many ways to gain exposure to Canadian bank stocks, but two exchange-traded funds offer particularly innovative ways that are worth a closer look. How do these ETFs stack up?


MACHINES WILL DO MORE THAN HALF THE WORK BY 2025, REPORT PREDICTS

CBC - AP (2018-09-18)

The World Economic Forum estimates that machines will be responsible for 52 per cent of the division of labour as share of hours within seven years, up from just 29 per cent today. By 2022, the report says, roughly 75 million jobs worldwide will be lost, but that could be more than offset by the creation of 133 million new jobs.


CANADIAN REAL ESTATE SALES SEE WORST AUGUST SINCE 2013

Better Dwelling - Kaitlin Last (2018-09-18)

Canadian real estate sales experienced a small decline, but on top of last year’s decline. CREA reported 41,151 unadjusted sales in August, down 3.78% compared to the same month last year. This represents the worst August since 2013, when Canada had an oil slump. Yes, we’re seeing sales nearly as bad as an oil slump while the economy is booming on paper.


TESLA IS FACING U.S. CRIMINAL PROBE OVER ELON MUSK STATEMENTS

Bloomberg - Tom Schoenberg and Matt Robinson (2018-09-18)

Tesla under investigation.


ZAMBIA’S LOOMING DEBT CRISIS IS A WARNING FOR THE REST OF AFRICA

Economist - Economist (2018-09-18)

DEBT stalks Africa once again. Over the past six years sub-Saharan governments have issued $81bn in dollar bonds to investors hungry for yield. Piled on top of this are murkier syndicated loans and bilateral debts, many to China and tied to big construction projects. Public debt has climbed above 50% of GDP in half the countries in sub-Saharan Africa. The risk of a crisis is growing. Consider Zambia. In 2012 this southern African country could borrow more cheaply than Spain. Now bond yields have jumped above 16%, suggesting that investors fear that it will default (see article). This fall from grace offers several lessons.


CALCULATING THE HALF-LIFE OF A CURRENCY

Economist - Economist (2018-09-18)

If Venezuela’s monthly inflation gets no worse, its hyperinflationary horror will rank only 23rd out of the 57 episodes identified by Steve Hanke of Johns Hopkins University and Nicholas Krus (see chart). To make the numbers easier to grasp, they calculate how long it would take for prices to double, if inflation persists at its peak monthly pace. Their results provide a kind of “half-life” for a currency, showing how long it takes for it to lose 50% of its value (relative to the country’s consumer goods and services).


WHAT THE SLIDING LIRA AND ECONOMY MEAN FOR TURKEY’S BANKS

Economist - Economist (2018-09-18)

The economy over which Mr Erdogan presides, by contrast, is embroiled in a battle for survival. This year the lira has fallen by 40% against the dollar, tumbling especially hard last month after a diplomatic row with America. Inflation is nearly 18%. The central bank, pressed by Mr Erdogan to keep interest rates down, has been slow to react, but on September 13th, even as the president urged a cut, it raised its policy rate by 6.25 percentage points, much more than markets had expected, to 24%. The lira leapt in response.


NEW TECH FOR FINANCIAL ADVISORS LIKE ‘AN ICE CREAM PARLOUR WITH 5,000 FLAVOURS’

G&M - David Israelson (2018-09-18)

It’s not just the technology. Investors’ expectations of how they will interact with advisors have changed, too. Smartphone apps are taking much of the grunt work out of portfolio building and management; they are also helping clients with fund research, balancing and technical forecasting.

As well, Canadians are living longer, so they need longer-term management of their portfolios. “The idea of people retiring and worrying about how much they’ll have when they’re 65 is gone. They’re worried about making their money last until they’re 95,” Mr. Coleman says.


FIGHT AGAINST CLIMATE CHANGE AN UNTAPPED INVESTMENT OPPORTUNITY, MICHAEL SABIA SAYS

G&M - Michael Tutton (2018-09-18)

One of Canada’s largest pension fund managers says trillions of dollars should be shifted into investments that will counter global warming, in part because it’s crucial to long-term profits.


HUB’S TOP 3 TRENDS FOR COMMERCIAL BROKERS

Canadian Underwriter - Jason Contant (2018-09-17)

“All indications we are getting are certainly positioning for more broad swept rate increases across the business that quite frankly we haven’t seen in a long time.”


INSURER RECEIVES 3,000 VEHICLE DAMAGE CLAIMS AFTER TWO SULPHURIC ACID SPILLS

Canadian Underwriter - Jason Contant (2018-09-17)

In the first spill, about 220 litres of acid leaked as a truck travelled a 16-kilometre stretch of highway. In the second, about 70 litres dripped from the truck over six kilometres along the same route. Teck Resources has reported both spills were cleaned up, so no acid seeped into area waterways and there is no damage to roads or bridges.


FLORENCE FLOODING THREATENS TO LAST FOR DAYS

WSJ - Arian Campo-Flores, Arian.Campo-Flores@dowjones.com Erin Ailworth and Valerie Bauerlein (2018-09-17)

Florence doused the Carolinas for a third day with unrelenting rain that unleashed widespread flooding Sunday, and officials in the region warned residents that the menace would persist for days.


GOOGLE CASE ASKS: CAN EUROPE EXPORT PRIVACY RULES WORLD-WIDE?

WSJ - Sam Schechner, Jacob Gershman (2018-09-17)

Google on Tuesday will appeal an order to extend the European Union’s “right to be forgotten” to its search engines across the globe, arguing before the EU’s top court that the order encourages countries to assert sovereignty beyond their borders.


ANBANG SELLS SECURITIES UNIT IN FIRST BIG ASSET SALE TO RAISE CASH

WSJ - Chao Dang (2018-09-17)

Anbang Insurance Group Co., the once-highflying insurer seized by the Chinese government, has sold off a securities unit to two state-backed firms in the first big asset sale to raise cash for the troubled company.


BEFORE IT WAS HACKED, EQUIFAX HAD A DIFFERENT FEAR: CHINESE SPYING

WSJ - Aruna Viswanatha and Kate O’Keeffe (2018-09-17)

Two years before Equifax Inc. stunned the world with the announcement it had been hacked, the credit-reporting company believed it was the victim of another theft, only this time at the hands of Chinese spies, according to people familiar with the matter.


GOLDMAN’S LEADERSHIP IS FIRMLY WITH ITS BANKERS NOW

NY Times - Michael J. De La Merced (2018-09-17)

For two decades, bankers and traders generally traded the reins of Goldman Sachs back and forth. But the firm’s chief-executive-in-waiting, David M. Solomon, who started as a leveraged finance banker, has named two other bankers to top positions — a sign of where the strength of the financial powerhouse currently lies.


HOW JPMORGAN'S CFO BECAME THE TOP PROSPECT TO SUCCEED DIMON

Reuters - David Henry (2018-09-17)

Over her nearly six years as JPMorgan’s chief financial officer Lake, 49, has taken on more and more responsibilities effectively becoming Dimon’s understudy. She helps develop strategies for each of the bank’s business units and oversees matters ranging from its annual stress test to employee cafeterias.


DIVIDEND STOCK IDEAS, TD BROKERAGE REVAMP AND FORTIS VS. EMERA: WHAT YOU NEED TO KNOW IN INVESTING THIS WEEK

G&M - S R Slobdian (2018-09-17)

Toronto-Dominion Bank is partnering with a U.S. fintech startup to revamp its online discount brokerage and launch a robo-advisory service that will house its own exchange-traded funds. The bank has signed a licensing agreement with New York-based Hydrogen Technology that will allow TD to use Hydrogen’s proprietary technology to enhance TD WebBroker for do-it-yourself investors, Clare O’Hara writes.


FLORENCE’S DRENCHING RAINS KILL 23 IN CAROLINAS

G&M - ERNEST SCHEYDER AND ANNA MEHLER PAPERNY (2018-09-17)

Deeper flooding loomed in the hours and days ahead from rivers in the Carolinas swollen by Tropical Depression Florence, which has killed 23 people, even if rain-weary residents got a brief glimpse of sunshine on Monday.


TROUBLED DEVELOPER FORTRESS SEARCHING FOR BUYERS FOR MANY OF ITS PROPERTIES AS LEGAL WOES MOUNT

G&M - Janet McFarland (2018-09-17)

Troubled real estate developer Fortress Real Developments Inc. is searching for buyers for many of its projects as the list of mortgage lenders launching legal action grows.


TRUMP IMPOSES TARIFFS ON $200-BILLION WORTH OF CHINESE GOODS, SPARES SOME CONSUMER TECH

G&M - DAVID LAWDER AND JEFF MASON (2018-09-17)

U.S. President Donald Trump said on Monday he will impose 10 per cent U.S. tariffs on about $200-billion worth of Chinese imports, but he spared smart watches from Apple and Fitbit Inc and other consumer products such as bicycle helmets and baby car seats.


GOOD NEWS ON HOUSEHOLD DEBT COULD BE BAD NEWS FOR ECONOMIC GROWTH

G&M - Scott Barlow (2018-09-17)

Indebted Canadians are finally addressing their balance sheets and two major economists have drastically different views on the dangers the trend presents to the domestic economy.


BREAKINGVIEWS TV: WEED PUFFS

Reuters - Reuters Video (2018-09-17)

Canada’s imminent legalization of cannabis is lighting up sky-high multiples for marijuana-related stocks. But as Antony Currie and John Foley explain, the U.S. federal ban on weed means hopes of a joint cross-border expansion could go up in smoke.


HOW THE 2008 MELTDOWN REWROTE THE CRISIS PLAYBOOK FOR CANADA’S BANKS

G&M - James Bradshaw (2018-09-16)

When Daniel Moore took the call telling him Lehman Brothers was about to fail, he was driving home from Muskoka, Ont., with his wife. It was Sunday, Sept. 14, 2008. He’d just finished a triathlon and he was tired. “Not as tired as I was going to be,” he said.


DEUTSCHE BANK TO SHIFT BILLIONS IN ASSETS TO FRANKFURT, RINGFENCE U.K. OPERATIONS AFTER BREXIT, NEWSPAPER REPORTS

G&M - Arno Schuetze (2018-09-16)

Deutsche Bank is considering shifting large volumes of assets from London to Frankfurt after the U.K.'s planned exit from the European Union next year to meet demands from European regulators, a person close to the matter said on Sunday.


HAVE WE LEARNED ANYTHING FROM PAST HURRICANES?

G&M - Glenn MCGILLIVRAY (2018-09-16)

Just one year after Hurricanes Harvey, Irma and Maria (also known as HIM) wreaked havoc across parts of the Caribbean and the United States causing around US$92-billion in insured damage (not including billions in federal flood insurance claims), another disconcerting scene is playing out in the North Atlantic Basin with a major hurricane thumping the southeastern U.S. coast and Tropical Storms Helene and Joyce churning out in the Atlantic. A fourth, Tropical Storm Isaac, luckily fizzled out in the Caribbean Sea on Friday.


INVESTORS AND EMPLOYEES IN CANNABIS COMPANIES MAY BE BANNED FROM ENTERING U.S., REPORT SUGGESTS

G&M - Pete Evans (2018-09-16)

Shares in numerous TSX-listed marijuana companies were even more volatile than usual on Friday after an official at U.S. Customs and Border Protection said it's not just users of the drug who risk being refused entry to the United States — even people who work for and invest in the companies may too.


KINDER MORGAN HIRES TD TO SELL CANADIAN BUSINESS, SAY SOURCES

CBC - Reuters (2018-09-16)

Kinder Morgan Inc. has hired investment bank TD Securities to facilitate a potential sale of its Calgary-based Canadian business, which could fetch the U.S. pipeline operator as much as $2.4 billion, people familiar with the situation told Reuters this week.


HURRICANE COSTS INCREASING AS MORE PEOPLE CHOOSE TO LIVE IN THEIR PATH

CBC - Pete Evans (2018-09-16)

As Hurricane Florence begins to hit South Carolina, the latest estimates on its intensity are coming in slightly lower than previous forecasts. But the financial toll is still likely to be steep, in no small part because it's scheduled to hit coastal areas with extensive and expensive real estate.


10 THINGS PEOPLE STILL GET WRONG ABOUT THE FINANCIAL CRISIS

FP - Barry Rotholtze (2018-09-16)

 If not for X, we would have been OK: Take your pick of things to insert here, but it’s important to understand that this was not a single event, but rather the result of many factors that came together over time. These include: the Federal Reserve’s ultralow interest rates, a fundamentally weak recovery from the dot-com collapse, the housing boom and bust, huge amounts of financial leverage, securitization of mortgages, the embrace of derivatives and reckless deregulation of the financial industry that enabled much of the above, and more.


DESJARDINS ONLINE BROKERAGE PARTNERS WITH HARDBACON

Insurance Journal - IIJ (2018-09-16)

The partnership will allow new Desjardins Online Brokerage clients to access stock data and information in Hardbacon’s mobile application and its online investment course, free of charge.


DECLINING BUSINESS INVESTMENT THREATENS ECONOMY, C.D. HOWE, FRASER INSTITUTE SAY

G&M - Jeff Lewis (2018-09-14)

A sharp decline in business investment is a major headwind for Canada’s economy, two recent reports say, amplifying competitiveness concerns spurred by trade uncertainty and corporate tax cuts in the United States.


ONTARIO’S OPPOSITION TO SCRAPPING ‘OPAQUE’ MUTUAL FUND FEES DRAWS BACKLASH FROM WITHIN INVESTMENT INDUSTRY

G&M - CLARE O’HARA AND TIM KILADZE (2018-09-14)

Ontario’s new government has come out against a proposal to ban the use of an early-withdrawal fee on mutual funds that is often hidden from consumers, a decision that drew backlash from within the industry and throws a long-standing review of fund fees into turmoil.


POSSIBLE EXPANSION OF OBSI'S ROLE IN INVESTIGATING COMPLAINTS SET OFF ALARM BELLS IN FINANCIAL INDUSTRY: FILING

FP - Geoff Zochodne (2018-09-14)

Bank of Nova Scotia’s announcement this week that it will stop using a not-for-profit watchdog to investigate the most stubborn of customer complaints came after the watchdog prompted concern in the financial industry by proposing changes to the document outlining its purpose and powers that some felt could give it more teeth, public consultation documents show.


DOLLARAMA ENTERS UNFAMILIAR TERRITORY — A SALES SLOWDOWN AND A STOCK PLUNGE

FP - Sandrine Rastello (2018-09-14)

The Montreal-based dollar store, which has gotten investors used to a regular stream of good news, lowered its forecast for comparable store sales this year after a second-straight quarter of below-expectations growth. It now expects sales to rise about 2.5 per cent to 3.5 per cent, down from a previous range of 4 per cent to 5 per cent.


TWO-THIRDS OF INVESTORS DO NOT USE MOBILE APPS OFFERED BY SELF-DIRECTED INVESTMENT FIRMS, SAYS STUDY

Insurance Journal - IIJ (2018-09-14)

A newly released study by J.D. Power says that client satisfaction with self-directed investment firms is lagging among investors in Canada when it comes to mobile experience.


CSIO WARNS POSTAL STRIKE COULD DISRUPT INSURANCE BUSINESS

Insurance Business - Lyle Adriano (2018-09-14)

The Centre for Study of Insurance Operations (CSIO) has warned insurers of the impending strike Canada Post workers will be holding later this month.


ONTARIO TOWN PREPARES TO PAY HACKER RANSOM OVER LOCKED DATA

Insurance Business - Lyle Adriano (2018-09-14)

This is not the first time the region has witnessed a massive ransomware attack; the nearby town of Wasaga Beach was also hit by a similar cyberattack this spring. The town managed to negotiate the ransom demand from $144,000 to about $35,000 (in Bitcoin). Wasaga Beach estimated that the overall cost of the attack was more than $250,000.


SIMPLE DISASTER PREPARATION RULES THAT COMMERCIAL CLIENTS FORGET

Canadian Underwriter - Greg Mechbach (2018-09-14)

“The landlines are built more robust than the cellular networks so it takes quite a bit to knock down the landline network but it’s not unheard of that it would go down as well,” Fender said. “There are simple things that are forgotten sometimes,” when disaster strikes.


INSURANCE COMPANIES FACING US$20 BILLION EXPOSURE FROM HURRICANE FLORENCE

Insurance Business - Lyle Adriano (2018-09-14)

Although the storm’s current path and potential damage remain difficult to predict, catastrophe risk modeler Risk Management Solutions (RMS) has projected insured losses resulting from the hurricane of between US$15 billion and US$20 billion, additionally noting that Florence will be the strongest hurricane to make landfall in North Carolina since 1954.


MILLIONS OF AMERICANS STILL TRAPPED IN DEBT-LOGGED HOMES TEN YEARS AFTER CRISIS

Reuters - Michelle Conlin, Robin Respaut 8 MIN READ (2018-09-14)

But the Paynes and about 5.1 million other U.S. homeowners are still living with the fallout from the real estate bust that triggered the epic downturn.


FDA MOVE ON E-CIGARETTES MEANS NEW RISKS FOR FIDELITY FUNDS

Reuters - Ross Kerber (2018-09-14)

At Boston-based Fidelity, Juul is held in funds including Blue Chip Growth Fund and Fidelity Advisor Series Growth Opportunities Fund. At the latter, a stake in Juul was the largest single holding as of July 31, with a valuation of $45.8 million, or 6.4 percent of net assets, according to a current disclosure on the fund firm’s website.


VERBATIM: TRIGGERS OF THE NEXT FINANCIAL CRISIS

Reuters - Reuters Video (2018-09-14)

Saturday marks the ten-year anniversary of the Lehman Brothers collapse and the global financial crisis it triggered. Reuters and key global financial figures reflect on the threats that may bring about the next economic catastrophe.


CANADIAN BORROWING RATES RISE TO A 7 YEAR HIGH

Better Dwelling - Daniel Wong (2018-09-14)

The effective borrowing rate is rising fast across Canada, and showing no sign of cooling. The rate reached 3.8% at the end of last week, up 13.77% from the same time last year. The increase is the highest rate we’ve seen since May 2011, although there’s a minor footnote. The level has only been this high for a total of 5 weeks since 2009. Historically, Canadians have started to cool their borrowing even faster at these levels.


ASSET SECURITIZATION

OSFI - OSFI (2018-09-14)

Today OSFI is releasing proposed amendments the Guideline. The amendments reflect events that have affected securitizations since 2004, including the financial crisis and changes to the Basel Framework. The Guideline also incorporates relevant content from the Advisory. OSFI plans to repeal the Advisory when the revised Guideline becomes effective, currently planned for January 1, 2019.


WALMART LAUNCHES SAME-DAY GROCERY DELIVERY PILOT

G&M - Marina Strauss (2018-09-13)

Walmart is teaming with U.S.-based delivery service Instacart for home delivery, which starts at $3.99 plus 7.5 per cent of the order for purchases of more than $35. Delivery within the hour costs an extra $5. Or customers can pay $99 a year or $9.99 a month for unlimited deliveries.


PUBLIC DRUG PLAN SPENDING UP 2 PER CENT IN 2016-2017

Insurance Journal - IIJ (2018-09-13)

The PMPRB says the increase in public plan drug costs in 2016-17 “was driven by a greater use of higher-cost drugs combined with reduced generic savings and a decline in the use of direct-acting antiviral (DAA) drugs for hepatitis C. Higher-cost drugs (other than DAAs) continue to be the most pronounced driver, pushing costs upward by 4.4 per cent in 2016-17.”


AXA CHAIR TAKES ON MAJOR INSURANCE ROLE

Insurance Business - Terry Gancuangco (2018-09-13)

Succeeding Stephen Catlin, the industry veteran is now the chair of the Insurance Development Forum (IDF) steering committee, which is co-chaired by United Nations and World Bank representatives. A public-private partnership led by the insurance sector, the IDF aims to enhance the use of insurance not only to build greater resilience against disasters but also to help achieve the United Nations Global 2030 Agenda.


GEOPOLITICAL TENSIONS TAKE TOLL ON RISK IN MINING SECTOR

Insurance Business - Gabriel Olano (2018-09-13)

According to the global brokerage and advisory’s Mining Risk Review, the heightened geopolitical tension, which includes environmental and social pressures on mining companies, has increased the risks of doing business in mining. However, demand is still huge, with global consumption of coal remaining above five billion tons, with China accounting for almost half of this figure.


CARLYLE GROUP TO TAKE MAJORITY OWNERSHIP OF SEDGWICK

Insurance Business - Ryan Smith (2018-09-13)

“At Sedgwick, taking care of people is at the heart of everything we do, and I am proud that The Carlyle Group appreciates the value our colleagues create when they put our ‘caring counts’ philosophy into practice,” said Dave North, president and CEO of Sedgwick. “We are humbled by the confidence they have shown in our business model, and we look forward to partnering with Carlyle on developing and delivering innovative solutions for our clients around the world.”


NEW PROPERTY AND ENERGY HEAD FOR SWISS RE CORPORATE SOLUTIONS CANADA

Canadian Underwriter - Greg Mechbach (2018-09-13)

Steiner, who joined Swiss Re in 2007, has left the company, Swiss Re said Tuesday.


THE TRICKY PART OF THE FED’S NEXT RATE INCREASE

WSJ - Nick Timiraos (2018-09-13)

Deciding to raise short-term interest rates will be the easy part of Federal Reserve officials’ meeting later this month. Agreeing on how to frame the path of rate increases next year could prove much harder.


PRUDENTIAL FINANCIAL CEO JOHN STRANGFELD TO RETIRE IN NOVEMBER

WSJ - Allison Prang (2018-09-13)

Prudential Financial Inc. said Chief Executive John Strangfeld will retire at the end of November and be succeeded by the chief operating officer of the company’s international businesses.


THE WALL STREET POWER LUNCH IS BACK, WITH MARTINIS AND IMPUNITY

NY Times - Andrew Ross Sorkin (2018-09-13)

The day Lehman Brothers filed for bankruptcy — Sept. 15, 2008 — the Grill Room was practically empty. Julian Niccolini, the maitre d’hôtel and a co-owner of the Four Seasons restaurant, was taking calls nonstop. The calls came from Wall Street executive assistants, canceling the reservations of the so-called Masters of the Universe who had suddenly become the Masters of Nothing.


THE DAY LEHMAN BROTHERS FILED FOR BANKRUPTCY

NY Times - Nelson D. Schwartz (2018-09-13)

When the bubble burst, the bedrock investment for many families was wiped out by a combination of falling home values and too much debt. A decade after this debacle, the typical middle-class family’s net worth is still more than $40,000 below where it was in 2007, according to the Federal Reserve. The damage done to the middle-class psyche is impossible to price, of course, but no one doubts that it was vast.


DEALBOOK BRIEFING: RELIVING WALL STREET’S NEAR-DEATH EXPERIENCE

NY Times - NY Times (2018-09-13)

Ten years ago today, the C.E.O.s of Wall Street’s banks were huddled at the Federal Reserve Bank of New York, in a mad scramble to save the financial industry and the economy. They were playing out arguably the most consequential period in modern economic history.


EUROPEAN COMMITTEE GREEN-LIGHTS TOUGHER SENTENCES FOR DIGITAL PAYMENTS FRAUD

Finextra - Finextra (2018-09-13)

The Civil Liberties Committee passed plans to combat fraud and counterfeiting of non-cash means of payment such as cards, electronic wallets, mobile payments and virtual currencies in an effort to remove gaps in national legislation and introduce more effective deterrents.


ANT DENIES STEALING EQUIFAX IP

Finextra - Finextra (2018-09-13)

However, the staffer at the centre of the claims, China-born Canadian David Zou - who left Equifax for Ant to help launch the Sesame Credit system - says that he simply forwarded the confidential information to his personal email account in order to work at home


OPEN MEPS NO 401(K) SILVER BULLET, BUT IDEA WORTH PURSUING, INDUSTRY LEADERS SAY

Benefits Pro - Nick Thornton (2018-09-13)

The Trump administration’s assertion of support for Open Multiple Employer Plansadvanced in a recent presidential executive order has drawn wide support from stakeholders.


CANADA’S MATURING BIG CANNABIS TARGETS EUROPE FOR EXPANSION FUNDS

G&M - NICHOLA SAMINATHER AND SIMON JESSOP (2018-09-13)

A favourite of do-it-yourself stock pickers, Canadian cannabis firms are trying to bolster their institutional investor base by boosting efforts to woo European funds as countries across the region approve marijuana for medical use.


NATIONAL BANK PARTNERS WITH FINTECH THINKING CAPITAL IN BID TO BOOST SMALL-BUSINESS LENDING

G&M - Clare O'Hara (2018-09-13)

National Bank of Canada is partnering with online lender Thinking Capital to expand its small-business loans to Canadian companies.


BRITAIN RATCHETS UP ‘NO-DEAL BREXIT’ WARNINGS; SAYS IMPACT WILL BE BROAD

G&M - European Corrospondent (2018-09-13)

The cautions came in a series of 28 technical papers released Thursday that outlined how the country will have to adjust in several key areas if Britain leaves the EU without an agreement next March. For example, the documents noted that once Britain is outside the EU, the country would no longer fall under the bloc’s rules that allow cellphone users to make calls, send texts and use data without incurring any extra charges. “This would mean that surcharge-free roaming when you travel to the EU could no longer be guaranteed,” the paper said. Other papers said British drivers would have to obtain one or two different permits to drive in EU countries, and another document noted Britain would no longer be part of the EU’s Space Surveillance and Tracking program, which provides early warnings about falling space debris.


CANADA MUST PREPARE FOR MULTIDIMENSIONAL CONFLICT

G&M - Louis Vachon (2018-09-13)

There are hard lessons to be learned from the disproportionate Saudi response to a tweet from our Foreign Affairs Minister calling for the release of imprisoned rights activists, and an opportunity to make our country better prepared and more resilient.


U.S. 'LIKELY' HAS TAKEN OVER AS THE WORLD'S TOP OIL PRODUCER

CBC - AP (2018-09-13)

If those estimates are right, it would mark the first time since 1973 that the U.S. has led the world in output, according to government figures.


GOLDMAN SACHS RESHUFFLES TOP TEAM UNDER NEW CHIEF

FT - Laura Noonan in New York and Patrick Jenkins (2018-09-13)

Goldman Sachs has named consumer bank chief Stephen Scherr as chief financial officer and investment banker John Waldron as president in a keenly awaited leadership revamp crafted by incoming chief executive David Solomon. 


WANING CO-OPERATION WILL MAKE NEXT CRISIS WORSE

FT - FT (2018-09-13)

When it comes to strengthening the core global banking system, policymakers can congratulate themselves on a job pretty well done. Banks in most major economies are today backed by as much as 10 times more equity capital than a decade ago, and carry far more liquid funding. Detailed “living will” plans submitted to regulators can be implemented in a crisis.


DANSKE CHIEF IGNORED CALLS TO SHRINK SCANDAL-HIT UNIT

FT - Richard Milne (2018-09-13)

Danske Bank’s chief executive rejected calls to scale back the business at the heart of one of Europe’s largest money-laundering scandals despite concerns raised at the time by other managers and JPMorgan.


BMO OFFERS NEW LOAN PROGRAM FOR YOUNG FARMERS

Insurance Journal - IIJ (2018-09-12)

"We're watching a demographic shift unfold in the agriculture industry, and we see a need for programs and incentives to attract and support younger Canadians into the sector," said Adam Vervoort, Head, Agriculture Financing, BMO Bank of Montreal. "Canada is a leader in the agriculture industry, with revenue of $61 billion in 2017. With external pressures like weather changes and trade having an impact, we need to do more to ensure that this sector stays competitive for both established farmers and the next generation."


HUB INTERNATIONAL BUYS CLEARWATER INSURANCE

Insurance Journal - IIJ (2018-09-12)

Clearwater Insurance provides insurance solutions to clients “through customized programs and proactive health services,” said Hub in an announcement.


AXA-XL MEGA MERGER RECEIVES REGULATORY APPROVAL

Insurance Business - Terry Gancuangco (2018-09-12)

“Upon closing of the acquisition of the XL Group, AXA XL will combine our P&C commercial lines and specialty risks into a new entity of the AXA Group,” said AXA chief executive Thomas Buberl two months ago. “This new entity will operate under the master brand AXA, and its offerings will be identified along four main lines: XL Insurance, XL Reinsurance, XL Art & Lifestyle, and XL Risk Consulting.


AON: CANADIAN EMPLOYERS HIGHLY CONCERNED ABOUT RISING COSTS OF GROUP BENEFITS

Insurance Business - Lyle Adriano (2018-09-12)

A new survey from Aon has revealed that although Canadian employers are highly concerned about the rising costs of group benefits (due to drug expenses), they still prioritize the productivity and engagement of their employees.


WHY QUEBEC’S LARGEST BROKERAGE DOUBLED UP ON LIFE INSURANCE

Canadian Underwriter - Jason Contant (2018-09-12)

For its latest acquisition, Quebec’s largest brokerage decided to look outside its traditional stronghold of property and casualty insurance, which represents about 90% of its revenue base.


U.S. CITIES WILL BE ABLE TO COMPETE FOR FUNDING FROM JPMORGAN

WSJ - Emily Glazer (2018-09-12)

JPMorgan Chase & Co. plans to unveil a $500 million project Wednesday geared toward boosting economic growth in as many as 30 cities across the U.S.


CALIFORNIA CRUSHES HEALTH-INSURANCE CHOICE

WSJ - Letter (2018-09-12)

Your editorial “ObamaCare’s Hotel California” (Sept. 4) is on the mark. The one short-term health plan available in California just closed new enrollments effective Sept. 1. This means that many people will go without insurance because the Affordable Care Act plans aren’t allowing most people to enroll until Jan. 1, 2019.


AS FLORENCE’S POWER NEARS THE CAROLINAS, RESIDENTS BRACE FOR THE WORST

NY Times - John Schwartz and Timothy Williams (2018-09-12)

With millions of coastal residents either on the move or hunkering down anxiously in place, Hurricane Florence surged toward North Carolina on Tuesday, tracing an unusual path that could lead to tremendous destruction — especially if the immense storm dumps enormous amounts of rain as it moves inland.


AROUND THE WORLD, MARKETS ARE FALLING

NY Times - Matt Phillips (2018-09-12)

Cratering currencies, rising inflation, jumpy investors: A financial panic is again gripping some of the world’s developing economies.


A TOP GOLDMAN BANKER RAISED ETHICS CONCERNS. THEN HE WAS GONE.

NY Times - Emily Flitter, Kate Kelly and David Enrich (2018-09-12)

James C. Katzman, a Goldman partner and the leader of its West Coast mergers-and-acquisitions practice, dialed the bank’s whistle-blower hotline in 2014 to complain about what he regarded as a range of unethical practices, according to accounts by people close to Mr. Katzman, which a Goldman spokesman confirmed. His grievances included an effort by Goldman to hire a customer’s child and colleagues’ repeated attempts to obtain and then share confidential client information.


INSIDE THE RACE FOR THE TOP JOB ON WALL STREET

NY Times - Kate Kelly (2018-09-12)

Longtime managers of separate arms of the company, Mr. Schwartz, 53, and Mr. Solomon, 55, were named co-chief operating officers and presidents of Goldman last December when Gary Cohn, who previously held the titles, joined the Trump administration. The dual promotions made the men overnight adversaries in the race to run Goldman — that is, whenever Lloyd C. Blankfein, its longstanding chairman and chief executive, steps aside.


HOW THE FINANCIAL CRISIS HELPED ELECT TRUMP

NY Times - NY Times (2018-09-12)

This week is the 10th anniversary of the collapse of Lehman Brothers, the inflection point of the financial crisis. Andrew’s column this week traces a line from the crash to the populist politics of the present:


AGGRESSIVE ACQUISITION STRATEGY HITS SCOTIABANK’S STOCK PRICE AS INVESTOR SKEPTICISM MOUNTS

G&M - Tim Kiladze (2018-09-12)

After a stunning run of acquisitions, Bank of Nova Scotia is feeling the heat. Shares of Canada’s third-largest lender are suffering relative to rival Big Six banks, and the pressure is on management to prove its recent spate of deals was worth it.


STATE BANK OF INDIA CHAIRMAN CALLS FOR EXPANDED TRADE TIES WITH CANADA

G&M - James Bradshaw (2018-09-12)

The head of India’s state-owned bank is urging expanded trade between Canada and India, and sees a window of opportunity as protectionist tensions and tariff wars threaten to disrupt global trade flows.


OPEN BANKING REQUIRES POLICY, NOT JUST TECH SUPPORT

G&M - ANDREW MOOR AND DAN DICKINSON (2018-09-12)

The Federal budget delivered by Finance Minister Bill Morneau last February contained a commitment to examine the merits of open banking. While policy-makers are busy examining the issue, this move does not appear to have opened much of a broader public debate among the users of banking services on the benefits of open banking, or what Canadians of all walks of life want from the banking industry. A broader debate is needed.


JPMORGAN’S JAMIE DIMON WALKS BACK CLAIM HE COULD BEAT TRUMP IN AN ELECTION

G&M - Ken Sweet (2018-09-12)

The United States’ most powerful banker, JPMorgan Chase & Co chief executive Jamie Dimon, caused a stir Wednesday when he said he would be able to beat U.S. President Donald Trump in an election.


CMHC SAYS ANNUAL PACE OF HOUSING STARTS SLOWED IN AUGUST COMPARED WITH JULY

CBC - CBC (2018-09-12)

Canada Mortgage and Housing Corp. says the pace of housing construction starts slowed in August compared with July.


BANK OF ENGLAND’S MARK CARNEY EXTENDS TERM AN EXTRA SEVEN MONTHS TO HELP WITH BREXIT

G&M - DAVID MILLIKEN AND ANDY BRUCE (2018-09-11)

Bank of England Governor Mark Carney will stay at the central bank an extra seven months until the end of January, 2020, to help smooth Britain’s departure from the European Union next year, Chancellor of the Exchequer Philip Hammond told Parliament on Tuesday.


REGULATOR SEEKS INPUT FOR PROPOSED RULES ON INVESTOR INFORMATION

PCMA - PCMA (2018-09-11)

The Canadian Securities Administrators (CSA) has published a proposed set of rules surrounding disclosure of non-GAAP and other financial measures.


CIBC CEO PUSHES FOR TAX CHANGES TO KEEP CANADA COMPETITIVE WITH U.S.

FP - Geoff Zochodne (2018-09-11)

“It’s competing, not only on some of the softer factors in the economy, but also on tax,” the CEO said after giving a speech to the Empire Club of Canada in Toronto.


BANK OF MONTREAL PROFITS IN U.S. POISED TO KEEP CLIMBING, EVEN WITHOUT MORE ACQUISITIONS

FP - Doug Alexander (2018-09-11)

“If we continue doing the things that we’re doing organically, I could see a third of the bank coming from U.S. earnings,” Chief Executive Officer Darryl White, 47, said Monday in an interview at Bloomberg’s New York headquarters. “To get beyond that you’d have to resume the M&A agenda.”


LOBLAW TO TAKE $368-MILLION CHARGE ON OFFSHORE INVESTMENT INCOME BOOKING

G&M - Josh O'Kane (2018-09-11)

Loblaw Cos. Ltd. will take a $368-million charge this quarter after the Tax Court of Canada ruled against the company in a long-running case over investment income booked in an offshore subsidiary.


ALMOST HALF OF CONSUMERS WHO SWITCHED CREDIT CARDS WERE LOOKING FOR BETTER REWARDS PROGRAM, SURVEY SHOWS

CBC - Rajeshni Naidu-Ghelani (2018-09-11)

Canadian consumers are increasingly looking for better rewards programs when it comes to choosing a credit card, according to a new study that shows that nearly half of the people that switched cards in the past year did so for a better plan.


ALIBABA FOUNDER JACK MA TO STEP DOWN AS CHAIR IN SEPTEMBER 2019

CBC - AP (2018-09-11)

Alibaba was founded at a time when few Chinese used the internet. As internet use spread, the company expanded into consumer-focused retailing and services. Few Chinese used credit cards, so Alibaba created its own online payments system, Alipay.


INSURERS RECOGNIZED AMONG CANADA'S BEST WORKPLACES IN 2018

Insurance Business - Lyle Adriano (2018-09-11)

The 10 insurance companies and providers that made the “2018 Best Workplaces in Financial Services and Insurance” are (in alphabetical order):


PRIVATIZATION THROWS A CURVEBALL AT THE CANNABIS INSURANCE INDUSTRY

Insurance Business - Alicja Grzadkowska (2018-09-11)

“The products are slowly becoming more fleshed out for some of the newer entrants to the market,” said Kevin Lea, president of Fuse Insurance. “Some of the Lloyd’s syndicates are coming into play through the MGAs and are starting to finalize their products, so we’re expecting to see more details and more aggressive marketing offerings from some of the MGAs within the next couple of months as we move closer to legalization.”


CYBER MARKET TO DOUBLE IN SIZE BY 2020 - MUNICH RE

Insurance Business - Lyle Adriano (2018-09-11)

“Cyber risks are one of the biggest threats to the networked economy,” Munich Re board member Torsten Jeworrek said in a statement during the weekend event.


THIS REINSURER SAYS RATES NEED TO GO UP

Canadian Underwriter - Jason Contant (2018-09-11)

The reinsurer said while current economic momentum will benefit future profitability through higher interest rates and investment returns, it won’t be enough to close the gaps. “At the same time, tighter labour markets are expected to push up wage and claims inflation. Thus, premium rates need to increase more than claims trends to achieve sustainable improvement in profitability.”


CRYPTO WIPEOUT DEEPENS TO $640 BILLION AS ETHER LEADS DECLINES

Bloomberg - Adam Haigh and Eric Lam (2018-09-11)

Crypto plungest to low lows.


GOLDMAN BEAR-MARKET RISK INDICATOR AT HIGHEST SINCE 1969: CHART

Bloomberg - Cormac Mullen (2018-09-11)

A Goldman Sachs Group Inc. indicator designed to provide a “reasonable signal for future bear-market risk” has risen to the highest in almost 50 years. The firm’s Bull/Bear Index, which is based on measures of equity valuation, growth momentum, unemployment, inflation and the yield curve, is now at levels last seen in 1969. While the gauge is at levels that have historically preceded a bear market, Goldman strategists including Peter Oppenheimer wrote in a note last week that a long period of relatively low returns from stocks is a more likely alternative.


BANK BRANCHES AND STAFF NUMBERS CONTINUE TO SHRINK ACROSS THE EU

Finextra - Finextra (2018-09-11)

In its annual update on the European banking scene, the EBF reports that European banks culled almost 6000 branches in 2017, down 3.1% over the previous year. 


INSTANT PAYMENTS TO RESHAPE MARKET

Bobsguide - Bobsguide (2018-09-11)

In Europe instant payments – also known as real time or faster payments– are defined by the Euro Retail Payments Board (ERPB) as electronic retail payment solutions. The service is available 24/7/365 and the funds become available in the payee’s account immediately (within a few seconds) of the payment being initiated by the payer.


ARE YOUR EMPLOYEES READY TO GO GIG?

Benefits Pro - Marlene Satter (2018-09-11)

“In the current job market, with the unemployment rate the lowest the U.S. has seen in nearly two decades, finding the right mix of talent—and then retaining that talent—is crucial for a company,” says Sandy Mazur, Spherion division president. “What employees are looking for and what employers need from their employees continue to evolve in the age of increased digitization and cultural and generational shifts.”


FCA WARNS OF FINANCIAL CRIME RISKS POST-BREXIT

Finextra - Finextra (2018-09-11)

Speaking at the watchdog's annual general meeting, Randall says that by the start of the Summer, the UK had routed some 3.1 billion transactions reports to other EU authorities via the European transaction reporting mechanisms.


CIBC CEO WARNS ABOUT RISING GLOBAL DEBT LEVELS; URGES CANADA TO ATTRACT MORE FOREIGN DIRECT INVESTMENT, IMMIGRATION

G&M - James Bradshaw (2018-09-11)

The chief executive officer of Canadian Imperial Bank of Commerce is sounding an alarm over rising global debt levels, warning that Canada needs to start preparing now for the next economic shock.


TWO VIEWS OF THE STOCK MARKET: 1) THE BUBBLE WILL PROBABLY BURST. 2) THE BUBBLE WILL PROBABLY BURST SOON

G&M - Michael Babad (2018-09-11)

It’s the question on every investor’s mind in this long-running bull market: When will the bubble pop?


RUSSIAN NATIONAL BEHIND MASSIVE JPMORGAN HACK EXTRADITED TO US

Finextra - Finextra (2018-09-10)

The Russian hacker behind the largest theft of customer data from a US financial institution in history has been extradited to the US to face multiple charges of computer fraud.


CANADA’S BIG SIX BANKS HAVE AN OBSESSION WITH CUTTING COSTS AMID RECORD PROFITS

G&M - Tim Kiladze (2018-09-10)

It has been this way for a few years now. Whenever banks report earnings, or their leaders appear at investment conferences, they are grilled about expenses. What started as an obsession with restructuring charges, when the banks were booking ones worth hundreds of millions of dollars around 2014, has morphed into a fixation on so-called "operating leverage."

The term is a fancy one for measuring costs. If a bank has "positive operating leverage," its revenues are growing faster than expenses. “The operating leverage focus … has become a big part of the quarterly process,” Bank of Nova Scotia analyst Sumit Malhotra said at the conference, which was hosted by his employer.


CANADA'S ULTRA-WEALTHY GETTING RICHER FASTER THAN THE REST OF US, REPORT SHOWS

CBC - Rajeshni Naidu-Ghelani (2018-09-10)

According to research firm Wealth X, Canada had around 10,840 residents worth $30 million or more including their investable assets in 2017. The New York-based firm compiles the study based on its database of wealthy individuals every year.


SCOTIABANK WALKS AWAY FROM CONSUMER DISPUTE WATCHDOG OBSI

CBC - Pete Evans (2018-09-10)

The Bank of Nova Scotia will no longer use the Ombudsman for Banking Services and Investments to mediate disputes with its customers, leaving the banking watchdog with just two of Canada's five big banks under its thumb. 


CLOUD PLATFORMS ENABLE INSURANCE COMPANIES TO MATCH THE ‘AMAZON EXPERIENCE’

Insurance Journal - Alicja Grzadkowska (2018-09-10)

Amazon might not be selling insurance yet, but the ‘Amazon experience’ is influencing consumers’ buying habits across all products and services, and insurance companies can either innovate or lag behind.


ONTARIO ALREADY NEAR $1 BILLION IN INSURED DAMAGE IN 2018

Canadian Underwriter - Jason Contant (2018-09-10)

One of the most recent events occurred Aug. 7, when a thunderstorm produced 72 millimetres of rain over Toronto, with 51 mm falling in just one hour. The rainfall caused extensive flooding across western and central parts of the city, and resulted in over $80 million in insured damage. Global News meteorologist Ross Hull said in August the normal rainfall amount for the entire month is typically 78.1 mm.


HOW TO GET THE MOST FINANCIAL AID FOR COLLEGE

WSJ - Chana R. Schoenberger (2018-09-10)

Readers continue to write in with queries about the best way to pay for college. We asked experts to help us answer readers’ questions on college savings and tax-advantaged “529” accounts.


AMAZON’S ANTITRUST ANTAGONIST HAS A BREAKTHROUGH IDEA

NY Times - David Streitfield (2018-09-10)

“Antitrust Dilemma.” “The Antitrust Impulse.” “Antitrust in an Expanding Economy.” Shelf after shelf of volumes ignored for decades. There are a dozen fat tomes with transcripts of the congressional hearings on monopoly power in 1949, when the world was in ruins and the Soviets on the march. Lawmakers believed economic concentration would make America more vulnerable.


ROBOADVISERS (WITH HUMAN HELPERS)

NY Times - Tara Siegel Bernard (2018-09-10)

These firms use a combination of technology and human professionals to provide financial advice at prices lower than traditional advisers typically charge. (Digital-only services listed here generally provide automated-investing advice only, without help from human advisers.)


SEC HALTS TRADING IN TWO CRYPTOCURRENCY PRODUCTS, CITING MARKET CONFUSION

Reuters - Trevor Hunnicutt (2018-09-10)

“It appears ... that there is a lack of current, consistent and accurate information,” the SEC said in a notice posted on its website. “Application materials submitted to enable the offer and sale of these financial products in the United States, as well as certain trading websites, characterize them as ‘Exchange Traded Funds.’”


FORGET THE STOCK. TESLA'S BONDS ARE IMPLODING

CNN Money - Matt Egan (2018-09-10)

"Tesla is in a cash pinch," Cowen & Co. analyst Jeffrey Osborne said in an interview. "The primary concern — above and beyond doing drugs and whatnot on podcasts — continues to be the ability of the company to generate cash."


INSURANCE SHARES SINK AS HURRICANE FLORENCE LOOMS

FT - Peter Wells (2018-09-10)

Insurance shares took a hit on Monday as officials warned on the “potentially catastrophic” impact of Hurricane Florence, a major storm that could hit the east coast of the US as early as Thursday.


DEUTSCHE BANK STRUGGLES WITH RISING FUNDING COSTS

FT - Stephen Morris and Robert Smith, Olaf Storbeck (2018-09-10)

Deutsche Bank is set to lose as much as €200m in revenue a year unless chief executive Christian Sewing can reverse a recent surge in funding costs.


FED FACES KEY DECISIONS AS BALANCE SHEET SHRINKS

FT - Sam Flemming (2018-09-10)

The clock is ticking. As the Federal Reserve presides over the steady shrinking of its multi-trillion dollar balance sheet, investors are urging policymakers to push forward long-awaited decisions over just how large the central bank’s portfolio will ultimately need to be to keep monetary policy running smoothly and the banking sector well-stocked with safe assets.


FINANCE BOSSES SEE TURNING POINT FOR GENDER DIVERSITY

FT - Laura Noonan, Oliver Ralph (2018-09-10)

Finance leaders have predicted this year could mark a turning point for gender diversity in the sector as pressure from the #metoo movement and UK gender pay gap reporting galvanise efforts to promote more women. 


WHY ARGENTINE ORTHODOXY HAS WORKED NO BETTER THAN TURKISH ICONOCLASM

Economist - Economist (2018-09-10)

Argentina, meanwhile, having already tried the Kirchners’ brand of populism, and Mr Macri’s earlier form of gradualism, has little alternative but to persist with its orthodox approach. Its miscommunications, however, are an object lesson on the dangers of overpromising. As a vulnerable emerging market, it should strive to be as economically sound as possible. But not more so.


CANADIANS' FAVOURITE CREDIT CARD ISN’T FROM ONE OF THE BIG SIX BANKS — IT'S FROM A GROCERY CHAIN

Bloomberg - Bloomberg (2018-09-10)

Loblaw Cos.’s President’s Choice Financial credit cards rank No. 1 for customer satisfaction, beating out cards issued by the country’s biggest banks, according to a study published Monday by J.D. Power. And despite being Canada’s biggest credit-card issuer, Toronto-Dominion Bank trails the pack.


IN ARGENTINA, STRONGER PESO IS ONLY TEMPORARY AS RECESSION LOOMS

Forbes - Kenneth Rapoza (2018-09-08)

Don’t be fooled by the move up in the Argentine peso over the last 24 hours. This currency has nowhere to go but lower against the dollar, thanks to higher taxes, layoffs of public sector employees and, worse yet, 60% interest rates.


ARGENTINA PROPOSES MAJOR CENTRAL BANKS BUY EM SOVEREIGN BONDS

Bloomberg - Patrick Gillespie and Carolina Millan (2018-09-08)

Central bank President Luis Caputo called on central banks to invest as much as 2 percent of their reserves in countries with loan packages from the International Monetary Fund. Caputo told finance executives in Mendoza, Argentina on Friday that he planned to pitch the idea this weekend at a meeting of central bank chiefs in Basel, Switzerland this weekend. Caputo said he has spoken to European Central Bank chief Mario Draghi and Bank for International Settlements head Agustin Carstens about the plan.


MAKING ENDS MEET IN ARGENTINA

FT - Colby Smith (2018-09-08)

The ingredients of Argentina's ongoing economic and currency crises are painfully familiar: an overvalued peso, gaping twin deficits and a hefty pile of dollar-denominated debt. Cue the IMF, and it's difficult to avoid flashing back to the country's $100bn-plus default in the early 2000s—the biggest in history at the time. But while Argentina's roughly $75bn financing needs for this year and next certainly appear daunting, there's reason to be (cautiously) optimistic that the country will be able to make ends meet this time around.


HOUSEHOLD DEBT: HOW MUCH DO WE OWE?

BBC - Laura Jones (2018-09-08)

Overall in the UK, people owed nearly £1.6 trillion at the end of June 2018, up from £1.55tn a year ago.


WONGA: WILL MY DEBT BE WRITTEN OFF AND OTHER QUESTIONS ANSWERED

BBC - Kevin Peachy (2018-09-08)

Wonga has argued that its predicament was, at least in part, the result of a host of legacy claims. Borrowers have claimed that insufficient checks were carried out by the company to ensure that the loan could be repaid.


A DECADE ON, AND THE BANKING BAILOUTS STILL FUEL THE RISE OF GLOBAL POPULISM

G&M - Eric Reguly (2018-09-08)

In the thick of the crisis, in the fall of 2008, governments pretty much everywhere had to make a choice: Protect the rich, that is, the bankers, their big-name clients and investors, or let them sink.

 


BRAZIL ASSASSINATION ATTEMPT CHANGES OUTLOOK FOR MARKETS

Bloomberg - Julia Leite and Aline Oyamada (2018-09-08)

The assassination attempt that upended Brazil’s presidential race is also resetting the outlook for the country’s markets.


LARRY SUMMERS CALLS FED BANK STRESS TEST RESULTS ‘ABSURD'

Bloomberg - Craig Torres and Christopher Condon (2018-09-08)

“If we are likely to live in a world of systematically lower interest rates, systematically more higher asset price multiples than we have in the past,” then the case “for prudential regulation and for high levels of capital requirements in banks and more financial institutions is greatly increased,” Summers said.


HOW A 81-YEAR-OLD BILLIONAIRE'S DEALS WITH BITCOIN BULLS RILED SEC

Bloomberg - Matt Robinson (2018-09-08)

It’s the curious case of an 81-year-old biotech billionaire hooking up with Bitcoin bulls, and the partnership leading to all of them getting sued by the U.S. Securities and Exchange Commission.


THE PERILS OF CHINA’S “DEBT-TRAP DIPLOMACY”

Economist - Economist (2018-09-08)

China is not used to recipients of its largesse challenging the terms on which it is offered. Yet growing numbers of them are struggling with debts to Chinese entities taken on to fund Chinese-staffed projects. The Centre for Global Development in Washington reckons that eight belt-and-road countries are at “particular risk of debt distress”, among them ones that border on China: Laos, Mongolia and Pakistan. That is why Dr Mahathir’s progress in disentangling his country from Chinese-funded ventures is being closely watched.


News feed

CALCULATING THE HALF-LIFE OF A CURRENCY

Economist - Economist (2018-09-18)

If Venezuela’s monthly inflation gets no worse, its hyperinflationary horror will rank only 23rd out of the 57 episodes identified by Steve Hanke of Johns Hopkins University and Nicholas Krus (see chart). To make the numbers easier to grasp, they calculate how long it would take for prices to double, if inflation persists at its peak monthly pace. Their results provide a kind of “half-life” for a currency, showing how long it takes for it to lose 50% of its value (relative to the country’s consumer goods and services).


WHAT THE SLIDING LIRA AND ECONOMY MEAN FOR TURKEY’S BANKS

Economist - Economist (2018-09-18)

The economy over which Mr Erdogan presides, by contrast, is embroiled in a battle for survival. This year the lira has fallen by 40% against the dollar, tumbling especially hard last month after a diplomatic row with America. Inflation is nearly 18%. The central bank, pressed by Mr Erdogan to keep interest rates down, has been slow to react, but on September 13th, even as the president urged a cut, it raised its policy rate by 6.25 percentage points, much more than markets had expected, to 24%. The lira leapt in response.


FSIM briefings and developments reports


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BANK CUSTOMERS INCREASINGLY OPEN TO BIG TECH ALTERNATIVES

The results are concerning for bankers, with extensive investment failing to translate into positive customer experiences. Just 51% of those surveyed say that their branch banking experience is positive, but this is better than the 47% who are happy with their mobile interactions.


OUTAGE FEVER STRIKES UK BANKS

The latest problems emerged at 5am this morning and the time of writing remained unresolved. An RBS spokesperson said: "We are aware that customers are experiencing issues and are working to fix it. "Customers can still use ATMs and telephone banking or visit their local branch."


CANADIANS WITHDRAWING HOME EQUITY IS PICKING UP AGAIN

The balance of property secured by property ripped to a new high. The outstanding balance stood at $289.68 billion at the end of July, up $2.87 billion from the previous month. The annual increase works out to 2.58%, an increase from the month before. Yup, the balance of debt may have just accelerated in growth. Let’s break it down and see what people are doing with this cash.



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