Canada has a new worthwhile initiative. After years of booming prices, that bastion of politeness north of the border is looking to avoid a catastrophic housing bust for something more, well, boring. Initiatives don’t get more worthwhile, and perhaps n…
America’s problems are well known. The federal debt is too high. Our infrastructure is crumbling. And we don’t have enough homes available for sale or for rent.
Wait, what?
The S&P 500 hit a five-year high last week, and now some experts are saying that stocks are overpriced and that the overall market is…
Nouriel Roubini, the economist dubbed “Dr Doom” for predicting the credit crunch, has sounded a stark warning about the long-term effects of relying on quantitative easing to keep crisis-hit western economies afloat.
At a lively debate in Davos, Roubi…
Despite recent hiccups in gold prices, if you’re investing in commodities, it is still the best, safest bet, according to Morgan Stanley’s commodities team led by Hussein Allidina.
Silver offers a little more risk and reward than gold; Allidina expect…
Analysis: U.S. bond stars bet big on equities revival Reuters) – Some of the biggest U.S. bond firms are making aggressive pushes into the $5.17…
Global bank returns likely to stay low into 2017: McKinsey
NEW YORK (Reuters) – The biggest global banks will have to take steps in the coming years, including cutting compensation and shedding services, to generate adequate returns for their shareholders, consulting firm McKinsey & Co. said on Wednesday.
Even as the global economy grows, new banking regulations will cut into profits so much that banks will earn returns on equity between 6 and 9 percent by 2017, according to McKinsey’s forecasts in a report on the banking industry.
Return on equity – a key metric for how effectively banks are wringing profit from shareholder money- was at least in the mid-teens for many banks before the 2008 financial crisis.
“The impact of regulation will be a continued headwind,” Kevin Buehler, a director at McKinsey and one of the authors of the report, told Reuters.
The firm noted that the Volcker Rule, which limits banks from betting with their own capital, and Basel III capital rules will likely be among the biggest drags on profitability.
New banking rules are designed to prevent the next financial crisis. Banks’ poor lending practices, bond underwriting, and risk management last decade contributed to the near collapse of the global financial system and a protracted global recession.
But new rules will also cut into profitability, and with low returns, the top 13 banks must take measures like eliminating unprofitable products and cutting employee compensation, McKinsey said.
http://news.yahoo.com/global-bank-returns-likely-stay-low-2017-mckinsey-115930601–sector.html
Imagine that your financial advisor called you up one day and said: “Great news…your investment portfolio gained 1% in January which is an annualized return…
http://www.rigzone.com/news/oil_gas/a/123634/Study_North_America_to_Hold_Greatest_Growth_Opportunities_in_2013 North America to Hold Greatest Growth Opportunities in 2013 Seismic Shifts: The outlook for the oil and gas industry in 2013, is an annual…
I’ve put off writing an article about what is likely to happen in 2013 so I could peruse the thousands of other articles by reputable…