| News for financial services executives
|  |
| |  | |
 | Companies need to stay on top of new tax laws and trends, preserve cash in the face of proliferating audits, and figure out how to reduce operational costs while still covering all their audit risks. Download this white paper as a proactive survival guide to sales and use tax audits and gain insight to help you understand your company's exposure to audits and how to avoid them from the start. |
| Industry Watch |  |  |
|
- Strong demand expected for first CMBS sale under TALF
Developers Diversified Realty's sale of commercial mortgage-backed securities is expected to be a test of the Federal Reserve's Term Asset-Backed Securities Loan Facility. Demand is expected to be strong, in part because of conservative underwriting of the bonds backed by the company's shopping centers. The Wall Street Journal
(11/16)
     
- Investor demand for corporate bonds remains strong
A sense of urgency among companies and investors to dive into the bond market before it winds down for the holidays is particularly acute this year. Companies are launching corporate bonds and investors are binging on offerings while central bankers are preparing to withdraw stimulus measures that spurred the corporate-debt rally. Some industry observers are concerned that policymakers will hurt the credit market if they pull support too quickly or sharply. The Wall Street Journal
(11/16)
- Municipal bond sales to reach 7-month high
State and local governments plan to sell $12 billion in fixed-rate bonds this week. The sales include Build America Bonds, for which the government pays more than a third of the interest expense. Michael Mundaca, the Obama administration's nominee to be the Treasury's assistant secretary for tax policy, wants the BAB program extended. "The future of the BAB program is the most important question facing the municipal bond market today," said John Dillon, a fixed-income strategist at Morgan Stanley Smith Barney. "The landscape could be permanently altered by an extension and/or expansion of the program." Bloomberg
(11/16)
- Wanted: Financial-institution group bankers
Bankers who specialize in financial-sector restructuring are a hot commodity in the industry. At least six major banks are actively trying to hire more of them. Fees for this kind of investment banking in Europe have reached $6.9 billion this year, 42% of the entire investment-banking fee pool, according to researcher Dealogic. "There simply aren't that many senior FIG bankers out there and this is likely to be a problem for anyone looking to build up in the market," said Stephane Rambosson, a partner at executive search firm Veni Partners. The Wall Street Journal
(11/16)
| Technology & Trends | | |
|
- Survey: More first-time buyers enter housing market
More first-time buyers and single women bought homes in the past year, according to a survey conducted by the National Association of Realtors. The poll also found sellers lowered prices to get their homes off the market. "Tax incentives, record high affordability conditions and a pent-up demand brought a record share of first-time home buyers into the market," said Paul Bishop, the trade association's vice president of research. MSNBC/The Associated Press
(11/15)
- Moody's: Corporate defaults to peak this month, then ease off
Moody's Investors Service is becoming a bit more optimistic on the subject of corporate-debt defaults. Moody's warned in January that as much as 16.4% of companies carrying junk ratings could default during the next 12 months. The credit rating agency upgraded its prediction, expecting defaults to peak at 13.6% this month, then decline to 4.4% a year from now. The Wall Street Journal
(11/16)
| Members in the News | | |
|
- Synovus' Anthony affirms that bank is well-capitalized
Synovus Financial CEO Richard Anthony affirmed in a statement Friday that the bank was well-capitalized and not under pressure by regulators to raise reserves. Tier 1 Capital Ratio was 10.48% on Sept. 30, well above the regulatory minimum of 6%, and the bank's Total Risk-based Capital Ratio of 13.84% is considerably higher than the 10% required by regulation. "Given our strength of capital combined with our continued focus on disposing of nonperforming assets and improvements in core operating results, we remain confident in our belief that we have the opportunity to achieve profitability during 2010," Mr. Anthony said. RTT News
(11/13)
- Northern Trust's Osborn says recovery will take time
Northern Trust Chairman William Osborn gave his views on the economy last week, as he prepared to retire after 39 years with the company. "The broader economy is gradually going to get a little better. If you measure that by GDP, we'll see slow growth, but that doesn't mean people won't be impacted, that there won't be credit losses. ... There is just a tremendous amount of debt, not just individuals and institutions but governments, and getting through that debt will take a while," he said. Mr. Osborn warned that some banks would not survive the changes to the economy. Mr. Osborn will be replaced as chairman by CEO Rick Waddell, who will assume both roles. Chicago Tribune
(11/15)
| Roundtable in the News | | |
|
- Roundtable warns CARD act could be costly for consumers
The Credit Card Accountability, Responsibility and Disclosure Act of 2009 will limit banks' ability to raise interest rates on card accounts and impose a number of other changes, including longer notice periods for account changes, clearer disclosure statements and strict limits on cards provided to minors. Experts warn that banks are raising interest rates and slashing credit limits ahead of the changes. Consumers risk losing access to $10 billion to $15 billion in credit, warns Scott Talbott, senior vice president for government affairs at the Financial Services Roundtable. The Atlanta Journal-Constitution (free registration)
(11/15)
| SmartQuote | | |
|
 | Nothing is so contagious as enthusiasm."
|
| | |
| Advertise |
|
Sales Account Director:
Abiy Bekele 212-450-7919
|
|
|
| |
|
Read more at SmartBrief.com |
|
A powerful Web site for SmartBrief readers including:
|
|
|
|
| |
| |
| | Recent The Financial Services Roundtable SmartBrief Issues:
- Friday, November 13, 2009
- Thursday, November 12, 2009
- Wednesday, November 11, 2009
- Tuesday, November 10, 2009
- Monday, November 09, 2009
| | | Lead Editor: Sean McMahon
Mailing Address:
SmartBrief, Inc.®, 1100 H ST NW, Suite 1000, Washington, DC 20005 | |
| |
|
| © 1999-2009 SmartBrief, Inc.® Legal Information |
|
Investment banks are critical to global economic growth, writes Barclays CEO John Varley. "Investment banks are vital intermediaries in the economic system -- connecting sources of funds with investment opportunities," Mr. Varley explained. 
