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2008 Financial Crisis – Causes and historical context

Tom Spencer

Many an economics and finance course later, I see that the layers of complexities to the 2008 financial crisis are innumerable. This is because the initial trigger for the crisis was reliance by major banks, particularly those in the United States, on mortgage backed securities as collateral. It all seemed so clear.

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Buying out the banks – a repeat of 2007/2008 or something new?

Ben de Haldevang

This week we talk about the wave of forced mergers in the US. Paul Siegenthaler, Abhay Pande and I talk about the drivers for the current transactions, what are the implications from an integration perspective, and what the future holds. As ever, we’d love to hear from you. Please let us know your thoughts, comments and ideas.

Banking 40
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Consulting or Banking

Tom Spencer

This post provides you with a high level comparison of management consulting and investment banking. Investment banks help companies raise money for various purposes including investment, acquisitions, and provision of working capital. Traders buy and sell securities with the bank’s money with the aim of making money for the bank.

Banking 60
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Banking's Biggest Hurdle: Its Own Strategy

Strategy+Business

Between 2008 and 2014, higher revenue growth correlated with a more focused strategy correlated with higher revenue growth for banks. Banks seeking to thrive in the future should act accordingly.

Banking 55
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Free Money! Banks Paid $22 Billion to Not Lend?

MishTalk

On October 3, 2008, Section 128 of the Emergency Economic Stabilization Act of 2008 allowed the Federal Reserve banks to begin paying interest on excess reserve balances (“IOER”) as well as required reserves. The Federal Reserve banks began doing so three days later. more…).

Banking 52
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Hilarious Transcripts of Fed Minutes from 2008 Reveal Completely Clueless Fed

MishTalk

Here is a list of FOMC Transcripts and Other Historical Materials, 2008 Notes I purposely cherry picked statements of various Fed governors. Amazingly, Bernanke spoke of pent-up demand for housing in January of 2008 The January 29-30 transcript was a whopping 194 pages long. percentage point to GDP growth in 2008 and 0.3

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Retail Banks at the Crossroad

BCG

Nearly eight years after the financial crisis, the performance of many retail banks is still disappointing investors and financial markets, particularly in Europe. In fact, retail banks have to reinvent themselves. And getting back on track is about truly transforming—not just adjusting—their core business models.

Retail 45