BROWSE BY TOPIC
Stories of Interest
- Address at ICI's 2017 Securities Law Developments Conference - SEC Commissioner Stein
- New York Pension Fund Seeks More Pay Disclosure from Wells Fargo
- Wells Fargo Sanctions Are on Ice Under Trump Official
- Josh Brown: Here's How to Buy Bitcoin, But Realize It Could Be One Giant Bubble
- Trump's New Tax Plan Could Cost Citigroup $20 Billion
- Morgan Stanley Fires Former Congressman Harold Ford Jr.
- Al Franken Will Resign Over Sexual Misconduct Allegations - His Full Resignation Speech
- Ex-NFL Player Gets 40 Years for Running $10Mn Fraud
- Bitcoin Blows Past $15K, Adding $2K in Under 12 Hours
- Financial Adviser Settles Charges for Defrauding Private Equity Fund Investors
- New Cross Market Equity Supervision Report Cards - FINRA Phone-In Workshop, WebEx Presentation
- Mueller Just Crossed Trump's Red Line, With Deutsche Bank Subpoena
- Wildfire Rages Near Los Angeles
- Former Company Insider Has $4.1Mn Payday as a Whistleblower
- Audit Firm, Anton & Chia, Conducted Fraudulent Audits of Penny Stock Companies - SEC
- Mueller Subpoenas Deutsche Bank Records on Trump and Family
- Bitcoin Nearly Halfway to $400Bn Value Predicted by Winklevoss Twins 4 Years Ago
- Fidelity Clients Suffer Second Website Glitch in Week
- CBOE Beats CME to Bitcoin Futures Launch with December 10 Start
- McKinsey Senior Exec Thomas Barkin Named New Head of Federal Reserve Bank of Richmond
We seek to provide information, insights and direction that may enable the Financial Community to effectively and efficiently operate in a regulatory risk-free environment by curating content from all over the web.
Stay Informed with the latest fanancialish news.
NEWSLETTERS & ALERTS
Big Bank Share Prices to Sag in 2017
[Photo: CNN Money]
In an interview with NBC, noted Wall Street analyst Dick Bove of Rafferty Capital expressed a bearish attitude about the prospects of bank shares. Looking at hard data, he said, it's clear that the banking industry is doing poorly - to such an extent that it will more than outstrip any benefits that may be derived from the anticipated increase in interest rates.
Bove counters the increasing talk about dergulation, with the statement that the Trump Administration is actually "increasing, increasing, increasing regulation in the banking industry." That includes a new accounting rules that will be in effect as of year's end - and will fully actuate in 2020 - which will have the actual effect of knocking down areas of the industry by 20%.
WHAT IS THAT ACCOUNTING RULE? Last June, the Financial Accounting Standards Board (FASB) issued a new accounting rule that will require U.S. banks to book losses on soured loans much faster and, in turn, force them to set aside more in reserves.
Banks will have to record all losses they project over the lifetime of their loans as soon as the loans are made. That is a change from current practice, under which banks wait to record loan losses until there is evidence a loss is likely to occur. The rule goes into effect in 2020 for publicly traded banks, and in 2021 for privately-held ones.