Italian banks pawning $976m of gold with Scotiabank?

In January FT Alphaville’s Izabella noted that “Negative rates imply that banks are pawning gold in exchange for dollars. A move which happens to depress gold prices. But it’s always been difficult to establish who was pawning what and when, and how prevalent the practice really was.”

She quoted Goldman Sachs who thought “this . . . → Read More: Italian banks pawning $976m of gold with Scotiabank?

Independence of Regulators and Independence of the Central Bank

I have a column When should a government agency have autonomy?, in the Financial Express today. This is a hot subject in India today, in the aftermath of the ULIPs ordinance. While on this subject, also see:

An editorial in Mint. Tamal Bandyopadhyay in Mint. Gautam Chikermane in the Hindustan Times. Jayanth Varma in . . . → Read More: Independence of Regulators and Independence of the Central Bank

War, Gold and American Express

Surfing around I found this excerpt from the history of American Express interesting:

During the summer of 1914, approximately 150,000 American tourists were stranded when war engulfed Europe, many without access to funds. Banks had ceased to pay against foreign letters of credit or any other form of foreign paper. Panic-stricken travelers lined up . . . → Read More: War, Gold and American Express

83% Beat The Street; Revenues Also Top Forecasts

All last week we pointed to the strong earnings numbers released by U.S. corporations. The overall results are in and point to a measure that confirms our sector by sector reports.

Expected growth in first-quarter earnings for companies in the S&P 500 index has now jumped to 50% from 39% in the prior week . . . → Read More: 83% Beat The Street; Revenues Also Top Forecasts

Banking, Coffee, Movies, and Chips: Another Spate of Positive Earnings

Q1 2010 earnings season is in full swing and businesses continue their flurry of better than expected reports to start the new year.

Bank sector earnings continued strong with Morgan Stanley reporting strong profits.  The New York-based  investment firm posted a first-quarter profit of $1.78 billion compared with a loss of $177 million a . . . → Read More: Banking, Coffee, Movies, and Chips: Another Spate of Positive Earnings

Delinquencies Down; JP Morgan 1Q Profits Rise; Hiring to Follow

What a difference a year can make. The improving economy in 2010 now has J.P. Morgan Chase & Co.’s (JPM) growing earnings again, with loan delinquencies declining, and steadily decreasing allocations for bad loans.

On Wednesday the second-largest bank in the U.S. said that its net income rose by 55% from a year earlier . . . → Read More: Delinquencies Down; JP Morgan 1Q Profits Rise; Hiring to Follow

Surprise, Surprise, Surprise: Roubini, Jobs, Banks, and More

The immortal words of Gomer Pyle rang out in financial headline after headline this week, “Surprise, Surprise, Surprise!”

First the banking sector became awash in surprisingly good news. Four of the US top banks smashed all earnings estimates and posted collective net profits of $13.6B for the second quarter.

Bank of America (BAC) posted . . . → Read More: Surprise, Surprise, Surprise: Roubini, Jobs, Banks, and More

TARP Warrants: A Boon for Taxpayers?

On Friday it was announced that State Street Corp. became the first of 10 large banks to repurchase warrants held by the US Treasury. The warrants were put in place to assure that taxpayers are rewarded for their collective TARP loan to banks as the finance sector recovers.

The transaction occurred on Wednesday and . . . → Read More: TARP Warrants: A Boon for Taxpayers?

Key Ratios Between Gold Silver Oil And Stocks Are Moving

Serious investors should watch specific key ratios; which I provide freely to any RunToGold reader.  The major asset classes include gold, silver, oil and stocks.  At all times and in all circumstances gold and silver remain money.  Oil is the worlds primary energy source.  Among other purposes, stocks should represent the wealth generating capability of . . . → Read More: Key Ratios Between Gold Silver Oil And Stocks Are Moving

Bankrupt Banks

BANKS HAVE MORE THAN ENOUGH CAPITAL

At a congressional oversight panel on the government’s financial rescue program the tax evading Treasury Secretary Timothy Geithner testified, “Currently, the vast majority of banks have more capital than they need to be considered well capitalized by their regulators.”  With the recent fair-value lying accounting changes banks have reported surging . . . → Read More: Bankrupt Banks