MyPrivateBanking Blog
Daily Comments on the World of Wealth Management

Archive for September, 2011

JP Morgan’s Dimon in Last Ditch Fight to Save Undeserved Bonus

Monday, September 12th, 2011

Jamie Dimon, the CEO of  JP Morgan Chase considers the Basel III accords as “anti-American”. He suggests that the US should pull out of these international agreements. Basel III requires bank to hold more equity. The biggest banks - like JP Morgan - would be required to hold 9.5% of their risk weighted assets as so-called core-tier-1-capital.

Felix Salmon gives a clear answer to Dimon. Nothing to be added…


French Banks Have a Funding Problem

Thursday, September 1st, 2011

FT Alphaville reports today that French banks have a funding problem. Reason is that French banks have historcally relied heavily on short-term funding (borrowing) to fund their business. How can private banking clients insulate themselves technically from a meltdown of their bank and keep assets safe?  Of course, rising gold prices suggest that many move their assets into (physical) gold. However, it is important to understand that if you keep securities in a separate account they cannot be touched if a bank becomes illiquid.  Experts recommend to private banking clients to  move deposits and cash to money market funds or other (relatively) safe securities if they wish to insulate themselves from possible liquidity problems of their bank. Another measure is to chose a bank carefully and have a hard look at the balance sheet befeore opening an account…