“When bursting the bubble is bank's best option - The Age” plus 4 more

When bursting the bubble is bank's best option - The Age
Darling signals bank bonus rethink - The Guardian
Finance - Business Life Lebanon
Feds close Colonial Bank and 19 North Texas branches - WFAA
Real Estate Transactions - Danbury News-Times

When bursting the bubble is bank's best option - The Age

Posted: 16 Aug 2009 07:08 AM PDT

CENTRAL banks should have done more to prevent the global financial crisis, according to the head of the London School of Economics, and they must do more in the future to prevent a similar catastrophe.

The school's director, Sir Howard Davies, who delivered Melbourne University's 12th David Finch Lecture, called on central banks to intervene in asset price bubbles, especially in house prices, by identifying and deflating them before they get out of hand.

And in an interview with BusinessDay, Sir Howard, the former chairman of Britain's Financial Services Authority and former deputy governor of the Bank of England, said he was ''quite in favour'' of governments around the world legislating the mandate of central banks beyond that of containing inflation, to a wider statutory responsibility for financial stability.

Such a move, he argued, would require central banks to intervene in asset price bubbles, hopefully averting future crises. This would also help stave off potential political pressure if a central bank moved to dampen unsustainable growth.

''When the party is going fine and the central bank decides to close the bar because they think people are getting drunk, that's never popular,'' Sir Howard said. ''If you give them an explicit duty of overseeing financial stability, they can say 'you told us to do this and that's what we're doing.' ''

His comments come amid a global debate about the role of central banks, and whether they should ''lean against the wind'' and ease asset price bubbles before they grow too big and pop, causing economic devastation. Some central bankers, including the head of the US Federal Reserve, Ben Bernanke, have argued it is too difficult for central banks to identify bubbles, and that it is impossible to perform a ''safe popping'' of such a bubble.

''Although neither I nor anyone else knows for sure, my suspicion is that bubbles can normally be arrested only by an increase in interest rates sharp enough to materially slow the whole economy,'' Mr Bernanke said in a speech several years ago, cited by Sir Howard.

But Sir Howard said there were ways of identifying ''potential misalignments''. ''In my view, central banks must pay more attention to asset price bubbles than they have in the recent past,'' Sir Howard said. ''I am not persuaded by the argument that bubbles cannot be identified ex ante [before the event].''

He said that Australia's Reserve Bank, under former governor Ian Macfarlane, was one of very few central banks to have intervened in a housing bubble through interest rate decisions.

Sir Howard said he was open to central banks - in liaison with prudential regulators - using capital requirements imposed on banks as a tool for battling potential bubbles. ''They need to take action on asset prices in monetary policy,'' he said. ''But I do accept there may be circumstances where you need to use prudential policy as well … it is a matter of deciding what is the appropriate weapon to use.''

Sir Howard suggested that the focus on banking regulation since the crisis could be slightly misplaced. ''It is hard to avoid the conclusion that the new focus on regulatory policy is something of a smokescreen to conceal other policy errors, especially in monetary policy,'' he said in his lecture.

He told The Age that regulators were like the ''little boy with his finger in the dyke'' during the crisis. ''If you look back, the real force behind the bubble was very cheap credit,'' he said.

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Darling signals bank bonus rethink - The Guardian

Posted: 16 Aug 2009 07:29 AM PDT

Alistair Darling has signalled he is ready to legislate to curb huge City bonuses amid growing public fury over "rewards for failure".

The Chancellor insisted it was unacceptable for traders to get massive payouts when they were putting economic stability at risk.

His comments, in an interview with The Sunday Times, came amid evidence that the bonus culture was already returning - less than a year after the near-collapse of the international financial system.

It was reported that the investment banking arm of Barclays, BarCap, has tried to poach a team of five commodities traders by offering them a package worth up to £30 million in salary and bonuses.

Barclays has made use of Bank of England funding and Treasury guarantees during the crisis.

Mr Darling said: "If we need to change the law and toughen things up, we can do that.

"I'm quite clear that some of the problems we have today were caused by the fact that some traders were incentivised to take risks which neither they nor their bosses fully understood."

The new rules would cover the whole British banking system rather than just those institutions which have been part-nationalised, such as the Royal Bank of Scotland (RBS) and Lloyds. The announcement follows an outcry about the failure of the Financial Services Authority (FSA) to take a tougher stance on City bonuses.

Under Treasury plans, the FSA will be given powers to control bonuses in all banks, a move which is likely to require legislation.

Mr Darling's line seems to go further than current Conservative policy, under which the FSA would be scrapped and its powers handed to a strengthened Bank of England. Shadow chancellor George Osborne has indicated "action" would be taken to deal with excessive bonuses at all financial institutions, but stopped short of proposing legislation.

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Finance - Business Life Lebanon

Posted: 16 Aug 2009 05:20 AM PDT

Oman Arab Bank has an active presence in the Sultanate of Oman ever since it was established on 1st October, 1984 as a joint closed stock company. The bank started operations after acquiring the branches of Arab Bank Limited, Jordan that existed in the Sultanate since 1973. In 1992, Oman Arab Bank expanded its operations by acquiring all branches of Omani European Bank and then merged together in 1994. Oman Arab Bank's principal shareholders are Oman International Development and Investment Company (OMINVEST) with 51% share and Arab Bank Limited with a 49% share holding.

The bank also actively contributes to the major development in industrial and infrastructure projects in the Sultanate of Oman and is an active provider of both retail and investment banking products and services.

Financing Projects and Providing Services

The bank has kept its position as a leader in financing projects in various sectors such as infrastructure, industrial and petrochemical. It has supported many companies such as Oman Shipping Company's vessel financing, and the expansion of Oman Cement Company.

It has also provided banking services for several companies in different projects such as Wastewater Treatment Station Project in Seeb, Duqum Port project (phase 2) and Dry Dock, Power and Water Desalination Station in Barka II, in additional to various infrastructure, industrial, and services projects.

Main Financial Indicators

The bank continue to achieved positive results such as a 26% growth in profits (RO 24.6 million as compared to RO 19.4 million), 39% growth in net loans and advances (RO 539 million compared to RO 389 million), and 15% growth in customer deposits (RO 611 million as compared to RO 533 million).

Total Shareholders' Funds as at 31st December, 2008 was RO 110 million as compared to RO 88 million in the previous year. Return on Total Assets was 3.47%. As a result of the prudent lending policy, the non-performing loans reduced to 1.6% out of the total loans and the provision coverage increased to 169% of the non-performing loans.

Branches and Offices

Throughout the current year and last year, the bank has opened new branches in Shatti Al Qurum, Al Tarif in Sohar, Bowshar, Mabelah, Sumail, Nizwa Hospital and Quriyat. The bank has a total of 53 branches and offices across the Sultanate.

Investment Banking

Given the financial crisis which resulted in the bankruptcy of investment companies and banks globally, our Investment Management Group is still in the forefront in terms of developing investment products and services.

The investment group did not show negative effects, but instead of that it gained a higher share in the local trade and achieved 4th position in Muscat Securities Market in transactions by end of April 2009.

At the beginning of 2009, it has been agreed to establish the Investment stabilization Fund with a capital of RO 150 million where the government contributed 60%, while 40% was distributed on pension funds and the private sector represented by banks, investment companies, and securities companies. Our investment group (the investment banking arm of Oman Arab Bank) has been assigned as an investment manager to manage the fund's assets in partnership with another local bank.

During the first half of this year, the bank will announce establishing Oman Al-Arabi Fund that will be completely managed by us. The fund will be investing 75% in MSM, and 25% in the GCC markets.

Marketing and Developing Banking Services

The bank is always striving to provide the best banking services and products for its clients to meet their financial needs. Some of the new initiatives launched by the bank are Markabati Auto Loan, Al Himaya Car Insurance, and Al Mustaqbal Education Loan. In addition, to the latest services launched by the bank such as Tawasul SMS Banking and Internet Banking.

Omanisation

The bank's management gives prime importance to Omanisation as it focuses on developing the human resources.

This has led the bank to be the first bank to achieve the required Omanisation percentage of 90% in early 1996. The Omanisation percentage in the bank is now 92.19%.

E-Banking Services

Oman Arab Bank has worked relentlessly to cope with the rapid development in the e-services field.

The bank has also become a leader in providing high quality services through e-channels that enable the client to get the services without time or place constraints.

One can clearly observe the rapid progress of Oman Arab Bank in the e-services field in public and private projects across Oman. It demonstrates the bank's commitment in developing its relationship with different sectors in the e-services field and e-payment.

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Feds close Colonial Bank and 19 North Texas branches - WFAA

Posted: 16 Aug 2009 12:27 AM PDT

WASHINGTON — Real estate lender Colonial BancGroup Inc. has been shut down by federal officials in the biggest U.S. bank failure this year.

The Federal Deposit Insurance Corp., which was appointed receiver of the Montgomery, Ala.-based Colonial and its about $25 billion in assets, said the failed bank's 19 branches in North Texas and 327 other offices in Texas, Alabama, Florida, Georgia and Nevada reopened at the normal times starting on Saturday as offices of Winston-Salem, N.C.-based BB&T.

The FDIC has approved the sale of Colonial's $20 billion in deposits and about $22 billion of its assets to BB&T Corp.

Regulators also closed four other banks: Community Bank of Arizona, based in Phoenix; Union Bank, based in Gilbert, Ariz.; Community Bank of Nevada, based in Las Vegas; and Dwelling House Savings and Loan Association, located in Pittsburgh. The closures boosted to 77 the number of federally insured banks that have failed in 2009.

The agency established a temporary government bank for Community Bank of Nevada to give depositors about 30 days to open accounts at other financial institutions. The failed bank had assets of $1.52 billion and deposits of $1.38 billion as of June 30.

Community Bank of Arizona had assets of $158.5 million and deposits of $143.8 million as of June 30, while Union Bank had assets of $124 million and deposits of $112 million as of June 12. The FDIC said that MidFirst Bank, based in Oklahoma City, has agreed to assume all the deposits and $125.5 million of the assets of Community Bank of Arizona, as well as about $24 million of the deposits and $11 million of the assets of Union Bank. The FDIC will retain the rest for eventual sale.

Dwelling House had $13.4 million in assets and $13.8 million in deposits as of March 31. PNC Bank, part of Pittsburgh-based PNC Financial Services Group Inc., has agreed to assume all of Dwelling House's deposits and about $3 million of its assets; the FDIC will retain the rest for eventual sale.

The failure of Colonial is expected to cost the deposit insurance fund an estimated $2.8 billion and that of Community Bank of Nevada, $781.5 million; Union Bank, $61 million; Community Bank of Arizona, $25.5 million; and Dwelling House, $6.8 million.

The 77 bank failures nationwide this year compare with 25 last year and three in 2007.

As the economy has soured — with unemployment rising, home prices tumbling and loan defaults soaring — bank failures have cascaded and sapped billions out of the deposit insurance fund. It now stands at its lowest level since 1993, $13 billion as of the first quarter.

While losses on home mortgages may be leveling off, delinquencies on commercial real estate loans remain a hot spot of potential trouble, FDIC officials say. If the recession deepens, defaults on the high-risk loans could spike. Many regional banks hold large numbers of them.

The number of banks on the FDIC's list of problem institutions leaped to 305 in the first quarter — the highest number since 1994 during the savings and loan crisis — from 252 in the fourth quarter. The FDIC expects U.S. bank failures to cost the insurance fund around $70 billion through 2013.

The May closing of struggling Florida thrift BankUnited FSB is expected to cost the insurance fund $4.9 billion, the second-largest hit since the financial crisis began. The costliest was the July 2008 seizure of big California lender IndyMac Bank, on which the insurance fund is estimated to have lost $10.7 billion.

The largest U.S. bank failure ever also came last year: Seattle-based thrift Washington Mutual Inc. fell in September, with about $307 billion in assets. It was acquired by JPMorgan Chase & Co. for $1.9 billion in a deal brokered by the FDIC.

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Real Estate Transactions - Danbury News-Times

Posted: 16 Aug 2009 07:15 AM PDT

DARIEN

(Transactions recorded through Feb. 13.)

Andrew B. and Susan N. Mccormick sold to Daniel and Mary Mcloughlin, property at 19 Outlook Drive for $1,100,000.

GREENWICH

(Transactions recorded through Feb. 13.)

Countrywide Home Loans sold to Anna Donovan, property at 46 Bowman Drive for $860,000.

Patrick J. Conlon sold to Patrick J. Conlon, property at 525 E. Putnam Ave. for $1,600,000.

John J. Burkhardt sold to Deutsche Bank Natl T Co, property at 6 Gerald Court for $1.

Laura Woznitski sold to Matthew J. and Kimberly K. Maciejewski, property at 271-273 Greenwich Ave. for $652,500.

Pemborwick Apartments LLC sold to Jacqueline and Thomas Beck, property at 2 Homestead Lane Unit 309 for $365,000.

Joseph G. Stroll sold to Choice America Landin LLC, property at 10 Irvine Road for $554,060.

Christopher R. Newnham sold to Mary Moore, property at 4 Lafayette Court Unit 2b for $450,000.

Melinda Pecora sold to Cheryl Kozlowski, property at 2 Norias Road for $250,000.

Melinda Pecora sold to Jonathan Packard and Cheryl Kozlowski, property at 2 Norias Road for $3,750,000.

Robert B. and Andrea A. Weiss sold to Washington Mutual Bk, property at 407 Round Hill Road for $3,905,311.

Michael Claroni sold to 264 West Putnam Ave LLC, property at 264 W. Putnam Ave. for $1,775,000.

William Bruxton Mckee sold to Edward R. Henrey and Melissa L. Piechucki, property at 4 Waterfall Lane for

$900,000.

NEW CANAAN

No transactions in this town.

NORWALK

(Transactions recorded through Feb. 11.)

12 Caesar Street LLC sold to Halmut S. and Marie C. Osorio, property at 12 Caesar St. for $729,000.

Eugene M. Laska sold to Jeff Laska, property at 61 Cranbury Road for $600,000.

Mark L. Pettorini sold to Mark and Susan Pettorini, property at 18 Knobhill Road for $379,000.

Philip G. Dacunto and Edward S. Marini sold to Revisson and Evelina Bonfim, property at 14 Newtown Terrace for $555,000.

Jonathan Poly sold to Camille A. Maitlend, property at 11 Norden Place Unit 7 for $120,343.

Joyce L. Roessler sold to Bonnie K. Taylor, property at 198 Sunrise Hill Road Unit 198 for $385,000.

Ruel Richards sold to Lasalle Bank NA, property at 7 Trolley Place for $1.

Walter Oconnell sold to Countrywide Home Loans, property at 149 Water St. Unit 27 for $192,259.

STAMFORD

(Transactions recorded through Feb. 27.)

Lynette Rueda sold to Deutsche Bank Natl T Co, property at 75 Boxwood Drive for $530,970.

Lorna Into sold to Peter V. Mazzzari, property at 300 Broad St. Unit 802 for $330,000.

Tim and Timothy Craig sold to Kim A. Kuleo, property at 37 Deleo Drive for $400,000.

Antonio Gercia and Henry Diaz sold to HSBC Bank USA, property at 986 E. Main St. for $1.

Paul Mignani and Silvia Mendez sold to Aurora Loan Services LLC, property at 1096 E. Main St. Unit 4 for $180,400.

Jeffrey Nevins sold to John A. Mastroianni, property at 188 Franklin St. Unit 601 for $260,000.

Sandra Siegel sold to Daniel T. Skoumbros and Katherine E. Daley, property at 104 Idlewood Drive for $475,000.

Victor Gonzalez sold to West Hl Circle Assoc LLC, property at 35 Irving Ave. for $678,000.

Anthony V. Plomitallo and Barbara Robertson sold to Yoel E. Phraim, property at 10 Kensington Road for $515,185.

Ismoel and Rocio Soto sold to Wachovia Bank NA, property at 17 Lillian St. for $300,000.

Pashka Dodaj sold to US Bank NA, property at 100 Myrtle Ave. Unit 2 for $168,021.

Jon P. Calyarris and Chase Home Finance LLC sold to Chase Home Finance LLC, property at 40 Orchard St. for $351,167.

Emmanuel Villanueva and US Bank NA sold to US Bank NA, property at 62 Quintard Terrace for $512,353.

Mirko Ciurlizza and Maria E. Zavala sold to US Bank NA, property at 130 Shadow Ridge Road for $371,520.

John Vukel and US Bank NA sold to US Bank NA, property at 38 Soundview Ave. for $550,000.

Tsou H. Yang and Stella H. Yeh sold to Thomas J. Loughran, property at 1611 Washington Blvd. Unit 31 for $340,000.

-- Compiled from real estate records in the town and city clerks offices by Commercial Record Publishing in South Windsor. This information is taken directly from the deeds, which may not always include a complete address.