1: CAST SERVICE HIGHLIGHT

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2: AMERICAN BANKER – At Regionals, Heirs Apparent Missing

American Banker -- Wednesday, November 11, 2009

By Paul Davis

Bank of America's and Citigroup's succession messes have resembled reality shows this year, but many regional banking companies are ripe for minidramas, too, with chief executives poised to turn over en masse.

Several midsize banks have graying CEOs who survived last year's financial crisis and the continuing recession. Their reward: more government oversight, compensation limits and a slow economic recovery in which growth opportunities may be harder to come by.

For all of those reasons, many observers believe the industry will see an unprecedented number of battle-weary CEOs retire during the next three years. Many of those banks have not designated successors to the CEO, a situation some said could foreshadow rough transitions to new management or serve as a catalyst for consolidation.

"I think bankers are tired," said Anthony Polini, an analyst at Raymond James & Associates. "I don't necessarily think they are distraught or crippled by the financial crisis, but the regulatory environment is increasingly more burdensome, and it may be difficult to actually make a decent salary."

The median age among CEOs at 20 major regional banks is 60, and their median tenure exceeds seven years, according to American Banker research in company disclosures.

The silence on succession plans is difficult to interpret. It is unclear whether the companies are unprepared or keeping their intentions secret for now.

Robert Voth, a managing director at the executive search firm CTPartners, said that boards are acutely aware -- or should be -- that they must act before scrutiny shifts from big banks to regional players. "Succession planning is no longer an option for senior management and boards," he said, declining to discuss individual banking companies. "It is a requirement, and it could potentially have serious repercussions for the regional banks that do not have clear succession plans."

Few regional banking companies have explicitly said who would succeed the current CEO.

Regions Financial Corp. said last month that O.B. Grayson Hall had succeeded CEO C. Dowd Ritter as president, a strong signal that Hall is in line eventually to replace Ritter, who at 62 is three years away from the Birmingham, Ala., company's mandatory retirement age. SunTrust Banks Inc. in Atlanta took a similar step last year, tapping William Rogers to succeed CEO James Wells as president.

Observers said the succession story is murkier at a number of midsize banks, including KeyCorp, where Chairman and CEO Henry Meyer will turn 60 next month, and Comerica Inc., where CEO Ralph Babb is already 60. Synovus Financial Corp. announced the departure this year of President Frederick Green 3rd, who had been widely viewed as the top candidate to succeed CEO Richard Anthony, 62.

A Comerica spokesman said only that the company has "a prudent plan in place." A Key spokesman declined to comment, and a Synovus spokesman did not respond to questions.

Events of the last 18 months have had a meaningful influence on succession planning. On one hand, more aspiring CEOs have garnered invaluable experience by enduring the most difficult crisis in recent memory. However, the near meltdown that took place last year also made it obvious just how complex many banking companies have become, raising the bar for qualifications.

David Ritter, an analyst at Argus Research Corp., said finding suitable successors to retiring CEOs, whether internally or externally, may prove difficult. "I think boards are discovering that it is very difficult to find someone who has the right skills to even begin to manage these complex organizations," he said.

There are no legal requirements to disclose succession plans, but regulators are debating whether to institute some. Christopher Marinac, an analyst at FIG Partners LLC, said companies should be more open about succession planning though it would provide critics with more grist, he said.

An executive recruiter agreed, saying that the drama playing out at B of A, where numerous CEO candidates have declined to be interviewed for Ken Lewis' job, is not atypical. The problem at B of A has been the publicity given to the search, he said, and similar spectacles could occur at companies whose boards "fail to get ahead of the issue."

Raymond James' Polini said that boards, many of which have also aged considerably in the past 18 months, that are unable to identify a clear-cut CEO successor may consider selling, even if the CEO is not pushing retirement age. "In many cases, even if you have a young CEO, …you have an average age of the board that is usually north of 70," Polini said. With that in mind, "we are probably 12 to 15 months away from a healthy round of acquisitions."

Rod Taylor, the senior partner at the Taylor & Co. executive search firm, said factors exist that may keep some CEOs in place. For instance, some will extend their tenures in an effort to rebuild some of the wealth they lost in the past two years.

3: AMERICAN BANKER – B of A's Moves Will Pay Off, Lewis Says

American Banker -- Wednesday, November 11, 2009

By Paul Davis

Bank of America Corp. Chief Executive Kenneth D. Lewis on Tuesday gave what may be his last on-the-job defense of the company he helped build.

Lewis, who is set to retire at yearend, used his opening remarks at a conference hosted by B of A to again tout recent acquisitions such as Countrywide Financial Corp. and Merrill Lynch & Co. "I am confident history will show our actions in operating and building Bank of America positioned us for future success," he said.

Lewis abruptly announced his retirement a month ago, setting off a succession debate within the $2.39 trillion-asset company.

He said that when he became the CEO in 2001, "we had before us the business opportunity of a lifetime. … Today my feeling is that we are standing on the verge of accomplishing these goals."

4: AMERICAN BANKER – Deposits May Become a New Liability

American Banker -- Monday, November 9, 2009

By Katie Kuehner-Hebert

Related Graphic

Bankers are grasping to find a new conventional wisdom on deposits.

The quest for core deposits was supposed to be king in the new back-to-basics, retail-driven business model. But some advisers are now recommending the opposite: Slow down deposit-gathering, given that banks are making fewer loans.

Many banks, still winnowing their loan portfolios after the financial crisis, are having to invest their excess deposits in securities or bonds until lending rebounds. The problem is, some of these instruments are not yielding that much -- sometimes even less than the banks are paying on deposits -- or could come back to bite the bottom line if interest rates begin to rise too quickly.

So it just might be worth it to curtail deposit promotions.

"Right now, every bank is making a decision about how much funding they really need," said Aaron Fine, a partner in the retail and business banking practice at Oliver Wyman Group, a New York management consulting unit of Marsh & McLennan Cos. "If you don't have loans to fund, then you're going to have to park your deposits into securities, which are paying less than you are paying for your deposits."

Granted, deposits grew in recent years without much effort from banks as investors fled the stock market. But banks this year have redoubled their deposit-gathering efforts to bolster consumer banking and improve liquidity.

A fair number of banks with loan-to-core-deposit ratios well above 100% have offered special promotions on money market accounts to gather sufficient deposits to reduce that ratio to 90%, said Andrew Frisbie, a vice president at First Manhattan Consulting Group.

Banks that need to reduce their ratios should think carefully about how aggressive to be in acquiring deposits, Frisbie said. Their front-line employees typically offer the higher-yielding products to practically everyone, he said, so that, in meeting the company's ratio goal, they raise the cost of most of the deposit portfolio.

Striking the right balance is difficult. Even Frisbie cautioned that bankers risk upsetting customers who could provide long-standing relationships.

"Banks want to continue acquiring core transactional relationships that bring along with it money markets and" certificates of deposit "because, in the long run, that's where the majority of the retail bank's earnings power comes from," Frisbie said.

Jeff Davis, an analyst at First Horizon National Corp.'s FTN Equity Capital Markets Corp., said that banks flush with deposits but lacking loan demand may be tempted to invest in generic bonds that carry very low coupons. But such banks could face massive losses if interest rates rise too rapidly.

That said, Davis predicted that most banks would still rather boost core deposits and face interest rate risk.

"So many banks had a scare from a liquidity standpoint last fall that they are going to welcome deposits with open arms," he said, "as long as they have the capacity to pay off wholesale borrowings and replace them with cheaper deposits."

Banks are steadily reducing their loan-to-core-deposit ratios, Davis said. During the boom years before the crisis, many banks had ratios above 100%. But now they are aiming for 80% to 90% loan-to-deposit ratios, he said.

Tom Broughton, the president and chief executive of the $1.6 billion-asset ServisFirst Bank in Birmingham, Ala., said that his institution is currently generating a negative spread on its deposits because loan demand is "tepid." However, the bank's board has decided it is worth the pain to attract more core deposits, most of which are in money market accounts.

"We're trying to take a long-term view, and so we want to build market share, even though we have a negative spread," Broughton said. "At one point, loan demand will get better, and we'll have those deposits to fund loans."

There may be ways to minimize the risks.

Robert Patten, an analyst at Regions Financial Corp.'s Morgan Keegan & Co., said that banks can reduce interest rate risk by investing their deposits in very short-term securities.

FTN's Davis said banks can offset lower returns in securities by letting higher-rate certificates of deposit and borrowings run off the balance sheet.

5: AMERICAN BANKER - Dodd Goes for Broke with Tough Reform Bill

American Banker -- Wednesday, November 11, 2009

By Stacy Kaper

WASHINGTON — When Senate Banking Committee Chairman Chris Dodd promised a "bold" vision of regulatory reform early this year, he clearly wasn't kidding.

A draft version of his bill introduced on Tuesday was so far-reaching it would pick a fight with virtually every entrenched interest involved in the debate, including community banks, large financial institutions, the Obama administration, House Democrats, the Federal Deposit Insurance Corp. and the Federal Reserve Board.

The Connecticut Democrat acknowledged at a press conference announcing the bill that he would undoubtedly have to compromise as the process moved forward, but said he wanted to start with the strongest package possible.

"I could have tried to draft something that was already a compromise of ideas in a sense, but I think you make a huge mistake by doing that," Dodd said. "You're given very few moments in history to make this kind of a difference. We're trying to do that and I think this is important."

Many observers said Dodd's strategy was smart, and though it could take longer to see a final product as a result of starting with so much work still to do, Dodd was likely to get a stronger bill out of the Senate than if he had compromised early on.

For starters, his strong stance is likely to force participants involved in the debate to pick their battles carefully. The draft appears calculated to find out just how far he can push his colleagues on a variety of issues, from preemption to a consolidated regulator and the creation of a consumer protection agency.

Dodd also appears to be already trying to build support for the bill by including some of his colleagues' pet issues as part of the reform package. For example, Sen. Jack Reed, who has pushed for tougher regulation of derivatives, said Tuesday that he was pleased with the legislation, which included many of his ideas.

Similarly, Sen. Mark Warner, who has introduced a bill that would give the government greater resolution powers of systemically important firms, saw some of that legislation ending up as part of Dodd's package.

Still, though Warner and other Democrats went out of their way to say they are standing behind Dodd, the Virginia Democrat told reporters there are several aspects of the bill he is hoping to change. He hinted that while he does not oppose the creation of a consumer protection agency, enforcement of new rules should still be left to bank supervisors.

"I still have some concerns," he said. "Clearly, there needs to be enhanced consumer protection … [but] who's going to set those rules are still questions I have. It doesn't necessarily mean that who is going to set the rules enforces the rules, so there are different ways to get to that."

One thing is clear: Dodd will need all the support he can muster. It took only a few minutes for industry groups to start voicing objections to the bill, and it was clear regulators would also be pushing back.

By far the most controversial move is a provision that would strip the Fed and FDIC of their bank supervisory responsibilities and house all bank regulation in a new Financial Institutions Regulatory Administration (which would also include a merged Office of the Comptroller of the Currency and Office of Thrift Supervision).

Although Dodd would require the new agency to have a division devoted to community banks, that did not go far enough for community bank representatives. They are concerned a single regulator would focus first on the needs of the largest institutions, and effectively destroy the dual banking system.

"We are adamantly opposed to a single regulator," said Camden Fine, president of the Indepenent Community Bankers of America. "The 15 or 20 largest banks will soon dominate that regulatory agency. … There will be no counter voice."

The bill would also provide a break to some smaller banks on exam fees. The new agency would be funded by assessments on all institutions and holding companies with more than $10 billion of assets. State-chartered banks and bank holding companies below that level would be exempted.

But the Fed and FDIC are both expected to fight hard to keep their bank supervisory responsibilities. Fed Chairman Ben Bernanke has made it clear that a loss of bank holding company supervision would cripple its ability to conduct monetary policy. FDIC Chairman Sheila Bair has also opposed a single regulator, warning that the largest institutions would effectively capture it.

Dodd acknowledged Tuesday that it would be a tough fight, but said a single regulator would improve the system. "This is not a time for timidity in this area," he said. "This is a time for some sweeping and bold changes. It's been a long time coming. We're in the 21st century. We're basically looking at a regulatory structure that was designed in the early part of the 20th century."

Dodd's bill goes much further than the House bill, which would just combine the OCC and OTS.

Whether the Obama administration will help on this front remains unclear. Treasury officials considered and rejected proposing the creation of a single bank regulator, concluding that pushing for one was likely to be politically unrealistic. "The biggest thing that jumps out is the consolidation of the bank regulators from four down to one. There doesn't seem to be that much support for it politically," said Douglas Elliott, a fellow with the Brookings Institution. "The administration has not proposed it. I don't know that they have a big problem with it, but they had certainly concluded it was not worth the political pain that it would require. This wasn't a fight that the administration wanted to pick."

The administration is likely to be more upset with how Dodd handles systemic risk. Instead of giving it to the Fed, as Obama has pushed for, Dodd would create a new agency controlled by a nine-member board that includes the financial regulators and an independent chairman appointed by the president.

Treasury Secretary Tim Geithner has warned that a regulatory council would lack proper accountability.

Under the Dodd bill, the new agency would have the power to limit the growth of or break up complex banks. It would be tasked with setting new rules for systemic firms, including requiring the use of contingent capital, a new debt instrument that converts to equity in the event of a crisis. Larger firms would also face tougher capital and leverage standards.

Yet another fight would center on the proposed consumer protection agency and preemption. Under the Dodd bill, the new agency would set and enforce federal standards to protect consumers. States would have the power to write and enforce their own standards, provided they were tougher than the federal rules.

The Republicans, and some moderate Democrats, oppose the CFPA.

"CFPA is going to be where the central battle is," said Jaret Seiberg, an analyst with Washington Research Group, a division of Concept Capital. "This is the starting point. I don't think anyone believes this is the bill that is going to get enacted. "

The bill would also take other steps. It would eliminate the thrift charter, which goes beyond what the House has pushed for. It would also change how deposit insurance premiums are calculated to include assets, a move that would put more of the burden on the larger institutions who do not rely on deposits for their funding.

Dodd's bill also takes a sharply different approach to restricting commercial companies that want to own banks. The House version would block additional commercial firms from owning industrial loan companies and other limited-purpose institutions, and subject existing nonfinancial owners to tougher regulation under the Federal Reserve Board.

But Dodd's version would establish a three-month moratorium on new bids by commercial firms and require a Government Accountability Office report 18 months after the bill's passage to determine if tougher restrictions on existing owners are needed.

Further, the bill would revamp how the Federal Reserve banks must choose their presidents.

6: AMERICAN BANKER – Dodd's Power of Persuasion

US Banker -- November 2009

By Stacy Kaper and Cheyenne Hopkins

Senator Chris Dodd's concerted push to create a single banking regulator is driving a growing debate over whether consolidated supervision would threaten the dual banking system.

On one side are community bankers and Federal Deposit Insurance Corp. chairman Sheila Bair, who argue that a single regulator would focus all its attention on the largest institutions, leading to policies that would disadvantage smaller, state-chartered banks.

But proponents of a single regulator say those concerns are overblown and argue that protections can be built into the system to ensure community banks are not shortchanged.

"All the new consolidated supervisor is doing is assuming the federal component of the existing supervisory framework," says Eugene Ludwig, the chief executive at Promontory Financial Group and a former comptroller of the currency. "I can envision a consolidated supervisor reducing burdens in respect of community bank regulation and supervision and actually enhancing the community bank franchise."

Dodd, the chairman of the Senate Banking Committee, has championed the idea for months, but only recently has he signaled his intention to pursue a bill that would consolidate regulators.

Under the Obama administration's plan for regulatory reform, the Office of the Comptroller of the Currency and the Office of Thrift Supervision would be merged into a single national bank supervisor, while Federal Deposit Insurance Corp. and Federal Reserve Board oversight of state-chartered banks would remain intact.

But Dodd, a Connecticut Democrat, wants to strip the Fed and FDIC of their state supervisory responsibilities and hand them to a new, more powerful Office of the Comptroller of the Currency. (The Office of Thrift Supervision would also be combined into the new agency.)

"It's clear that we must eliminate the overlaps, redundancies and additional red tape created by the current alphabet soup of regulators," Dodd said at a hearing in September. "We don't need a super regulator with many missions, but a single federal bank regulator whose sole focus is the safe and sound operation of the nation's banks. A single operator would ensure accountability and end the frustrating pass-the-buck excuses we've been faced with."

Some other members of the Senate panel, including Sen. Mark Warner, support Dodd's idea. Warner, a Virginia Democrat, told U.S. Banker's sister publication, American Banker, that the current system encourages banks to "shop for the weakest regulator."

Ludwig agreed that having too many bank regulators leads to regulatory arbitrage, while creating unnecessary regulatory burdens.

"The worst feature of our current system is that for all the different regulators, the backup supervision and the volumes of regulation has not produced superior safety and soundness results," he says. "As the current crisis and the past several debacles have shown, our current expensive and burdensome system does not work."

Still, even if Dodd's plan gets out of the Senate - a big if - it faces long odds in the House. House Financial Services Committee Chairman Barney Frank, a Massachusetts Democrat, has said he does not think there is the political will to create a single prudential regulator. Community bankers are a key constituency after all, and their belief is that a single regulator would give preferential treatment to the largest banks and put the dual banking system at risk.

A recent survey of banking executives conducted by American Banker shows that large and small banks are sharply divided on the idea of consolidating regulators.

More than 71 percent of bankers from large banks said regulatory agencies should be consolidated as part of the regulatory reform effort that is under way in Washington. But executives from smaller banks, who made up a larger proportion of the 206 respondents, were less enthusiastic. Only 39 percent supported consolidation.

"The reason the big banks want the regulatory agencies consolidated is because that plays into their hands," says Camden Fine, the president of the Independent Community Bankers of America. "That allows them to have much more influence over whatever single regulator exists. When you have less than 10 banks that control over 50 percent of the financial assets of the United States, who do you think the single regulator would be captive to?"

Nicholas J. Ketcha Jr., a managing director at the bank consulting firm FinPro and a former director of supervision for the FDIC agreed that consolidation would help the biggest banks - nationally chartered institutions with bank holding companies - by allowing them to deal with fewer examiners.

"The smaller banks still prefer the choice," he says. "There are a lot of them that like to be a state charter, because they feel they have a more local ear with the state regulators."

Community banks have a powerful ally in Bair, who has openly opposed the idea of consolidating regulators. "A single regulator's resources and attention would be focused on the largest banks," she wrote in an op-ed published in the New York Times in September.

Dodd, for his part, has promised that his proposal would not threaten the dual banking system, nor would it give large banks special treatment.

"Any plan to consolidate bank regulators would have to ensure community banks are treated appropriately," he said at the September hearing. "Community banks did not cause this crisis and they should not have to bear the cost or burden of increased regulation necessitated by others."

Dodd has suggested creating a division within the new federal agency devoted exclusively to state banks, noting that the OCC already has separate divisions for large, midsize and small banks.

Still, that's unlikely to appease community bankers. For all the arguments against a single regulator, their opposition is driven mostly by a resistance to change, according to Doug Elliott, an economics studies fellow at the Brookings Institution.

"There is always a strong bias in keeping the regulator you have," he says. "You know how they operate and usually you've developed friendships and alliances, you are more comfortable and know how to get your voice heard."

Emily Flitter contributed to this story. Kaper, Hopkins and Flitter are public policy reporters at American Banker.

7: AMERICAN BANKER – Let's Talk: Banks, Clients Seek Uniform BAI Code

US Banker -- November 2009

By Glen Fest

1,122099999,123456789,040621,0200,1,55,,2/.

Even if you don't understand this, your back-office cash management software should. It's a mainframe-based transactional record (a sample version, of course) that ferries remittance and other types of data - debit/credit amounts, item counts, funds type, account numbers - between banks and corporate treasury operations.

Based on a decades-old Banking Administration Institute (BAI) messaging format, they're good for most cash management reporting and reconcilement needs for handling services like lockbox and positive-pay.

But there is an Achilles heel or two with them. These code sets, which haven't been maintained by BAI in over a decade, have been so widely adapted and customized by individual banks that they've essentially become proprietary from bank to bank. The differences in BAI code sets mean difficulty, and extra costs, in adding or switching corporate banking relationships without a painstaking internal project to change reams of incompatible data fields and definitions. And without consistent standards, U.S. banks can't offer clients the transparency in "real-time," live views of cash positions between receivables, payables and treasury that many feel they need to maximize holdings and be aware of liquidity risk.

Such problems have spurred a new effort to create a new uniform model for cash management reporting. Major U.S. banks, cash management vendors and corporations have formally launched plans with a financial industry technical standards body to create a new reporting orthodoxy under an American National Standards Institute (ANSI) standard that will mean compatible code sets across banks and industries, and keep the U.S. in step with international trends toward homogenous messaging formats in payments and transaction data.

"Everybody has a very customized version of BAI message that used to be a standard," said Rene Schuurman, Citigroup's global products manager for connectivity services, and one of the leaders on the project. "We want to go back to that point, go back to a true standard to have a uniform approach, so that we can simplify and streamline our client delivery process, hopefully right away out of the box."

That off-the-shelf component to cash management reporting would do more than ease the challenge for mega-banks in retrofitting and maintaining hundreds, if not thousands, of code variations. Jeanne Capachin, vice president for global banking research at Financial Insights, points out that regional institutions, too, would gain a huge boost toward competing for the business of national and multi-national corporates. "If we go to just one or a couple of standards," said Capachin, "then it's much easier for a regional bank to be able to support customers outside of their main national footprint than it is now."

JPMorgan Chase & Co., U.S. Bancorp, Bank of America, Citigroup, BNY Mellon, and Royal Bank of Scotland each joined up with the Accredited Standards Committee X9 in Annapolis, Md., to begin hashing out some early consensus on which BAI codes to keep, delete and modify into the new standard. NACHA and The Clearing House Payments Co. are also involved, as are cash management services vendors like S1 Corp. "Everybody has money they've invested in legacy systems, so therefore their willingness to change is going to have to have a real payback for them," said Jim Wells, a senior business manager for banking initiatives with Swift who's working with the banks and X9.

Ultimately the plan is also to merge the resulting BAI models with the existing global financial messaging standard (known as ISO 20022). "The holy grail is that no matter what region of the world you're in, what type of business you're transacting, whatever your financial institution, you could use that ISO standard to communicate," said Capachin.

8: AMERICAN BANKER – Online Remittance is a CRM Club for Wells

Bank Technology News -- November 2009

By John Adams

Remittance schemes can span a range of technology capabilities and access barriers, but the opportunity exists for banks to simplify both execution and fraud prevention by using the Web channel.

"[Online bank remittance] is like having an exclusive club. The banks are the ticket takers and security guards. And the only people that can get into this club are legitimate," says James Van Dyke, president of Javelin Research.

Wells Fargo, which recently expanded its ExpressSend remittance service to the Internet, hopes the offering will combine easy authentication with additional customer retention strategies, such as connecting with expanding demographic groups of new arrivals in the U.S., increasing self service, and achieving goodwill by occasionally playing hero.

"When someone gets an urgent call from a relative in Mexico who has an emergency and needs money, you can quickly transfer the money from home or work. You don't have to initiate the transfer over the phone or wait for banking hours to go through the process," says Daniel Ayala, svp, and head of global remittance services for Wells Fargo, which achieved its remittance expansion via an internal proprietary deployment.

Consumers will be able to send a remittance at all times to countries including Mexico, El Salvador, Guatemala, India, the Philippines, Vietnam and China. The service features email notification, access to up to 18 months of remittance transaction history and a detailed alert in the user's online session - with account-to-account, account-to-cash and cash-to-account payments available.

"There's a preponderance of this segment that's already online, so it's a natural fit. Foreign born immigrants often keep up with news back home through the Internet, and they use VOIP and messaging-type technology to stay in touch with their families," Ayala says, adding the bank charges a consistent fee for the service (generally around $10 per transaction), though it may tailor pricing in the future as the bank analyzes customer use.

Wells hopes to sell its authentication and execution as easier than online remittance payments with nonbanks; Wells payments requiring navigation through three "screens" on the site and completed in a few minutes. Non-bank online remittance payments typically involve some combination of card and ACH debits, and sometimes raise red flags when the card issuer suspects the four or five figure wire transfers are part of a card theft scheme. That can delay settlement for a day or more, and create extra steps for senders to authenticate themselves.

"With the Wells service, you avoid that...Wells Fargo controls the checking accounts, so they can get people authenticated when they sign up for online banking," says Gwenn Bezard, an analyst for Aite Group.

A Western Union spokesperson says its users sign up for a profile and undergo an authentication process similar to online retail purchases. The firm, which offers online remittance for a fee that's in the mid-teens per transaction, has signed online remittance agreements with North American banks including Scotiabank and Fifth Third. It requires first-time users create a profile, so the initial remittance takes about ten minutes, with each subsequent remittance payments taking about five minutes to execute. Other established non-bank brands offering online remittance include MoneyGram.

Among bank competitors, Wells is taking on Citigroup, which offers a mix of global transfers to Citi accounts outside the U.S., inter-institution and online transfers for fees ranging from $8 to $30. Additionally, some mobile vendors such as Nokia are positioning to provide real-time mobile remittance payments by connecting unbanked populations with consumers who do have bank relationships, a strategy that's part of Nokia's investment in Obopay. "We want to be able to provide delivery capabilities so anyone can use their mobile phone to put money into accounts," says Olivier Cognet, head of Nokia's business development group.

Beyond this stiff competition, there are other barriers to entry for banks looking to tap online remittance. The scale required means it's a market that's likely only open to the largest banks. And while Gareth Lodge, an analyst for TowerGroup, calls the online remittance market's potential "massive," the analyst also says remittance customers may not be the most loyal, making it harder to use online remittance as a retention play.

"These customers are sophisticated and monitor foreign exchange rates on particular days to get the best rate, so there will be a lot dropping and account changes among customers," Lodge says, adding the segment will be harder to cross-sell, which would have the affect of increasing the cost of customer acquisition.

9: AMERICAN BANKER - Overdraft Rule from Fed Called Underdone

American Banker-- Friday, November 13, 2009

By Steven Sloan

WASHINGTON -- The Federal Reserve Board released an overdraft rule Thursday that would force banks to get customers' permission before enrolling them in such programs -- but it did little to satisfy lawmakers who want to go even further.

While top leaders of the House and Senate banking committees have pushed bills that would require customers to opt in to overdraft protection, they are also seeking other restrictions, including monthly and yearly limits.

"We need to do far more to protect customers from abusive bank products," said Senate Banking Committee Chairman Chris Dodd, who has scheduled a hearing Tuesday on the issue. "We still need to stop the excessive fees, repeated charges, lax notification and processing manipulation that have become standard in these so-called overdraft 'protection' programs."

The sentiment reflected the deep unpopularity of the Fed in Congress, even as it goes further to protect consumers than it has in decades.

The overdraft rule goes into effect on July 1 and covers transactions conducted at automated teller machines as well as one-time debit card transactions. Banks would be prohibited from offering different terms or conditions on accounts for customers who decide to forgo the program. Additionally, customers who decide to take advantage of overdraft protection services can still decide to reject the coverage at any point.

Bankers, arguing that overdraft protection is actually a service for its customers, had pressed the Fed to embrace a rule that would let them instead give customers a chance to opt out of such coverage, betting that would have resulted in fewer accounts without protection. Industry representatives acknowledged their disappointment Thursday with the Fed rule, but seemed ready to move on.

"In the end, we could live with it," said Scott Talbott, a senior vice president with the Financial Services Roundtable.

That is likely because bills circulating on Capitol Hill could be far worse for the industry.

Proposals in the House and Senate would require that fees be proportional to the cost a bank incurs during an overdraft. They would also bar banks from imposing an overdraft more than once a month and six times a year.

Under the proposals, customers would see a prompt on the screen of their ATM alerting them that their transaction could result in an overdraft, and banks could not manipulate the order of clearing checks in a way that can rack up fees.

(The Fed issued Thursday's rule under Regulation E, which governs electronic fund transfers and does not have the scope to address check-clearing manipulation.)

The proposals have powerful sponsors, including House Financial Services Committee Chairman Barney Frank of Massachusetts, Rep. Carolyn Maloney, D-N.Y., Dodd and Sen. Charles Schumer, D-N.Y.

"The Hill doesn't give people a choice," said Nessa Feddis, a senior federal counsel for the American Bankers Association. "The bills don't seem to reflect the very well-documented consumer preference for having overdrafts paid for particularly important things like mortgages and bills. That would mean they would be less consumer-friendly."

Overdraft fees have become the subject of heated debate during the financial crisis. The Fed received more than 20,000 comment letters on an overdraft proposal it released in January. Banks say they offer the protection to save customers from embarrassment at the cash register. Consumer advocates counter that the fees are often unreasonable, especially when the overdraft was caused by a relatively small purchase.

In this fight, the Fed appeared to side with consumers. "The final overdraft rules represent an important step forward in consumer protection," Chairman Ben Bernanke said in a press release.

The Fed's move amounted to the latest attack on fees levied by banks. The House passed legislation this month that would immediately enact credit card reforms to go into effect in February. The card reform President Obama signed in May would, among other things, restrict fees and interest rate increases.

"Consumers are willing to pay reasonable fees for appropriate services," said David Berenbaum, the executive vice president of the National Community Reinvestment Coalition. "But there needs to be a rationality to the fee structure."

Overdraft fees do not disappear under the Fed's rule. Penalties can still be charged on a range of transactions, including checks and recurring debit card purchases. Fed officials speaking to reporters on Thursday said they did not extend the opt-in provision to these transactions because customers generally use these methods to pay for important, big-ticket items like rent or mortgages, along with utility bills.

Even though that means banks can still earn some income from fees, industry representatives are worried about the practical implications the Fed's differentiation could cause. At the moment, most banks' computer systems cannot distinguish between a $3 transaction at Starbucks and a $100 monthly fee for a health club membership.

"Some institutions can't make that differentiation at this time," said Steve Zeisel, the vice president and senior counsel at the Consumer Bankers Association. "Even differentiating between debit and checks is difficult. I think smaller institutions in particular may be impacted by that."

Though the rule is likely to cut into bank profits in this area -- Fed officials estimated the industry makes $25 billion to $38 billion off of overdraft fees -- industry representatives said they will find ways to protect themselves from habitual overdrafters and continue to make money.

Feddis of the ABA raised the possibility that banks may reverse the trend of offering free checking accounts and instead require customers to maintain a minimum balance to avoid fees.

"At the end of the day, income has to exceed expenses for any business model to succeed," Feddis said. "There may be less income, so there's going to be pressure."

Lawmakers, meanwhile, are poised to press ahead. Maloney said that the Fed rule does not "eliminate the need for congressional action."

"The Fed still allows institutions to charge an unlimited quantity of overdraft fees, would do nothing to make fees proportional to the amount of the overdraft, and would not address the manipulation of posting order of charges to accounts," she said in a statement.

Schumer attempted to put some onus back on the central bank.

"I urge the Fed to add even more muscle to these rules by limiting the amount of overdraft fees that can be charged in a single month, and by preventing banks from reordering charges to maximize profits," he said. "We will continue to do everything we can in the Senate to pass legislation to make this happen, whether the Fed acts or not."

10: AMERICAN BANKER - Vendors Turn Lemons into Lemonade

Bank Technology News -- November 2009

By Karen Massey

THE TOP 10

1. Fiserv - November 1, 2009

2. SunGard - November 1, 2009

3. Fidelity - November 1, 2009

4. Diebold - November 1, 2009

5. NCR - November 1, 2009

6. Tata Consultancy Services - November 1, 2009

7. First Data - November 1, 2009

8. Total System Services - November 1, 2009

9. LPS - November 1, 2009

10. Metavante - November 1, 2009

Methodology - November 1, 2009

We've all had a tough year, enough bad news. We could begin this article with a recap of the dismal global economy, the worst recession in modern times, the record number of bank failures, etc., etc. But instead some good news: In a year where there were huge structural changes and consolidation in financial services, the top 100 financial technology firms actually saw their revenue grow. The 100 companies on the 2009 FinTech 100 had combined revenue of $52.8 billion, an almost 10% increase from last year's $48.1 billion.

So in the sixth year of the FinTech 100 the bar continues to rise. Last year $36 million in revenue from the financial services industry was enough to land a company on the list. This year it took more than $50 million.

Fiserv maintains its position as the leader of the FinTech 100 roster. There are not many changes among the rest of the top 10, with a few notable exceptions. SunGard, Diebold, NCR, TCS, First Data, TSYS and Metavante Technologies all boast solid 2008 performance. So solid, in fact, that their performance caused CA to drop from the top 10, from No. 8 in 2007 to No. 12 in 2008, even while CA maintained healthy growth itself.

Typically, the growth of FinTech 100 companies has come from merger activity. However, in 2008 merger activity was anemic. In fact, the biggest movement within the top 10 was a spinoff as Fidelity National Information Services gave wings to Lender Processing Systems. This move caused Fidelity to drop from second to third place on our list - but not for long. Fidelity surprised most in the industry with its April Fool's Day announcement to acquire Metavante. We expect Fidelity to vie for the top spot again in 2009.

Fidelity's move for Metavante confirmed the trend toward larger, more diversified providers striving to offer a broader spectrum of products and services to their financial institution clients. In the coming years expect to see companies continue to grow through acquisition, especially the core vendors as they add to their competencies with adjacent and integrated offerings.

Four 2007 FinTech 100 companies were acquired during the year: ChoicePoint, by Reed Elsevier (No. 17), the parent company of LexisNexis; GL Trade (No. 32), by SunGard, OMX AB (No. 34), by Borse Dubai and, eventually, Nasdaq; and Fermat (No. 85), by Moody's.

As we see each year, there was some interesting movement between the FinTech 100 and Enterprise 25 lists. Last year we saw more companies move from the FinTech 100 to the Enterprise 25, including CGI, Unisys and Infosys as they diversified further and reduced the percentage of their revenue generated from the financial services sector. Infosys has returned to the FinTech 100 this year, as its revenue derived from financial services has exceeded one-third of its total; last year that revenue accounted for just under a third of its top-line total.

One reason it was harder for some familiar names to crack the FinTech 100 this year was the arrival of new names, which in turn can be explained by increased recognition of the list. We welcome 11 new providers to the roster. Congratulations to those from North America: 3i Infotech (No. 32), BancTec (No. 49), Collabera (No. 66), Diamond Management and Technology Consultants (No. 79), and Panini (No. 92) - as well as those from the EMEA and AP regions: HCL, India (No. 25 on the Enterprise list); Longtop, China (No. 62); Mastek, India (No. 69); TAS Group, Italy (No. 78); Nucleus Software, India (No. 85); AurionPro Solutions, India (No. 94); and FRS Global, Belgium (No. 96). While more than 50% of FinTech 100 newcomers are outside North America, 59% of the complete FinTech list hail from the North American region. No doubt the demographics of the FinTech list will continue to evolve with time.

Though revenue of the top 100 companies is higher, that's mostly big companies drawing business from smaller rivals. Overall, IT spending continues to decline. Since the 2007 FinTech 100 issue, IT spending has been downwardly revised across most spending categories, reflecting the impact the difficult economy has had in terms of financial institution consolidation and severe budget cuts. Overall IDC Financial Insights expects global banking IT spend to be a minus - 1.5% CAGR through 2012, with similar negative growth expected in the capital markets segment. Insurance appears to be the bright spot in financial services IT spend, albeit flat instead of declining, a paltry 0.02% five-year CAGR.

AREAS OF OPPORTUNITY

Still, there are a few IT spend areas projected to grow. We can thank the regulators for increasing IT spend on risk management and compliance, as well as the supporting business performance management and financial analytics. Collections and recovery spend is also projected to increase as financial firms labor to mitigate losses. Significant shifts are occurring in the payments space as we see a decline in item processing feeding gains in stored value cards. Continued investments in Internet banking and mobile banking and payments is beneficial to vendors in the sector. Core banking also remains in the black, but increased spending is attributed to keeping the lights on as opposed to the innovation and transformation the industry has been expecting for years. Analytics and business intelligence firms such as Equifax, Experian, FICO, Oracle, and SAS stand to benefit from risk and compliance initiatives. Core providers from across the globe have held relatively steady in positions close to last year's. In fact, three of the top 10 are prominent U.S. core banking providers: Fiserv, Fidelity and Metavante.

The glaring exception is the mobile banking space, where no pure-play mobile vendor has reached the critical size required to make the FinTech roster. Furthermore, with the exception of S1, there are no independent multichannel players any longer, as they have all been consumed by the core providers.

Where do we go from here? Optimists expect the economy to begin to recover in 2010. Pessimists say it will be longer. Both agree it will be a slow recovery. Financial institution customers of the FinTech 100 and Enterprise 25 are declining at record pace, mostly through failures but also through forced marriages and acquisitions. The regulatory waters look murky, and the industry still suffers from battered consumer confidence.

IDC Financial Insights looks at the financial services industry through 2010 with four key themes that will differentiate those companies that will thrive rather than just to survive.

Customer relationship management. FinTech companies will develop solutions which help financial services companies actively manage the relationships they have. The focus has shifted from building the depth of customer bases to broadening the breadth of customer relationships through penetration of additional products and services.

Customer service. The financial crisis has brought about a sea change in firm-specific and systemic risk, now it is time for financial institutions to focus on customer service and financial stability in order to win back the full confidence of both customers and the financial markets.

Back to basics. Many financial services firms will be redefining their business models moving forward. Maintaining stable and growing business models will require redefining customer interactions, product development as well as evaluating each line of business. Institutions will have to strike a delicate balance between finding new efficiencies and growing customer relationships.

Relationship growth, restoration of confidence and redefinition of business models will require new levels of innovation. Look for focus and increased innovation in the areas of core systems, business analysis, risk management and mobile payments. Which institutions will break the traditional barriers of customer service through the use of new technologies? Which FinTech firms are developing new solutions that will change the face of core banking, capital markets, risk management, treasury services and payments execution?

The past year has brought about many changes in the financial services industry, but also created an urgency around efficiency and innovation. The universe of FinTech companies providing solutions the financial services industry is growing and should continue to do so into 2010 and beyond. We did promise to maintain an upbeat view. So let's celebrate 2008, because it probably won't look too bad when we review 2009 a year from now.

11: AMERICAN BANKER - Wachovia's End

US Banker -- November 2009

By Jeff Horwitz

A year has passed since the teetering Wachovia Corp. called off an expected merger deal with Citigroup and opted instead to accept an offer from Wells Fargo. The broad events leading up to – and through – those decisive moments are well know to many in the industry, but the behind-the-scenes maneuvering of those fateful days remains mostly untold.

The story that follows reveals much about the interactions between executives and policymakers in those chaotic days. It is the product of a six-month investigative project undertaken by author Jeff Horwitz as part of his fellowship at Columbia University's Graduate School of Journalism.

Through interviews with attorneys, bankers and high-level government officials, Horwitz learned that regulators had rejected a Wachovia proposal to essentially "rescue" itself and that Wells Fargo initially balked at a deal with Wachovia prior to Citi's acquisition pact because Wells officials "didn't understand" Wachovia's commercial loan portfolio. He also relates the story of meetings held in the weeks before the Wells deal was struck in which Wachovia had held merger talks with Goldman Sachs at the suggestion of Treasury Secretary Henry Paulson, a former Goldman CEO. Paulson would later back away over concerns about conflicts of interest.

What emerges is a story of a group of key players making, and sometimes reversing, rapid-fire decisions at the height of last year's financial crisis to avert the total collapse of one of the nation's largest banks.

While the conclusion resolved the situation around Wachovia specifically and brought some important lessons, the questions it raised about policy around systemically important institutions are by no means settled. That debate continues to this day and will for quite some time.

12: ANNOUNCEMENTS - Chase To Increase Small Business Lending by $4 billion in 2010

Will hire 325 additional bankers to help business owners Demonstrates Chase's support for small business, overall U.S. economy

NEW YORK, November 9, 2009 - Chase announced today that it plans to increase its lending to small businesses by up to $4 billion in 2010, boosting expected new lending to about $10 billion to this vital segment of the U.S. economy.

LINK TO FULL ARTICLE: http://www.businesswire.com/news/home/20091109006294/en

13: ANNOUNCEMENTS - Citi Announces Filing of Registration Statement...

...for Primerica IPO

NEW YORK--(BUSINESS WIRE)--Citi (NYSE: C) announced today that its subsidiary, Primerica, Inc. (“Primerica”), has filed a registration statement with the U.S. Securities and Exchange Commission for an initial public offering.

Primerica, a leading distributor of financial products to middle income households in North America, has approximately 100,000 licensed sales representatives who assist clients in meeting their needs for term life insurance, which Primerica underwrites, as well as mutual funds, variable annuities, loans and other financial products.

LINK TO FULL ARTICLE: http://www.businesswire.com/news/home/20091105006519/en

14: ANNOUNCEMENTS - Department of Treasury Awards M&I Bank $40 Million…

…New Markets Tax Credit Allocation

M&I Bank (M&I) announced today that it received a $40 million allocation of New Markets Tax Credit (NMTC) authority in the latest round of awards from the Department of Treasury.

The federal government's New Markets Tax Credit program will enable M&I to offer below-market interest rates and less expensive loans for the development of office, industrial, retail, residential, and community facilities in Wisconsin, Arizona, Florida, Indiana, Illinois, Kansas, Minnesota, and Missouri.

LINK TO FULL ARTICLE: http://www.prnewswire.com/news-releases/department-of-treasury-awards-mi-bank-40-million-new-markets-tax-credit-allocation-67739267.html

15: BANKINSURANCE.COM - Credit Unions & Community Banks Rate Highest Trust

BANKINSURANCE NEWS IN BRIEF - NOVEMBER 2 - 8, 2009

Overall, 65% of American adults say they trust their primary financial institution.  Among credit union and community bank customers, that number jumps to 83% and 82%, respectively.  In contrast, 63% of regional bank customers and 53% of large national bank clients say they trust their financial institution.  Overall, 35% of Americans believe their primary financial institution cares about their financial well being, according to an August survey conducted by Chicago, IL-based BAI (Bank Administration Institute).

BankInsurance.com News in Brief' is provided each Thursday courtesy of Michael White Associates @ www.BankInsurance.com.

16: BANKINSURANCE.COM - ING Divests To Pay Back Government

BANKINSURANCE NEWS IN BRIEF - NOVEMBER 2 - 8, 2009

Amsterdam-based ING Group announced it plans to divest all its insurance and investment management activities, including ING Direct USA, by 2013 in order to “pay back the Dutch state” and “address the EC’s [European Community’s] requirements for viability and fair competition.”  ING said its banking operations will focus on Europe and selective growth opportunities elsewhere, and its locally managed insurance businesses will focus on life and retirement services in Benelux, Central Europe, Asia, Latin American and the U.S.  ING said its agreement with the EC “has no impact on other countries.”

BankInsurance.com News in Brief' is provided each Thursday courtesy of Michael White Associates @ www.BankInsurance.com.

17: BANKINSURANCE.COM - Life Insurance Applications Up In October

BANKINSURANCE NEWS IN BRIEF - NOVEMBER 9 - 15, 2009

U.S. applications for individually underwritten life insurance rose 2.2% in October compared to October 2008, driven by a 17.7% jump in applications among individuals aged 60 and over, an age group that has shown double digit increases in eight of the last ten months, according to the MIB Index.  Applications among individuals aged 45-59 rose 4.7%, but applications among individuals aged 0-44 continued to decline, down 2%, Braintree, MA-based MIB Group said..

BankInsurance.com News in Brief' is provided each Thursday courtesy of Michael White Associates @ www.BankInsurance.com.

18: BANKINSURANCE.COM - Lightyear Capital to Acquire ING Advisor Network

BANKINSURANCE NEWS IN BRIEF - NOVEMBER 9 - 15, 2009

New York City-based, private equity investment firm Lightyear Capital has agreed to acquire from Amsterdam-based ING Group, the ING Advisor Network and three of its five broker-dealers: El Segundo, CA-based Financial Network Investment Corporation (FNIC), Denver, Co-based Multi-Financial Securities Corporation (MFSC), and St. Cloud, MN-based PrimeVest Financial Services, Inc.  In the twelve months ended June 30, 2009, the to-be-acquired companies’ 5,700 representatives generated $653 million in gross revenues and held $70.2 billion in account assets.  Lightyear Capital Chairman and CEO Don Marron said, “This is a great investment for Lightyear.”  Lightyear Managing Partner Mark Vassalo said, “We are seeing more customers and advisors migrate toward smaller, more nimble and personalized brokerage firms, and we believe these three businesses will benefit from this trend.”  ING Advisor Network CEO Valerie Brown will retain her position, when the deal closes in first quarter 2010, pending regulatory approval.

ING said it was retaining Windsor, CT-based ING Financial Advisors and Des Moines, IA-based ING Financial Partners because of the key roles they play in the company’s U.S. focus on retirement services, life insurance and rollover annuities.

BankInsurance.com News in Brief' is provided each Thursday courtesy of Michael White Associates @ www.BankInsurance.com.

19: BANKINSURANCE.COM - Phoenix Cos. Forms Distributor Saybrus Partners

BANKINSURANCE NEWS IN BRIEF - NOVEMBER 9 - 15, 2009

Hartford, CT-based, $25.8 billion-asset Phoenix Companies, Inc. has formed distribution company Saybrus Partners, Inc. and forged a three-year agreement with St. Louis, MO-based Edward Jones whereby Saybrus will provide life insurance consulting services to the firm’s 11,700 financial advisors, initially focusing on Edward Jones’ providers John Hancock Life and Pacific Life.  Phoenix President and CEO James Wehr said, “Through Saybrus we can leverage our exceptional life insurance expertise, our solutions-base approach and our proven ability to support financial advisors.”  Edward Jones Principal Merry Mosbacher said, “Life insurance is a foundational need of our clients, which is why we are expanding our offerings.”

BankInsurance.com News in Brief' is provided each Thursday courtesy of Michael White Associates @ www.BankInsurance.com.

20: BANKINSURANCE.COM - Raymond James Financial Awaits BHC Approval

BANKINSURANCE NEWS IN BRIEF - NOVEMBER 2 - 8, 2009

St. Petersburg, FL-based Raymond James Financial is awaiting Federal Reserve Board approval to convert to a bank holding company.  Currently, Raymond James Bank FSB operates as a thrift designed as a depository for the company’s investment clients’ swept assets.  Now, parent Raymond James Financial wants to become “a more well-rounded financial services company” without the same limits on real estate, commercial and industrial loans imposed upon thrifts, Chief Operating Officer Chet Helck said.  Currently, Raymond James Bank contributes 35% to its parent’s revenues.  “We don’t want banking to become too dominant a part of what we do, but we think there are good synergies,” Helck said, the American Banker reports.

BankInsurance.com News in Brief' is provided each Thursday courtesy of Michael White Associates @ www.BankInsurance.com.

21: K@W – Crackdown on Executive Pay: Too Much or Not Enough?

Published: October 28, 2009 in Knowledge@Wharton

Last week, the Obama administration's "pay czar," Kenneth Feinberg, announced that the government will impose caps on compensation for the 25 highest-paid executives at seven companies that received "exceptional assistance" through the Troubled Asset Relief Program -- including American International Group (AIG), Bank of America, Citigroup, Chrysler, Chrysler Financial, General Motors and GMAC. Under the new regulations, salaries will be reduced by an average of 90%, and total compensation (including bonuses and stock options) will be lowered by 50%. Knowledge@Wharton spoke with Wharton accounting professor Wayne R. Guay and then with finance professor Alex Edmans about what these changes could mean for Wall Street, company shareholders and taxpayers.

LINK TO FULL ARTICLE: http://knowledge.wharton.upenn.edu/article.cfm?articleid=2368

Reproduced with permission from Knowledge@Wharton (http://knowledge.wharton.upenn.edu), the online research and business analysis journal of the Wharton School of the University of Pennsylvania. All materials copyright of the Wharton School of the University of Pennsylvania. http://knowledge.wharton.upenn.edu

22: K@W – Rethinking Lean: Beyond the Shop Floor

Once the domain of manufacturing, lean has migrated far beyond the shop floor, transforming service organizations and innovation efforts. The principles of waste elimination, worker involvement and continuous improvement haven't changed, though, and the results are still impressive. In this special report, experts from Wharton and The Boston Consulting Group look at how lean is transforming health care, R&D and finance.

Download the entire report: PDF (401Kb)

Reproduced with permission from Knowledge@Wharton (http://knowledge.wharton.upenn.edu), the online research and business analysis journal of the Wharton School of the University of Pennsylvania. All materials copyright of the Wharton School of the University of Pennsylvania. http://knowledge.wharton.upenn.edu

23: M&A - BNY Mellon Completes Acquisition of Insight Investment

BNY Mellon has completed the acquisition of Insight Investment Management Limited from Lloyds Banking Group plc. Based in London, Insight Investment specialises in Liability Driven Investment (LDI) solutions, active Fixed Income and Absolute Return. Its clients include some of the UK's largest pension schemes, corporates, insurance companies and local authorities, along with a growing number of non-UK clients and some of the best known financial services and intermediary companies. Insight Investment's assets under management, net of identified internal assets that will be retained by another part of the Lloyds Banking Group, are approximately $133 billion (83 billion pounds Sterling).

LINK TO FULL ARTICLE: http://www.prnewswire.com/news-releases/bny-mellon-completes-acquisition-of-insight-investment-68516302.html

24: M&A - U.S. Bank Acquires FBOP Corporation's Banking Subsidiaries…

…Through an FDIC Facilitated Transaction

U.S. Bancorp announced today that, effective immediately, its lead bank, U.S. Bank National Association, has acquired the banking subsidiaries of FBOP Corporation of Oak Park, Illinois, from the Federal Deposit Insurance Corporation. This transaction includes nine different banks with more than $18 billion in total assets and 150 branches in California, Illinois, Arizona and Texas. The nine banks that are part of this acquisition are: BankUSA, N.A.; California National Bank; Citizens National Bank; Madisonville State Bank; North Houston Bank; Pacific National Bank; Park National Bank; San Diego National Bank; and Community Bank of Lemont.

25: MISCELLANEOUS - National City Bank Sweetens Stakes to Snare Retail Customers

National City Bank has launched a promotion paying $300 to customers who open direct-deposit checking accounts, double what any major retail bank in Chicago has offered.

Chicago’s fifth-largest bank by deposits, which next June will rebrand itself PNC Bank, is running the promotion until Nov. 28 and is advertising the offer in radio and print spots, a spokesman says.

LINK TO FULL ARTICLE: http://www.chicagobusiness.com/cgi-bin/news.pl?id=36114&seenIt=1

26: PERSONNEL CHANGES - Bank of America Merrill Lynch Names Randall Lynch

…as Managing Director of Americas Industrials Investment Banking

NEW YORK -- Bank of America Merrill Lynch today announced that Randall Lynch has joined the firm as managing director within Americas industrials investment banking. Lynch is based in New York and reports to John Pratt, managing director and head of Global Diversified Industries corporate and investment banking.

LINK TO FULL ARTICLE: http://newsroom.bankofamerica.com/index.php?s=43&item=8567

27: PERSONNEL CHANGES - BNY Mellon Names Brian Ruane CEO

…of Alternative Investment Services

New position highlights robust growth of hedge fund administration business

BNY Mellon, the global leader in asset management and securities servicing, announced that Brian Ruane has been appointed to the new position of Chief Executive Officer of Alternative Investment Services (AIS). BNY Mellon Alternative Investment Services is a leading hedge fund administrator with more than $200 billion in assets under administration.

LINK TO FULL ARTICLE: http://216.39.100.211/PRNewswire/release/214477.html

28: PRODUCTS - Bank of America Introduces Clarity Commitment™ ...

...for Home Equity Products

Simple One-Page Summary of Key Loan Terms Allows Borrowers to Review Their Loan Details in Plain Language

Bank of America announced today that its popular Clarity Commitment™ home loan summary - a consumer-friendly document hailed as a lending industry model - is now available for home equity lines of credit and home equity loans.

LINK TO FULL ARTICLE: http://newsroom.bankofamerica.com/index.php?s=43&item=8565

29: PRODUCTS - Union Bank’s Institutional Trust & Custody Services Group..

…Enhances Web Offerings With Upgraded Moneyport Portal

Union Bank, N.A., announced today the launch of Union Bank MoneyPortSM—an upgraded version of its Institutional Money Market Portal—that features a secure online environment with enhanced web offerings and functionality for Institutional Trust & Custody clients. Upgraded features include a comprehensive library of funds, fund data and performance filters, and an array of additional compliance and trading tools to help clients manage their short-term investment portfolios more effectively. In launching MoneyPortSM, Union Bank collaborated with Cachematrix, a vendor with a proven track record in money funds technology.

LINK TO FULL ARTICLE: https://www.unionbank.com/company_information/company_information/news/press_release_index/press_releases/upgraded_moneyport_portal.jsp

30: PRODUCTS - Wells Fargo Brings Commercial Banking Services Wherever You Are…

…With New iPhone™ Application

Wells Fargo & Company today announced it has released the CEO MobileSM iPhone™ App. The free time-saving tool alerts corporate and business customers to pending transactions and connects them to online commercial banking services.

LINK TO FULL ARTICLE: http://www.businesswire.com/news/home/20091110006311/en

31: REGULATORY - NAIC to Produce New Rating Model for Mortgage-Backed Securities

Regulators to Hire Independent Third Party Partner,

Reduce Reliance on Traditional Credit Rating Agencies

Members of the National Association of Insurance Commissioners (NAIC) approved a proposal this week to develop a new model for determining the regulatory treatment of residential mortgage-backed securities (RMBS). The new model will produce ratings designations for approximately 18,000 RMBS owned by U.S. insurers at the end of 2009.

LINK TO FULL ARTICLE: http://www.naic.org/Releases/2009_docs/rmbs.htm

32: REPORTS - BNY Mellon's Pershing Unit Releases New Independent Study…

…Focusing on the Evolving Competitive Landscape for Hedge Funds

Pershing LLC, a BNY Mellon company, and Finadium LLC, have published a new independent study that examines the continued emergence of investment managers in the equity long and short marketplace and their convergence with hedge funds.

LINK TO FULL ARTICLE: http://www.pershing.com/news/BNY_Mellons_Pershing_Unit_Releases_New_Independent_Study_Focusing_on_the_Evolving_Competitive_Landscape.html

33: REPORTS - Governments likely to retain stakes in financial institutions…

…for 5-7 years, according to PricewaterhouseCoopers LLP

Seven-year horizon likely before governments can release stakes in banks says PwC

A report released today by PricewaterhouseCoopers LLP (PwC), ‘Back to the future,’ expects that Governments around the world that have intervened to support Financial Institutions (FI) in response to the global financial crisis will need to prepare for long term involvement and ownership.  The complexity of individual FI situations, difficult market conditions and an unattractive disposal environment combine to make the possibility of governments’ exiting their stakes in the private sector in the short term highly unlikely.

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