After several years of banking only with companies, Citi has decided to jump with both feet into Africa’s most populous nation, with its regional head announcing plans to open a consumer banking franchise in Nigeria (schedule unknown.) The country of 165 million people is apparently “at the top of the list” of Citi’s African prospects. Continue Reading
Riddle me this: what’s the most important set of numbers in the entire world? The climate change models that say how much time is left until carbon dioxide levels pass the point of no return? Or the numbers that comprise the launch codes for our nuclear warheads?
Either might qualify but some experts would instead point to something else: Libor inputs. Libor’s the interest rate that underlies $360 trillion of financial contracts worldwide. Interest rate swaps and corporate loans, but also mortgages, student loans, credit cards and more. What’s $360 trillion dollars? That’s the economic size of 24 United States of Americas.
Here’s what you may have missed on the Finance Addict this week. Also check out our GIF of the Week after the jump!
- Risky repos rear their head and threaten us all. Looks like there’s a storm brewing in the U.S. repo markets.
- Why Dodd-Frank has already failed. Here’s why Dodd-Frank is irredeemably flawed and won’t do enough to protect our economy from troubled financial institutions.
- The Super Bowl & general ad spend: bullish indicator? Super Bowl commercials, and ad spending in general, are great economic indicators since ad budgets are usually the first to go in a downturn.
- The saga of Maiden Lane II. Nothing better captures the bailout dilemma than the saga of Maiden Lane II.
- Fannie Mae and Freddie Mac to really leave the stage? Can we realistically abolish Fannie Mae and Freddie Mac’s central role in the housing market? What are the implications?
- Of fallen angels and demons restored. Alan Greenspan is a fallen angel. Who else do you think will go from hero to zero, and vice versa, when we look back again?
Looks like there’s a storm brewing in the U.S. repo markets.
It figures: profit-center banks have every motivation to stay one step ahead of the regs and the pols. Since the gamekeepers have now gotten around to looking at proprietary trading and bringing derivatives onto exchanges, you can almost bet your first-born that the next crisis will be in neither one of these areas but someplace else entirely different. Continue Reading