Fitch Ratings expects idiosyncratic governance weaknesses to weigh on ratings more often than previously as the tolerance of governance failures from a wide range of stakeholders (e.g. authorities, investors, creditors, customers and employees) declines. It is likely that investors’ growing focus on ESG topics and better ESG-related disclosure will mean that governance failures will have…
Category: banks
Here We Go Again: Banks Plan Buybacks
“We have so much capital, we cannot use it,” Jamie Dimon of JPMorgan quipped to investors. The bank’s cash pile has doubled over the past year, to more than $500 billion. It’s a similar story at other banks, and now that they’ve been cleared by regulators to resume share buybacks, “we’re going to be aggressively…
Agenda – Pay and Risk Misalignment a ‘Friction Point’
Citibank’s disclosures in its proxy statements claiming compensation is tied to risk mitigation apparently weren’t enough to convince regulators that execs were addressing risk appropriately….While the financial services industry might have made strides, the compensation committee at Citigroup has work to do to become compliant with the OCC, according to the regulator. Citibank, which did…
Will the Banks Collapse? – The Atlantic
A very important piece by Frank Partnoy: American citizens are well aware of the toll [the pandemic] has taken on the economy: broken supply chains, record unemployment, failing small businesses. All of these factors are serious and could mire the United States in a deep, prolonged recession. But there’s another threat to the economy, too….
ValueEdge Advisors 