The Basel II capital rules will "accelerate" consolidation in the banking industry because many institutions do not have the resources to implement the new risk-based capital standard, according to Citigroup's chief financial officer.Citigroup CFO Todd Thomson said it will be difficult for many banks to implement Basel II. "It is hard to do, and it is expensive to do," he told an American Institute of Certified Public Accountants meeting in Washington. Banking companies need to be diversified to take advantage of the new RBC standard, and that "will also drive further consolidation," he said. Citigroup's merger and acquisition team generally has 100 companies under review at any one time, he told the CPAs. "Although Basel II is overly complicated and somewhat flawed," it takes into account the way banks measure risk and manage risk. It is a "fabulous step in the right direction," Mr. Thomson said. Federal regulators are still working on RBC rules, which will not go into effect for several years.
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The massive mortgage business saw a first quarter profit mitigated by nearly $300 million in hedging losses.
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The Consumer Financial Protection Bureau has seen excessive property-inspection charges, fees that loan mods should eliminate and improper line-item labels.
April 24 -
Michael Tannenbaum, whose experience in the financial services industry spans over 15 years, has a track record of helping companies scale and grow.
April 24 -
A majority of consumers earning more than $100,000 annually said they were concerned about their own ability to purchase a home, demonstrating how affordability issues are impacting those at many socioeconomic levels, the University of Michigan study found.
April 24 -
The nonbank's results add to other indications that the first quarter's "higher for longer" rate scenario had an upside for efficient servicing operations.
April 24 -
The latest rate increases contributed to a 1% drop in purchases from the previous week and 15% annually, according to the Mortgage Bankers Association.
April 24