Items Tagged with 'Capital adequacy ratio'


  • The bank risk Basel is missing

    Inside the thought-process of global bank stabilizer, the Bank of International Settlements, many things change over the years. The consortium of central banks is charged with setting the standard that provides a measure of a financial institution's core strength and tends to adopt new standards yearly. Mandates to maintain these traits are packed in the continually evolving Basel accords.
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  • Putting TARP to Work

    Banks can now use US Treasury Department capital acquired through the Troubled Asset Relief Program (TARP) toward their Tier 1 capital. This boosts capital ratios and puts TARP money to work not only as a liquidity injection but also as a potential lift to the same capital ratios studied by regulators as part of the government-initiated stress tests. The Fed's announcement comes as many large banks are interested in a TARP exit, lining up to repurchase stocks
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  • Deal or Die for 'Under-Capitalized' BankUnited

    The countdown began Tuesday for Florida-based BankUnited FSB, which received a prompt corrective action directive from the Office of Thrift Supervision (OTS). The bottom line: Merge with or be acquired by another financial institution within 20 days. OTS said in the directive it considered the Coral Gables bank "under-capitalized" as of January 30 and gave BankUnited 15 days from the date of directive to submit a binding merger or acquisition agreement unless regulators agree to extend the deadline.
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  • Downey Raises the Red Flag

    It's been called the "kiss of death" by more than a few auditors and accountants I know, not to mention investors who have spent any amount of time investing in financials. It's the dreaded "going-concern" warning -- no bank ever wants to put such a phrase into its quarterly report, and in fact will rarely ever mention it in the actual earnings release, either. Such dirty details are often relegated to the bowels of a 10-Q, where the hope is that the damage of disclosure will be somehow more limited.
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  • Downey Gets Cease-and-Desist from OTS

    Troubles are continuing to mount at Newport Beach, Calif.-baed Downey Financial Corp. [stock DSL][/stock], with the Office of Thrift Supervision issuing a cease-and-desist order that represents regulators' latest attempt to put the screws to the troubled option ARM specialist.
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