GLG News in Financial & Business Services

The global slowdown and rising inflation will limit banks from escaping the credit meltdown anytime soon.  Deleveraging will continue for years and revenue lost from discontinued businesses has yet to be identified.

People will continue to seek mortgages.  Although the industry is not people friendly now, there will still be people seeking the dream of home ownership.  The credit, DTI and down payment requirements have always been out of reach for most home buyers.  That is why government programs were always popular, and will continue to be popular again.   ...

  The Sovereign Wealth Funds are long-term investors. We may find out as time passes who really is the greater fool. An investment in the best-of-best alternative investment firms may be more genius than foolishness. Blackstone is a premier player in alternative investments. With the S&P 500 index at 1280 it is lower now than it was in March of 1999, almost ten years ago. While the market...

Borrowers are being punished twice for seeking a loan during the current credit crunch...three times if you are someone who believes lenders and not borrowers are mainly responsible for the crunch in the first place.

Implications: 1.High Risk And High-Yield credit ratings have risen by 9 basis points - an all time high. 2.Bank losses are restricting lending, the Financial Market Place of Companies , as well as, consumers.The End Result is the tightening of al lending Standards - Inevitable! 3.Credit Swaps have risen 1.25 basis points and "More to Come"! 4.Sub-prime debts have become "Toxic"!- The Market is falling...

Since January 2007 the world’s biggest commercial and investment banks have written down $497bn of bad debt. The optimists suggest the worse is now behind us. Perhaps, but the bounce will be limited from here. Hope springs from the belief that banks have written down what there is to be written down, the authorities are bending over backwards to help and buyers of credit are emerging. Markets are...

Reduced insurer profits. Reduced insurer shareholder return on equity. Higher insurance premiums in near future. Increased insurer M&A activity. Maybe time to buy insurer stock.

Implications: 1.Prompt action by Credit Suisse avoided a MUCH Larger Fine by the Regulatory authorities by cooperating and providing concessions. 2.Intersting Implication - Investors have become distrustful of credit risk ratings related to complex investment alternatives, which has become a world-wide scenerio. 3.The high Ethical Standards  of Credit Suisse have been called into question...

1. For banks to stay ahead, more mergers in the Australian banking industry can be expected. 2. Australian banking industry is heading into a period of churning and consolidation.A fallout of the increasing interest rates and fears of recession.

Implications: 1.Bank losses are a severe restriction on lending practices of Financial Institutions. 2.Severe Financial and Economic damage to corporations and the individual consumer as delinquencies on home and commercial loans rise. 3.Many U.S banking institutions , now have, a substantial deteriortion of their capitalization base and related " Market Value"! 4.The rise in Debt Speculation indicates...