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Employment Report:
Wall Street Journal
The new tech giants are the companies that control the Internet economy through their dominance in virtual computing: online search, messaging, advertising, applications, computing and storage on demand. The
Financial services was thought to be one of the industries to which the old guard of the computing kingdom could still affix their business model. Banks, as the theory goes, must keep most of their operations in house, managed at their own data centers, because of strict government regulations on how they handle transactions and government data.
But maybe even that barrier will fall. The chief information officer at Capital One Financial, Rob Alexander, said the security safeguards developed by Amazon's AWS unit (Amazon Web Services, which sells data storage to corporations), are good enough for his bank to use, if not even more secure than its own computers.
So the biggest U.S. banks don't want your deposits? Fine, there are plenty of foreign banks that will gladly take them. Japan's Mizuho Bank and Mitsubishi UFJ Financial Group, France's BNP Paribas and Spain's BBVA are all
Several factors are at play. Foreign banks need new sources of U.S. funding. Then there are the new rules from the Securities and Exchange Commission on money-market funds, incentivizing them to buy government debt instead of using short-term debt. Regulators want to prevent a run on deposits, creating a funding a crisis. Fidelity Investments' Cash Reserves fund, the world's biggest money fund, will shift its entire portfolio to U.S. government debt by Dec. 1.
Pilot Travel Centers in Knoxville, Tenn., has parked $50 million of deposits with Mizuho, where it earns 0.69% for three months; and another $50 million that earns 0.72% for four months. That's twice as much as the competition, its treasurer said.
Some U.S. banks really don't want to hold large corporate deposits. JPMorgan Chase and State Street have said they'll charge fees to hold large corporate deposits.
Square wants to raise as much as $403.7 million in its IPO, according to its registration papers. The
Fannie Mae and Freddie Mac showed this week why they can't be recapitalized and taken off the government dole any time soon: They aren't strong enough to
The market for home sales to first-time buyers has worsened. First-time buyers
A jury in New York convicted two former Rabobank traders of
Financial Times
The paper looks at the Shared National Credits reviews' warning on oil prices and
New York Times
Barclays should seriously consider moving its headquarters to the U.S., according to an op-ed column. Their reasons: The
Bankers must clean up the culture of their firms, in order to avoid the type of scandals that have recently
Elsewhere ...
Quartz:
Charlotte Observer: John Stumpf doesn't care that Wells Fargo is
Marketwatch: The security images that banks use to filter out scammers when you log on to your online account are