Homeowners win right to sue over mortgages

In America, a lot of homeowners aren't able to pay back their mortgages. Although the housing market has been crashed, the prices of the houses are very high compared with 10 to 15 years ago. Many of the borrowers don't have to pay back a fixed amount to the bank, but the loan depends on the increase in the value of the house. More than 300 homeowners have been united and they now sue Barclays and Bank of Scotland for selling such risk-bearing mortgages.

Thomas De Coninck

http://business.timesonline.co.uk/tol/business/law/article6863171.ece

Recession, it's not all bad.

While some companies have real problems staying alive during a recession or even go bankrupt, their are also those who take advantage of the situation. Numerous studies have shown that there are 3 different strategies to get trough the ruff patch unharmed and even grow during these times of despair. First there are the ones who benefit from the problems of other companies to negotiate better deals than during a boom ( up to 15% more return to shareholders). The second successful strategy is to use the turmoil to reposition yourself in the marketplace and finally there are companies that realize the key to survival isn’t economizing but innovating.

Philippe Blancquaert

Sarkozy heats up discussion on bonuses

Sarkozy heats up discussion on bonuses.

In France, BNP Paribas’ decision to reward its employees with enormous bonuses (up to €1 billion, of which €800 million in 2009) caused a stir among citizens and politicians. President Nicolas Sarkozy therefore summoned bankers to his office and forced them to accept new rules concerning bonuses. BNP Paribas and other big french banks accepted a bonus-malus system, under which at least 50% of bonuses depend on long-term overall performance. Moreover, bankers agreed to publish bonus policies in the future and accepted some sort of “bonus supervisor”. Sarkozy is now hoping that other countries are willing to follow France’s example.

Laurens De Baere

The Economist - Aug 27th 2009

KBC as a herald of recuperation

Today, the BEL20 presented the best results on the stock market since 10 mars 2009, all thanks to KBC, whose stocks rose by 15,4 per cent. This was mostly due to an increase of capital by Société Générale and a positive advice on buying European bank shares. Even though KBC had the biggest improvement, other banks, such as Dexia and Fortis, displayed some excellent results as well. This tremendous news can only stimulate the idea that we’ve survived the worst and are up for better times!

Laura Demeyere

Bron: De Standaard

No banking qualifications? Become bank chief!

A survey has revealed that a lot of chief executives of Britain’s banks do not have the right degree for their job. The problem is that there are few people who have qualifications that are suitable to run a large retail bank. Because there are so few they changed those people by “fit and proper people” with the right experience. On top of it, they receive a golden handshake when they have to leave the company. Great job, isn’t it?!

Bram De Cocker

http://news.bbc.co.uk/2/hi/uk_news/politics/7888161.stm

“I know how unpopular these bankers are”

While banks all over the world are blamed for the financial crisis, Boris Johnson is embracing them with both arms. Almost everyone else is screaming for additional regulations but not Johnson, he is reaching out for these financial institutions! Despite of his warning: "Banks cannot return to business as usual" he is against the 'ill thought-out' regulation. He reminds the UK audience that the financial sector contributes to society by employing a large number of people and by paying a vast amount of taxes every year.

Ruben Buysse

Source: Johnson defends 'pariah' bankers

More flexible bank system

Banks all over the world want a larger separation between commercial banks and their investment-banking divisions; only Japan pursues a contrary policy. The reform of the Japanese bank system implies that different departments can interact with each other to preserve the overview. The reform must ensure that the employees can work more easily, moreover their efficiency must improve. The reforms purpose is to introduce more sophisticated financial products on the Japanese market.