Workforce Reduction Announcements – A Useful Unemployment Indicator
Jan25

Workforce Reduction Announcements – A Useful Unemployment Indicator

Job cut announcements made by large corporations are a useful and perhaps better indicator of unemployment than government released labour data.  While official unemployment data provided by Statscan in Canada and the BLS in the U.S. give more precise numbers, they look at historical data.  The numbers then make up the most current unemployment rate.  Similarly, unofficial payroll and jobs data provided by companies such as ADP also...

Read More

Obama Signs Financial Reform Law

On Wednesday, July 21 2010, US President Barack Obama signed the historic bank reform bill, the largest overhaul of the US financial industry regulation since the Great Depression.  The legislation is named the Dodd-Frank Wall Street Reform and Consumer Protection Act. . The main items of the bill include measures aimed to regulate the industry and protect consumers: – Ban proprietary trading by banks. – Oversight of the...

Read More

What Is All The Stress With The Bank Stress Test?

There has been a lot of buzz lately regarding the US government’s stress test on the banks. This article with the tongue twister title will sum up what is it, what it really means for investors, and how concerned we should be about it. What Is It? The test is an analysis of the assets on the books of 19 of the largest U.S. banks implemented by the US Treasury, by applying scenarios that simulate the impact of a deeper recession....

Read More

Bank Valuation VII

I apologize for the slightly longer than usual time between posts these last two weeks.  Its been a busy 2 weeks.  Up to this point in this series, I have discussed only quantitative/numeric metrics.  However, in this article I will discuss some qualitative metrics related to bank itself. The final article in the series will be posted the following week.  So far we covered the following metrics: – Net Interest Margin (NIM)...

Read More

Bank Valuation V

In this article I will discuss metrics related to the price of a bank stock. So far in this series we covered the following metrics: – Net Interest Margin (NIM) – Return On Assets (ROA) – Loan Loss Reserve, and losses related to the loan portfolio – Return On Equity (ROE) – Profit Margin – Dividends – Earnings To review them see Bank Valuation I, II, III, & IV. What I present here are...

Read More