Peter Sands, the CEO of Standard Chartered Bank has announced the closure of its equities business, the redundancy of 4000 staff and a plan to making $400 million of cost savings in 2015. In Nov 2014, Standard & Poor’s levied the first ever credit rating downgrade on the bank after three profit warnings in less than 12 months and a worsening bad loan problem. The businesses that Standard Chartered Bank is exiting are: Institutional Cash Equities, Equity Research and Equity Capital Markets, all of which have been loss-making. The bank had acquired most of these businesses from JP Morgan in 2008. The bank believes their exit will deliver US$100 million of cost savings in 2016, and will involve 200 job losses across seven markets. Read More >>
No event in American financial history is more infamous than the Wall Street Crash of 1929 or the Black Tuesday, when the stock market crashed and ushered in a depression that would grip the United States for the next decade. What caused this event and what can we learn from it?
The stock market crash that most people associate with Black Tuesday, was actually a multi-day process. The previous Thursday, the market began its downward slide, with trading setting an all time record with 13 million shares trading hands that day. The Dow had reached an all-time high just a month earlier in September of 1929 with a close of 381.17. A group of bankers met during that Thursday to try to figure out how to stop the slide and they decided to take the same tact that worked to stop the last market panic in 1907. They began to buy massive amounts of blue chip stock to try to reassure investors that the market was holding steady and that they shouldn’t sell everything they had and make matters worse. Continue reading The Wall Street Crash of 1929