A bit harsh but the parliamentary special committee requesting that the Rona Fairhead non executive director at the time of the HSBC tax evasion should be fired from her current job at the BBC Trust.
It was good to see these people being asked "what did you think the big bucks were for" and asking them to accept some responsibility.
But it also showed that the bank was just too big to be managed hierarchically - and no management structure could have stopped this. Therefore it needs to be a smaller organisation.
Showing posts with label Economics. Show all posts
Showing posts with label Economics. Show all posts
Tuesday, March 10, 2015
Sunday, November 10, 2013
Twitter Economics
The Twitter flotation got a lot of press this week.
They floated at $26 a share, with 505 million shares in circulation leading to a market cap of $13.1 bn.
There was lots of interest in the shares and they rose above $50, and now stand at $41. That's a market cap of around $20 bn.
It's a very popular service, I can't deny that - and it has tentacles into all media outlets - as they have been suckers for feeling the need for a presence on it. Especially individuals of media who feel the need to self promote (despite the obvious danger of an ill judged tweet ending your career).
But this service has never made a profit, has yet to work out an advertising strategy - and could easily be replaced by a newer more trendy upstart.
I was dubious about Facebook - this is just crazy...
They floated at $26 a share, with 505 million shares in circulation leading to a market cap of $13.1 bn.
There was lots of interest in the shares and they rose above $50, and now stand at $41. That's a market cap of around $20 bn.
It's a very popular service, I can't deny that - and it has tentacles into all media outlets - as they have been suckers for feeling the need for a presence on it. Especially individuals of media who feel the need to self promote (despite the obvious danger of an ill judged tweet ending your career).
But this service has never made a profit, has yet to work out an advertising strategy - and could easily be replaced by a newer more trendy upstart.
I was dubious about Facebook - this is just crazy...
Facebook Economics IV
It has been a long time since I've looked at these shares, and the madness of the Twitter float has made me look back - I was pretty downbeat on them. Give Facebook their due, it looks like they are working out how to advertise to mobile/small screen users.
So how about the shares?
There are 2.43 billion shared in circulation.
$47.53 dollars per share, $115.50 bn market capitilsation
$38 dollars at floatation, indicating $92.34 bn value.
So an overall increase of $23.16 bn, a 25% rise in value.
Steady progress I say, and compared to Twitter this almost looks like a sensible business now...
So how about the shares?
There are 2.43 billion shared in circulation.
$47.53 dollars per share, $115.50 bn market capitilsation
$38 dollars at floatation, indicating $92.34 bn value.
So an overall increase of $23.16 bn, a 25% rise in value.
Steady progress I say, and compared to Twitter this almost looks like a sensible business now...
Saturday, July 14, 2012
Banking Adverts
I've never seen a paper today to full of apologies:
- A "sorry" from Barclays, and a statement that the customer is top priority.
- A "we're working hard to put things right" from Natwest
- A "join us we're not as corrupt as those other banks" from Nationwide.
I do feel a little sorry for Natwest, an upgrade went wrong and suddenly everything collapsed. Probably should not cut back on IT so much maybe...
Barclays, little sympathy, even though it is the investment arm that has being exposed as corrupt.
Nationwide, hope they do not get too big - even though it appears a lot of deposits are heading their way. This is the only real way for the consumer to vote, if you do not like a bank's ethics - don't bank with them.
- A "sorry" from Barclays, and a statement that the customer is top priority.
- A "we're working hard to put things right" from Natwest
- A "join us we're not as corrupt as those other banks" from Nationwide.
I do feel a little sorry for Natwest, an upgrade went wrong and suddenly everything collapsed. Probably should not cut back on IT so much maybe...
Barclays, little sympathy, even though it is the investment arm that has being exposed as corrupt.
Nationwide, hope they do not get too big - even though it appears a lot of deposits are heading their way. This is the only real way for the consumer to vote, if you do not like a bank's ethics - don't bank with them.
Saturday, June 30, 2012
Barclays Libor Fixing
The news of the fixing of interest rates for lending between banks is hardly surprising given their track record. It is hard to trace a direct link to how it affects everyday finance, which is why the BBC has also bolstered the story with aggressively marketed interest rate fix loans which have turned out to be bad for some small businesses.
There seems to be more of an attitude in government to do something about this, which is refreshing - although may lead to nothing. The injustice is that you would go to prison if this was done in any other line of business - it is after all straight fraud. But somehow we always excuse the banks, because they both help set the rate and also bet on the rate there is an obvious conflict of interest.
I think the individuals involved are probably suffering enough because internally the banks will deal with them. I would like to see a roughing up of the senior management - to remind them they earn those salaries for a good reason, and it is they who set the rules of how business is conducted. They will claim they knew little of the fraud, which maybe brings the charge down to negligence while running a bank.
There seems to be more of an attitude in government to do something about this, which is refreshing - although may lead to nothing. The injustice is that you would go to prison if this was done in any other line of business - it is after all straight fraud. But somehow we always excuse the banks, because they both help set the rate and also bet on the rate there is an obvious conflict of interest.
I think the individuals involved are probably suffering enough because internally the banks will deal with them. I would like to see a roughing up of the senior management - to remind them they earn those salaries for a good reason, and it is they who set the rules of how business is conducted. They will claim they knew little of the fraud, which maybe brings the charge down to negligence while running a bank.
Tuesday, June 5, 2012
Facebook Economics
After a couple of weeks of trading, it's nice to sit down and work out how they are doing
The shares have taken quite a battering, and confidence is down.
There are 2.14 billion shares issued.
$38 per share, $81.32 billion market cap.
This was an incredible floation price, remember it is just a website people use for free, with advertisers try to target those people, and with Facebook every so often changing the privacy rules to try and make it more of a business proposition.
$27 per share, $57.58 billion market cap.
That is a loss of $23.74 billion, 30% of the flotation price. Maybe now things have found their true level, but I cannot see how this business can justify much more than a 10-20 billion value (and even that is pushing the imagination).
That would imply a share price of $9...
The shares have taken quite a battering, and confidence is down.
There are 2.14 billion shares issued.
$38 per share, $81.32 billion market cap.
This was an incredible floation price, remember it is just a website people use for free, with advertisers try to target those people, and with Facebook every so often changing the privacy rules to try and make it more of a business proposition.
$27 per share, $57.58 billion market cap.
That is a loss of $23.74 billion, 30% of the flotation price. Maybe now things have found their true level, but I cannot see how this business can justify much more than a 10-20 billion value (and even that is pushing the imagination).
That would imply a share price of $9...
Sunday, May 20, 2012
Facebook IPO
So it has finally happened a floation on the stock market for $38 dollars a share around $100 bn in market capitalisation. You can now have your own piece of the social media company.
I think the companies frank admission that they have yet to move advertising from the PC platform to mobile (where most users access the site from) probably tells all you need to know about their future. In business terms this means they are already yesterdays company. No doubt extremely popular with users, but unless you put adverts in front of them the "free" bit of the social network will not sustain the business.
I think Zuckerberg and Sandberg know this, so the IPO is probably the height of the company. It is still an amazing story of a business grown from its initial venture capital to this point where they have found enough banks to back a floation and presumably found enough people to initially buy the shares. What was it P T Barnum said about the birth rate of suckers - it's clearly true!
As always it is a crying shame that so many talented people are spending their lives working out how to make users click on an advert to drive revenue growth. Maybe we now know what kills off all civilisations, an increasing obsession with trivia rather than true innovation.
The financial press I have read have all said this is not one for your pension fund!
I think the companies frank admission that they have yet to move advertising from the PC platform to mobile (where most users access the site from) probably tells all you need to know about their future. In business terms this means they are already yesterdays company. No doubt extremely popular with users, but unless you put adverts in front of them the "free" bit of the social network will not sustain the business.
I think Zuckerberg and Sandberg know this, so the IPO is probably the height of the company. It is still an amazing story of a business grown from its initial venture capital to this point where they have found enough banks to back a floation and presumably found enough people to initially buy the shares. What was it P T Barnum said about the birth rate of suckers - it's clearly true!
As always it is a crying shame that so many talented people are spending their lives working out how to make users click on an advert to drive revenue growth. Maybe we now know what kills off all civilisations, an increasing obsession with trivia rather than true innovation.
The financial press I have read have all said this is not one for your pension fund!
Wednesday, December 28, 2011
UK Tax System
Good summary of the UK tax system, the article demonstrating that income is taxed far more heavily than other forms of earnings.
http://www.lovemoney.com/news/household-bills/tax/12685/why-working-is-a-mugs-game
So about 30% of income for most people. A simplified tax system is long overdue, but it seems further away than ever. Especially since direct income tax is seen as a difficult thing for the government to raise.
http://www.lovemoney.com/news/household-bills/tax/12685/why-working-is-a-mugs-game
So about 30% of income for most people. A simplified tax system is long overdue, but it seems further away than ever. Especially since direct income tax is seen as a difficult thing for the government to raise.
Tuesday, November 29, 2011
Osborne finds some levers
When they came to power Osborne said it was not as if he had some levers he could pull in his office to get economic growth, it was down to the people of the country and businesses to provide it.
Well he seems to have found some levers now, infrastructure investment, loans to smaller companies. All sounds good in principle, it's a shame governments do not think of doing more of this even in the good times.
The spectre of PFI deals looms over us though, a financial trick that allows outside private firms to earn interest payments off public funded developments - with advisors from private firms working in the treasury sounds like another scandal waiting to break
Well he seems to have found some levers now, infrastructure investment, loans to smaller companies. All sounds good in principle, it's a shame governments do not think of doing more of this even in the good times.
The spectre of PFI deals looms over us though, a financial trick that allows outside private firms to earn interest payments off public funded developments - with advisors from private firms working in the treasury sounds like another scandal waiting to break
Sunday, June 26, 2011
Greece Default
The news this week of if Greece looking for at least longer time to repay bonds, and a worst just a reduced payment for lenders. This really could be the second part of the bankrupt state part of the recession.
The interesting twist of China now stepping in to back the Euro debt, their interest is to keep trade and export markets open - it does seem an interesting move on their part.
This may stop the Euro from completely collapsing, and maybe the breathing space needed for those states that take single currency responsibly to separate themselves from those who do not.
The interesting twist of China now stepping in to back the Euro debt, their interest is to keep trade and export markets open - it does seem an interesting move on their part.
This may stop the Euro from completely collapsing, and maybe the breathing space needed for those states that take single currency responsibly to separate themselves from those who do not.
Greece Default
The news this week of if Greece looking for at least longer time to repay bonds, and a worst just a reduced payment for lenders. This really could be the second part of the bankrupt state part of the recession.
The interesting twist of China now stepping in to back the Euro debt, their interest is to keep trade and export markets open - it does seem an interesting move on their part.
This may stop the Euro from completely collapsing, and maybe the breathing space needed for those states that take single currency responsibly to separate themselves from those who do not.
The interesting twist of China now stepping in to back the Euro debt, their interest is to keep trade and export markets open - it does seem an interesting move on their part.
This may stop the Euro from completely collapsing, and maybe the breathing space needed for those states that take single currency responsibly to separate themselves from those who do not.
Subscribe to:
Posts (Atom)