A Review of Tier 1 Capital Ratios of Large US Banks

A bank’s Tier 1 Capital Ratio is an indicator of its strength and ability to absorb losses. Regulators  in the USA and other countries are now using this factor in addition to others to identify banks that are likely to collapse. The Tier 1 capital ratio is the ratio of a bank’s core equity capital …

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Chart: Federal Reserve Banks Pay Annual 6% Fixed Dividend

  via Pension & Investments “The 12 Federal Reserve banks provide the financial means to operate the Federal Reserve System. Each reserve bank is organized much like a private corporation so that it can provide the necessary revenue to cover operational expenses and implement the demands of the board. Member banks are privately owned banks …

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Paul Krugman: UK Economy is The Best in Europe

In an interview today with The Observer of London,  Nobel Prize-winning economist Paul Krugman said: “I think the UK economy looks the best in Europe at the moment. I have no position on all of the crazy stuff. But I think the policies are intelligent. The fact of the matter is that Britain did manage …

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Funding Retirement: Employers Share Vs. Employees Share

Interesting chart from OECD Observer on retirement contributions by employers  Vs. employees in select OECD countries. Unfortunately USA was excluded in this chart. Source: OECD Observer Excerpts from the report: “If you are a Polish worker, then you are probably paying 99% of total contributions, which is the highest in the OECD area. Turkey’s workers …

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Economies of Developed World Projected To Get Worse Before Recovery

Most markets in the developed world have rallied sharply since hitting the lows in March this year.For example, the S&P 500 is has rallied 40%  from March lows as of yesterday. Fed officials and many others have been talking up the economy and there have been talk of “green shoots” appearing in the economy.Some economists …

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