Important Banking News

On September 8, 2011 Federal Reserve Board Chairperson Ben Bernanke spoke in Minnesota regarding the long term outlook for the economy of the United States. Suffice it to say, he thinks there presently exists a lot of reasons why the recovery will go so leisurely, including deficiency of growth in the housing and new construction industries in addition to reduced household expenditures to be a depiction of low customer confidence. In further banking news, the amount of individuals that Bank of America will likely need to lay off is growing multiple differing reports have been received. The latest released number is 40,000.Based on a press release dated 9/10/11 from the bank in Charlotte N.C., it is an accurate projection.

In bank reviews from the Bank of America, Christopher Whalen acknowledged You're definitely going to see diminished service levels for consumers. Christopher, who follows Institutional Risk Analytics, additionally stated They're debating perhaps shutting down branches or maybe decreasing the head count inside the branches. 40,000 employees are greater than ten percent of B of A's work force. Part of its troubles come from the takeover of Countrywide in 2008, which has subjected it to legal actions.

Even smaller banks are cutting expenses. In banking news on 9/9/11, Valley National Bank revealed that it won't continue its Moody's Rating Coverage as soon as the existing contract expires.

After a review of our present ratings, management figured that we have now appropriate coverage from a range of businesses, including Standard & Poor's and DBRS, that rate our institution according to Senior Executive Vice President and Chief Financial Officer Alan Eskow. Reported by S&P and DBRS, Valley had 'A' ratings which has a reliable outlook.

Mr. Eskow further declared, the amount of securities outstanding isn't going to merit 3 ratings agencies presently.

Valley National Bank has its home office in Wayne, New Jersey. It is going to keep service in the regular places.

On the whole bank reviews are anticipated to fall as banks struggle with approaches to pay for the new demands of the Durbin Amendment. Banks have increased fees, cut back on rewards programs, and so are making new fees up. This generally seems to make sense as the banking industry is believed to forfeit a whole heap by the year 2013.