New York | Did Goldman Sachs (GS) and Apple Inc. (AAPL) discriminate against women in the provision of credit on the new accounts for the Apple Card? Probably not deliberately, but credit scoring systems generally see women as being inferior credit risks – both internal and external to the actual underwriting process. When you apply for consumer credit, your individual score and credit utilization history are the primary criteria considered. “Several husbands — including Ap
New York | Last week we pondered the fate of Citigroup (C) and several other global banks that have lost their raison d'être with a group of veteran treasury and operations managers. Will the bank built over the years to service the political inhabitants of the post-war Pax Americana survive another decade? Or will the relentless consolidation of the banking industry at the top continue by forcing the sale or breakup of C? During the Cold War years and after, Citi was a ver
New York | Last week in The Institutional Risk Analyst we mentioned the transition from that carefully managed reality, that “new abnormal” of the past decade, to something very unfamiliar to most investors. Over the past two months, wildfires have swept over numerous industry sectors, leaving a lot of previously expected investment returns in ashes. The real human tragedy in CA will certainly hurt economic growth, but the carnage on Wall Street also is immense and growing.
New York | None other than Warren Buffett of investment fame started off the week complaining to Becky Quick of CNBC that there’s not enough big things to buy. Railroads? Airlines? Not even Wells Fargo & Co (NYSE:WFC) suffices to satiate Mr. Buffett's hunger for assets. With over $120 billion in cash burning its way through his trouser pocket, the best that the Sage of Omaha can come up with is buying one of the most overvalued stocks of all, namely the computer cult led by
Austin | Last week we heard optimistic noises coming from some of the top executives in the world of mortgage finance at the Americatalyst 2017 event. Falling interest rates have managed to get new applications for mortgage refinancing even with purchase loans for the first time in months, this as the 30-year mortgage has fallen back to pre-election levels. We're still calling for the 10-year Treasury to go to 2% yield or lower. The good news for Q3 ’17 earnings is that pro