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2
by Evans, Jocelyn, Hayden, Jessica
published 2018
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3
published 2018
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4
5
by Urofsky, Melvin I.
published 2018
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6
7
published 2009
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8
published 2008
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10
published 2002
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11
published 1999
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14
by first-quarter last week and credited, broad-based organic growth and acquisitions, including a recent one in the, United States., We are used to delivering good and solid results, but this time I would, chief financial officer, Philippe Bordenave said Friday from Paris on a conference call., The $1.5 trillion-asset company reported net income of $2.4 billion, more than a year earlier, buoyed by 31% jump at its international retail, division, which includes its consumer finance unit, Cetelem SA, and the $66, billion-asset BancWest Corp. in this country., BancWest earned $332 million before taxes, 41% more than a year earlier., Commercial Federal Corp. of Omaha, acquired in December, was behind most of, will deliver the expected synergies across, BancWest, whose administrative headquarters are in San Francisco, contributed 9% of BNP's $3.54 billion in pretax income. Excluding, Commercial, Federal, BancWest's loans grew 6.9%, its deposits 3.8%, its revenue 8.6% --, and its expenses 5.4%., The western U.S. retail banking market continues to offer a very, attractive combination of strong economic growth, favorable demographics, Mr. Bordenave said., Georg Kanders, an analyst with WestLB Equity Markets, said BNP has its, hands full with the recent acquisition of Italian banking group Banca, Nazionale del Lavoro, whose second-quarter results will be included in the, buyer's., BNP has said it might acquire small banks to expand BancWest, but Mr., I think they are not urgently looking right, if there is an opportunity, sure, they will, Last month Don J. McGrath, BancWest's president and chief executive, said, that having grown through acquisition last year and the year before, will, focus on organic growth this year., Though BancWest's organic growth was slower than that of other BNP, businesses in the first quarter, Mr. Kanders said its performance beat his, This is normal retail banking, and you can't compare it to, asset management and investment banking or with emerging markets, BNP said the revenue of its French retail bank rose 11%, to $1.74, billion, as that of its international retail unit, which includes BancWest, climbed 31%, to $2.13 billion. Asset management revenue jumped 28%, $1.25, billion, and the revenue of BNP's investment bank soared 46%, to $2.75, billion., rating and said BNP's overall results, In a report Friday, Jean-Pierre Lambert of Keefe, Bruyette & Woods Ltd., in London wrote that BNP's net profit was 28% above consensus and 22% above, his forecast. BNP is his top pick among French banking stocks., BancWest's pretax profit was 2% shy of his forecast, but its 38% rise in, revenue beat his 27.8% forecast. The revenue growth was offset by a 38.2%, rise in expenses, though, he had expected 12.7%.
Published in American Banker (2006)
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by Marc Hochstein and Will WadeBreaches, Used disk drives containing confidential data from Idaho Power Co. have, turned up for sale on eBay Inc.'s auction Web site., The Boise utility discovered last week that Grant Korth, a Nampa salvage, company it hired to recycle about 230 storage devices, had neglected to, erase, them before listing them on the site, ComputerWorld reported Monday., The drives contained confidential employee information, correspondence, with customers, and memos discussing proprietary corporate information., Twelve people or companies purchased 84 of the drives, 10 of the buyers, have, said they would return the devices to Idaho Power. The final two had not, been, found as of Monday., Grant Korth has already handed over the remaining 146 drives to the, utility., Many companies recycle disk drives, and Idaho Power said that in the past, it has either destroyed its old storage systems or scrubbed them clean, before, recycling them. The utility plans to investigate why Grant Korth failed to, erase them, as it was supposed to do., Idaho Power also announced a new policy of destroying all its old storage, systems instead of recycling them., Hackers may be targeting credit unions more than banks., The Atlanta security service provider SecureWorks Inc. said that it, blocks 767 attacks a day against its credit union clients, and that the, number of such attacks increased 67% from February of last year to March of, this year., Only SecureWorks' largest banking clients -- those with assets of $500, million to $10 billion -- receive more attacks, 968 a day. Banks with $100, million to $500 million are hit 285 times daily, and those with less than, $100 million are targeted only 85 times a day, ITObserver reported Tuesday., SecureWorks chief technology officer Jon Ramsey said hackers may think, credit unions are easier targets than banks., We hear many credit union prospects say they can't imagine a hacker, would want to target them, because they are small. Unfortunately, it is a, mistake for any financial institution to think they are safe because of, their, These findings do indicate that our credit, union, Not all data breaches are high-tech., The Federal Trade Commission has reached an agreement to settle, allegations that Nations Title Agency, a unit of Nations Holding Co. of, Prairie Village, Kan., tossed consumer home loan applications in an open, trash container., A news crew from a local television station found the discarded, documents, which contained sensitive personal information, in the trash in, February of last year, according to the FTC's complaint., In April *2004-, Nations Title's carelessness allowed a hacker to use a, common Web site attack to get unauthorized access to its computer network, the FTC claimed., The FTC announced its settlement agreement Wednesday. Nations Title, agreed to establish a comprehensive information security program and to be, audited every two years for the next 20 years by a third party. The, agreement, which is subject to a 30-day public comment period, would not, require Nations Title to pay a fine or admit wrongdoing., Laws, In the last month Indiana, Wisconsin, and Nebraska have enacted breach, notification laws that go beyond the other 23 state laws in the types of, information protected and the number of consumers and companies affected, News reported Wednesday., The laws in Nebraska and Wisconsin require notification if an, unauthorized person acquires biometric data such as fingerprints, voice, prints, or retina or iris images. Wisconsin also requires companies based, there to notify all customers of a breach -- even those who live outside, United States., purports to regulate companies outside Indiana to an, the trade publication reported. Like most state, laws,, in the state, but it, personal, information, It is unclear whether the law would hold up in court, DM News said., In Washington, the House Judiciary Committee held a hearing Thursday on a, bill that would make it a crime to knowingly fail to report a breach that, resulted in economic harm to a consumer. (See related story on page 19.), Rep. F. James Sensenbrenner, R-Wis., introduced the legislation Tuesday., It would require anyone who owns or holds personal consumer data and, at least 5,000 consumers,, federal databases, to notify federal authorities., It is not clear how the bill might conflict with others being considered, Congress, or when the committee might vote on it., Technology, Many of the viruses, worms, and other unpleasant software that have, worked their way across the Internet in recent years caused problems with, recipients' computers, such as clogging up their e-mail systems or erasing, files, but they were not designed to steal money., But according to a study released last week from the Bilbao, Spain, security company Panda Software International SL, 70% of the malicious, programs its scanning software detected in the first quarter were developed, specifically to be used for theft., Spyware and Trojan horses -- applications that can quietly observe users', activity, such as entering an online banking password, and then send the, information to a criminal -- accounted for 57% of the cases, the British, site TheRegister.co.uk reported Monday., E-mail worms, which generated headlines a few years ago by infecting, millions of computers worldwide but were not used for financial crimes, accounted for only 4% of the cases., Radio frequency identification technology has made it possible for, criminals to pluck security credentials out of thin air using wireless, scanners., The codes stored on contactless keycards, commonly used for building, entry and retail stores' inventory management systems, can often be copied, and then written on to other chips, according to Wired magazine, which, described this month how to convert the RFID chip in a package of cream, cheese into a hotel keycard., The back-door flaw appears only in less secure implementations of RFID, in which the data blocks are not encrypted, but many companies use, unencrypted systems because they are less expensive than those that use, encrypted chips., Security Watch is a weekly roundup of news and developments in data, security and their impact on financial services companies., E-mail comments, ideas, and suggestions to Daniel.Wolfe&lt, at&gt, SourceMedia.com.
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by Matt AckermannThough the bancassurance business model that is common in Europe never, caught fire in the United States as analysts had expected in the late, 1990s,, insurers such as AIG and MetLife say they are making a variation of it work, in the Far East., American International Group Inc. says it has a 26.4% share of insurance, product sales in Japan and distributes through 95% of the country's banks., MetLife Inc., though much smaller, more than doubled its shares of premiums, sold in Korea and China during 2005. The companies depart from the European, model in that they do not own the banks doing the distributing., become synonymous for customers who can meet all their financial, services needs in one place., Bancassurance is just a natural fit in the Asian markets, said Stephan, Rajotte, the managing director of MetLife International's Asia-Pacific, Traditionally, insurance companies sell through agents -- and, those, agents only have access to a certain number of people -- but everyone goes, Tetsu Hirano, the executive officer of asset management operations and, bancassurance for AIG East Asia Holdings Management Inc., said banks are, best portal for distribution in Asia, especially in Japan., Japanese individual assets tend to remain in bank deposits, so banks, have a huge opportunity to offer additional products and services to, This presents a real opportunity for banks, Asia. In the U.S., other broker-dealers and other financial companies have, access to individuals, Mr. Rajotte said bancassurance is still a relatively new concept in Asia., MetLife has had a presence in Korea and Taiwan since *1989-, Hong Kong, since *1992-, and China's capital, Beijing, since *2004-, gained access to Japan and Australia last July when it bought Traveler's, Life, and Annuity from Citigroup Inc. MetLife only began distributing through, banks, in Hong Kong six or seven years ago, and in Korea and Taiwan in, September 2004., AIG began distributing through Japanese banks in October *2002-, Mr. Hirano, said., In *2001-, 95% of MetLife's insurance distribution in Asia was through, agents and 5% through banks and telemarketing. Today, 75% of its business, through agents, 20% through banks, and 5% through telemarketing., Mr. Rajotte said., In the next five years, I could see business through nonagency channels, could be 50-50. I could see bancassurance accounting for 40% to 50% of our, MetLife's effort has grown fastest in Korea, where its share of the, channel reached 9% at Dec. 31, up from 3.7% at the end of 2004. His company, continues to trail AIG, however, Mr. Rajotte said., That is one, Mr. Hirano, said AIG sells its products in 95% of Japan's 125 banks and has increased, share quickly in the past three and a half years., Mr. Rajotte said the model has succeeded in Asia, by contrast with the, United States, because Asian agents lack the stranglehold on the industry, The agency sales force in the U.S., They have slowed bancassurance development, in Asia., Though Americans are besieged by mutual fund companies, insurers, other financial institutions fighting for their business, Asians, have a strong affinity for their banks. Analysts agreed that banks are more, dominant financial services distributors in Europe and Asia than in the, United States., Banks essentially control most distribution of financial services, said Kenneth Kehrer, the president of Kenneth Kehrer, Associates, a, Princeton, N.J., bank-insurance consulting firm., In Spain, 70% of all life insurance sales are made through banks, France, about 62%, and in Italy and Belgium, just under 60%, according to, data from Fitch Ratings., Mr. Kehrer said he has a lot of U.S. clients who are very interested to, U.S. firms, are very interested to learn how firms in Japan, South Korea, and Latin, They have a, highly productive sales force, Mike White, an analyst at Michael White Associates, a Radnor, consulting firm, said bank insurance distribution in the United States has, The organization was effective for a long, time in retarding the sale of insurance through banks, but I think that, that, Mr. Rajotte said MetLife's model for building bank distribution in Asia, is all about simplicity. The company is offering relatively simple, commodity-like products that are easy to understand, It is, Mr. Hirano said that to succeed in bank distribution insurance companies, must be able to deliver a competitive product smoothly and easily. Most, banks, in Japan own their own insurance companies, and it can be, difficult, for independent companies., providing high-quality products with strong client services, you can, You have to be able to maintain strong customer, In May, both insurers moved to expand in China. MetLife launched a joint, venture with Shanghai Alliance Investment Ltd., and AIG received approval, from the China Insurance Regulatory Commission to expand throughout the, provinces of Guangdong and Jiangsu., Mr. Hirano said 90% of AIG's sales in Japan come through banks., MetLife has relatively small shares in most Asian markets -- 2.3% in, Korea, just 0.03% in China, about 0.6% in Taiwan, and 1.7% in Hong Kong as, the end of 2005 -- but Mr. Rajotte said that bancassurance is helping it, develop business., U.S. and foreign companies are beginning to realize that relying solely, on an agency sales force is expensive and limiting, and insurers, need to be more creative in terms of distribution to ensure that they do, lose customers to other financial institutions., I just feel that today, if I had a choice to go into a new country in, Asia, even in Vietnam, Thailand, or Malaysia, in markets that are not as, sophisticated as the U.S. or Hong Kong, I wouldn't start with agency, It is too expensive. ... We will not go into, countries through agents because of the cost. Bancassurance and, telemarketing, In the telemarketing realm, MetLife has begun distributing through the, home shopping network in Korea and Taiwan and plans a similar service in, China. Mr. Rajotte said MetLife has generated 2, 000 to 3, 000 policies per, month through the channel. Prudential uses infomercials to sell insurance, Korea., We want to make ourselves accessible to all clients whether they buy, through banks, through the telephone, through agents, or through an, Usually we say that Asia is behind the U.S. ..., but when it comes to, bancassurance and distribution, that just isn't the case, Mr. Rajotte, said., The U.S. eventually will have no choice but to move to more open ways of, He said clients in Asia are not yet demanding access to nonproprietary, products but he knows the market will evolve in that direction.
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by Steve BillsOracle Corp. of Redwood Shores, Calif., moved closer to its stated goal, of becoming a more important banking technology provider Tuesday by, announcing it would purchase a majority stake in the Indian core processing, developer i-flex solutions ltd., Oracle is known for its back-office database technology, and though it, has many bank customers, it lacked a menu of banking-specific applications, such as core processing., Observers say that by acquiring i-flex, it would gain products, specifically aimed at banks and would move beyond its strategy of offering, one product to multiple industries., I-flex is one of the fastest-growing core systems providers worldwide, though its U.S. sales are low. Analysts say Oracle's backing would probably boost i-flex's sales substantially in this country., Charles Phillips Jr., Oracle's president, said in an interview Tuesday, after the deal was announced that i-flex should fit naturally into his, company's product line. The two companies already collaborate on product development, and i-flex uses an Oracle database for its core banking applications, I-flex was the preeminent company we could buy to gain access to this, This is a very elegant relationship, Oracle said it would buy Citigroup Venture Capital International's 41%, To acquire up to 20% more of i-flex's stock, Oracle also announced an, offer to buy shares for $20.33 each. The tender offer, required by Indian law, could bring the total price tag for the deal to as much as $909 million., Oracle said that it plans to complete its purchases this year, and that, it has no plans to acquire the remaining 39% of the stock., Rajesh Hukku, the chairman and managing director of i-flex, said the, tighter relationship with Oracle, the world's largest maker of corporate, enterprise software, should help his efforts to sell his products in the, United States., The combination with Oracle will give a lot more credibility and, to bankers who may have resisted purchasing i-flex software until, Mr. Hukku said. His company already receives about half its services revenue from the United States, mostly for writing customized financial programs for customers such as the American Stock Exchange and the International Monetary Fund, but few banks here have bought its flagship Flexcube core processing system., About 8, 500 banking companies in 115 nations use i-flex's software and, services, Citi has said it plans to use Flexcube in 90 nations, though it has not announced any plans to use the system for U.S. accounts., Mr. Hukku said i-flex's strongest sales have been in the Asian banking market, and it has recently made some gains in Europe, In its last fiscal year, which ended March 31, i-flex's earnings rose 14%, from the previous year, to $46.6 million. Revenue grew 42%, to $261.4 million., M. Arthur Gillis, the president of the Dallas research and consulting firm Computer Based Solutions Inc., said both Oracle and i-flex should benefit from the deal., In terms of perceptions, for Oracle, he, Oracle positions itself as a major banking vendor -- it says 17 of the, world's 20 largest banks, and 23 of the top 25 in North America, use its, always been a stepchild, a, discrete piece of work that often doesn't touch the banking systems, a tremendous boost by having a name like, I don't know if bankers would admit it, but in Illinois, Iowa, Christopher F. Penny, an analyst at Friedman, Billings, Ramsey & Co. Inc., I-flex has made few software sales in this country, mostly to the, it could potentially put another, However, Oracle is certainly making that bet that they can penetrate that market
Published in American Banker (2005)
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