Articles Written by:    VERNON HILL     

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The People's Republic of America: See What Congress Is Doing?

As the ongoing financial panic unfolds, no event has been more staggering—or dramatic---than the collapse of AIG. This was once one of the world's great companies, not just in financial services, but in any industry, anywhere. At its peak, the company ...

From VERNON HILL, ETF Investor,  25 Mar 2009
Related Topics: American International Group

E.U. Eases Mark-to-Market Rules; What's the U.S. Waiting For?

The European Union has accepted the International Accounting Standards Board’s proposed easing of its version of mark-to-market accounting rules. Good for the EU.  The U.S. should follow. As I mentioned here Wednesday, mark-to-market accounting forces ...

From VERNON HILL, ETF Investor,  19 Oct 2008
Related Topics: European Union

Mark-to-Market Accounting Makes Speculators of Us All - And That's Bad

I recently had the pleasure of doing a joint interview with Jack Bogle, the legendary founder of Vanguard Funds. Jack reminded me of his belief that the U.S. has become a country of speculators rather than investors, and that this change was one of the ...

From VERNON HILL, Seeking Alpha,  16 Oct 2008

Wachovia Goes West - The Deal's a Natural

Thankfully, the ill-fated Wachovia-Citigroup merger has been killed before it had a chance to be born. The combination never had any chance of success. And, thankfully, too, Wachovia has found an acquirer that will provide both its shareholders and its ...

From VERNON HILL, ETF Investor,  3 Oct 2008
Related Topics: Citigroup

Wachovia for Free? Citi Still Paid Too Much

Tom Brown argues that Citigroup’s (C) Wachovia (WB) deal is a home run, and that the company is getting Wachovia’s banking business essentially for free. I don’t buy it. Nothing is cheap enough if the buyer can’t integrate the acquired institution or ...

From VERNON HILL, ETF Investor,  2 Oct 2008
Related Topics: Citigroup,  Tom Brown,  Wachovia Corporation

Wachovia-Golden West Transaction: A Disaster Without Peer

The financial crisis has finally proved (if anyone needed more evidence) the sheer value-destroying power of large-scale M&A in financial services. The past ten years have seen one disastrous deal after another. You will have your own favorite: ...

From VERNON HILL, Seeking Alpha,  1 Oct 2008
Related Topics: Citigroup

Time for the FDIC to Raise Limits on Insured Deposits

While Congress frantically tries to save Wall Street in order to save Main Street, it should focus first on directly protecting the financial security of all Americans and the U.S. banking system. How? By raising the limit on FDIC insured deposits from ...

From VERNON HILL, Seeking Alpha,  1 Oct 2008
Related Topics: U.S. Congress,  Lehman Brothers

Money Market Funds: 'Chutzpah Banking'

Back in the 1970s, when passbook savings rates were regulated (and set well below market rates) a new beast arose to fill the role bank savings accounts once played: the money market mutual fund. These were pools of highly liquid funds, reportedly ...

From VERNON HILL, Seeking Alpha,  23 Sep 2008

Bank Crisis: Where Were the Regulators?

As the shadow banking system implodes and core deposit-funded banks prepare to expand to fill the void that’s been created, inquiring minds want to know: where on earth were the regulators? Answer: they were counting the twigs as the forest ...

From VERNON HILL, Seeking Alpha,  23 Sep 2008

FDIC Insurance Fund - It Doesn't Actually Exist

When FDIC head Shelia Bair says her agency might have to bolster the FDIC's insurance fund with Treasury borrowings to pay for the new spate of bank failures, a lot of us, this 40-year banking veteran included, assumed there's an actual FDIC fund in ...

From VERNON HILL, Seeking Alpha,  12 Sep 2008

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