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Banking and Finance
When bank revenues go down ... society is better off! The slumping revenues of the banking sector is really good news for the economy as a whole ... http://www.bloomberg.com/video/82281044/ and http://www.bloomberg.com/video/82852232/ Peter Burgess COMMENTARY For investors in Citigroup and Citigroup executives, the idea that a bank has 'slumping revenues' is very bad news. This translates into worker layoffs which is bad news for the workers, and bad news when reported in economic statistics on unemployment. But none of this asks the critical value chain question ... specifically where have the slumping revenues come from? The answer could well be that the society at large is now paying less to Citigroup for financial services and are better off by this amount. Slumping revnues for the banks is offset by soaring cost savings for society. The faster the big banks can downsize, the better off the working part of society is going to be. The challenge for TrueValueMetrics is to put some reasonably reliable quantification around this concept. Commentators from the investor class do not pay any attention to the fact that revenues from the activities of banks are all revenues that are part of a 'zero sum' activity ... worse is that these activities are mainly part of a value destruction value chain. Additional COMMENTARY January 2024 Banking is an ACTIVITY. The IMPACT of an ACTIVITY may be either
The modern day problem is that the United States has a constitutional rule that allows 'free speach' without very much constraint as to its veracity, as do other jurisdictions. The propagadion of falsehoods may be 'legal' but in my view can never be 'right'. In the analysis of ACTIVITY, the prevailing system of money accounting is no longer fit for purpose. We need something that addresses the different IMPACTS an activity generates and ALL the different ACTORS that are impacted. Instead of thinking simply in terms of MONEY and the ECONOMIC IMPACT, the framing for TVM (TrueValueMetrics) is that ALL the IMPACTS must be accounted for ... that is SOCIAL IMPACT anf ENVIRONMENTAL IMPACT as well as ECONMIC IMPACT. While the SOCIO-ENVIRO-ECONOMIC SYSTEM (SEES) as a whole is very complex, the many individual bits of the total system can be quite simple and manageable. With TVM it becomes possible to optimise for both the TOTAL of the SEES SYSTEM and the many indiviual components of the system unlike conventional corporate financial accounting that only addresses the issue of CORPORATE PERFOEMANCE and the related PROFIT FOR INVESTORS. Peter Burgess | ||
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Citigroup to Cut 4,500 Jobs on Slumping Revenue
Dec. 6 (Bloomberg) -- Citigroup Inc. Chief Executive Officer Vikram Pandit says the bank will cut about 4,500 jobs in coming quarters as he seeks to trim costs amid slumping revenue. Bloomberg's Julie Hyman reports on Bloomberg Television's 'Taking Stock.' Bloomberg's Pimm Fox also speaks. (Source: Bloomberg) U.S. Banks May Cut 150,000 Jobs in 2012, Bove Says Dec. 15 (Bloomberg) -- Richard Bove, an analyst at Rochdale Securities LLC, talks about Morgan Stanley's plan to cut about 1,600 jobs and the outlook for further job reductions at U.S. banks. Bove, speaks with Scarlet Fu on Bloomberg Television's 'InBuisness With Margaret Brennan.' (Source: Bloomberg)
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