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...unlike its much larger financial rivals, Cantor never made home loans. It trades mortgage bonds, but never held onto bundles of those bonds hoping to make a big profit. That means Cantor has not had to suffer the same credit crunch that its larger rivals have been struggling with for more than six months as many of those loans or bonds have gone bad. Many firms have had to pull back from some trading businesses, or go out of business all together...

Author: /time Magazine | Title: Cantor Fitzgerald, Victim of 9/11, Thrives in Recession | 4/17/2009 | See Source »

...what does that actually mean, dumbed down? Whitney's question was specifically about Citi's $1.7 billion in investment-banking profits in Europe, and Kelly's eventual answer was basically just that business had been good. But bank financial statements are never that simple: Citi's overall investment-banking earnings were boosted by a $2.5 billion derivatives valuation adjustment "mainly due to the widening of Citi's CDS spreads." In somewhat dumbed-down but still utterly flummoxing language: credit-default swap (CDS) spreads represent the cost of insuring against Citi's default. That cost went up in the quarter...

Author: /time Magazine | Title: Citigroup's Surprising Profit: Is It for Real? | 4/17/2009 | See Source »

...demise of competitors is good for profit margins. For the past 40 years, the rise of a shadow banking system of securitization, investment banks, hedge funds and private-equity firms has taken business from conventional banks. Now much of that shadow banking system is gone, and the surviving banks - battered as they may be - are gaining market share in everything from mortgage lending to investment banking. As Wells Fargo shareholder and Goldman Sachs bondholder Warren Buffett put it on CNBC in early March, "This is a great time to be in banking, you know, if you just get past...

Author: /time Magazine | Title: Citigroup's Surprising Profit: Is It for Real? | 4/17/2009 | See Source »

...frozen credit markets caused lenders to shy away from issuing high risk loans. HUECU president Eugene J. Foley acknowledged that the credit union will likely see higher default rates on international student loans. But because the credit union—unlike commercial banks—is a not-for-profit organization, profit maximization for shareholders is not a primary concern. As a result, the credit union is able to offer more competitive rates and arrangements for borrowers. “Everyone shares profits equally through lower rates,” Foley said, explaining that the credit union acts...

Author: By Athena Y. Jiang and June Q. Wu, CRIMSON STAFF WRITERSS | Title: HUECU To Offer Student Loans | 4/16/2009 | See Source »

...would have a first-rate hospital and a handful of mansions. There's no bank, no grocery store and more than 70% of the inhabitants of the municipality that includes La Reforma, called Huite, are poor. But officials tell TIME they suspect a few locals are making a handsome profit by assuring that Colombian cocaine makes it safely through Guatemala to Mexico and then...

Author: /time Magazine | Title: In Guatemala, a Village that Cocaine Built | 4/16/2009 | See Source »

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