CFA Society Chicago NewsBrief
May. 20, 2014

Over a third of Chicago's national banks still have issues
Crain's Chicago Business
The Chicago area's community banks are slowly healing from the Great Recession, but more than 1 in 3 with national charters still aren't healthy by the standards of federal regulators. Eighteen of 50 local banks regulated by the U.S. Office of the Comptroller of the Currency were low-rated, meaning that their condition isn't strong enough to permit them, for example, to buy other banks. A few of those are likely to fail, OCC officials said in a recent briefing.More

Geithner and Paulson — financial crisis survivors
CFA Chicago
Timothy Geithner and Henry Paulson, former secretaries of the United States Department of the Treasury, have more than just a job title in common: Both have served during our country's darker financial times. Join the CFA Chicago Council on Global Affairs and CFA Chicago on Wednesday, May 28 at 5 p.m. for an event you won't want to miss. Henry Paulson will interview Timothy Geithner about his most recent book, and the two will discuss financial crises and the factors shaping our economic future.More

What does it take to break the glass ceiling?
CFA Chicago
What does it take to be a groundbreaker? Award-winning executive producer Betsy West shares behind-the-scenes stories and surprising insights from interviews with the most influential women in America — from Meg Whitman to Ursula Burns to the late Muriel Siebert — all part of the innovative and inspiring MAKERS series from AOL and PBS. On Tuesday, June 3 at 5 p.m., we will see and discuss women trailblazers in finance, women who reached the C-suite and women who prospered in traditionally male professions.More

From unconventional strategies to respected theories
CFA Chicago
Besides boasting a successful 30-year career in portfolio management, Rob Arnott has made a name for himself in the financial landscape for reasons other than tenure — Arnott has continued to impress his colleagues as "one of the world's most provocative practitioners." On Thursday, June 19 at 12 p.m., Arnott will share his respected theories and intriguing analysis with those who attend the Distinguished Speaker Series at the Metropolitan Club in Willis Tower. This is a must-attend event, so register now to secure a spot. More

13F watch: Activist investors fill the void
CFA Institute's Enterprising Investor
Thanks to a bull market and strong relative returns, assets under management for activist investors have swelled — tripling in just the last five years — allowing these high profile fund managers to launch more campaigns and take on bigger companies. There have been well over 200 activist campaigns launched in each of the past three years, an eight-fold increase since 2000.More

What really differentiates the Chicago startup scene from Silicon Valley
Blue Sky Innovation
Chicago will host its first Venture Capital Summit this fall, and this is great news for our city. This will be the first organized event to draw in investors from around the country to look at Chicago startups. This is a good first step of many to get the Chicago startup ecosystem on par with our West Coast counterparts. However, what differentiates us from Silicon Valley? How do we add technology as our next major industry? Why should investors invest in our startups versus others?More

'Pop-up' bank branch to open in Chicago
Chicago Tribune
PNC Bank is set to open a "pop-up" branch location near Grant Park that will remain there for only three months, a move that illustrates how banks are looking for creative and less expensive ways to serve current customers and win new ones in an age of digital banking. For years, retailers have used "pop-up," or temporary, stores to create buzz for a brand, take advantage of foot traffic in tight spaces and make use of vacant real estate to sell goods for holidays like Halloween.More

EU banks urged to boost capital as stress test doubts voiced
Bloomberg Businessweek
European banks are being urged to boost their ability to withstand losses before the conclusion of a stress test that is drawing criticism for its design. Axel Weber, the chairman of Zurich-based UBS AG and a former head of Germany's Bundesbank, said that stress-testing banks that have depleted capital is akin to expecting a patient recovering from a heart attack to pass a rigorous physical exam. More

MB Financial's Cole Taylor buy hits a speed bump
Crain's Chicago Business
The deal at first looked great for Cole Taylor Bank. In March 2012, the Rosemont bank signed a five-year contract to handle deposits for Higher One Inc., a fast-growing firm that processed financial aid refunds to students at hundreds of colleges around the country. The partnership meant hundreds of millions of no-cost deposits to Cole Taylor, a commercial bank in need of such funding given its small number of branches.More

Larry King voices support for Jon Huntsman, No Labels
All Voices
"For the next 10 minutes, it’s the governor meets the King." Such was the greeting of media icon Larry King to former Utah Gov. Jon Huntsman on his No Labels Sirius XM broadcast on May 10. King, who has interviewed upward of 50,000 people on radio and television since the 1950s, pledged "total support" for No Labels in its mission to “stop the fighting and start the fixing” in Washington.More

Over a third of Chicago's national banks still have issues
Crain's Chicago Business
The Chicago area's community banks are slowly healing from the Great Recession, but more than one in three with national charters still aren't healthy by the standards of federal regulators.More

Emanuel skeptical of teachers' union pension plan
Chicago Mayor Rahm Emanuel’s administration is swatting down key aspects of the Chicago Teachers Union’s proposal to shore up the ailing pension fund for city teachers. More

5 TED talks that will change the way you live, love and work
CFA Institute's Enterprising Investor
From time to time, we publish book lists on everything from what to read to become a better finance professional to ways to improve your career prospects. But Lauren Foster figured: Who has time to read a pile of books? More

Emanuel urges Quinn to sign Chicago pension reform plan
Mayor Rahm Emanuel essentially told Gov. Pat Quinn, "I scratched your back, now you scratch mine," when it comes to pension reform, amid signs the governor might veto or significantly alter legislation to reform two city pension funds. WBBM Newsradio Political Editor Craig Dellimore reports several key state lawmakers and others expect Quinn to block or amend Emanuel’s pension reform plan, because it paves the way for the city raise property taxes by $50 million a year over five years, starting in 2016.More

Europe's economy: Still in the danger zone
For the past year, we've been hearing that global growth, and the world's equity markets, will get a major lift from a gradual recovery in Europe. Indeed, Ireland and Portugal recently returned to the debt markets with well-received offerings, and the Greek government claims it will soon be in a position to issue bonds. Yields on sovereign debt remain remarkably low and stable. It's indisputable that a mood of tranquility has returned to the eurozone.More