The End of Banking: Money, Credit, and the Digital Revolution - "Unregulated banking with access to government guarantees is an enticing business model. It offers the profits of excessive risk-taking in good times, and allows passing on the inevitable losses to taxpayers in bad times." [more inside]
The Bank of Canada has changed the design of its new $100 bill after receiving numerous comments from focus groups that the woman pictured looked like she was of Asian descent. [more inside]
Chext is a site that enables the user to enter transactions and track their bank balance via SMS. People sharing a bank account can also get updates when money is spent from the account by the other person. [more inside]
In February 2006, a group of criminals pulled off the biggest cash heist in the history of the UK, making off with £53 million pounds. To date, only £23 million of the money has been recovered. Police are understandably upset about the dead ends in the case.
Interview with Gary Gorton (pdf) - Fascinating look at private institutional bank money creation (really) and subsequent run on the shadow banking system that hearkens back to the late-19th century banking crises with securitization playing the role of checking before the advent of deposit insurance. "Gorton is a lucid narrator of a complex tale." (via via)
Patsy Campbell has been fighting her foreclosure in Florida courts for the past 25 years. She has not made a mortgage payment since 1985 while foiling the efforts of several banks to evict her from her home in Okeechobee, Florida.
M-Pesa, the mobile platform based money transfer system launched by Safaricom in Kenya, is changing the landscape of money in Africa, and around the world. Competition is heating up even while the service expands internationally allowing transactions to occur between Africa, UK and Asia. Bankers, regulators, startups and operators all want a piece of the pie as even the phone manufacturers themselves get into this potentially lucrative business.
Is it safe? While it looks that the banking system is in better shape than before, some companies still seem to want to hedge their bet. A German insurance company is suing the German central bank to force them open a checking account for them. "As an insurer, it’s our very own task to manage risks and regulators demand that from us,” Mallinckrodt said. “The Bundesbank is the only lender in Germany with no risk to become insolvent, so only an account there is risk free." [more inside]
Might the consumer banking revolution be coming? "Yodlee is the engine behind the online banking operations of most banks in America — and, for that matter, of mint.com... and it's now going to open up that database to software developers around the world." With mobile internet adoption soaring, the birth of iBanking may not be that far behind. An upgrade of payment and financial information systems could be closer than you think. [more inside]