The giant banks in Greece posted the largest losses ever as a result of the government’s debt refinancing. As a result of the losses, the banks will effectively be nationalized by the government, and will need additional private capital beyond the government rescue package.
Stockholders at at least two large U.S. banks have voted down executive pay packages. In both cases the respective boards of directors had recommended pay packages that industry analysts said were far beyond industry norms, and large stockholders had signaled their intention to vote against the excessive pay. It is not clear what happens next.
There was one bank failure tonight: Fort Lee Federal Savings Bank, in New Jersey, a very small bank with about $50 million in deposits. Alma Bank paid a 1.8 percent premium for the deposits, but is purchasing less than one third of the failed bank’s assets.
