| UT Southwestern's A-list?
UT Southwestern Medical Center at Dallas keeps a detailed list of wealthy, high-profile and influential people and their family members to ensure that they get favored treatment if they become patients. UT Southwestern officials defend the practice, and some industry experts said hospitals and other nonprofits often take special care of donors or other powerful people. But some specialists in medical ethics said the list raises ethical questions. For instance, the list includes state officials and legislators who can steer tax dollars toward UT Southwestern, a state-supported institution. Dr. John McConnell, executive vice president for health system affairs at the medical center, said people on the list only get a personal greeting when they arrive at the medical center, might get a special escort to their appointment, and sometimes get free parking.
Financial News: No Hiding Place For European Banks
All eyes have been on the banking turbulence in the U.S., where first Stan O'Neal, chief executive of Merrill Lynch, and then Charles Prince, his counterpart at Citigroup, were made to walk the plank. Rarely have so many bank chief executives fallen in such a short period and don't believe this is the end of the bloodletting. Merrill Lynch and Citigroup shares may have been trampled underfoot but they were not alone in the U.S. Morgan Stanley's stock fell from a high of $90 to $ 52, a decline of more than 40%. Poor John Mack, chairman and chief executive, who was beginning to look as if he could walk on water, must have been devastated to realize the share price is barely higher than when he took over in summer 2005. Don't worry, John, because others in North America are feeling equal pain.
SF-Based Wells Fargo No Longer Issuing Risky Loans
The mortgage division of Wells Fargo & Co. said Thursday it plans to pull out of the increasingly risky business of issuing home loans through brokers to borrowers with blemished credit records.The move by San Francisco-based Wells Fargo, the nation's fifth largest bank, is the latest fallout from the decaying subprime mortgage industry, or the area of mortgage banking catering to people with spotty credit histories. As interest rates have risen and home values have moved sideways or even fallen in parts of the country, many of these borrowers have been defaulting.Wells Fargo ranks among the sector's largest lenders but has been relatively unscathed so far by the implosion that has led to the closures or bankruptcies of more than two dozen other subprime lenders since late last year.Wells Fargo said the subprime wholesale lending business represented 1.6 percent of the bank's $397.6 billion in mortgage lending last year.But the "continued turmoil" in the sector is not worth the risk, said Cara Heiden, Wells Fargo Home Mortgage division president.Wells Fargo said will shutter its subprime wholesale offices in Baton Rouge, La., and Des Moines, Iowa.
HSBC aims for bigger niche in Australian banking
THE Australian arm of global banking giant HSBC expects to double its customers over the next five years - even though it has ruled out following British-based competitor HBOS in opening a large branch network on the east coast. HSBC will focus on Australians who do increasing amounts of business abroad and travel regularly, rather than compete with the major banks whose retail operations dominate the local market. HBOS, which owns Perth-based BankWest, last month announced its plans to set up another 160 branches over the next four years - in NSW, Victoria, Queensland and South Australia - at a cost of $760 million, in a move that will rival the networks of Suncorp and the Bank of Queensland. For its part, HSBC reckons the cost of a similar expansion could not be supported in investment terms, while the current market capitalisations of the major four Australian banks are far too high to justify a friendly takeover bid.
Dodd leads in hedge fund donations
Connecticut's Chris Dodd, the Senate Banking Committee chairman who has stated his reluctance to hike taxes on hedge fund profits, leads among Democrats running for president in political contributions from the booming investment sector.
Dodd's campaign said there is no link between the senator's position and political contributions he has received.
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