As our UK-based reporter Will Martin explained, “To put the -0.5% rate in simple terms: If you bought a house for $1 million and paid off your mortgage in full in 10 years, you would pay the bank back only $995,000.”
As Will points out, it may seem counterintuitive for banks to lend out their money at such low rates – but there’s rationale behind it.
So some banks are willing to lend money at negative rates and take a small hit rather than risking a bigger loss by lending money at higher rates that customers can’t pay back.
So when it comes to the bank’s most senior leaders, and particularly those in position to replace CEO Jamie Dimon, Wall Street pays attention.
Meet Karen Fang, who just landed a big promotion at Bank of America running a new trading team and is described by insiders as a rising star.
In July, Bank of America went live with a new desk in its fixed-income division geared toward capitalizing on the growing trend of massive exchange-traded-fund and portfolio trades.
A media report about the deal talks triggered a scramble to get in front of the news, followed by a final sprint of negotiations and legal work, with lawyers and bankers holed up in a London law office to hammer out specifics.