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Bank of America Leadership
Overview of Corporation
Bank of America Corporation, a multinational banking and financial services organization that is the second largest holding company in the entire United States by assets, and the fourth largest bank by capitalization. Headquartered in Charlotte, North Carolina, the banks serves clients in more than 150 countries and has a business relationship with over 99% of U.S. Fortune 500 companies and 83% of the Fortune Global 400. As of 2010, the bank is the 5th largest company in the United States by total revenue, as well as the 2nd largest non-oil company in the United States, while Forbes listed it as the 3rd biggest company in the world. Its acquisition of Merrill Lynch in 2008 made it the world's largest wealth management corporation. B of A holds about 13% of all bank deposits in the United States with a retail footprint that covers about…
Bank of America. (January 2011). 2010 Annual Report. Thomson.mobular.net. Retrieved from: http://thomson.mobular.net/thomson/7/3171/4426/
Fortune 500. (January 2012). CNN Money. Retrieved from: http://money.cnn.com/magazines/fortune/fortune500/2010/full_list/
The Global 2000. (21 April 2010). Forbes.com. Retrieved from: http://www.forbes.com/lists/2010/18/global-2000-10_The-Global-2000_Rank.html
Fishel, B. And Conger, J. (2010). Bank of America. In M. Goldsmith and L. Carter, eds. Best Practices in Talent Management. New York: John Wiley.
Bank of America built its success by leveraging different elements of bank deregulation to grow the company into a national bank in the U.S., one of the country's largest. The driving force behind this success was visionary leadership at the top of the company and the ability to integrate a high growth platform with multiple acquisitions at the more functional managerial levels of the company. Thus, the company's leadership development program has been instrumental to its run of success.
There are seven components to Bank of America's leadership development program. The company believes that leaders matter, especially with respect to creating systems of accountability. The company believes in creating strong links between performance and reward, and it therefore sees talent as a critical enterprise resource. Flowing from the performance orientation, the company recognizes that today's leaders are not necessarily the ones that will lead tomorrow. The company believes that experience…
Carter, L. (2012) How Bank of America develops leadership talent around the world. Talent Management. Retrieved April 29, 2013 from http://talentmgt.com/articles/view/how-bank-of-america-develops-leadership-talent-around-the-world
Fishel, B. & Conger, J. (2010). Best practices in talent management: How the world's leading corporations manage, develop an retain top talent. Wiley.
Knighton, T. & Krupp, S. (2009). Next generation leadership at Bank of America. Chief Learning Officer. Retrieved April 29, 2013 from http://clomedia.com/articles/view/next_generation_leadership_at_bank_of_america
A business report on the forecasted analysis of EcoGenics, Inc. Company with two products
A business report on the forecasted analysis of EcoGenics, Inc. Company with two products
Product cost estimate
Selling Price estimate
Cost plus price
Break even analysis
five year financial projection
five year income statements
net present value
About Our Company
EcoGenics is a United States of America-based company that specializes in the manufacture and distribution of high quality, plant-based (herbal) skin care products. The company was voted as the "Best Skin Care in America" in the years 2012 and 2013. Our company offers a simple and yet streamlined group of two products (Micro-Dermabrasion Cream and Mineral Masque Souffle) both of which we are planning to start exporting to the United Kingdom.…
Euromonitor International (2012). Skin Care in the United Kingdom. http://www.euromonitor.com/skin-care-in-the-united-kingdom/report
Hohnen, P., Pots, J (2007). Corporate Social Responsibility -- An Implementation Guide for Business. International Institute for Sustainable Development. Available online at http://www.iisd.org/pdf/2007/csr_guide.pdf
Porter, ME (1985).Competitive Advantage.New YorK;Free Press
Worm, M (1997) "Break-Even Analysis and the Commercial Loan Decision." Journal of Lending and Credit Risk Management. November 1997
Bank of International Settlement
Bank for International Settlement
The Bank of International Settlement was founded in 1930 after orld ar I by a group of central international banks. The purpose was to promote cooperation of central banks, provide additional facilities for international operations, and to act as a trustee or agent in regard to international financial settlements. (ood, 2005) It was designed to be the bank of central banks. It was given power in law to work on the behalf of the banks to build their economies and promote cooperation between the international banks.
orld ar I was fought using borrowed funds that had to be repaid. Germany was already facing impending collapse due to the Versailles Treaty of 1919 imposing reparations, which required them to pay 132 billion gold marks per year. The central banks founded BIS with the headquarters in Basle, Switzerland. It took the power to control…
Regulatory reform; remaining challenges. (2011, July 7). Retrieved from Bank of International Settlements: http://www.bis.org/speeches/sp110711,.htm
Bank of International Settlements. (n.d.). Retrieved from About BIS: http://www.bis.org/about/index.htm
Organization for Economic Cooperation and Development. (n.d.). Retrieved from infoplease: http://www.infoplease.com/ce6/history/A0836840.htm
Wood, P. (2005, Oct 19). Global Banking: The Bank for International Settlements. Retrieved from NewsWithViews.com: http://www.newswithviews.com/Wood/patrick4.htm
S. The bank expanded into the Chicago market. Bank of America, with a strong California base, was already the largest bank in the U.S. By deposits at that time.
The company completed the largest bank merger in U.S. history with the acquisition of NationsBank. The next major step was the 2004 acquisition of FleetBoston, followed by MBNA, a major credit card company. The bank began to expand outside of the U.S. In 2006. Further additions have been the United States Trust Company in 2006, LaSalle Bank in 2007, Countrywide Financial in 2007 and Merrill Lynch in 2008. These deals have not only enhanced the Bank of America's retail footprint but they have also diversified the business considerably both in terms of geography and in terms of business line. Many of these acquisitions form the core of entire operating groups at Bank of America today. Mergers and acquisitions are a key…
Bank of America 2009 Annual Report. In possession of the author
MSN Moneycentral: BAC. (2010). Retrieved April 27, 2010 from http://moneycentral.msn.com/detail/stock_quote?Symbol=BAC
Chu, K. (2010). Bank of America's Moynihan says challenges just starting. USA Today. Retrieved April 27, 2010 from http://www.usatoday.com/money/companies/management/profile/2010-04-26-bofa26_CV_N.htm
Bank of America Investor Relations website, various pages. (2010). Retrieved April 27, 2010 from http://phx.corporate-ir.net/phoenix.zhtml?c=71595&p=irol-irhome
The Bank of America is not leveraging its assets effectively at present, and this is something that makes it a relatively unattractive investment. In addition, the Bank of America may not be in a position to take advantage of an upswing in the U.S. economy, because the retail housing market is still depressed and the Bank is likely gun-shy about building back its mortgage business. The bank has probably expended much of its political capital as well by letting down that stakeholder group. There is not much cause for optimism therefore I would not invest in Bank of America at present, despite the low stock price.
Alden, . (2010). Bank of America promises to meet bailout requirement, but challenges remains. Huffington Post. Retrieved May 31, 2011 from http://www.huffingtonpost.com/2010/12/06/bank-of-america-bailout_n_792438.html
Bank of America 2010 Annual Report. In possession of the author.
Blodget, H. (2009). 75% of latest Bank of America…
Alden, W. (2010). Bank of America promises to meet bailout requirement, but challenges remains. Huffington Post. Retrieved May 31, 2011 from http://www.huffingtonpost.com/2010/12/06/bank-of-america-bailout_n_792438.html
Bank of America 2010 Annual Report. In possession of the author.
Blodget, H. (2009). 75% of latest Bank of America bailout used to pay Merrill Lynch bonuses. Business Insider. Retrieved May 31, 2011 from http://www.businessinsider.com/2009/1/75-of-latest-bank-of-america-bailout-paid-merrill-lynch-bonuses-bac
CBO. (2011). CBO's economic projections for calendar years 2010 to 2021. Congressional Budget Office. Retrieved May 31, 2011 from http://www.cbo.gov/ftpdocs/120xx/doc12039/EconomicTables%5B1%5D.pdf
(Warnings to be ignored)
The market for interest-rate change is another privileged playground. Banks just pay a low, short-term floating rate and get a high, fixed one. Most of the top 20 American banks receive at least 10% of their profits from this increase, and for J.P. Morgan Chase, it was an astounding 33% last year. (Warnings to be ignored) as well as civilizing their interpretation of the economic tealeaves, banks have become skillful at dispersing the risk of their loans. There has been a pace change in risk management. The expansion over the past decade of markets for dispersing risk among institutions has been extraordinary. For instance, most mortgages are securitized taking them off the books of the originating banks. In the syndicated-loan market, in which one bank or a small group gets together a large number of lenders, which might include pension funds and insurers as well as…
Feldman, Ron; Schmidt, Jason. Noninterest income: A potential for profits, risk reduction and some exaggerated claims. Fed Gazette. October 1999. Retrieved at http://minneapolisfed.org/pubs/fedgaz/99-10/banking.cfm
US banks show record profits. 03 February, 2004. P: 12. Retrieved at http://www.thebanker.com/news/fullstory.php/aid/1237/US_banks_show_record_profits.html
Bank awards reveal record profits despite global economic instability. 02 September, 2004. P: 3. Retrieved at http://www.thebanker.com/news/fullstory.php/aid/1901/Bank_awards_reveal_record_profits_despite_global_economic_instability.html
Warnings to be ignored. The Economist Global Agenda. April 20, 2004 Retrieved at http://www.economist.co.uk/agenda/displayStory.cfm?story_id=2608977
Bank of America Strategy
Bank of America's Strategic Initiatives Against Competitive Forces in the Global Economy
Bank of America is one of the largest financial institutions in the U.S. As with many other financial institutions, such as Chase, Citigroup and credit unions, Bank of America faces many dynamic forces in the economy, both domestically and globally and Bank of America must engage in several strategic initiatives in order to retain its core competencies, competitive advantage, and operations that continue to drive Bank of America's business toward success.
To do so, Bank of America must continue to be aware of the recent trends such as sovereign debt, housing, unemployment, durable goods, and energy / commodity prices affecting the global marketplace, ensure the strategies they develop are quick to adapt to these changing conditions, and hedge against the risk that economic forces bring.
Bank of America's Strategic Initiatives Against Competitive Forces in…
Author Unknown (2011, May 26). World's Worst Menu: Greece Has No Good Options Left. The Economist. Retrieved May 31, 2011, from http://www.economist.com/node/18744305
Bank of America (2011, May 27). Bouncing Like a Slinky. U.S. Economic Weekly. Retrieved May 31, 2011, from http://corp.bankofamerica.com/publicpdf/products/abf/economic_weekly.pdf
Bank of America (2011). Bank of America 2010 Annual Report. Retrieved May 31, 2011, from http://media.corporate-ir.net/media_files/irol/71/71595/reports/2010_AR.pdf
Bank of America (2011). CFO Outlook 2011. Retrieved May 31, 2011, from http://corp.bankofamerica.com/publicpdf/products/abf/Final_PDF.pdf
Bank of America is one of the largest financial services company in the U.S. It is the largest bank by assets, largest commercial bank by deposits and is the second largest by market capitalization in the United States. In the Porter's Five Forces Model, Bank of America's main competitors include JPMorgan Chase, and Wells Fargo. Bank of America does have a lot of key factors working in its favor. The first factor is merely its name. Bank of America's favor are the high capital requirements and the government policies for the financial industry. Paintings, antiques, gold, and yachts are just a few examples of long-term tangible investments that will tie up dollars that could potentially be deposited by customers and then invested by Bank of America. For Bank of America, the main supplier is the Federal Reserve. Buyers of Bank of America products and services include people from a wide…
ank of America is a large corporate entity with a global presence. The purpose of this discussion is to explore the company's operations in the United States and the United Kingdom. This discussion will identify the full range of products ank of America offers both in the United States and the United Kingdom. In addition the paper will describe the company's market, structure and competitive environment. Let's begin our discussion by taking a look at ank of America's Domestic and UK Operations.
ank of America in the U.S. And the UK
According to Multexinvestor ank of America became a corporation in 1968. ank of America is headquartered in Charlotte, North Carolina.
ank of America currently has facilities throughout the country in states that include; Virginia, North Carolina, the District of Columbia, Florida, New Mexico, Nevada and Arizona. (AC Full Description) The company operates in several locations in the United Kingdom…
All Graphs and the list on page four came from the annual report listed below.
BAC Full Description. 2003. MultexInvestor. June 12, 2003 http://yahoo.multexinvestor.com/FullDesc.aspx?target=/stocks/quickinfo/companyprofile/fulldescription&ticker=BAC
BAC Officers and Directors List. 2003. MultexInvestor. June 12, 2003. http://yahoo.multexinvestor.com/Officers.aspx?ticker=BAC&target=executiveofficers%2flist
Bank of America Annual Report. 2002.Bank of America. June 12, 2003 http://ccbn16.mobular.net/ccbn/7/169/175/
Liquidity can be defined as the ability to convert an asset into cash quickly. In order to further explain, we can say that cash is the most liquid of all assets. With respect to financial assets liquidity is an important concept because the volatility of financial markets makes it an asset more valuable in the eyes of investor if its liquidity is high. If a particular asset is easily convertible into cash, we say that it has a high level of liquidity. A liquid asset has features such as rapid sale, with minimum loss of value, in the market. An illiquid asset is one that is cannot be sold readily at market value. Usually, examples of such assets can be found in the form of mortgage-related assets when there is severe economic recession and the housing market falls extensively. Discussing liquidity with respect to financial assets, it can be…
Badun, M. n.d., Financial intermediation by banks and economic growth. Institute of Public Finance, Zagreb.
BeginnerMoneyInvesting.Com. n.d, Its Time to Make Money. Retrieved from
Enotes.Com n.d,. Shareholder's Rights. Retrieved from
Houston, J. & Brigham, E 2009, Fundamentals of Financial Management, South Western Cenage Learning, USA.
Bank egulation -The Way Forward
Since the recession hit the U.S.A. And the effect felt across the globe, there has always been the debate on the role that the banks and the banking system played in occasioning, perpetuating and even failure to stop the recession. Despite the various regulations that exist in the banking system, there are still massive failures like the failure to understand the new business models, inability to monitor and test banks isk analysis and management systems, regulations allowed banks to hold assets and loans off balance sheet without capital backing and overreliance on capital regulation to reduce the probability of banks to fail. Indeed most banks that failed had capital in excess (Mark Carney, 2010).
Our group met and having considered the situation above and the current trend in the banking industry, we came up with consensus that the banking industry needs regulation and very specific…
Arup Daripa & Simone Varotto, (2006). Ex-Ante vs. Ex-Post Regulation of Bank Capital.
Retrieved December 3, 2011 from http://www.bis.org/bcbs/events/rtf06daripa_etc.pdf
IMF, (2011). United Kingdom: Crisis Management and Bank Resolution Technical Note.
Retrieved December 3, 2011 from http://www.imf.org/external/pubs/ft/scr/2011/cr11228.pdf
Jamie Dimon is the CEO of Bank One and has been on the job for a few months. He has completed his first 100 days with the company and is now set to initiate a long-term turnaround strategy. In the first 100 days, Dimon met with managers from across the bank's different businesses and units in order to learn the problems that the company is facing. The purpose of this report is to analyze the current situation facing Dimon and Bank One, first by identifying the issues the company is facing, and then conducting an analysis of the key internal and external factors.
Dimon must address a number of different problems at Bank One. The commercial banking group is a mess, described as a set of "fiefdoms." There is no cohesion within the group. The incentive system emphasizes growing the loan bank, but not profitability. The commercial banking…
Bank America Case Study From Goldsmith & Carter textbook, select Bank America (Chapter 2) case study assignment - uploaded Write a (5-7) page paper: 1.Outline talent management program led success company.
Bank of America case study
The modern day working environment is a highly complex and intricate field, in which employees and employers have to continually meet new demands, standards and challenges. Employees, for instance, have to perform new tasks at superior standards, or they have to continually develop their skills.
At the level of the employers, they have to respond to challenges such as increasing roles of employees, increasing competition for talented staffs or changing structures of the workplace, especially due to diversity (Bond, 2007). Despite these challenges, the role of the employer remains that of directing and using the resources of the staffs to attain the business objectives of the firm.
In order to attain this objective, economic…
Bond, M.A. (2007). Workplace chemistry: promoting diversity through organizational change. UPNE.
Chingos, P.T. (2002). Paying for performance: a guide to compensation management. John Wiley and Sons.
Fishel, B. Conger, J. (2009). Bank of America. In best practices in talent management. John Wiley and Sons.
Silzer, R. Dowell, B.E. (2009). Strategy-driven talent management: a leadership imperative. John Wiley and Sons.
Bank Statement Plan
Millbridge Family Service
Millbridge Family Service (MFS) is a charitable nonprofit foundation that has been supported by other established umbrella organizations, which in this case, it is supported through a lot of its funding through he Unified Path which is a much larger charitable and national organization that is supported through the donations given by societies businesses and individuals who wish to support and help us in providing other funds and goods and services to smaller foundations such as Millbridge and other family counseling programs in the area which is different for different regions depending on the geographic location. Currently, the Unified Path has been financially assisting Millbridge in their projects to help care for and assist needy families, therefore, the accounting department must keep track of these income and banking statements to keep up with how much Millbridge will owe to Unified even though Unified is…
The current bank statement is for the entire month of June 2011 which is a record of the transactions that were made at the company's bank in order for Millbridge Family Services to receive currency from Unified Path. As you can see, on June 1 Unified Path deposit $50,000 into Millbridge Family Services bank account because Millbridge needed extra funds to support their family counseling program because these services were required by the state. On June 15, 2011 Unified Path deposited an additional $20,000 into Millbridge Family Services bank account to help with the basic funds because of the organization's present underperformance which was due to the lack of volunteers, jobs in the area, and nonpayment of patients without insurance. Unified Path is not demanding that Millbridge repay the money immediately because Millbridge will cooperate and follow the guidelines of Unified Path by paying them back within a six-month timeframe. Therefore, it shows that the total deposit in transit for the month of June from Unified Path to Millbridge Family Services came to the total of $70,000.
Next, Millbridge's monthly bank statement shows the number of either outstanding and cleared checks that were made out from Millbridge to United Path, and the first check, check number 1001, was written for $400 from Millbridge that paid Unified Path for their bookkeeping the for the month of June. Check number 1002 was wrote by Millbridge Family Services for $1,000 in which they made a payment on their loan of $20,000 for the shortfall they had for this month to cover their expenses. Below the checks and activity on the statement shows the total outstanding checks totaled $1,400, therefore, if you take the subtotal of the deposits that were made to Millbridge from Unified Path, of $70,000 and subtract $1,400 that leaves a computed book balance on the bank statement for $68,600.
The bank statement addresses the difference between the deposits and the checks wrote to represent all the money that comes in and goes out of the account for Millbridge Family Services for the entire month of June. The bank statement will be kept on file at the bank that is used, and with both Millbridge Family Services and Unified Path accounting departments in order for these to charitable foundations to keep a record of what monies must be paid back from Millbridge to Unified Path. Therefore if the family services organization can pay back their loans and balance their bank accounts, then Unified Path will help them in the future because of the history they have in working together in order to provide better support and services to families and individuals who are in need of their services.
Bank of New Salem
How can we maintain our Webster branch without a negative financial impact?
Persuasive Message: We can continue to maintain our Webster branch without incurring future losses. Upon review of the branch's financial reports and conversations with the branch's manager, I have discovered significant room to cut overhead costs that will return the branch to profitability within a three-month time frame. These cuts will have a minimal impact on the branch's operations and ability to generate revenue. Given New Salem's authorization to implement my plan for saving Webster branch, I will instruct Webster branch management to take immediate action to execute my strategy.
Big Deal Bakery
Will it be more effective to hire a laboratory or a consultant to advise us on how new FDA regulations impact our package labels?
Directive Message: I am writing to request that you evaluate either the use of a laboratory or…
At this time, more people were put on staff. In addition, as with a supermarket, lines can be changed from only one transaction to several transactions allowed. The video helped better clarify the best time to have extra windows open for single transactions. Customers hate waiting for someone who has several transactions, if they do not have the same. Similarly, they do not like waiting for longer services, such as counting store money or requesting a bank order. This is a separate window that is kept open at peak times, with the teller floating elsewhere when not needed. Neither employees nor customers like when the bank teller goes back and forth between the drive up and the inside windows. Therefore, one or two tellers are dedicated to the drive up depending on the time of the day.
Through watching body language on the video, it was observed that five minutes…
Similarly, the Great Gatsby is also about the negative side of the prohibition, the gangsters and crime and how American morality was scarred by unethical behavior, a desire for success and wealth, yet, at the same time, ultraconservatism in social and political thinking. There was no way, in fact, that the prohibition could be any more successful than the lives of those who ignored and laughed at it. For the prohibition also consisted of hypocrisy, because even many of those who supported the law, either drank themselves, made money from it, or knew that it would never last for long.
President Hoover called the prohibition Amendment "a great social and economic experiment, noble in motive" (Time Life, 110). Noble though it may have seemed, seldom before had ever a law been so flagrantly violated. Not only did the United States continue to manufacture, barter and possess alcohol, but Americans drank…
Bloom, Harold. F. Scott Fitzgerald. Philadelphia: Chelsea House, 2002.
Fitzgerald, F. Scott. The Great Gatsby New York: Penguin, 1950.
____ the Crack Up. New York: Penguin, 1988.
Kenner, the Promised Land. The Bulletin of the Midwest Modern Language Association, 7.2 (1974), 14-33.
How Credit Risk and Interest Rate Risk can Impact the Liquidity of a Bank
The banking industry is on the oldest in American history with origins dating back to 1784 with the founding of Bank of New York Mellon. The financial system, and in particular banks are a major component of a properly functioning economy. The banking system in general, is essentially a network of financial institutions that provide essential services to the economy. They are responsible for operating payments systems, providing loans, providing investment banking services, taking deposits, and so forth. From a consumer perspective, they are integral to the efficient movement of funds and capital from one entity to another. These are essential aspects to industry as well, due to their ability to help ensure efficient payments while also enabling business and household formation through credit services. As one of the most important industries in America, it is…
1. Goodhard, C and E Perotti, 2008 “Maturity mismatch stretching: Banking has taken a wrong turn”, CEPR Policy Insight 81, 6-July
2. Olster, Scott. “How the Roof Fell in on Countrywide.” Fortune, Fortune, 23 Dec. 2010, https://fortune.com/2010/12/23/how-the-roof-fell-in-on-countrywide/ .
3. Rothacker, Rick, 2014 -. “The Deal That Cost Bank of America $50 Billion – and Counting.” Charlotteobserver, Charlotte Observer, 14 Aug. 2014, https://www.charlotteobserver.com/news/business/banking/article9151889.html.
4. Schularick, M, and A M Taylor, (2009), “Credit Booms Gone Bust: Monetary Policy, Leverage Cycles and Financial Crises, 1870-2008”, NBER DP 15512
1. Write a directive to the Director of Marketing and Communications outlining the exact strategy they should take to a) write an external public response addressing the situation and b) develop a short and long-term marketing strategy going forward
To: Director of Marketing and Communications
From: Chief Executive Officer
Date: 31 June 2017
RE: Short and Long-Term Marketing Strategy
Short-term marketing plans are also referred to as strategic plans as they lay emphasis on the marketing activities in the forthcoming financial year. Essentially, these plans highlight details on the phases Akbank will undertake in the promotion and advertisement of its goods and services. Taking into consideration that one of the short-term objectives of the bank is to generate increased revenues and returns within the financial year, the strategy that we can take is to hire an advertising and marketing consultant or expert to aid in the analysis and capitalization…
Aileron. (2011). Motivating and Retaining the Best Employees. Forbes. Retrieved from: https://www.forbes.com/sites/aileron/2011/09/20/motivating-and-retaining-the-best-employees/#794bc6fe2d94
Baxter, J. (2014). The Social Responsibility of Banks. University of Leeds. Retrieved from: http://www.idea.leeds.ac.uk/penblog/2014/03/24/the-social-responsibility-of-banks
Caldbeck, R. (2014). 4 Common Traits of the Best Chief Operating Officers. Entrepreneur. Retrieved from: https://www.entrepreneur.com/article/232762
Clearfit. (2012). Hiring and Recruiting: Five best methods used by recruiters that your business should know. Retrieved from: https://www.clearfit.com/hiring-and-recruiting-five-best-methods-used-by-recruiters-that-your-business-should-know/
Crossan, M. M., Apaydin, M. (2008). Akbank: Credit Card Division. Richard Ivey School of Business.
Ernst and Young. (2016). The DNA of the COO Time to claim the spotlight. Retrieved from: http://www.ey.com/publication/vwluassetspi/the_dna_of_the_coo_-_time_to_claim_the_spotlight/$file/dna%20of%20the%20coo.pdf
Ernst and Young. (2017). The credit card industry: navigating an evolving environment. Retrieved from: http://www.ey.com/Publication/vwLUAssets/EY-the-credit-card-industry-navigating-an-evolving-environment/$FILE/EY-the-credit-card-industry-navigating-an-evolving-environment.pdf
Lentner, C., Szegedi, K., & Tatay, T. (2015). Corporate social responsibility in the banking sector. PÉNZÜGYI SZEMLE/PUBLIC FINANCE QUARTERLY, 60(1), 95-103.
Improper Foreclosure and Mortgage Practices in the Banking Industry
Efficient Market Hypothesis
Real Estate Bubble
Overview on the Value of Banks
Arguments against Financial Intermediaries
This research paper aims to shed light into what led to the global financial collapse that, for the most part, began in the U.S. housing market and the ethical implications that followed. Many researchers agree that the primary drivers that led to the real estate crisis was the lifting of the Glass Steagall Act, the fostering of sub-prime lending, and the creation of derivatives and credit default swaps which were used as complex financial instruments. This offered the big five banks an entire new range of operating opportunities. All of these financial tools were justified by the efficient market hypothesis and as a consequence provide evidence for the lack of a truly efficient market. As a result of the financial…
Ball, R. "The Global Financial Crisis and the Efficient Market Hypothesis." CFA Digest (2010): 44-45. Web.
Bauman, S., M. Conover and R. Miller. "Growth vs. value and large-cap vs. small-cap stocks in international markets." Financial Analysis Journal 54.2 (1998): 75-89.
Beers, B. "End the Fed, Save the Dollar: Ron Paul." 7 September 2009. CNBC. Web. 19 March 2012.
Chen, B. And F. Kaboub. The Repeal of the Glass-Steagall Act and the Subprime Mortgage Crisis. 8 February 2012. Web. 19 March 2012.
Some reasons for differences arise due to checks that are issued but are not yet presented by the receiver, checks that have been sent for collection but are not yet collected, bank fees and charges, checks dishonored by the banks, interest paid by the bank on the balance, direct payments made into bank, cash payments and bills that are rebated by the bank. To avoid these discrepancies, a bank reconciliation statement is prepared.
To avoid manual errors and frauds
Another reason for the preparation of a bank reconciliation statement is to identify any frauds committed by the accounting staff. A staff could make an entry in the bank column of the cash book, but may fail to deposit the check in the bank due to negligence or with an intent to fraud. This statement also helps to keep a watch over the activities of the accounting staff and ensure that…
Sofat, Rajini' Hiro, Preeti. (2010). Basic Accounting, Second Edition. New Delhi: PHI Learning Private Limited.
Kimuda, Daniel. (2008). Foundations of Accounting. Nairobi: East African Educational Publishers Ltd.
In 2003, new procedures were created and they state that "companies accredited with receiving money relating to public subscription in securities must take all necessary measures to ensure the legality of the sources of the money used in the payment of such securities, in compliance with the provisions laid down in the Prevention and Prohibition of Money Laundering and its Implementing egulations" (Terterov and euvid, 2005).
Banking institutions are also focused on reducing money laundering and the principal actions they implement in this endeavor are those of fully complying with the regulations imposed by the central banks and the legislations in their home countries. More recently, the banks can access technological innovations to fight money laundering, such as LexisNexis's Bridger Insight XGTM (Tech 4 Law). But since the access to technologies is different at each bank, a conclusion is drawn that the internal reactions to money laundering are different. The…
Minaeva, T., Aksenova, M., Anti-money laundering in Russia, White & Case, http://www.whitecase.ru/articles/moneylaundry.pdf last accessed on July 14, 2010
Terterov, M., Reuvid, J., 2005, Doing business with Estonia, GMB Publishing Ltd.
Walker, J., 1998, Modeling global money laundering flows -- some findings, http://www.johnwalkercrimetrendsanalysis.com.au/ML%20method.htm last accessed on July 13, 2010
1999, Ten years of combating money laundering, OECD Observer, http://www.oecdobserver.org/news/fullstory.php?aid=63 last accessed on July 13, 2010
The Bank has taken a proactive role worldwide. It has attempted to adopt a vocal role in addressing concerns of biodiversity, ozone depletion, narcotics, crime, corruption, and post-conflict reconstruction, particularly in the Balkans and est Bank.
The orld Bank has lent money to admittedly undemocratic, often brutal dictatorships, in the hopes that economic stability will lead to government reform. Yet "the public infrastructure projects funded by the IBRD have consistently been recognized as unmitigated disasters. Notably, Brazil's Polonoroeste road-building project set a significant portion of the Amazon rainforest on fire; the Sardar Sarovar dam project in India uprooted 240,000 Indians and was condemned by the orld Bank's own panel of investigators;...Internal reports suggest that one-third of orld Bank financed projects are failing" (eekes 2005)
There is a risk that the Bank may be duplicating the role of existing UN agencies and non-governmental organizations (NGOs) (eekes 2005). The UN…
About us." The World Bank. Retrieved March 10, 2009 at http://web.worldbank.org/WBSITE/EXTERNAL/EXTABOUTUS/0,contentMDK:20653660~menuPK:72312~pagePK:51123644~piPK:329829~theSitePK:29708,00.html
Weekes, Rob. "World Bank: Success or Failure?" Ideabate.org. June 21, 2005.
March 10, 2009 at http://www.idebate.org/debatabase/topic_details.php?topicID=173
From its creation to 1988 it undertook banking functions and opined generally on the international banking system.
2. Starting in 1988 it began to assume the role of an unofficial international bank regulator. Although it had no official international status, its members -- central banks of the major banking countries -- were obligated by the nature of their membership to abide by its edicts and the rest of the world took them seriously.
3. Starting in the late 1990s, it began to consider itself the equivalent of an international bank regulator. Every subject of significance was within its jurisdiction and, although its legal powers were no greater, it assumed that it had a right to make rules for local banks to observe in the conduct of their businesses.
4. Sometime in the future there is a widespread anticipation that it will be given, through some treaty mechanism, the power to…
Baker, James Calvin. The Bank for International Settlements: Evolution and Evaluation. Santa Barbara, CA: Greenwood Publishing Group, 2002.
Birdsall, Nancy. "Whither the IMF in the Current Crisis? Invite the Big Emerging Economies to the Table." 2 October 2008. Center for Global Development. 26 February 2009 http://blogs.cgdev.org/globaldevelopment/2008/10/whither_the_imf_in_the_current.php.
BIS. Bank for International Settlements (BIS). n.d. 25 February 2009 http://www.bis.org/about/index.htm .
Carl Felsenfeld, Genci Bilali. "The Role of the Bank for International Settlements in Shaping the World Financial System." January 2004. Social Science Research Network Electronic Library. 26 February 2009 http://ssrn.com/abstract=496022 .
If the Federal Reserve requirement is 10%, the money multiplier is 10, meaning that banks can lend out 90% of every dollar they receive as illustrated by the following example of multiple deposit creation (Larsson, 2005):
John deposits $10,000 into his checking account at ank a.
ank a Deposit: $10,000
Reserve (10%): $1,000
Lendable Amount: $9,000
Mary borrows $9,000 from ank a and buys a car. The car dealer then deposits $9,000 into their account at ank .
Reserve (10%): $900
Lendable Amount: $8,100
Mark borrows $8,100 from ank . And has surgery. The doctor then deposits $8,100 into his account at ank C.
Reserve (10%): $810
Lendable Amount: $7,290
This process continues until the lendable amount is 0. When M1 is measured, the original $10,000 deposit will have created a total of $100,000 in deposits system wide (Larsson, 2005).
Beale, L. How banks create money. Retrieved October 20, 2006 from Web site: http://ecedweb.unomaha.edu/ve/library/HBCM.PDF
Larsson, T. (2005, February 1). How banks create money. Retrieved October 20, 2006 from Web site: http://www.gold-investor.com/article.php/20050201204730229
Obringer. L.A. How banks work. Retrieved October 20, 2006 from Web site: http://money.howstuffworks.com/bank1.htm
Bank for International Settlements
The inception of the Bank for International Settlements
The Bank for International Settlements was created in 1930 pursuant to the Young Plan, also known as the Dawes Plan under the Hague Agreement (Baker 2). At its inception, the Bank for International Settlements (BIS) was to assume the responsibilities of the Agent General for Reparations in Berlin which consisted of collecting, administrating and distributing the annuities that were payable as reparations (BIS History -- Overview 1). These original responsibilities were the source of the BIS' name (BIS History- Overview 1). According to the BIS eb site, "The BIS was also created to act as a trustee for the Dawes and Young Loans (international loans issued to finance reparations) and to promote central bank cooperation in general" (BIS History -- Overview 2). As these original responsibilities were satisfied, the purpose of the BIS has also changed as discussed…
About BIS. (2014). The Bank for International Settlements. [online] available: http://www.bis.
Baker, James C. The Bank for International Settlements: Evolution and Evaluation. Westport,
CT: Quorum Books, 2002.
Banks Find New Ways to Ease Pain of Bad Loans describes the various ways banks holding large amounts of bad, or soon to be bad loans are, in effect, hiding these bad assets. For instance Astoria Financial Corp. extended the number of payments a customer had to miss before the loan would be listed as "nonperforming." By extending the number of missed payments from two to three, Astoria wiped close to $40 million off it's books. Well Fargo did a similar thing by extending the number of days a customer had to miss payments from 120 to 180 before writing these loans off. Bank Atlantic Bancorp tried something a bit different, they created an entirely new subsidiary and transferred $100 million of troubled loans to this new subsidiary. They managed to simply erase the bad loans from their books while avoiding federal regulators by creating a new subsidiary that was…
Spatial tracking systems that make banks' floor plans and product positioning more effective;
5. Intelligent interactive displays that reflect the interests of the watcher;
6. Use of wireless tablet personal computers (PCs) for client interviewing; and,
7. Videoconference virtual experts for collaborative selling (56).
The same features that characterize high performance banks in their brick-and-mortar operations appear to relate to the use of technology as well, with the best performing banks having identified the optimum mix of services for the markets they serve. For instance, Grasing reports that, "Banks are taking a variety of approaches in implementing technology to make improvements in retail delivery. The methods differ, depending on the bank management's mindset toward the purpose of the software and its valued place in the new business or service delivery processes" (3). The main point in this area is that high performance banks apply technology in ways that help minimize…
Bielski, Lauren. (2007). "Today's Elements Tomorrow's Branch: The Branch Was Supposed to Phase out. It Hasn't and May Never. What Will the Branch of the Future Feature? Self
Service and Collaboration." ABA Banking Journal 99(6): 55-57.
DePrince, Albert E., William F. Ford and Thomas H. Strickland. (1999). "The New High
Performers Stretch Their Lead." ABA Banking Journal 91(11): 36.
The World Bank asserts that this project will also improve the quality of life for the people of Uruguay by producing skilled jobs ("Uruguay: World Bank Approves...").
The article reports that another purpose of the project is to support the government as it relates to strengthening the capacity of the country to produce, transfer, and adapt knowledge and new technology ("Uruguay: World Bank Approves..."). As it relates to this aim the project is designed to encourage the strengthening of the institutional framework for technology, science, and innovation. In addition the project is designed to support investments in education; technology transfer and innovation within the private sector; and research alliances and transportation/flexibility for researchers between educational institutions and the productive sector ("Uruguay: World Bank Approves...").
In addition to the aforementioned activities, there are many other activities that the World Bank is currently involved in that are aimed at improving living standards…
Albania: Micro-credits Support a Growing Rural Economy. http://web.worldbank.org/WBSITE/EXTERNAL/NEWS/0,contentMDK:20871875~menuPK:141311~pagePK:34370~piPK:34424~theSitePK:4607,00.html
Uruguay: World Bank Approves U.S.$26 Million to Promote Innovation and Improve the Country's Competitiveness. http://web.worldbank.org/WBSITE/EXTERNAL/NEWS/0,contentMDK:21318964~pagePK:34370~piPK:34424~theSitePK:4607,00.html
World Bank Vows to Strengthen Health Systems in Poor Countries with New http://web.worldbank.org/WBSITE/EXTERNAL/NEWS/0,contentMDK:21318554~pagePK:34370~piPK:34424~theSitePK:4607,00.html
The increase in profits (at certain points) highlights the overall risks vs. rewards, as they can see substantial growth of 5% each year. Moreover, the performance of various strategies used in management of hedge funds experienced a greater feat, despite having less asset classes to choose from.
Over the years, the hedge fund industry has shown consistent growth and increase in its regulatory issues. This is because managers are using strategies that: increase the overall amounts of risk, while offering the possibility of greater financial rewards. As a result, the odds improve that investors could experience significant losses in these areas (which increases the overall amounts of regulatory scrutiny).
Hedge funds will experience more changes that will lessen its variance in comparison with mutual funds. Where, it will determine its investors and techniques of management without being greatly influenced by: institutionalization or regulation of the finance industry. In 2005, Ibbotson…
Hedge and Pension Funds, 2011.
Ackermann, C, McEnally R. & Ravenscraft, D 1999, "The performance of hedge funds: Risk, return and incentives." Journal of Finance, 54 (June), pp. 833-874.
Adrian, T 2007, "Measuring risk in the hedge fund sector," Current Issues in Economics and Finance, 13, Federal
Reserve Bank of New York, pp. 1 -- 7.
The Canadian Imperial Bank of Commerce (CIBC) is one of the "Big Five" Canadian banks. It was founded in 1961 by the merger of the Canadian Bank of Commerce (founded 1867) and the Imperial Bank of Canada (founded 1875). Today, the CIBC is the fifth-largest of these by total revenue, earning $12.09 billion in FY2010 (PC, 2011). This report will evaluate the CIBC in terms of a number of different factors in order make a judgment about the merits of investing in the bank's stock. The analysis will comprise of an industry analysis, a company analysis, and a valuation analysis.
According to the company's 2011 Annual Report, the CIBC earned total revenue of $12.249 billion in FY2011. This was split between interest income (51.8%) and non-interest income (48.2%). From this, the bank earned a net income of $3.079 billion. The recession years of 2008 and 2009 saw a sharp…
Alexander, D. (2010). CIBC may have C$211 million debt writedown in third quarter, Mihelic says. Bloomberg. Retrieved April 2, 2012 from http://www.bloomberg.com/news/2010-07-22/cibc-may-have-c-211-million-debt-writedown-in-third-quarter-mihelic-says.html
CIBC 2011 Annual Report. Retrieved April 2, 2012 from
Commonwealth Bank of Australia
etail Banking Service
Premium Business Services
Marketing Strategies at CBA
National Australia Bank
Australian and New Zealand Banking Group
Western Pacific Bank
Sustainable Competitive Advantage
One Stop Solution
Commonwealth Bank of Australia
Commonwealth Bank of Australia:
Headquartered in Sydney, Australia, Commonwealth Bank of Australia or CBA is one of the four large banks of Australia. The bank was established in 1911 as a government bank, since then, it has seen tremendous growth. Today, Commonwealth Bank of Australia is a multinational bank with operations across United States of America (USA), United Kingdom (UK), Fiji, New Zeeland and Asia. The bank got privatized in 1996, with issuances of shares worth 1.2 Billion USD in 1991, 1.7 Billion USD in 1993, and 5 Billion USD in 1996. As of January, 2008, Commonwealth Bank of Australia was the second largest Australian listed company…
Anz.com. 2014. Personal - Online Banking | ANZ. [online] Available at: http://www.anz.com/personal / [Accessed: 29 Mar 2014].
Commbank.com.au. 2014. Personal - Commonwealth Bank. [online] Available at: https://www.commbank.com.au / [Accessed: 29 Mar 2014].
Commbank.com.au. 2014. Tools - Commonwealth Bank. [online] Available at:
Kelly (2001) argues that internal alignment of H is one of the critical business strategies, and the main driver of internal alignment of H is to lower the costs and drive up the profitability. On the other hand, H strategy with related to external costs assists Mountain bank to have the knowledge of local labor and study the method they could be profitable to the organization in the future. Typically, the Mountain bank needs to study the components of labor in the external environment and devise a strategy to obtain the high quality labor to achieve competitive advantages. Mountain could obtain cost reduction by hiring skilled labor from the region. Typically, Mountain bank will incur low costs in the training of skilled labor and this H strategy will allow the bank to lower the costs.
(Seyedjavadin & Zadeh 2008).
One of the simple H strategies is differentiation strategy, and the…
Bratton, J. (2005). Strategic human resource management. Palgrave.USA.
Kelly, J. (2001). Employee Relations. Human Resource Management. 23(1): 94-104.
Purcell, J. (2001). The meaning of strategy in human resource management. In J. Storey (ed.), Human Resource Management: A critical text (pp. 59 -- 77). London: Thompson Learning.
Seyedjavadin, S.R. & Zadeh, M.H. (2008). HR Strategy & its aligning with the Human Capabilities and Organizational Strategy. University of Telran.
Making loans to high-risk borrowers, engaging in risk or faulty investments, and otherwise managing money in a sloppy way is a surefire way to get derision from regulatory bodies and/or the public. The figures for the competition bear out that remaining in proper fiscal shape in banking operations is possible even during these uncertain times and there is no reason why egions Bank cannot do the same.
Over the next twelve quarters, customer service initiatives to drive and retain recurring business are important as this is the best thing egions Bank can do to get some breathing room. Attracting high-quality borrowers that are willing to borrow money during uncertain times is also important and at a premium nowadays. A barrier to both of these ideas is that people often become paralyzed and are hesitant to make major fiscal decisions in the midst of economic uncertainty. The potential loss of a…
Annual 10(k). (2011). Birmingham, AL: Regions Bank.
Competition. (2012). Online: Bankers GPS.
Forecast With Drift. (2012). Online: Bankers GPS.
Forecast With No Drift. (2012). Online: Bankers GPS.
Johnson Bank v. George Korbaken Company
Johnson Bank v. George Korbakes Company
Over the last several years, the role of the auditor has been continually evolving. This is because financial institutions are relying on the information they are provided with to help them make better choices in the long-term. However, there are times when these firms may not have accurate figures and erroneously report their findings. When this happens, there is a possibility of these facts leading to incorrect decisions. (Adelopo, 2012) ("Johnson Bank sued George Korabakes," 2006)
The case of Johnson Bank v. George Korbakes Company is examining these factors and the long-term impacts they will have on various stakeholders. To determine if the auditor is responsible for the claims they make requires carefully examining the effects. This will be accomplished by focusing on the case itself, the primary / secondary legal questions, the rule of law, the court's…
Johnson Bank sued George Korabakes. (2013). Find Law. Retrieved from:
Johnson Bank sued George Korabakes. (2013). Justia. Retrieved from:
His positive attitude was probably critical to the employees at Bank One. It is important to keep in mind that Bank One, while it was one large organization at the time that Dimon came in, had been consolidated from a number of smaller organizations. As a result, one would imagine that all of the employees had experienced the loss of coworkers and changes in management in prior reorganizations and mergers. As a result, I believe that, had I been an employee at Bank One when Dimon came in to try to save the company, I would have been apprehensive. I would have worried that my job was in jeopardy. As a result, I believe that I would have been defensive if Dimon approached me to ask my opinion about how to improve processes. I would be worried that if I suggested improvements that might eventually improve productivity and increase profit,…
Baldoni, J. (2012, October 1). Three traits every great leader must demonstrate. Retrieved December 13, 2012 from Forbes website: http://www.forbes.com/sites/johnbaldoni/2012/10/01/three-traits-every-great-leader-must-demonstrate/
Marshall, P. & Thedinga, T. (2006, February 27). Jamie Dimon and Bank One (a). Harvard
Business School Cases. Boston: Harvard Business School Publishing.
Sterling Casil, a. (2012). Top ten characteristics of an entrepreneur. Retrieved December 13,
Over the past few years Furniture Bank has differentiated itself from other charity organization through its commitment to industry innovation which has made it one of Canadian most famous organization (Peter & Donnelly, 2006). The marketing abilities of the Organization have enabled it to compensate for its initial otherwise tight financial circumstances to establish an excess cash record over few years of operation whose main sources were; donations from the government and other corporate entities (Slack et al., 2010). The main vision of the Furniture Bank Organization includes constant achievement of operational excellence, conducting business in a safe environmentally sustainable and economically optimum way and manufacturing and supplying furniture and other households as well as services that ensure customer satisfaction in as far as their needs are concerned (Ahlstrom & Bruton, 2009). The Organization also has a few objectives that include realization of potential of their staff, maximum…
Adeniyi, M.A. (2007). Effective Leadership Management: An Integration of Styles, Skills & Character for Today's CEO. AuthorHouse.
Ahlstrom, D., and Bruton, G.D. (2009). International Management: Strategy and Culture in the Emerging World. Boston, M.A.: Cengage Learning.
Peter, P.J., and Donnelly, J.H. (2006). Marketing Management: Knowledge and Skills. 8th Edition. New York: McGraw-Hill/Irwin.
Slack N., Chambers S., Johnston R. (2010). Operations management. New York: Prentice
Second Harvest Food Bank
What does hunger look like? The image many people hold of what hunger is and who it afflicts does not reflect reality. With changing economic conditions in Florida, as well as the entire country, the face of hunger now reflects the images of our friends and neighbors. It is the mission of Second Harvest Food Bank of Central Florida to battle hunger in Central Florida in order to achieve freedom from hunger in the region.
There are several objectives and activities established by Second Harvest in order to work toward achieving a hunger-free Central Florida. One of the most primary activities conducted by the Food Bank is the provision access to grocery items and food to individuals and families in need. ecipients of this service are diverse and do not fit into one mold, whether it be, race, age-group, or perceived social class.
Another main activity…
.." The Federal Reserve continues to keep a watch on both "current and potential exposures..." And are in the process of a review of the collateral valuation methods of the banking industry." (Kohn, 2008)
Kohn states that disruptions in liquidity in some financial markets have resulted in banking organizations facing challenges and specifically at present "significant liquidity demands can emanate from both the asset and liability of the bank's balance sheet." (Kohn, 2008) Kohn relates that when liquidity is reduced in the markets specifically for "certain structured credit products the creation of challenges and concerns relating to valuating spreads into other sectors and "illiquidity in some credit markets may make it difficult for some market participants, including banking organizations, to hedge positions effectively." (Kohn, 2008) Kohn states that the banking industry in the U.S. is up against some very serious challenges however, the Federal Reserve in cooperation with banking agencies…
Berger, Allen N.; and Bouwman, Christa H.S. (2007) Bank Liquidity Creation. 15 Jan 2007
Brown, Ellen (2008) April Fools: The Fox to Guard the Banking Henhouse 30 Mar 2008. Online 'The Web of Debt' available online at http://www.webofdebt.com/articles/banking-henhouse.php
Buiter, Willem (2008) Lessons from Northern Rock: Banking and Shadow Banking. VOX. 4 March 2008. Online available at http://www.voxeu.org/index.php?q=node/960
Estrella, Arturo (2002) Securitization and the Efficacy of Monetary Policy. Economic Policy Review. Vol. 8 No.1 Federal Reserve Board Bank of New York. Online available at http://www.newyorkfed.org/research/epr/02v08n1/0205estr/0205estr.html#chart1
While many banks are closing branches, that is not necessarily the best strategy for banks attempting to stay close to their customers.
Transaction costs: Of course all banks want to reduce transactions costs, but how many look at their customer's cost/value trade-offs. A win-win may be online banking at Wells Fargo, or a tie-up with Quicken and Microsoft Money, assuming the customers in focus are computer-savvy and are happy with low touch. Transaction costs exist on both sides -- the bank and the customer. A bank's strategic plan should insure that the customer sees time-savings, lowered costs or improvements to his/her business.
Promotion: Promotion, advertising and other techniques should be the result of the above thinking. Once a bank decides on its chosen market and what services it wants to deliver, the decision on marketing strategies is much easier.
The preponderance of evidence indicates that banks which employ strategic…
Hopkins, SA and Hopkins, WE. "Strategic Planning-Financial Performance Relationships in Banks: A Causal Examination." Strategic Management Journal (1997): 635-652.
Ibrahim, NA and Rue, LW. "The Relationship between Planning Sophistication and Performance in Small Businesses." The Journal of Small Business Management (1998): 24-33.
Scholtens, B. Competition, Growth, and Performance. Economic Performance Analysis. Groningen: University of Groningen, 2000.
This is clearly difficult to derive, but an excellent study on the G7 countries found robust proof that large and smaller banks do best. Source: (Scholtens)
Federal eserve Bank
Financial services as an industry has progressed to become one of the widely transforming sectors of the global economy, having significant changes in information transference and processing, innovation in terms of commodities and processes, and rapid competition among the financial institutions -- among themselves and also among their several customers. The industry and its part in the transformations in the economy show that the supervising and regulatory structure also needs to be reevaluated periodically. The aim of bank regulation is mostly the same -- to attain maximum static and dynamic efficiency levels in the midst of a politically and economically permissible framework which is stable and equal. However the profits are always associated with a cost by means of stability and equity. A more stable and equal financial system usually need sacrifices with regard to efficiency. (Saunders, p. 3)
A properly functioning, effective banking system is necessary…
Federal Reserve System. Encyclopedia Article. http://encarta.msn.com/encyclopedia_761574452/Federal_Reserve_System.html Accessed on 7 May, 2005
FR 2644- Weekly Report of Selected Assets. http://www.chicagofed.org/banking_information/financial_institute_reports_fr2644_instructions_and_worksheets.cfm Accessed on 7 May, 2005
FR 2900 Commercial Banks -- the Federal Reserve Board. http://www.federalreserve.gov/boarddocs/reportforms/ReportDetail.cfm?WhichFormId=FR_2900cb& ; WhichCategory=4 Accessed on 7 May, 2005
Garbade, Kenneth D. Recent Innovations in Treasury Cash Management. Federal Reserve Bank of New York. Current Issues in Economics and Finance. Vol: 10; No; 11; pp: 2-11.
Compensation in Wachovia Bank's Base Employee Tier
Bank Teller Pay
Compensation in Wachovia Bank's Base Employee Tier
Banking Industry Practices
etention ates for Tellers
Opportunity Cost for Promotion
Consideration of Drawbacks
Compensation of tellers at Wachovia Bank is closely tied to turnover rates. Employee turnover is costly because resources must be expended to replace employees who leave. ecruitment and training can be expected to be approximately one-third of an employee's salary. In the banking industry, the turnover rate for tellers also impacts the bank's ability to efficaciously cross-sell investment products. High turnover rates of promotable employees contribute to increased expenditures by the human resources department since searches must be orchestrated with outside executive search consultants. The banking industry is in survival mode. In order for Wachovia Bank to survive in this industry, we must take care of our frontline. The frontline of Wachovia Bank is our tellers. A…
Careers: Teller, (2011). Wells Fargo / Wachovia [Web] Retrieved https://www.wellsfargo.com/careers/fit/opportunities/teller
Hourly rate snapshot for bank teller jobs, PayScale. (n.a., n.d.) [Web] Retrieved http;//www.payscale.com/research/U.S./Job=Bank_Teller/Hourly_Rate
Looking for research on the cost of staff turnover? (2011). LinkedIn. [Discussion] Retrieved http://www.linkedin.com/answers/management/business-analytics/MGM_ANA/
612746-20209499 [Chartered Institute of Personnel and Development (CIPD) in the UK]
banking industry has become highly competitive prompting smaller banks to fold under acquisitions and mergers for survival. Most common is the industry's obsession with ability to generate increased revenue by pushing products to the customers and through bank transactions and functionalities. In turn, most banks have lost focus on the customer and concentrated on price rather than quality customer care. In this case analysis, Commerce bank saw an opportunity in the industry trends and developed a successful system. The bank developed an exemplary customer service mechanism that concentrated on customer needs. The bank developed SMAT principles that were aimed at delivering quality service, this framework measured the impact of services offered to both external and internal customers. The bank also took measures in streamlining products that were neglected by the competitors such as deposits. As a result, it had reduced deposit rates to half percent lower than competitors had. It…
Lindner, J.R. (1998). Understanding Employee Motivation. Journal of Extension, 3.
Selvarajah, C.T., Sung-Wai Lau, T., & Taormina, R. (2012). Management training and development: A New Zealand study. Journal of Management & Organization .
Singh, H. (2006). The Importance of Customer Satisfaction in Relation to Customer Loyalty and Retention . UCTI Working Paper .
Stirtz, K. (2011, February 11). Five Ways to Improve Customer Service Starting Today. Retrieved from http://amazingserviceguy.com/1437/five-ways-to-improve-customer-service-starting-today/
As they are interested in increasing economic growth at all costs, while ignoring the short- and long-term impacts that their actions could have on the population. This is evidence, of the validity of the criticisms leveled against: the World ank, it policies and its role. Where, they would play a part in helping to support, various activities that are contradictory to their intended purpose. In this aspect the various criticisms are accurate, as they highlight a hypocrisy that exists between: World ank policy and its long-term effects upon a country.
About Us, 2009, World ank. Available from: [5 October 2010].
China Overtakes Japan as World's Second Largest Economy, 2010, loomberg. Available from: [5 October 2010].
Fighting Poverty, 2010, World ank. Available from: [5 October 2010].
Global Monitoring Report 2009, 2009, World ank. Available from: [5 October 2010].
Summit on Millennium Development Goals, 2010, UN. Available from: [5 October 2010].…
About Us, 2009, World Bank. Available from: [5 October 2010].
China Overtakes Japan as World's Second Largest Economy, 2010, Bloomberg. Available from: [5 October 2010].
Fighting Poverty, 2010, World Bank. Available from: [5 October 2010].
Global Monitoring Report 2009, 2009, World Bank. Available from: [5 October 2010].
This is largely due to time and logistical issues involved in conducting the face-to-face interviews. However, this still represents 50% of the entire sample population. Therefore, it is expected that the opinions expressed in the interviews will be a good representation of Iranian banks.
3.5 Data Collection
The primary aim of the study is to identify the challenges that Iranian banks face in the implementation of EMV. This research is divided into two portions. The first part will be the survey questionnaire. The second will be face-to-face interviews. Where possible, the researcher will visit the bank and administer the questionnaire in person. However, is some cases, this will not be possible, either because of the distances that need to be traveled or the schedule of the bank official. In these cases, the questionnaire will be emailed to the participant and they can return it at their convenience. As the sample…
Hall, C. 2009. New study pinpoints risk issues for Hispanic business owners. Houston Business Journal. Friday, May 8, 2009.
"List of Banks in Iran." 2010. Available at: http://openoffshorebankaccountsfornonresidents.com/ListofBanksinIran.htm. [accessed August 29, 2010].
Sumner, M. 2000. Risk factors in enterprise-wide/ERP projects Journal of Information Technology 15, 317 -- 327
The UK economy was one of the major victims of the recent global economic downturn. This is in no small measure to blame on the country's significantly sized banking sector, where giants like HSBC and Barclays were generally assumed to be "too big to fail." Today, after being the subject of both economic and political scrutiny, the very same reasons are being used to claim that these giants are "too big to save." Both concepts have enjoyed significant critical attention since the economic downturn. Although little has been offered by way of a cure for the failures of the current UK banking system, the general consensus appears to be that something needs to change if future economic disaster is to be averted.
According to Preston (2010), there can be little argument about the phrase "too big" when applied to the UK banking giants. When comparing the market share…
Figg, S. (2011, Feb 2). Britain's Banks: Too Big to Save? The Socialist. Retrieved from: http://www.socialistparty.org.uk/pdf/issue/655/10.pdf
Henderson, R. (2011, Mar 7). All British banks are "too big to fail." Living in a Madhouse. Retrieved from: http://livinginamadhouse.wordpress.com/2011/03/07/all-british-banks-are-too-big-to-fail/
Preston, R. (2010, Sep 24). Commission tackles too-big-to-fail banks. BBC News. Retrieved from: http://www.bbc.co.uk/blogs/thereporters/robertpeston/2010/09/commission_tackles_too-big-to-.html
Reece, D. (2011, Mar 7). Barclays chief Bob Diamond says let banks fail. The Telegraph. Retrieved from: http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/8365101/Barclays-chief-Bob-Diamond-says-let-banks-fail.html
Bailing out the American economy: Banks vs. mortgage-Holders
In 2008, the United States teetered on the brink of an economic crisis. If the United States were to suffer a financial meltdown, the global economy could spiral downward in a manner unprecedented since the Great Depression. The crisis had begun in the U.S. subprime mortgage market but had rapidly spread to other sectors of the economy. The remedy of the U.S. government was the creation of the TARP (Troubled Asset Relief Fund) ("Troubled Asset Relief," Investopedia, 2012). Almost every major banking institution, deemed in the infamous phrase 'too big to fail' was given some form of relief. However, homeowners who were behind on their mortgages were angry that they received relatively little support from the government even though they perceived themselves as far less culpable than the banks. Even the plan proposed by Jeffrey Fuhrer (Foote et al. 2009) on the…
Calmes, Jackie. "Audit finds TARP program effective." New York Times. 20 Dec 2009.
[17 Oct 2012].
Carter, Adrienne. "Big Banks Pay Back TARP Funds -- But Still Get Government Aid."
The turnaround could only start with the restructuring of the management team. Among the different communication problems identified, one with most impact on the overall situation at the bank was the lack of communication between the managerial team and the board and, quite often, between the managerial team and the structures in its subordination (such as the auditing and risk management departments).
The new leadership had no problem to work the restructuring of the management team by simply headhunting capable people, with experience in troubleshooting, from other financial institutions. Such a complete change of the management team needed to be performed carefully, because entire personnel changes could very well have an impact on the morale of the entire bank. The challenge of the new management also became to glue together the new team.
Along with the organizational restructuring also came a need to tackle the bureaucracy that had hampered so…
1. Organizational Restructuring: Management & Analysis. May 2009. On the Internet at http://www.articlesbase.com/organizational-articles/organizational-restructuring-management-analysis-945103.html . Last retrieved on May 6, 2010
2. Stevenson, William; Bartunek, Jean; Borgatti Stephen. Front and Backstage Processes of an Organizational Restructuring Effort. The Journal of Applied Behavorial Science. September 2003
3. Thomson, Diane; Jain, Ameeta. Accountability and Board Functionality: National Australia Bank's experience. September 2006. On the Internet at http://www.melbournecentre.com.au/Finsia_MCFS/Monday/Stream%202/DianneThomson_paper.pdf. Last retrieved on May 6, 2010
4. Acquaah-Gaisie, G. Enhancing Corporate Accountability in Australia. Australian Journal of Corporate Law, Vol. 11, pp 139-148. 2000
In fact the price of the securities decreased, and due to the large invested sums, the bank went into bankruptcy.
The reasons that led to the fall of the Baring bank institution were the inadequate organizational structure, more specifically the lack of control on such important financial transactions. Although timing is crucial in taking advantage on the opportunities on the market, due to the large sums involved, a committee of 2-5 investment managers should be used in this case, in order to diminish the risk and responsibility of such an investment. Besides the actual decision, the committee should handle the financial statements related to the transactions in a proper manner, and then submit the records to an audit independent company. The company failed to take the necessary measures, and relied solely on one individual, fact that resulted in the company entering into bankruptcy and the employee being imprisoned for a…
One of the main reasons that have been highlighted by the prosecutors is that the pressure to clear up the asbestos from the basement was intense and the contractors were constantly being forced to finish the work. Because of an increased pressure, the contractors and the workers working under the contractors were working in a miscalculated manner. One of the wrong decisions that were made by the contractors was to ignore the broken water pipe in one of the floors being demolished. This has been highlighted as evidence by the District Attorney Joel Seidemann in one of his closing arguments at the trial that had been going on since two months in the Manhattan Supreme Court
Other than the three contractors, the third party that had been under investigation for more than 16 months was the New York City itself. In this case, the court mentioned that the city authority…
Association Of Fire Chiefs International. Fire Inspector: Principles and Practice. Jones & Bartlett Publishers, 2011.
Bureau of National Affairs (Arlington, Va.). Construction labor report, Volume 55, Issues 2710-2736. Bureau of National Affairs., 2009.
Eligon, John. Final Defendant Acquitted in Deutsche Bank Fire. 2011. 29 November 2011. http://www.nytimes.com/2011/07/07/nyregion/final-defendant-is-acquitted-in-deutsche-bank-fire-trial.html
Italiano, Laura. FDNY Firefighter Recalls Fatal Deutsche Bank Fire. 2011. 29 November 2011. http://www.firehouse.com/news/top-headlines/fdny-firefighter-recalls-fatal-deutsche-bank-fire
Another bank that provides similar cash management services that the Acme Company could use is represented by HSBC. Its services are differently organized than in the case of Bank of America. egarding international services, HSBC focuses on checking, borrowing, savings, insurance, cards, and other services (HSBC, 2011). Corporate banking services that are provided by HSBC focus on collections management, financing, foreign exchange, global markets, Internet banking, payments and cash management, trade services, and others.
In addition to this, HSBC provides services regarding trade and supply chain that can be used by the Acme Company in order to increase the efficiency of its supply chain management in South America and Asia. HSBC also provides several services that multinational companies can address in order to manage their business accounts. The bank also focuses on developing foreign exchange solutions.
Citibank is another bank that provides different business banking services. The company's products and…
1. Foreign Exchange (2011). Bank of America. Retrieved August 10, 2011 from http://corp.bankofamerica.com/public/public.portal?_pd_page_label=products/fx/default&icamefrom=cihome .
2. Business and Corporate (2011). HSBC. Retrieved August 10, 2011 from http://www.hsbc.com/1/2/business-and-commercial .
) to keep turnover to a minimum, keep the employee content, and allow them to grow within the organization.
External Cost -- The Bargain Laborer -- This strategy emphasizes the biggest return for the lowest investment. Long-term or strategic needs are left unmet; the laborer is hired simply to perform a function. The functions are often seasonal, rudimentary, require little education, and often utilize disenfranchised or non-native speaking workers (e.g. day labor, hotel maid service, etc.). These employees do not receive benefits, and work only out of desperation for jobs. In some economies and locations, these workers are little more than serfs.
Internal Different ion -- The Committed Expert -- This is a long-term, strategic orientation that emphasizes hiring the right individuals, paying them well, doing what is necessary to retain their services, but ensuring that they have the skills to attend to short-term OI goals as well as long-term…
Djellal, F. (2008). Measuring and Improving Productivity in Services. Northampton, MA: Elgar Publishing.
Kerstein, D. (March 20, 2011). Retail Banking Strategies. Retrieved from: http://ppcgroup.com/blog/
Stewart, G. And Brown, K. (2008). Human Resource Management: Linking Strategy to Practice. New York: John Wiley and Sons.
Mountain Bank Case Study
In order to achieve competitive advantage, Mountain Bank needs to work on its existing four lines of business instead of expanding into any new area. This is because if it concentrates on the currently served markets, it will find room for improvement that would help the bank gain competitive advantage without eroding its profits or using its financial resources.
The one most important strategy that it must adopt is to improve its deposit volume. We learn from the case study that Mountain bank doesn't find checking accounts very profitable but we know that they can be turned into highly stable source of income if correct strategies are implemented and deposit growth is one such strategy. (Zagha et al. 2005, p. 206)
For one if the company gives its customers some incentives for using their checking accounts for direct deposits, this would make Mountain Bank their primary…
Donelan, J.G. And E.A. Kaplan. 1998. Value Chain Analysis: A Strategic Approach To Cost Management. Journal of Cost Management (March/April): 7-15.
LAWLER, E.E. (1969) JOB DESIGN AND EMPLOYEE MOTIVATION. Personnel Psychology, 22: 426 -- 435.
Zagha, R. Gobind T. Nankani, Economic growth in the 1990s: learning from a decade of reform. World Bank Publications, 2005-364 pages
Herding in Bank Panics
The work of Devenow and Welch (1996) states that the most basic of human instincts is likely to be that of "…imitation and mimicry" which are the primary characteristics in what is known as 'herding' which often specifically occurs related to such as "fashion and fads…" (Devenow and Welch, 1996, p.603) Devenow and Welch go on to state that among financial economists there is a belief that "investors are influenced by the decisions of other investors and that this influence is a first-order effect." (p.603)
It is reported in the work of Donaldson (1992) entitled "Sources of Panics: Evidence from the Weekly Data" that panic is defined by Jevons (1884) as "a rapid rise in the rate of discount, a sudden flood of bankruptcy and a fall in consols, followed by a rise" (p.8). It is additionally reported that Calomiris and Gorton (1991) "define a panic…
Avgouleas, E. (20008) Reforming Investor Protection Regulation: The Impact of Cognitive Biases. Retrieved from: http://www.law.man.ac.uk/aboutus/staff/emilios_avgouleas/documents/AvgouleasCognitiveBiasesOgusfinal.pdf .
Bulow, Jeremy and Paul Klemperer, 1994, Rational frenzies and crashes, Journal of Political Economy 102, no. 1, 1-23. Chari, V.V. And Ravi Jagannathan, 1988, Banking panics, information, and rational expectations equilibrium, Journal of Finance 43, no. 3, 749-761.
Chen, Yehning, 1995a, Bank runs: Panic of efficient monitoring, Working paper (UCLA, Los Angeles, CA).
Chen, Yehning, 1995b, Banking panics: The role of the first-come, first-served rule and informational externalities, Working paper (UCLA, Los Angeles, CA). Donaldson, R. Glen, 1992, Sources of panics: Evidence from the weekly data, Journal of Monetary Economics 30, 277-305.
Critically analyze the strategies adopted by Dinesh to retain the leading position.
The hard work and determination of Dinesh, who joined the branch as branch head in June 1998 helped to create a successful business. He went in with one focus, which was to grow the banks probability margin and make it successful as he could. Taking note of new technological advances and innovations at an early start helped to establish ideas of services that would help to establish their place at the top of the sector. The Multi-programmed strategy set into place by Dinesh helped to save the bank from an otherwise different outcome, into a profitable success.
A very important strategy that every business must have on point is their customer service. Without the presences and happiness of customers your business will slowly fail and soon a business will not exist. Dinesh saw this important aspect…
People's United Bank
Topic Using information proxy statement People's United Bank, New England Evaluate monitoring potential firm's Board Directors Identify strengths weaknesses board structured, ethical concerns People's
The People's United Bank, New England:
Evaluating the monitoring potential of the firm's Board of Directors, strengths and weaknesses of how the board is structured, and ethical concerns
The People's United Bank of New England offers conventional consumer banking. It also offers brokerage, financial advisory services, investment management services and life insurance through People's Securities, Inc.; equipment financing through People's Capital and Leasing Corp. And People's United Equipment Finance Corp; and other insurance services through the People's United Insurance Agency (About, 2011, People's United). It is not unusual for a bank to offer a wide range of financial services today. In 1933, the Glass-Steagall Act forced a separation between the commercial banking and financial services industry, but the Act was repealed in 1999.…
2010 Annual Report. (2011). People's United Website. Retrieved July 04, 2011, from https://www.peoples.com/pdf/PUFI_2010AR.pdf
Bank management committee. (2011). People's United Website. Retrieved July 04, 2011, from https://www.peoples.com/peoples/Footer/About-People%27s-United/Who-We-Are/Bank-Management-Committee
Glass-Steagall Act. (2011). Investopedia. Retrieved July 04, 2011, from Answers.com Web site:
People's United Bank
The market value of People's United Financial (NASDAQ: PBCT) is $11.94 (current stock price) * 358.06 million shares outstanding = $4.275 billion. The book value of the debt is $19.802 billion. This gives People's United a total worth of $24.077 billion, weighted as 17.75% equity and 82.25% debt. The beta for the equity is 0.27. The risk free rate is 0.352% (Yahoo! Finance, 2011) and the traditional 7% market risk premium can be used. Using CAPM this gives a cost of equity of The cost of debt must also be calculated in order to determine the weighted average cost of capital of People's United. Being a retail financial institution, the vast majority of People's United's liabilities (90.5%) come in the form of deposits. Some of these pay no interest, and others pay out in savings, interest-bearing checking and money market accounts. Total interest expense for 2010 was…
MSN Moneycentral. (2011). PBCT. Retrieved August 5, 2011 from http://investing.money.msn.com/investments/stock-price?symbol=U.S.%3aPBCT
Yahoo! Finance: Advanced bond screener. Retrieved August 5, 2011 from http://reports.finance.yahoo.com/z1?b=1&so=a&sf=m&tt=1&stt=-&pr=0&cpl=-1&cpu=-1&yl=-1&yu=-1&ytl=-1&ytu=-1&mtl=12&mtu=24&rl=-1&ru=-1&cll=-1
Investopedia. (2011). Weighted average cost of capital -- WACC. Investopedia. Retrieved August 5, 2011 from http://www.investopedia.com/terms/w/wacc.asp
People's United Financial 2010 Annual Report. Retrieved August 5, 2011 from https://www.peoples.com/pdf/PUFI_2010AR.pdf
Commerce Bank" by Frances X. Frei.
Commerce Bank was a successful bank in New York that determined to be different by focusing on its WOW factor, in other words, on its customer service and on accentuating that. Commerce Bank actually achieved much of its success and distinction due to its incredible customer service. Part of its service was its line of WOW shops and Wow program generator as well as staff being rigorously trained in the WOW manner.
Its most recent offering was the Retailtainment program where customers were offered entertainment whilst they banked and queued in line. ome of the branches had problems with this idea and some bank personnel actually wondered whether Commerce Bank had not gone too far in its efforts to WOW its customizers.
Customer service is an extremely important part of business success. The business always has to orbit around the client and focus…
Lambert, D & Harrington, TC (1990). Measuring Nonresponse Bias in Customer Service Mail Surveys, Journal of Business Logistics; 11, 5-21
Zeithaml, VA et al., (1993)The nature and determinants of customer expectations of service Journal of the Academy of Marketing Science, 21, 1-12
Desk Staffing Trends
Banks, J. And Pracht, C. (2008). eference Desk Staffing Trends: A Survey. eference & User Services Quarterly 48(1), 54-59.
Banks and Pracht (2008) carried out a quantitative research to investigate the current staffing trends at reference desks of academic libraries. The research is conducted from a theoretical framework perspective asserting that there have been changes in libraries, as services are merged and eliminated, users are taught on information literacy, provision of web-based and online reference databases threatening the traditional reference desk. The researchers' main question is whether these changes are causing a change in staffing patterns for reference desk employees. To investigate this problem, survey questions were administered via the internet to respondents comprising of librarians from 191 academic libraries across the U.S. The study results indicate that of those interviewed, 44% show that there was a decrease in questions asked at the reference desks, which linked…
Banks, J. And Pracht, C. (2008). Reference Desk Staffing Trends: A Survey. Reference & User Services Quarterly 48(1), 54-59.
Boynton, P.M. (2004). Selecting, Designing, and Developing your Questionnaire, BMJ publications, 328-396.