Acknowledge audience – shareholders quarterly meeting WHY are we talking to them? What do we want from them?
Pictures Do not be four idiots standing at front of the room SIT DOWN
under the regulatory umbrella of the Federal Reserve, puts on consistent footing with major competitors and allows participation in programs the government has introduced to stabilize the financial markets.
On definitions page http://www.investopedia.com/terms/f/forwardswap.asp
Biggest single economy in the world Largest Deficit in world and growing USA -$791,510 million trade deficit Gdp 12 trill Service based economy 80% of gdp is generated from service sector Largest economy in the world - Sources: The Economist Pocket World in Figures: 2008 Edition Published by Profile Books, London Copyright 2007 ISBN: 978 1 84668 090 8 CIA: World Factbook https://www.cia.gov/library/publications/the-world-factbook/geos/us.html
Bank of America = VISA JP Morgan = MasterCard Citigroup = multiple (American Express, MasterCard)
Merchant Discount Rate Acquiring bank charges 1.9% of total transaction Card issuing bank charges interchange fee = 1.7% (of 1.9%) Processing Fee Visa and MasterCard take in between 0.15 - 0.18% of total transaction value http://3400423910906416958-a-1802744773732722657-s-sites.googlegroups.com/site/4090americanexpress/home/content/AMEX.pdf?attachauth=ANoY7creecBqF4YgtDH_BFNHGpZ2WT8qo8jxFUk-4RrJyXrHjja_VYtXEq6KdFrwjydfeZ5_m6saN6g_hG2BSSL6jlmbX-2xWrRcOWfpJY-9ThZ-5vOj_8wFCwgWKXr3ZQ10AP-qmRzJ4KCjSgzmOlPuejhgFZuECZKZHoqXWxTRlgO05gdaI86yorYvuVG7tpNby2B5frzEhLp9wTrg4sjVmf2vF3_mdkrc18g8pspCBqOWr2zMUtw%3D&attredirects=0 http://3400423910906416958-a-1802744773732722657-s-sites.googlegroups.com/site/4090americanexpress/home/content/marketline.AMEXprofile.pdf?attachauth=ANoY7corFA3Acg85pFUr0pSP1jdLRXEzmSeLjThGJ8w502BA5x6LEeCqPzYIZr35PtJRD7mgkW5HY59BgWG965PFQ24p58Ne8XwZETT37UOp-Ua71ap47wGNM98Pdnlr4WZ6IY8PUZ7qa6H_lS49N3MmD8HD8BSr-21wMDIY4Sx24tydvkKaeGA1jA_x5aMjtK-ZBxIi0m4R0B1cYRkdNVbneW2czmUU7oqGf7Ni4_LEPKBA8JRg7AnYnYQ0XWtGngd9ICDeX81B&attredirects=0
http://www.fdic.gov/bank/analytical/banking/2005nov/article2.html#2 Figure 2 illustrates the single-issuer model, which has a more complex closed-loop card-association system in which many merchants accept payments on a card with a single issuer. In this system, the merchant sends information about each purchase, including the customer account number, the transaction amount, and verification to the card issuer. With modern telecommunications and data processing technology, these steps are usually completed at the point of sale. The card issuer pays the merchant and sends a monthly statement to the cardholder listing all transactions which occurred during the statement period. The customer then pays the balance due, in whole or in part, based on the credit terms that were extended to the cardholder by the issuer. This description applies to the original Diners Club model and, until very recently, to the Discover Card and American Express models (which have now converted to the multiple-card-issuer model, see figure 3 ).
(5) http://www.fdic.gov/bank/analytical/banking/2005nov/article2.html#2 Finally, figure 3 provides a basic illustration of the most complex model, the model with one card association, many cardholders, many merchants, and multiple banks. In this model, the card association (or network) plays an important role by imposing rules for issuing cards, clearing and settling transactions, advertising and promoting the brand, authorizing transactions, assessing fees, and allocating revenues among transaction participants. Further, each participant in the credit card transaction has an incentive for participating in the network. 16 Figure 3 shows the typical flow of information and funds for a sample $100 credit card purchase. The process begins when the cardholder presents the credit card to the merchant to purchase a good or service. The merchant transmits to the acquiring bank the cardholder's account number and the amount of the transaction. The acquiring bank forwards this information to the card association network requesting authorization for the transaction. The card association forwards the authorization request to the issuing bank. The issuing bank responds with its authorization or denial through the network to the acquiring bank and then to the merchant. If approved, the issuing bank also sends to the acquiring bank, via the network, the transaction amount less an interchange fee. 17 The interchange fee is established by the card association. The example illustrated in figure 3 shows $98.00 ($100.00 purchase price minus 200 basis point interchange fee) flowing from the issuing bank, though the network, to the acquiring bank. The acquiring bank, after subtracting its own service fee, passes the payment on to the merchant. 18 In figure 3, the merchant receives $97.50 ($98.00 minus a 50 basis point fee). 19