The document discusses three main proposals for restructuring financial institution regulation that are being debated in the House Banking Committee. It also discusses other related issues like community reinvestment obligations and estimates of future costs to resolve failed banks. The three main regulatory restructuring proposals are: 1) A Bush administration plan to create a single regulator under Treasury; 2) A proposal by Rep. Gonzalez to create an independent regulator; 3) A task force plan to merge two existing regulators and reduce the Fed's role. Debate reflects turf battles among regulators as much as philosophies. The status quo may remain as more proposals complicate reaching a consensus.
The document discusses the concept of "too big to fail" and its role in economic crises. It argues that allowing certain financial institutions to privatize profits while socializing losses through government bailouts undermines free enterprise. When large banks and corporations take on excessive risk knowing they will be bailed out, it leads to moral hazard. While government intervention may accelerate economic recovery, it comes at a high cost to taxpayers and increases national debt. The document suggests reinstating regulations like the Glass-Steagall Act to restrict risky activities by large banks and prevent institutions from growing too big and interconnected to fail.
The House Banking Committee passed a bill on banking reform that included some key Treasury proposals but excluded others. The bill would allow interstate branching, commercial ownership of banks, and affiliations between banks and securities/insurance firms. However, it rejected proposals to restrict deposit insurance coverage and overhaul financial regulation. Meanwhile, the Senate Banking Committee chairman issued a draft bill that took a different approach, prohibiting commercial bank ownership and merging bank supervisors instead of restructuring regulators. Further debate in additional House committees and the full Senate means more changes are likely before final legislation is approved.
Six Principles for True Systemic Risk Reformcoryhelene
Ten years after the capstone of financial industry deregulation--the Financial Modernization, or Gramm-Leach-Bliley, Act--the United States is facing the worst economic crisis since the Great Depression. The following policy brief outlines six key principles for comprehensive and meaningful systemic risk reform, which are neccessary to undo many of the ill-advised deregulatory measures of the past 20 years, including the four key changes wrought by the Gramm-Leach-Bliley Act.
Fundamental forces-of-change-in-banking2869Pankaj Kumar
The document discusses the fundamental forces that have transformed the banking industry over time. It describes how regulations originally separated commercial banking, investment banking, and insurance but how deregulation and other forces have blurred industry lines. Technological advances, financial innovation, and increased competition have changed the nature of banking and what constitutes a bank. Regulations that once protected smaller banks now hamper their ability to diversify and compete against larger, non-bank financial institutions.
Treasury Strategies Testimony to U.S. House of Representatives on the Volcker...Tony Carfang
The document discusses concerns about the potential negative impacts of the Volcker Rule on non-financial businesses. It summarizes that the Volcker Rule may: reduce banks' ability to provide important services like underwriting bonds that businesses rely on to raise capital; increase costs for businesses and reduce their access to credit; and cause some financial risks to shift from banks to other parts of the economy rather than being eliminated. It argues the lack of clarity and complexity of the Volcker Rule could have significant unintended consequences for both businesses and the broader economy.
Mortgage banking has evolved significantly in recent years due to regulatory changes. Stricter rules were implemented to address issues that arose from the subprime mortgage crisis, requiring lenders to establish compliance departments to ensure adherence to regulations. For small and mid-sized mortgage banks, establishing and maintaining an effective compliance department is very costly. As a result, industry experts predict that many small and mid-sized lenders will be forced to close, merge with larger lenders, or sell their business, as generating sufficient revenue to cover the expenses of compliance will be challenging without a high loan volume of at least $25 million per month. Over time, this will likely lead to consolidation in the industry with mostly large national lenders and banks
5 years later General Growth bankruptcy case still resonatesSamantha Rothman
Samantha J. Rothman and Professors Douglas Baird and Joseph Pagliari Jr. discuss how the General Growth bankruptcy case has impacted SPEs, in theory and in practice.
This document provides an overview of corporate governance in the banking industry. It discusses how banks differ from other corporations in ways that impact governance, such as their role in liquidity production and reliance on deposits. It also summarizes the Basel Accords, international standards for banking regulation and capital requirements. The Basel II Accord introduced three pillars for governance: Pillar 1 sets minimum capital requirements; Pillar 2 focuses on supervisory review of risks and governance standards; and Pillar 3 promotes market discipline through transparency.
The document discusses the concept of "too big to fail" and its role in economic crises. It argues that allowing certain financial institutions to privatize profits while socializing losses through government bailouts undermines free enterprise. When large banks and corporations take on excessive risk knowing they will be bailed out, it leads to moral hazard. While government intervention may accelerate economic recovery, it comes at a high cost to taxpayers and increases national debt. The document suggests reinstating regulations like the Glass-Steagall Act to restrict risky activities by large banks and prevent institutions from growing too big and interconnected to fail.
The House Banking Committee passed a bill on banking reform that included some key Treasury proposals but excluded others. The bill would allow interstate branching, commercial ownership of banks, and affiliations between banks and securities/insurance firms. However, it rejected proposals to restrict deposit insurance coverage and overhaul financial regulation. Meanwhile, the Senate Banking Committee chairman issued a draft bill that took a different approach, prohibiting commercial bank ownership and merging bank supervisors instead of restructuring regulators. Further debate in additional House committees and the full Senate means more changes are likely before final legislation is approved.
Six Principles for True Systemic Risk Reformcoryhelene
Ten years after the capstone of financial industry deregulation--the Financial Modernization, or Gramm-Leach-Bliley, Act--the United States is facing the worst economic crisis since the Great Depression. The following policy brief outlines six key principles for comprehensive and meaningful systemic risk reform, which are neccessary to undo many of the ill-advised deregulatory measures of the past 20 years, including the four key changes wrought by the Gramm-Leach-Bliley Act.
Fundamental forces-of-change-in-banking2869Pankaj Kumar
The document discusses the fundamental forces that have transformed the banking industry over time. It describes how regulations originally separated commercial banking, investment banking, and insurance but how deregulation and other forces have blurred industry lines. Technological advances, financial innovation, and increased competition have changed the nature of banking and what constitutes a bank. Regulations that once protected smaller banks now hamper their ability to diversify and compete against larger, non-bank financial institutions.
Treasury Strategies Testimony to U.S. House of Representatives on the Volcker...Tony Carfang
The document discusses concerns about the potential negative impacts of the Volcker Rule on non-financial businesses. It summarizes that the Volcker Rule may: reduce banks' ability to provide important services like underwriting bonds that businesses rely on to raise capital; increase costs for businesses and reduce their access to credit; and cause some financial risks to shift from banks to other parts of the economy rather than being eliminated. It argues the lack of clarity and complexity of the Volcker Rule could have significant unintended consequences for both businesses and the broader economy.
Mortgage banking has evolved significantly in recent years due to regulatory changes. Stricter rules were implemented to address issues that arose from the subprime mortgage crisis, requiring lenders to establish compliance departments to ensure adherence to regulations. For small and mid-sized mortgage banks, establishing and maintaining an effective compliance department is very costly. As a result, industry experts predict that many small and mid-sized lenders will be forced to close, merge with larger lenders, or sell their business, as generating sufficient revenue to cover the expenses of compliance will be challenging without a high loan volume of at least $25 million per month. Over time, this will likely lead to consolidation in the industry with mostly large national lenders and banks
5 years later General Growth bankruptcy case still resonatesSamantha Rothman
Samantha J. Rothman and Professors Douglas Baird and Joseph Pagliari Jr. discuss how the General Growth bankruptcy case has impacted SPEs, in theory and in practice.
This document provides an overview of corporate governance in the banking industry. It discusses how banks differ from other corporations in ways that impact governance, such as their role in liquidity production and reliance on deposits. It also summarizes the Basel Accords, international standards for banking regulation and capital requirements. The Basel II Accord introduced three pillars for governance: Pillar 1 sets minimum capital requirements; Pillar 2 focuses on supervisory review of risks and governance standards; and Pillar 3 promotes market discipline through transparency.
The document analyzes the financial industry using Porter's five forces model. It finds that the threat of new entrants is low due to the lengthy regulatory approval process required. Rivalry is strong as institutions compete for customers and deposits. The threat of substitutes is high as customers frequently use multiple institutions. Suppliers like the Federal Reserve and credit card companies have significant bargaining power. The bargaining power of buyers is low for commercial banks but higher for credit unions which are member-owned.
Business Leasing and Finance News (BLFN) 2012 Summer EditionPatton Boggs LLP
1. The document summarizes decisions made by the FASB and IASB regarding changes to lease accounting standards. Key decisions include adopting a two-lease approach for lessees and lessors.
2. For equipment leases, it will now be presumed that leases will be accounted for using the interest and amortization method, resulting in front-loaded expenses for lessees. Fewer equipment leases will qualify for straight-line rent recognition.
3. For real estate leases, it will still be presumed that leases will be accounted for using the single lease expense method, allowing for straight-line rent recognition. This is viewed as good news for real estate lessees
The financial industrial arts are not in economics but rhetoric. They have no proof, no science and even actuarial subject products have only shown failure. We continue to demonstrate proof in real markets as the herd turns and mooing increases. Here is a timeless article from our vaults.
The document summarizes recommendations from a report by the American Bankruptcy Institute (ABI) commission on reforms to U.S. bankruptcy law. The ABI commission studied issues that were not contemplated in the 1978 Bankruptcy Code and proposed several changes. These include: slightly slowing the increasing speed of bankruptcy sales, restricting the use of "milestones" that require a sale within 60 days; trimming back the protections of "safe harbors" for securities transactions; and giving more protections to unions and trademark license holders in business sales.
Bank of America acquired Merrill Lynch in a $50 billion deal in September 2008 during the financial crisis. Merrill Lynch was struggling with huge losses from subprime mortgage exposures. The deal was hastily completed in 2 days under pressure from the government. While it stabilized markets initially, losses for both companies mounted in subsequent months. Bank of America's stock lost over 90% of its value. Merrill Lynch continued facing lawsuits over mortgage securities. The long-term impact of the deal remains unclear given Merrill Lynch's volatile financial performance in addressing huge prior write-offs.
The document provides an overview of Merrill Lynch including its business description, financial profile, competitive environment, and valuation. It discusses Merrill Lynch's core businesses, leadership changes, risk management improvements, growth opportunities in emerging markets and through third party funds, and plans for balance sheet optimization and more efficient use of capital.
Each month of AAHOA Lodging Business features a section called the AAHOA Report, detailing important legislation the association supports and initiatives it undertakes for members. This is an example from the Jan. 2012 issue.
This document discusses the differences in corporate governance between banks and other firms. It argues that banks require different corporate governance structures than manufacturing companies due to their unique capital structure, liquidity production function, deposit insurance, and risk of moral hazard. The governance of banks is complicated by the many stakeholders involved, including depositors, taxpayers, and regulators. Bank boards of directors play a crucial role in governance but also face additional expectations from regulators beyond other industries. The document also analyzes empirical data that finds bank holding company boards are typically larger with 18 members on average compared to 12 for manufacturing firms. Bank boards are also subject to more meetings per year due to state regulations.
Too Big to Fail Whitepaper FINAL 6pgs 03 02 11Marti Kopacz
This document discusses the debate around whether states should be allowed to file for bankruptcy. It outlines arguments on both sides of the issue. The cons of allowing state bankruptcy include challenges to states' sovereignty, interfering with state lawmaking processes, and potentially destabilizing municipal bond markets. However, the pros include establishing a framework to bring all constituencies together to address fiscal issues, avoiding defaults through an orderly process, increasing transparency, and avoiding federal bailouts. The document concludes by suggesting a bipartisan task force be formed to further study the complex issue and make recommendations.
The document discusses characteristics of banking credit in Latin America across several areas:
1. Credit is scarce and costly in the region, with high interest rate margins and volatility. Recurring banking crises are also common.
2. Sudden stops of capital flows and banking crises are linked, with dollarization exacerbating the effects of abrupt changes in relative prices. Weak regulation and supervision have contributed to crises.
3. Reforms improving creditor rights, increasing foreign bank ownership, and reducing the role of inefficient public banks have helped increase financial depth, competition, and access to credit in some countries. However, challenges remain regarding stability and supporting small businesses.
How To Invest In Nonperforming Mortgages For Financial & Social Gain 5 12 2015Jorge Newbery
Jorge Newbery, Founder & CEO of American Homeowner Preservation, shares a primer on How To Invest in Nonperforming Mortgages for Financial & Social Gain
This document is the 2007 Factbook for Merrill Lynch & Co., Inc. It provides an introduction to the company and compiles key information for investors and other interested parties. The Factbook summarizes Merrill Lynch's business segments, financial performance, leadership, and other details to assist readers in their analysis of the company. It directs readers to the company's annual report and investor relations website for additional information.
Early-stage companies need tremendous amounts of cash to grow rapidly. Yet, angel groups and venture-capital firms are not usually a realistic option for early stage startups. Additionally, entrepreneurs often find that financing options such as savings, friends, family, and bank loans, even if available, cannot cover the high startup costs attendant to growing a business. Recently, the media has anointed "crowdfunding" as the solution to this startup capital gap. But what exactly is crowdfunding?
This document summarizes several regulatory and compliance issues that may arise in 2011 for broker-dealers and investment advisers. Key topics discussed include:
1) The SEC moving forward to create a fiduciary standard for broker-dealers providing investment advice to retail customers.
2) Criticism of a FINRA proposal requiring broker-dealers to provide new customers with an ADV-type disclosure document about conflicts and fees at the start of the business relationship. Compliance groups argue FINRA moved too quickly.
3) Lessons from a recent FINRA enforcement action fining a firm for failing to adequately implement anti-money laundering controls and steps firms can take to improve their AML programs.
The document summarizes the key topics discussed at the Federal Reserve Bank of Chicago's annual Capital Markets Conference. Representatives from global regulatory agencies and financial institutions explored issues related to capital markets supervision. Topics included credit risk models and their use in Basel's capital adequacy framework, operational risk, developments in energy derivatives, and new electronic trading systems for over-the-counter derivatives. Regulators discussed challenges including risk management, concentration risk, and the impact of deregulation and consolidation in the financial sector. There was also a focus on using internal credit risk models to link banks' risk assessments to regulatory capital requirements in a more risk-sensitive manner.
Client Alert: August 2012
Alice Simons discusses the primary objectives of the ESOP advocacy efforts in Congress and explains how you can schedule and prepare for a visit with your member of Congress. Brian Wurpts discusses strategies for mature ESOP companies to utilize their excess capital, with a focus on the option of distributing plan assets to participants.
Spending reviews: recent PB reform Agenda in Korea -- Nowook Park, KoreaOECD Governance
Presentation by Nowook Park, Korea, at the 11th annual meeting of the OECD Senior Budget Officials Performance and Results network, OECD, 26-27 November 2015.
The document provides information on ERS of Texas, a $25 billion public defined benefit pension plan. It discusses ERS eliminating a core plus fixed income mandate in 2013 and transitioning those assets to internally managed return seeking and risk reducing mandates. It also includes charts showing historical S&P 500 drawdowns, rolling 52-week asset class return dispersion, credit and rate return relationships, Barclays Aggregate risk/return through time, historical scenario analysis, concerns regarding transitioning credit assets, the plan for transitioning investment grade bonds to ETFs, and performance of the internal high yield portfolio.
The document analyzes the financial industry using Porter's five forces model. It finds that the threat of new entrants is low due to the lengthy regulatory approval process required. Rivalry is strong as institutions compete for customers and deposits. The threat of substitutes is high as customers frequently use multiple institutions. Suppliers like the Federal Reserve and credit card companies have significant bargaining power. The bargaining power of buyers is low for commercial banks but higher for credit unions which are member-owned.
Business Leasing and Finance News (BLFN) 2012 Summer EditionPatton Boggs LLP
1. The document summarizes decisions made by the FASB and IASB regarding changes to lease accounting standards. Key decisions include adopting a two-lease approach for lessees and lessors.
2. For equipment leases, it will now be presumed that leases will be accounted for using the interest and amortization method, resulting in front-loaded expenses for lessees. Fewer equipment leases will qualify for straight-line rent recognition.
3. For real estate leases, it will still be presumed that leases will be accounted for using the single lease expense method, allowing for straight-line rent recognition. This is viewed as good news for real estate lessees
The financial industrial arts are not in economics but rhetoric. They have no proof, no science and even actuarial subject products have only shown failure. We continue to demonstrate proof in real markets as the herd turns and mooing increases. Here is a timeless article from our vaults.
The document summarizes recommendations from a report by the American Bankruptcy Institute (ABI) commission on reforms to U.S. bankruptcy law. The ABI commission studied issues that were not contemplated in the 1978 Bankruptcy Code and proposed several changes. These include: slightly slowing the increasing speed of bankruptcy sales, restricting the use of "milestones" that require a sale within 60 days; trimming back the protections of "safe harbors" for securities transactions; and giving more protections to unions and trademark license holders in business sales.
Bank of America acquired Merrill Lynch in a $50 billion deal in September 2008 during the financial crisis. Merrill Lynch was struggling with huge losses from subprime mortgage exposures. The deal was hastily completed in 2 days under pressure from the government. While it stabilized markets initially, losses for both companies mounted in subsequent months. Bank of America's stock lost over 90% of its value. Merrill Lynch continued facing lawsuits over mortgage securities. The long-term impact of the deal remains unclear given Merrill Lynch's volatile financial performance in addressing huge prior write-offs.
The document provides an overview of Merrill Lynch including its business description, financial profile, competitive environment, and valuation. It discusses Merrill Lynch's core businesses, leadership changes, risk management improvements, growth opportunities in emerging markets and through third party funds, and plans for balance sheet optimization and more efficient use of capital.
Each month of AAHOA Lodging Business features a section called the AAHOA Report, detailing important legislation the association supports and initiatives it undertakes for members. This is an example from the Jan. 2012 issue.
This document discusses the differences in corporate governance between banks and other firms. It argues that banks require different corporate governance structures than manufacturing companies due to their unique capital structure, liquidity production function, deposit insurance, and risk of moral hazard. The governance of banks is complicated by the many stakeholders involved, including depositors, taxpayers, and regulators. Bank boards of directors play a crucial role in governance but also face additional expectations from regulators beyond other industries. The document also analyzes empirical data that finds bank holding company boards are typically larger with 18 members on average compared to 12 for manufacturing firms. Bank boards are also subject to more meetings per year due to state regulations.
Too Big to Fail Whitepaper FINAL 6pgs 03 02 11Marti Kopacz
This document discusses the debate around whether states should be allowed to file for bankruptcy. It outlines arguments on both sides of the issue. The cons of allowing state bankruptcy include challenges to states' sovereignty, interfering with state lawmaking processes, and potentially destabilizing municipal bond markets. However, the pros include establishing a framework to bring all constituencies together to address fiscal issues, avoiding defaults through an orderly process, increasing transparency, and avoiding federal bailouts. The document concludes by suggesting a bipartisan task force be formed to further study the complex issue and make recommendations.
The document discusses characteristics of banking credit in Latin America across several areas:
1. Credit is scarce and costly in the region, with high interest rate margins and volatility. Recurring banking crises are also common.
2. Sudden stops of capital flows and banking crises are linked, with dollarization exacerbating the effects of abrupt changes in relative prices. Weak regulation and supervision have contributed to crises.
3. Reforms improving creditor rights, increasing foreign bank ownership, and reducing the role of inefficient public banks have helped increase financial depth, competition, and access to credit in some countries. However, challenges remain regarding stability and supporting small businesses.
How To Invest In Nonperforming Mortgages For Financial & Social Gain 5 12 2015Jorge Newbery
Jorge Newbery, Founder & CEO of American Homeowner Preservation, shares a primer on How To Invest in Nonperforming Mortgages for Financial & Social Gain
This document is the 2007 Factbook for Merrill Lynch & Co., Inc. It provides an introduction to the company and compiles key information for investors and other interested parties. The Factbook summarizes Merrill Lynch's business segments, financial performance, leadership, and other details to assist readers in their analysis of the company. It directs readers to the company's annual report and investor relations website for additional information.
Early-stage companies need tremendous amounts of cash to grow rapidly. Yet, angel groups and venture-capital firms are not usually a realistic option for early stage startups. Additionally, entrepreneurs often find that financing options such as savings, friends, family, and bank loans, even if available, cannot cover the high startup costs attendant to growing a business. Recently, the media has anointed "crowdfunding" as the solution to this startup capital gap. But what exactly is crowdfunding?
This document summarizes several regulatory and compliance issues that may arise in 2011 for broker-dealers and investment advisers. Key topics discussed include:
1) The SEC moving forward to create a fiduciary standard for broker-dealers providing investment advice to retail customers.
2) Criticism of a FINRA proposal requiring broker-dealers to provide new customers with an ADV-type disclosure document about conflicts and fees at the start of the business relationship. Compliance groups argue FINRA moved too quickly.
3) Lessons from a recent FINRA enforcement action fining a firm for failing to adequately implement anti-money laundering controls and steps firms can take to improve their AML programs.
The document summarizes the key topics discussed at the Federal Reserve Bank of Chicago's annual Capital Markets Conference. Representatives from global regulatory agencies and financial institutions explored issues related to capital markets supervision. Topics included credit risk models and their use in Basel's capital adequacy framework, operational risk, developments in energy derivatives, and new electronic trading systems for over-the-counter derivatives. Regulators discussed challenges including risk management, concentration risk, and the impact of deregulation and consolidation in the financial sector. There was also a focus on using internal credit risk models to link banks' risk assessments to regulatory capital requirements in a more risk-sensitive manner.
Client Alert: August 2012
Alice Simons discusses the primary objectives of the ESOP advocacy efforts in Congress and explains how you can schedule and prepare for a visit with your member of Congress. Brian Wurpts discusses strategies for mature ESOP companies to utilize their excess capital, with a focus on the option of distributing plan assets to participants.
Spending reviews: recent PB reform Agenda in Korea -- Nowook Park, KoreaOECD Governance
Presentation by Nowook Park, Korea, at the 11th annual meeting of the OECD Senior Budget Officials Performance and Results network, OECD, 26-27 November 2015.
The document provides information on ERS of Texas, a $25 billion public defined benefit pension plan. It discusses ERS eliminating a core plus fixed income mandate in 2013 and transitioning those assets to internally managed return seeking and risk reducing mandates. It also includes charts showing historical S&P 500 drawdowns, rolling 52-week asset class return dispersion, credit and rate return relationships, Barclays Aggregate risk/return through time, historical scenario analysis, concerns regarding transitioning credit assets, the plan for transitioning investment grade bonds to ETFs, and performance of the internal high yield portfolio.
This document discusses marketing and brand strategies, including developing brand plans and positioning, creating a brand identity and essence, coordinating advertising and communications, and building a strong corporate identity. It also provides information about Mindbox, a brand strategy consultancy firm founded in 2009 that works with clients across various industries to manage their brand portfolios. The document lists Mindbox's client portfolio of companies in Namibia.
Este documento proporciona instrucciones en 3 pasos para guardar el texto de una página web en el disco duro para poder acceder al contenido sin conexión a Internet. Primero, seleccionar "Guardar archivo como" en el menú Archivo de la página web. Luego, guardar el archivo en una carpeta con un nombre descriptivo. Por último, abrir el archivo guardado en un procesador de texto como Word para editar o trabajar con el contenido descargado de forma offline.
This document discusses bioethanol production from liquid waste of cashew and cocoa plants in Surabaya, Indonesia. It describes the process of pretreatment, fermentation using Saccharomyces cerevisiae yeast, and distillation to produce bioethanol. Testing showed the bioethanol produced a flame for cooking. The Institut Teknologi Sepuluh Nopember has developed large scale fermenters and distillers for bioethanol. The bioethanol stoves developed at the institute have helped provide alternative cooking fuel and create jobs.
MAPA training began in Finland in 1994 after a nurse visited England and was introduced to the program. Since then, over 90 MAPA instructors have been trained in Finland. The presentation discusses the background and growth of MAPA in Finland, current training structures, challenges, and the future of MAPA. It also outlines a planned research study on the connection between MAPA training, staff competence, work stress, and patient safety.
Este documento describe cómo cambiar el formato de texto en Writer, incluyendo el tamaño, estilo, color y fuente del texto. Explica que se puede cambiar el tamaño del texto directamente desde la barra de menú o mediante la opción de formato. También detalla los diferentes estilos disponibles como negrita, cursiva y subrayado, y cómo aplicar un color al texto utilizando la paleta de colores o el botón de color de carácter.
This document discusses an organization's transition from using restrictive interventions like supine restraint to using MAPA (Management of Actual and Potential Aggression) techniques to manage challenging behaviors. Key reasons for the change included high restraint use, lack of staff confidence, and a culture where restraint was the norm. MAPA was chosen for its suitability across disabilities, comprehensive training, and focus on individual needs. A behavior support committee oversaw the transition and trained all staff. Case studies show MAPA techniques successfully reduced restraints for students like Luke and led to a more positive culture. Ongoing monitoring ensures continuous improvement.
Economía, objeto y método mapa conceptualMarivi Rojas
El documento presenta un mapa conceptual de la Escuela de Relaciones Industriales de la Universidad Fermín Toro en Venezuela. El mapa incluye conceptos clave como la misión y visión de la escuela, las áreas de estudio como derecho laboral y seguridad social, y los objetivos de formar profesionales competentes en las relaciones laborales.
The document discusses how SolarEdge power optimizers make photovoltaic (PV) panels smarter and able to produce more energy. By connecting the power optimizers to each individual panel, it allows each panel to harvest up to 25% more energy, provides constant performance feedback on each panel, and enables automatic shutdown of panels for safety. The SolarEdge solution is proven to increase energy production compared to traditional systems, providing a better return on investment with over 2 million power optimizers installed worldwide.
Apartment Management: The Tamil Nadu Societies Registration Act, 1975ADDA
The Tamil Nadu Societies Registration Act, 1975
ApartmentADDA is India's #1 Apartment Management and Apartment Accounting Software. All the best practices of State Bye-Laws are inbuilt in the product.
The Andhra Pradesh Apartments (Promotion of Construction and Ownership) Act, ...ADDA
The Andhra Pradesh Apartments (Promotion of Construction and Ownership) Act, 1987
ApartmentADDA is India's #1 Apartment Management and Apartment Accounting Software. All the best practices of State Bye-Laws are inbuilt in the product.
This document provides an introduction and outline for a course on irrigation engineering. The key points are:
1. The course will cover soil-plant-water relations, irrigation water requirements, water sources and quality, irrigation planning and efficiencies, and design of irrigation systems and structures.
2. The objectives are for students to understand soil-plant-water parameters, estimate crop water needs, plan and design irrigation structures, and design irrigation channels and other structures.
3. The syllabus covers topics like irrigation methods, water requirements, canal systems, design of channels, diversion structures, outlets, seepage theories, dams, and environmental impacts of irrigation projects.
The project presentation talks about public and private banks. It compares the two sectors by analyzing the financial details and the products and services provided by each of the two sectors. This is done by taking case study of two banks - State Bank of India in public sector and ICICI bank in private sector. Both of these banks are leading in their respective sectors.
The document outlines the Summary for Policymakers from the Working Group II contribution to the IPCC's Fifth Assessment Report, which assesses the impacts of, adaptation to, and vulnerability from climate change. It discusses the context and terms used in the assessment and provides overviews of observed impacts on natural and human systems, future risks from climate change, and principles for effective adaptation. The summary is authored by over 80 climate experts from around the world.
The document discusses banking reform in the US following the financial crisis. It summarizes that the US Senate recently approved major banking reform legislation aimed at preventing future crises. However, critics argue the legislation may not go far enough to reform the system and prevent risks. Banks strongly resisted reforms and some continue risky trading practices. Overall, regulators have addressed some symptoms but not the systemic causes that could still enable future financial breakdowns.
Gao report 2011: What you need to know about credit KivaZip
The document summarizes a GAO report on the emerging person-to-person lending industry and regulatory challenges. It finds that the three major platforms in the US facilitate loans between individuals, with Prosper and LendingClub making mostly consumer loans totaling $475 million, and Kiva facilitating $200 million in microloans. Current regulations aim to protect borrowers and lenders but come from multiple agencies. As the industry grows, new regulatory challenges may emerge.
The Dodd-Frank Act aims to create a more stable financial system through increased regulations and consumer protections. It establishes new regulatory agencies, restrictions on large banks, and hundreds of new rules. The act aims to end taxpayer bailouts of financial institutions, increase transparency, and protect investors. One key change was removing Regulation Q which prohibited paying interest on business checking accounts, potentially impacting banks' revenues and customers' cash management strategies.
18 Bank RegulationCHAPTER OBJECTIVESThe specific objectives of t.docxaulasnilda
18 Bank Regulation
CHAPTER OBJECTIVES
The specific objectives of this chapter are to:
· ▪ describe the key regulations imposed on commercial banks,
· ▪ explain capital requirements of banks,
· ▪ explain how regulators monitor banks,
· ▪ explain the issues regarding government rescue of failed banks, and
· ▪ describe how the Financial Reform Act of 2010 affects the regulation of commercial bank operations.
Bank regulations are designed to maintain public confidence in the financial system by preventing commercial banks from becoming too risky.18-1 BACKGROUND
Because banks rely on funds from depositors, they have been subject to regulations that are intended to ensure the safety of the financial system. Many of the regulations are intended to prevent banks from taking excessive risk that could cause them to fail. In particular, regulations are imposed on the types of assets in which banks can invest, and the minimum amount of capital that banks must maintain. However, there are trade-offs due to bank regulation. Some critics suggest that the regulation is excessive, and it restricts banks from serving their owners. Banks might be more efficient if they were not subject to regulations. Given these trade-offs, regulations are commonly revised over time in response to bank conditions, as regulators seek the optimal level of regulation that ensures the safety of the banking system, but also allows banks to be efficient.
Many regulations of bank operations were removed or reduced over time, which allowed banks to become more competitive. Because of deregulation, banks have considerable flexibility in the services they offer, the locations where they operate, and the rates they pay depositors for deposits.
Yet some banks and other financial institutions engaged in excessive risk taking in the 2005–2007 period, which is one the reasons for the credit crisis in the 2008–2009 period. Many banks failed as a result of the credit crisis, and government subsidies were extended to many other banks in order to prevent more failures and restore financial stability. This has led to much scrutiny over existing regulations and proposals for new regulations that can still allow for intense competition while preventing bank managers from taking excessive risks. This chapter provides a background on the prevailing regulatory structure, explains how bank regulators attempted to resolve the credit crisis, and describes recent changes in regulations that are intended to prevent another crisis.18-2 REGULATORY STRUCTURE
The regulatory structure of the banking system in the United States is dramatically different from that of other countries. It is often referred to as a dual banking system because it includes both a federal and a state regulatory system. There are more than 6,000 separately owned commercial banks in the United States, which are supervised by three federal agencies and 50 state agencies. The regulatory structure in other countries is much simpler.
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This document discusses the history and rationale for regulations of financial institutions. It notes that regulations were established in response to bank failures during the Great Depression and financial crises to increase stability and protect consumers. However, regulations have also increased costs for banks. The Dodd-Frank Act aimed to prevent another crisis and protect consumers, but critics argue regulators failed to prevent the 2008 crisis. Overall, the document analyzes the reasons for financial regulations and their impacts.
Dodd-Frank's Impact on Regulatory ReportingHEXANIKA
We previously analyzed how Dodd-Frank and how the new regulations have impacted large banks as well as midsize and small banks. This time, we will look at how the law meant to address one issue (avoid a financial meltdown similar to 2008) might have created other challenges for banks – the most important one that of regulatory reporting:
The document discusses amendments being considered for the Consumer Financial Protection Agency (CFPA) in the Wall Street Reform and Consumer Protection Act of 2009. It summarizes amendments that would undermine the CFPA by eliminating it or weakening its powers, as well as amendments and provisions that would strengthen the CFPA and consumer protections. It argues that a strong CFPA is needed to restore balanced regulation and prevent another financial crisis by addressing predatory financial products and practices.
Mortgage fraud is one of the fastest growing crimes in the United States, with three categories including fraud for housing, fraud for profit, and fraud for criminal enterprise. Fraud for profit schemes involve multiple industry professionals inflating property values and creating fake credit profiles for profit. Measuring risk in the housing market is difficult and often leads to underestimating risk in booms and overestimating it in recessions, contributing to issues.
Moderninizing bank supervision and regulationcatelong
This is the testimony of Chris Whalen to the Senate Banking Committee on March 24, 2009 about bank and financial institution regulation and supervision.
The financial crisis was tough on asset-backed lending funds, and a spate of redemptions saw the space shrink considerably. But the launch this year of a new $1bn fund from FrontPoint Partners suggests that direct lending and ABL is making a comeback, and, due to the restrictions of Dodd-Frank, the space offers a wealth of opportunity for smaller niche players.
Review the CIBC Mellon Managing a Cross-Border Joint Venture Case.docxhealdkathaleen
Review the CIBC Mellon: Managing a Cross-Border Joint Venture Case Study found on below and respond to the following:
· Compare and contrast strategic controls and financial controls. Provide specific examples of how each may be used to best serve a corporation.
· As a strategic leader, determine if you would feel ethically responsible for developing your firm’s human capital and state why. Discuss whether or not you believe your position is consistent with the majority or minority of today’s strategic leaders.
Thomas MacMillan leaned back in his chair and glanced out of his office window down onto Bay Street, the epicenter of the Canadian financial industry. During his 10-year tenure as president and CEO of CIBC Mellon, MacMillan had presided over the dramatic growth of the jointly owned, Toronto-based asset servicing business of CIBC and The Bank of New York Mellon Corporation (BNY Mellon). However, now it was an overcast day in mid-September 2008 and MacMillan had a front-row seat to witness the onset of the worst financial crisis since the Great Depression. CIBC Mellon was facing this oncoming global financial storm with a solid balance sheet and was secure in the knowledge that both of its parents were also well capitalized. However, the well-publicized impending collapse of several long-standing financial titans threatened to impact all players in the financial services industry worldwide. Despite the fact that joint ventures (JVs) were uncommon in the financial sector, MacMillan believed that the CIBC Mellon JV was uniquely positioned to withstand the fallout associated with the financial crisis and that it would be able to weather the most significant risks facing the JV—execution risk and the potential exodus of assets and clients who were panicked by the wider financial pandemonium. MacMillan and his team recognized that it would be critical for the JV to continue to deliver a high level of client service and to avoid any major operational missteps. MacMillan’s moment of introspection was interrupted by a knock on the door. He was scheduled to meet with three members of the company’s executive management committee, Paul Marchand, Mark Hemingway and James Slater, to discuss two pressing issues facing the JV. First, they needed to discuss how to best manage any risks confronting the JV as a consequence of the financial crisis. Given the massive size and global reach of the largest financial service giants, and the likelihood that some of these behemoths might now be teetering on the edge of bankruptcy, CIBC Mellon, like other players in the financial services industry, would be forced to move adeptly to protect its operations from any potential exposure to the larger players’ fates. While the systems, structure and culture that prevailed at CIBC Mellon served as evidence of MacMillan and his team’s diligent efforts over the past 10 years to focus on risk management and to foster a culture of synergistic cooperation, the question re ...
Orderly Liquidation Authority under Dodd-FrankSimon Lacey
This is a presentation I prepared while at Georgetown University Law Center in 2001 on Orderly Liquidation Authority under the then newly enacted Dodd-Frank Act.
1) The document provides definitions and explanations of key concepts related to banking including the definition of banking, banking companies, statutes governing banking companies, and functions of banks.
2) It explains that banking companies accept deposits and use the money to make loans. Their main function is to channel money from savers to borrowers. Various laws at both the federal and state level regulate banking companies.
3) The document also describes the system of bookkeeping used in banks including the general ledger, subsidiary books like cash books, purchase books and sales books, as well as bills receivable and payable books. Maintaining accurate accounting records is important for banks.
This document summarizes the debate around regulating the payday lending industry in the United States. It outlines the Consumer Financial Protection Bureau's proposed regulations to curb predatory lending practices and establish consumer protections. It also discusses opposing legislation, the Consumer Protection and Choice Act, which would weaken the CFPB's authority. The document examines arguments from supporters of reform who see payday loans as debt traps, as well as counterarguments from opponents who believe regulation limits access to credit. Case studies from states with differing regulatory approaches are also considered.
2009 PIU Presentation Final - Erin Hardwickemallen4
The document provides a summary of a presentation given by the executive director of the South Carolina Association of CPAs (SCACPA). It covers a wide range of topics including the current economy, major accounting issues, regulatory changes, and initiatives of the SCACPA. Highlights include discussions on fair value accounting, mobility for CPAs, the FASB codification project, XBRL requirements, and international convergence of accounting standards.
PPT on 2008. US SUB PRIME CRISIS-2.pptxkthegreatks
The document discusses the microeconomic causes and variables that contributed to the 2007-2008 global financial crisis, including poor lending standards, credit derivatives, and the originate-and-distribute model that reduced screening of borrowers. It also examines the impact on the US and global economies, including job losses, declining wealth, and slow recovery for many. Government responses including the Troubled Asset Relief Program aimed to stabilize financial markets and restore confidence.
One of the most important decisions that a board of directors must make is the selection of the CEO. What type of disclosure can provide shareholders with insight into succession planning?
Participation Expectations.In order to be eligible for the m.docxdanhaley45372
Participation Expectations.
In order to be eligible for the maximum score on this graded activity, the initial response to the discussion questions must be at least 200 words and be suitably supported (citations) with material from our our assigned textbook readings. Subsequent comments to other students must "add value" to the discussion and should be approximately 100 words each in order to be considered "substantive" and therefore eligible for the maximum score
APA FORMATTING NOT NEEDED
: Please keep the two post separate
Discussion Post #:1
From 2007-2010, the Federal Reserve Bank (the Fed) used many practices that had never before been seen from the central bank of the United States.
Discuss the some of the actions that the Fed took during this period. Such as:
· How the Federal Reserve’s lending practices changed during this period.
· What did the Federal Reserve do to support firms deemed “too big to fail.”
Do you believe these actions were necessary to avoid a collapse in the financial system? Support your opinion with information from the textbook or external source(s).
Reference: Chapter 12, section 12.4: Bank Failures During the Great Recession, Chapter 14, section 14.4: Monetary Policy in the 2000s, and Conclusions section at the end of the Chapter 14
Guided Response: Review the posts of your classmates and respond to at least two of your classmates by agreeing or disagreeing with their opinions on whether the Federal Reserve actions were necessary to avoid the collapse of the financial system.
Peer Response #1: AM
At the height of the Great Recession, the Fed made changes to the FDIC to prevent the same kind of loss from happening again. “First, all accounts that do not earn interest are insured infull, regardless of the balance” (Amacher & Pate, 2012). Followed by the increase in the SMDIA to the amount of $250,000. This law (Dodd–Frank Wall Street Reform and ConsumerProtection Act ) was enacted by President Obama as a permanent fixture to the banking system.
The Fed took actions the were considered unconventional for the large financial institutions that were considered nonbanks. “Too Big To Fail” means these companies are too important the economy to let fail or go bankrupt. In an effort to keep these institutions from closing, the Fed offered bailout programs.
The actions taken by the Fed were thought necessary to keep from further hindering the U.S. economy. President of Federal Reserve Bank of Minneapolis, Neel KashKari, said, “We had a choice in 2008: Spend taxpayer money to stabilize large banks, or don’t, and potentially trigger many trillions of additional costs to society” (Kashkari, 2016). The failure of these companies could have harmed homeowners, businesses, and families across the U.S. much more than the bailouts that were given. Many believe that these banks should be broken up because they are too big and taxpayer bailouts should not be required to keep them afloat. “[…] there is no question that the.
Improving Americans' Financial Security: The Importance of a CFPB DirectorObama White House
This document discusses the importance of appointing a director to the Consumer Financial Protection Bureau (CFPB). It notes that while the Dodd-Frank Act established strong new consumer protections and the CFPB to enforce them, the CFPB cannot fully exercise its authorities without a director. This leaves gaps in oversight of non-bank financial institutions like payday lenders that interact with tens of millions of American families. Fully empowering the CFPB is critical to protecting consumers from predatory practices and ensuring the financial system supports economic growth and stability.
Similar to Financial institution news section (20)
AAIS produced advisory notices from 2012 to 2016 that provided a combination of regulatory news and AAIS announcements. These notices resulted in a growing collection of product regulatory information for each jurisdiction based on the day-to-day research of AAIS's Government Affairs, Legal, and Compliance team.
The document discusses lessons that financial institutions can learn from foreclosing on and owning hotel properties. It describes how one institution, Security First Federal, prevented losses on a foreclosed hotel by keeping it running with an employee monitoring cash flow until a new owner was found. The document advises that hotels should be treated like businesses and their value depends on maintaining operations. It provides tips for institutions that must take over hotels, such as working with existing operators if they are honest and knowledgeable. The document also discusses regulatory challenges and options for selling troubled hotel properties, such as allowing new buyers to invest in renovations.
The document discusses how regulatory and technological changes are increasing pressures on financial institutions to improve security. The new regulations eliminate specific security requirements and place greater responsibility on institutions to develop their own security programs tailored to their needs. This represents a shift away from prescriptive rules towards giving institutions more flexibility but also more responsibility. Security roles are becoming more complex and important given new technologies, growing liability risks, and stricter regulatory scrutiny of security compliance.
This document discusses systems that financial institutions are using to boost employee productivity. It provides examples of software programs that track employee performance in areas like sales, scheduling, and back-office work. The programs vary in price from $1,000 to $10,000 and can measure metrics like cross-selling ratios, sales volumes, and time spent on different tasks. Implementing even simple automated tracking systems has been shown to immediately improve productivity for companies like Family Bank.
The document discusses finding the right loan mix for credit unions. It recommends supplementing low-balance credit products with high-balance secured loans. Specifically, it suggests credit unions focus on secured loans like traditional second mortgages and mobile home loans, which can offer higher returns than low-balance signature loans and overdraft lines of credit that may lose money. The document also stresses the importance of calculating return on assets for different loan products to identify which are most profitable.
1) Credit unions need to carefully measure the return on investment (ROI) of promotional campaigns, as they have little margin for error due to the costs involved. A promotional campaign that costs $5,000 but only generates $750,000 in new loans results in a loss unless it returns at least 67 basis points.
2) Credit unions on average spend a higher percentage of their assets on marketing than banks and savings institutions, around 10 basis points compared to 7 and 6 respectively. This is because credit unions rely more heavily on direct mail marketing.
3) To determine the ROI of a promotional campaign, the marketing director of a credit union uses a formula that calculates net interest income, total income, net income,
This document discusses the importance of controlling operating expenses to ensure profitability on loans. It provides the following key points:
1) While interest margins have widened as rates have fallen, operating costs as a percentage of assets have risen for mortgage, consumer, and credit card loans.
2) Calculating accurate loan origination and maintenance costs is important for properly pricing loans. Formulas are provided to determine these per-loan costs based on department costs and time spent on origination vs maintenance.
3) Controlling costs, such as by requiring electronic payments, can significantly increase returns on auto loans compared to simply raising rates or fees. Reducing costs preserves competitive positioning versus competitors who rely on price increases.
1. NATIONAL NOTES
, I
Reform proposals stir up
regulatory turf battles
As more ideas surface for restructuring
the agencies that regulate financial insti-
tutions, the more likely it seems that the
status quo will remain.
So reasons at least one Washington
observer, Ken McLean, president of
McLean Associates, a Washington, D.C.-
based consulting firm.
In May, McLean told delegates of the
U.S. League's Conference of Large Insti-
tutions that he thought there was a
"50%chance" that there would be no
changes in regulatory structure this year.
Since then, he says, the announce-
NEWSMAKERS
Golden West Financial Corporation,
Oakland, Calif., parent company of
World Savings, ranks third among
large publicly held companies for re-
sponsiveness to shareholder concerns,
according to the United Shareholders
Association, Washington, D.C.
The $22.5 billion holding company
is the only financial institution among
the top 20 in this year's "Shareholder
1000" listing put out by the USA. The
listing ranks the 1,000 largest U.S.
corporations based on their economic
performance, respect for shareholder
rights and executive compensation.
Golden West also ranks as Amer-
ica's fifth best-managed large com-
pany, according to a survey by For-
tune magazine, reported in its April
22 issue.
Beverly Hills (Calif.) Business Bank
FSB, says it can pursue a commercial
..j
ment of yet another reform proposal by
a House Banking Committee task force
in June makes it even more difficult for
any one restructuring plan to gain sup-
port.
THREE PROPOSALS
As of late June, the debate over regu-
latory reform in the House Banking
Committee centered on three primary
proposals:
• A Bush Administration proposal to
create a single Office of Depository Insti-
tutions Supervision in the Treasury De-
partment as the primary regulator for
national banks and savings institutions.
Under this plan, state-chartered com-
mercial banks would be regulated by the
Federal Reserve Board, even if they are
not members of the system.
• A proposal by Rep. Henry Gonzalez
bank strategy while retaining the tax
advantages of a savings institution
charter.
That's the reason for the new name
of the former Beverly Hills Federal
Savings Bank, say officials.
The $1.3 billion bank plans to greatly
expand its commercial lending to mid-
dle-market companies and profession-
als, according to President Edward
Sondker.
The institution can do so without
exceeding the commercial lending limit
of 10% of assets, he says, by selling
some of the loans to its commercial
bank holding company, $10.8 billion
Michigan National Corporation,
Farmington Hills.
"We can generate a lot of [com-
mercial] loans, sell them to the parent
company and retain servicing," Sond-
ker says. "We can have fcommercial
lending] relationships far in excess of
the 10% limit."
Sondker adds, however, that Bev-
erly Hills Business Bank does not plan
(D, Tex.) to create an independent Fed-
eral Depository Institutions Regulatory
Agency to regulate all commercial
banks, savings institutions and credit
unions.
• The task force proposal to create a
Treasury agency to regulate all national
banks and savings institutions insured
by the Savings Association Insurance
Fund.
The agency would be created by merg-
ing the Office of Thrift Supervision and
the Office of the Comptroller of the
Currency.
The task force proposes that the Fed-
eral Deposit Insurance Corporation be
the primary federal regulator for state-
chartered commercial banks and sav-
ings banks. The Fed's regulatory role
would be reduced to supervising com-
mercial bank holding companies with
to convert to a commercial bank char-
ter - at least for several years.
Management wants to avoid tax
losses upon conversion, he says, and
is waiting to see if the federal govern-
ment eliminates distinctions between
saving institution and commercial bank
charters.
William Schuett, president of Security
Bank SSB, Milwaukee, has been given
a commendation by an air reserve
unit for his institution's efforts to
support reserve personnel overseas
during the Gulf War.
The 440th Tactical Airlift Wing Re-
serve Unit, based at Mitchell Interna-
tional Airport, Milwaukee, com-
mended Schuett for Security Bank's
"Operation Mortgage Shield."
Under the program, the bank of-
fered to make six months' principle
and interest payments for mortgage
customers called to active duty (see
page 5, May Sf).
SAVINGS INSTITUTIONS. AUGUST 1991 5
2. I
NATIONWIDE NEWS
$10 billion or more in assets.
The contrasts among these proposals
reflect turf battles as much as regulatory
philosophies, say experts.
The House Banking Committee was
expected to debate the proposals for
regulatory restructuring in late June,
when it was scheduled to consider bank-
ing reform legislation.
As of mid-June, however, representa-
tives were discussing the possibility of
delaying action on banking reform and
proceeding only with a recapitalization
of the Bank Insurance Fund (see page 4,
July Sf).
Also in mid-June, the Senate Banking
Committee was still crafting banking
reform legislation. It was not known if
proposals for regulatory restructuring
would be included, said Deborah
DeYoung, communications coordinator
for the committee.
New EPA rule reduces
lender liability
The Environmental Protection Agency
wants to ease up a bit on real estate
lenders.
But its latest proposal to restore lender
protections against liability for toxic
wastes may be too little, too late for the
agency.
Pressure continues to build in Con-
gress to limit lender liability for environ-
mental hazards even more than what
the agency has recently recommended.
An EPA rule, proposed in June, would
exempt a secured lender from cleanup
liability on properties it "influences"
through workouts or owns through fore-
closures - if the lender does not ac-
tively manage the properties.
The rule, in effect, would reverse a
1990 court ruling that found a lender
liable for cleanup on a property merely
because the lender was in a position to
influence disposal of toxic wastes.
Despite the announcement of the new
6 SAVINGS INSTITUTIONS. AUGUST 1991
rule, the House Banking Subcommittee
on Policy Research and Insurance is
proceeding with hearings that may lead
to legislation to limit lender liability for
toxic wastes even further.
Battle looms over
CRA enforcement
Though hardly mentioned in the Treas-
ury Department's proposal for financial
restructuring, community reinvestment
has become a central issue in the debate
over banking reform.
Through amendments to the Treasury
proposal, the House Banking Subcom-
mittee on Financial Institutions Supervi-
sion, Regulation and Insurance has, in
effect, recommended that only large fi-
nancial institutions should be forced to
comply with the Community Reinvest-
mentAct.
But, community groups are lining up
to insist that smaller institutions still be
held to CRA standards, says Allen
Fishbein, general counsel for the Center
for Community Change, Washington,
D.C. The center is a nonprofit organiza-
tion that provides technical assistance
on economic matters to local community
groups.
EASING BURDENS
Observers estimate that the proposed
amendment would exempt more than
10,000 of the nation's 15,000 commer-
cial banks and savings institutions from
complying with CRA.
The amendment states that institu-
tions in metropolitan areas that have
less than $1 00 million in assets need not
comply with CRA. In rural areas, the
waiver would extend to institutions with
up to $250 million in assets.
A companion amendment provides
that branch and other applications can-
not be denied on CRA grounds for
institutions that received "outstanding''
or "satisfactory" ratings within the previ-
ous two years.
The amendments are intended to re-
lieve community bankers of paperwork,
says Eva Malecki, press secretary to
Rep. Paul Kanjorski (D, Pa.), sponsor of
the amendments.
"It's obvious that local banks do lend
to the local community," she adds. "If
they didn't, they'd be out of business.
"A lot of bigger banks are not inter-
ested in small communities, so it's best
to continue to regulate them" under
CRA, Malecki explains.
Malecki's conclusions are far from
obvious to Fishbein and others, who
argue that some small institutions are
among the worst offenders when it
comes to failing to meet the credit needs
of lower income and minority house-
holds.
Nine of the 12 "substantial noncom-
pliance" ratings given by regulators have
gone to institutions with less than $100
million in assets, according to Kenneth
Thomas, president of K.H. Thomas As-
sociates, a Miami-based bank consulting
firm.
Three of the lowest ratings have gone
to savings institutions, according to
Thomas, two of which have less than
$100 million in assets.
Thomas estimates that about 80%of
the approximately 200 "needs improve-
ment" ratings also have gone to institu-
tions smaller than $100 million.
Recent corporate changes involving sav-
ings institutions are listed below. Be-
cause this listing is drawn from numer-
ous sources, no claim is made that it is
complete or entirely up-to-date.
MERGERS & ACQUISITIONS
Effective:
The acquisition of Heart Federal
Savings, Auburn, Calif., by U.S.
Bancorp, Portland, Ore.
The acquisition of Time Federal Sav-
ings, San Franciso, from the Resolution
Trost Corporation by Sun Savings Bank,
l.JJs Angeles.
The merger of East Jersey Savings
Bank, Deal, NJ., with Investors Sav-
ings, Millburn, NJ.
Proposed:
The acquisition of Fidelity
Bancshares, Inc., parent company of
Fidelity Federal Bank, Nashville, by
Union Planters Corporation, Memphis,
parent company of Union Planters Na-
3. Kanjorski's amendment, he adds, is
"equivalent to a repeal of CRA."
MIXED VIEWS
Fishbein agrees and vows a fight as
the banking reform bill goes to the
House Banking Committee and the full
House.
'There is a strong constituency in
favor of CRA," he says. "If bankers
haven't learned that in the past, they're
going to learn it now."
The U.S. League of Savings Institu-
tions is among the financial trade associ-
ations supporting Kanjorski's amend-
ments.
"In terms of the regulatory burdens
imposed on institutions, CRA compli-
ance doesn't fall as heavily" as other
regulations, says Gary Gilbert, banking
agencies liaison in the League's Wash-
ington, D.C., office.
"But, it adds to the paperwork," he
says.
Under the subcommittee proposal,
banks with more than $100 million in
assets would not only remain subject to
CRA but also would have to adhere to its
tional Bank, Memphis. Under the pro-
posal, Fidelity Federal Bank will con-
vert to a national bank charter and
merge with Union Planters National
Bank.
The acquisition of FirstFed America
Bank, Logan, Utah, and Logan Sav-
ings, by First Federal Savings Bank,
Salt Lake City.
The acquisition of Homewood (Ill.)
Federal Savings by Advance Bancorp,
Chicago, parent company of Advance
Bank FSB, Lansing, Ill., and South
Chicago Bank, Chicago.
The merger of Home Savings Bank,
SA, Appleton, Wis., with Republic Cap-
ital Bank SSB, Milwaukee.
The acquisition of Palisade Savings
Bank, Ridgefield Park, NJ., by U.S.
Thrift Opportunity Partners, Chicago.
BRANCH ACflVITY
Effective:
The acquisition of an Oakdale, Calif,
branch of Sacramento (Calif.) Savings
Bank by American Savings Bank FA,
standards, if they want to use new
powers proposed in the legislation.
The provision would require institu-
tions to have at least "satisfactory" CRA
ratings before they could branch across
state lines or merge with securities or
insurance firms.
FDIC, RTC foresee even
higher resolution costs
Despite signs that the nation's economy
is recovering from recession, federal
agencies are predicting sharply higher
costs for resolving failed commercial
banks and savings institutions.
In June, the Federal Deposit Insur-
ance Corporation increased its estimate
of the 1991-1992 cost of resolving failed
commercial banks and savings banks
from $14.9 billion to $23.1 billion.
At the same time, Comptroller Gen-
eral Charles Bowsher said in Washing-
ton, D.C., that the General Accounting
Office cannot begin to estimate the cost
of resolving savings institutions placed
under the Resolution Trust Corporation.
Stockton, Calif
The acquisition of a Hacienda
Heights, Calif, branch of Trust Sav-
ings Bank FSB, Montery Park, Calif,
by Century Federal Savings, Santa
Monica, Calif.
The acquisition of a Sacramento,
Calif, branch of Western Federal Sav-
ings, Marina Del Rey, Calif, by Sacra-
mento Savings Bank
The acquisition of a Cypress, Calif,
branch of Century Federal Savings,
Santa Monica, Calif, by Sherman Oaks
(Calif.) Savings Bank FSB.
Proposed:
The opening of a North Huntingdon,
Pa., branch of Great American Fed-
eral Savings, Pittsburgh.
The acquisition of a Lincoln City,
Ore., branch of Pacific First Bank FSB,
Seattle, by National Security Bank,
Newport, Ore.
The acquisition of a Westminster,
Calif, branch of Delta Savings Bank,
Westminster, by United Pacific Bank,
Los Angeles.
The RTC is in such disarray, Bowsher
said, that the GAO cannot complete an
audit of the agency by the June 30
deadline mandated by Congress.
Bowsher added, however, that the
cost of savings institution resolutions will
exceed the $130 billion estimate put
forth by the Bush Administration.
In response to criticism of RTC opera-
tions, the RTC Oversight Board has
tapped John Robson, deputy treasury
secretary, and Alfred DelliBovi, under-
secretary of the Department of Housing
and Urban Development, to review RTC
management and recommend improve-
ments.
IN THE BUSINESS
Georgia lender launches
FmHA rural loan program
First Federal Savings Bank of Southwest
Georgia, Donalsonville, has become the
first U.S. lender to close a loan under a
new loan guarantee program sponsored
by the Farmers Home Administration.
In addition to being a pioneering
effort, the transaction also reflects the
changing roles of financial institutions
and the federal government in rural
mortgage finance.
Rural areas, which are defined as
being located at least 25 miles from
densely populated areas, have been hard-
hit by the failures of savings institutions,
says Robert Edmister, a professor in the
department of economics and finance at
the University of Mississippi, Oxford.
Portfolio lenders have been especially
important to rural housing finance, he
says, because many rural properties do
not conform to standards that lenders
must meet to sell loans in the secondary
market.
Edmister's study of savings institution
lending in Arkansas, Mississippi and
i.Duisiana in 1990 shows that more than
half of the mortgage loans they origi-
nated did not conform to secondary
market specifications.
With the demise of rural institutions,
"there's been a real problem out there
financing rural mortgages," says Bruce
Crain, director of industry relations for
SAVINGS INSTITUTIONS. AUGUST 1991 7
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NATIONWIDE NEWS
the Federal Home Loan Bank of Dallas.
Congress acknowledged the rural
credit crunch when it authorized the
FmHA loan guarantees in the Cranston-
Gonzalez Affordable Housing Act of 1990.
GUARANTEES EXTENDED
The program extends government loan
guarantees to first-time home buyers in
rural areas whose incomes are too high
to qualify for direct loans from the
FmHA.
The FmHA is currently authorized to
guarantee up to $100 million in loans as
a pilot project for a nationwide program,
says Larry Hammond, director of the
FmHA's single-family home loan divi-
sion.
First Federal Savings Bank is using
the program to expand its lending to
moderate-income households, says Di-
anne Thomas, vice president.
A $46,500 mortgage closed by First
Federal was the first done by any lender
under the program, and the $32 million
bank has more in the works.
According to Thomas, many moderate-
income rural households have been
locked out of homeownership, since, for
several years, Congress has failed to
fund direct FmHA lending to moderate-
income people.
The new FmHA program allows First
Federal to reduce downpayment require-
ments for those customers,Thomas says,
because the agency guarantees loans up
to 100%of value.
According to FmHA officials, the guar-
antees are offered only to households at
or below the median income for their
region. Interest rate subsidies also are
available for borrowers at or below 80%
of the regional median income.
The holder of a guaranteed loan is still
at risk for about 10%of the outstanding
principal in a default, says Hammond.
Thomas and FmHA officials are confi-
dent that a secondary market for guar-
anteed rural loans will develop- some-
thing they say failed to happen when
they last tried in the 1970s.
5. Spokesmen for the Government Na-
tional Mortgage Association and the Fed-
eral National Mortgage Association said
in mid-June that the agencies were
negotiating with the FmHA regarding
purchases of the loans, but declined
further comment.
RTC deals pay off in
loan opportunities
Bucking conventional wisdom, some
savings institutions are finding it profita-
ble to purchase loans from the Resolu-
tion Trust Corporation (see related story
on page 7).
Commercial Federal, Omaha, Neb.,
estimates that yields are 25 basis points
higher on the $1.4 billion in single-
family mortgages it bought from the RTC
than on newly originated loans, says
Bob Griesebach, senior vice president.
"The RTC is a source of investments
now that loan originations are not at the
volume needed to meet savings in-
flows," he says.
Magnolia Federal Bank for Savings,
Hattiesburg, Miss., also has bought
about $250 million in RTC mortgages,
says Chairman Robert Duncan. The
bank needs the loans, he says, for inter-
est income to offset the additional de-
posits it plans to acquire from the RTC.
I.Dan demand is not strong enough to
fund growth through originations, says
Duncan. "The only way to do it is to
acquire loans," he says.
He adds that single-family loans
bought from the RTC yield 11.5% on
average, compared with current yields of
10% to 11% for loans originated in-
house.
PATIENT FEW
According to experts, institutions like
Commercial Federal and Magnolia Fed-
eral are a minority among savings insti-
tutions.
Most healthy savings institutions avoid
the RTC, they say, because they:
• Have no interest in acquiring portfo-
lios with delinquent or low-documenta-
tion loans that regulators may question.
e Do not want to deal with an RTC
bureaucracy reported to be inefficient in
negotiating and closing deals.
'··
J
"I would really be surprised to find
many savings institutions turning to the
RTC to buy nonperforming loans," says
Robert Ledig, an attorney who monitors
RTC developments for the firm of Fried,
Frank, Harris, Shriver & Jacobson in
Washington, D.C.
"Most savings institutions that are not
in trouble try to stay as far away from the
RTC as they can," adds Terry Struthers,
president of Data Source RE, Inc., a real
estate information firm based in Boul-
der, Colo.
Griesebach and Duncan don't deny
that there are problems with the proce-
dures and portfolios of the RTC.
But, they argue that the agency has
steadily improved its marketing of as-
sets, and that opportunities beckon lend-
ers patient enough to work with the
agency.
SEASONED LOANS
Both also stress that most of the
mortgage loans available from the RTC
are seasoned, even if the documentation
is flawed.
''I'm not sure most people under-
stand that," says Duncan. "Most of the
credit risk is gone."
"The track record of these [borrow-
ers] gives them a lot of credibility, as far
as we're concerned," adds Griesebach.
Savings institutions, because of their
experience and abilities as portfolio
lenders, can acquire these loans at good
discounts, says Duncan. There is little
competition for them from lenders who
sell in the secondary market, he says.
In contrast to the institutions that
avoid dealing with the RTC, Commercial
Federal sees its loan purchases as a
central element in a new strategy.
The institution hopes to increase earn-
ings by holding more whole loans, says
Griesebach. He adds that Commercial
Federal hopes to buffer itself from down-
turns in its regional economy by having
loans from throughout the country in its
portfolio.
To those ends, Commercial Federal
may buy up to $1 billion more in RTC
mortgage loans before the agency is
eventually liquidated, says Griesebach.
"The RTC is a unique opportunity,"
he says. "We're just capitalizing on it."
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10 SAVINGS INSTITUTIONS. AUGUST 1991
NATIONWIDE NEWS
IN FOCUS
LOAN DISCLOSURES
COULD DRAW BARBS:
ARE YOU READY?
HMDA files will have
data on race, income
of loan applicants
Mortgage lenders should be taking step
now to prevent potential public relation:
problems in the fall over lending prac-
tices, according to several experts.
They say many institutions may find
themselves criticized- perhaps un-
fairly- on the basis of information in
the expanded disclosure forms imple-
menting the Home Mortgage Disclosure
Act.
The Federal Reserve System is com-
piling HMDA reports on 1990 lending
data submitted by commercial banks,
savings institutions and other lenders.
The Fed hopes to complete and send
the reports to lenders by late September
or early October. Lenders are required
to make the reports available to the
. public 30 days after they receive them.
INTENSE INTEREST
For the first time, HMDA reports will
include information on the race, na-
tional origin, gender and income of loan
applicants.
Among other things, the public will be
able to determine if an institution re-
jected applications from certain racial or
income groups more often than for
others.
Community activists are "anxiously
awaiting" the reports, says W. Kurt Schu-
macher, an attorney with the division of
consumer and community affairs at the
Fed.
But, for some lenders, reactions to
their reports won't be positive.
7. Many will face criticism for having a
higher rate of loan rejections for minori-
ties than for whites, says Lucy Griffin,
manager of compliance at the American
Bankers Association, Washington, D.C.
"We know what the pattern will be,"
she says. "Blacks are frequently turned
down more often than whites."
That pattern is, indeed, emerging from
the 1990 data of most lenders in multi-
racial markets, says Schumacher.
But, experts say, there are economic
reasons for the disparity. For example,
minorities, on average, have lower in-
comes and less inherited family wealth
than other groups.
Nonetheless, institutions can expect
activists- with full press coverage - to
argue that the disparity is evidence of
discrimination, according to Griffin.
The HMDA file "has the potential of
being a very negative report," says Frank
Willis, chairman of the Housing Oppor-
tunities Foundation of the U.S. League
of Savings Institutions, Washington, D.C.
He and others suggest several steps
institutions can take to address potential
challenges over their HMDA disclosures:
CALENDAR OF EVENTS
UNITED STATES LEAGUE
Sept. 4-6
Sept. 11-13
Sept. 15-17
Sept. 25-27
Compliance Conference
Compliance Conference
Compliance Conference
Compliance Conference
Oct. 27-30 99th Annual Convention
Oct. 3Q-31 Directors Conference
Regional Conferences
July 28-31 Midwest Savings
Conference
State League Annual Conventions
July 21-24 Michigan League
July 29
Aug. 25-28
Colorado League
Iowa League
Minnesota League
North Dakota League
South Dakota League
(combined meeting)
• Know what's in your HMDA file.
It may sound basic, but institutions
frequently file such reports without study-
ing them and anticipating questions,
says Willis.
According to the ABA's Griffin, the
worst mistake an institution can make is
to say, "Gee, that does look bad" when
confronted with an unexpected question
about lending practices.
Be prepared with detailed analyses of
why certain patterns emerge, she ad-
vises.
• Do additional audits of your lending
practices, if possible.
Talman Home Federal Savings, Chi-
cago, last year reviewed all of its loan
rejections, says Tom Gobby, vice presi-
dent and Community Reinvestment Act
officer.
The review will enable $6 billion
Talman Home to show that most loan
rejections in low-income communities
result from identifiable problems with
creditworthiness, he says.
• Promote your community lending pro-
grams.
According to Willis, since the newly-
released data will be nearly a year old,
lenders can certainly point to any new
community lending activities undertaken
in 1991.
First Federal Savings, Rockford, Ill., is
among several institutions preparing to
respond, reports Senior Vice President
William Leefers.
"We feel we are doing all we can to
promote [community lending] and make
loans," he says. "But, who knows how
people will interpret information com-
piled by people other than us?"
The $390 million institution is pre-
pared to show that:
• It established a special loan review
committee a few years ago to increase
the acceptance rate for loan applications
from Hispanics.
• First Federal's CRA committee peri-
odically reviews lending activity in the
census tracts that make up the institu-
tion's market to determine if any tract is
being underserved.
• CRA matters are regularly discussed
at monthly staff meetings attended by all
employees. ~
Edited by Joseph Harrington
Sept. 4-7 Wyoming League
Idaho League
Montana League
Utah League
Jackson, Wyo.
Washington, D.C.
Chicago, Ill.
Atlanta, Ga.
San Francisco,
Calif.
Washington, D.C.
Washington, D.C.
Vail, Colo.
Mackinac Island,
Mich.
Vail, Colo.
Brainerd, Minn.
Sept. 5-7
Sept. 8-11
Sept. 13-15
Sept. 15-17
Sept. 15-18
Sept. 15-18
Sept. 18-22
Sept. 22-25
Sept. 25-26
Sept. 25-29
Sept. 29-
0ct. 2
(combined meeting)
West Virginia League
Washington League
Oregon League .
(combined meeting)
Savings Banks
Association of Maine
Florida League
Illinois League
Kentucky League
Tennessee League
(combined meeting)
Missouri League
South Carolina League
Massachusetts League
Wisconsin League
California League
New England League
Connecticut League
(combined meeting)
New York League
White Sulphur
Springs, W. Va.
Blaine, Wash.
Dixville Notch, N.H.
Lake Buena Vista,
Fla.
White Sulphur
Springs, W. Va.
Kansas City, Mo.
Orlando, Fla.
Dixville Notch, N.H.
Milwaukee, Wis.
San Diego, Calif.
Hilton Head, S.C.
Since dates and locations are subject to change, readers
are advised to verity meeting details with the sponsoring
organization before making airline or other arrangements.
Sept. 29-
0ct.3
Oct. 6-8
Oct. 6-9
Ohio League
Louisiana League
Hot Springs, Va.
Columbus, Ohio
Charleston, S.C.
SAVINGS INSTITUTIONS, AUGUST 1991 11