Interest-rate risk substantially affect the values of the assets and liabilities of most corporations and is often a dominant factor affecting the values of pension funds, banks and many other financial intermediaries.
After more than a half decade of consecutive year of sustained growth, real gdp growth is expected to slump to 3% in 2009, as the crisis hits. While the crisis effects the entire world and developed countries fall into recession, the picture for Africa, while fragile, is not without hope.
Interest-rate risk substantially affect the values of the assets and liabilities of most corporations and is often a dominant factor affecting the values of pension funds, banks and many other financial intermediaries.
After more than a half decade of consecutive year of sustained growth, real gdp growth is expected to slump to 3% in 2009, as the crisis hits. While the crisis effects the entire world and developed countries fall into recession, the picture for Africa, while fragile, is not without hope.
No time has been better to extend Treasury\'s reach within an organization to effect permanent changes in the financial supply chain. Extending Treasury\'s Reach discusses ways to improve liquidity for survival today as well as to fuel growth in the future.
Impact of Liquidity crisis to commercial banks in ZimbabweAleck Makandwa
A research carried out by a 2:2 student studying Banking and Finance at Great Zimbabwe Universty which can help Bankers and those who are interested in Banking System to know about the effects of Liquidity crisis to commercial banks in Zimbabwe.....
Liquidity Risk is normally a crucial issue in a banking crisis, however, during the 2007-2010 period, Liquidity has not been as difficult for us as we may have thought. There are many reasons for this, but number one is the fact that today’s community bankers simply have a better understanding of the various techniques for raising both retail deposits and wholesale funds. What does make this crisis a bit different is the relative pricing efficiencies in the wholesale or non-core funding arena these days and our session will focus on how bankers can avoid those difficult examiner discussions about the use of FHLB Advances and Brokered Deposits. It’s all about process and we will provide guidance on what needs to be in your ALCO Policy as it relates to wholesale funding. We will also explore the April 2010 Liquidity and Funds Management Guidance to ensure your bank is up to speed on those requirements. Finally, we will provide specific guidance on both Ratio Analysis and creating your Contingency Funding Plan and will review a sample CFP.
TUI University 1Money and Monetary PolicyMacroeconomic.docxwillcoxjanay
TUI University 1
Money and Monetary Policy
Macroeconomics
ECO202
TUI University
TUI University 2
•Forms and Types of Money:
People invented money to overcome the limitations
of barter.
Early money was “commodity money.”
Commodity monies are items used as money that
also have intrinsic use value.
People invented fiat money and credit money to
overcome the limitations of commodity money.
Why do fiat money and credit money have value?
TUI University 3
Functions of Money:
Money regardless of form performs three
important functions in the economy.
Money serves as:
1. Medium of Exchange.
2. Store of Value.
3. Standard of Value.
TUI University 4
1. Medium of Exchange:
Barter requires the double coincidence of wants.
Money lowers the transactions costs of exchange
by serving as the means of payment.
TUI University 5
2. Store of Value:
Money is a convenient way to store part of one’s
wealth.
Any asset has three important features.
An advantage to money is its liquidity, but liquidity
has an opportunity cost.
During inflationary times it is dangerous to store
wealth in the form of money.
TUI University 6
Risk and Return:
The rate of return on an asset is the total dollar
gain from an asset measured as a % from the
beginning of the period.
The return combines any income with a capital
gain or loss.
Risk measures the variability of returns.
TUI University 7
3. Standard of Value:
Unit of account.
Money is a standard of value for quoting prices.
TUI University 8
M1:
Narrow transactions money supply is
called “M1.”
M1= currency + demand deposits
(checking accounts) + traveler's checks.
M1 is currently around 1.1 Trillion $ and
often falling.
About 60% of M1 is demand deposits and
a about 40% is currency.
TUI University 9
M2:
Broad money.
M2 includes M1 + liquid assets.
M2 = M1 + smaller savings accounts + small time
deposit accounts + money market accounts + other
near monies.
M2 is about 4.5 T $.
The relationship between M2 and the economy broke
down in the early 1990’s as people pulled money out
of savings accounts and put it into financial
investments outside of banks that are not included in
the money supply.
M2 is no longer a target variable of the Fed.
TUI University 10
CURRENCY IN THE ECONOMY
$372 billion of currency amounts to over $1,430 for every
man, woman and child in the U.S.
Most of the currency in the official statistics is not used in
ordinary commerce in the U.S.
Much is held abroad by wealthy people
Some circulates in other countries along with local
currencies
Currency is also used in illegal transactions
TUI University 11
BANKS AS FINANCIAL
INTERMEDIARIES
Help bring savers and investors together
By using expertise and powers of diversification, financial
intermediaries reduce risk to savers and allow investors
to obtain funds on better terms
A typical commercial bank accepts funds from savers in the ...
PART 11. Choose three economic indicators one of each type (lea.docxherbertwilson5999
PART 1
1. Choose three economic indicators one of each type (leading, lagging, and coincident). Define the measure, explain the timing and source of reporting, provide current measure and trend over the last year.
2. Which financial statement shows the amount of bonds and money market instruments a company has issued or invested in?
3. In most current financial statement from question #2 - what are the dollar amounts of bonds and money market securities that Amazon has issued? How much has Amazon invested in money marked securities?
PART 2
Find out which bonds Amazon has outstanding and share info about five of these bond issues based on info in the annual report. Info should include: Issue Date, Issue Size, Initial Term, Remaining Term, and Coupon rate.
What is the approximate size of the Bond Market and the Money Markets? For comparison, how large is the equity market? What are reasons for the significant difference?
PART 3
1. Let's think about factors that can influence each of these components, give at least one factor that affects each of the following:
a. Risk free rate
b. Inflation premium
c. Default risk premium
d. Liquidity premium
e. Maturity risk premium
2. How does collateral affect the interest rate on a bond? How does subordination affect the interest rate on a bond too?
3. Which financial statement is used to determine outstanding debt (bonds)? What bond issues does Amazon have outstanding (from annual report details)? Provide characteristics, features, and provisions of different bond issues from Amazon .
4. What are the primary bond categories and how do they differ?
Assignment 3
Chapter 4
1. The Fed Briefly describe the origin of the Federal Reserve System. Describe the functions of the Fed district banks.
5. Beige Book What is the Beige Book, and why is it important to the FOMC?
10. Effect on Money Supply Why do the Fed’s open market operations have a different effect on the money supply than do transactions between two depository institutions?
15. The Fed’s Impact on Home Purchases Explain how the Fed influences the monthly mortgage
payments on homes. How might the Fed indirectly influence the total demand for home by consumers?
chapter 5
1. Impact of Monetary Policy How does the Fed’s monetary policy affect economic conditions?
2. Trade-offs of Monetary Policy Describe the economic trade-off faced by the Fed in achieving its economic goals.
4. Active Monetary Policy Describe an active monetary policy.
5. Passive Monetary Policy Describe a passive monetary policy.
20. Impact of Inflation Targeting by the Fed Assume that the Fed adopts an inflation targeting
strategy. Describe how the Fed’s monetary policy would be affected by an abrupt 15 percent rise in oil prices in response to an oil shortage. Do you think an inflation targeting strategy would be more or less effective in this situation than a strategy of balancing inflation concerns with unemployment concerns?
Explain.
.
The Federal Reserve and Money SupplyTakes s.docxcherry686017
The Federal Reserve and Money Supply
*
Takes sections for chapters 10, 14, & 15 from the Mishkin text (9th edition), Federal Reserve reader, and www.federalreserve.gov
Chpt 10
3 key players
1. Depositors
2. Banks
3. Federal Reserve
Depositors are the most important providers of funds and they are the biggest users of fundsIf depositors lose confidence bank runs can occur, causing banks to lose their sources of funds If depositors have confidence banks have an increase amount of funds
Banks are the keepers of depositors funds
As before our deposits are their biggest liabilities, but their greatest assets
Balance Sheet is the most important document to understand the banking system
It is made up of two broad categories
Liabilities (Sources of Funds)
Assets (Uses of Funds)
Listed from most liquid to least liquid
Liabilities are simply the sources of funds
Checkable deposits
Payable on demand
Considered to be an asset for depositor (us)
Lowest cost of sources for banks we want easy access to liquidity
Only 6% of total liabilities (per the Fed)
Nontransaction deposits
CDs
Owners cannot write checks against such accounts
Primary source of bank funds (53% of bank liabilities)
Checkable deposits intterest paid on deposits has accounted for 25% of total bank operating expenses while the costs involved in servicing accounts (employee salaries, building, rent) has roughly 50% of operating expenses!
Liabilities Cont.
Discount Loans / Fed Fund (31% of liabilities)
Discount loans are loans from the Federal Reserve (also known as advances)
Typically 1%-pt above the fed funds rate
Banks typically do not want to borrow from the Fed unless absolutely necessary!
Fed Funds loan (overnight loans)
Federal funds are overnight borrowings by banks to maintain their bank reserves at the Federal Reserve
Transactions in the federal funds market allow banks with excess reserve balances to lend reserves to banks with deficient reserves
These loans are usually made for one day only (‘overnight’).
Bank Capital (10% of liabilities)
Banks keep reserves at Federal Reserve Banks to meet their reserve requirements and to clear financial transactions.
Typically referred to as the uses of fundsThe interest payments earned on them are what enable banks to make profits.
Reserve Requirements
These are deposits plus currency that is physically held by banks.
Reserves are made up by required reserves and excess reserves
Required Reserves: For every dollar of checkable deposits at a bank (a fraction must be kept as reserves)
Excess Reserves: The most liquid of all bank assets and the bank can use them to make other loans to banks (through the fed funds market) or other loans.
Cash Items in Collection Process
Checks in process of being cleared from another bank
Correspondent banking
Common in small banks
Small banks hold deposits in larger banks in exchange for a variety of services, including check collection, foreign exchange tran ...
https://rb.gy/n89u77
Describe interest rate fundamentals, the term structure of interest rates, and risk premiums. Discuss the general features,
yields, prices, ratings, popular types, and international issues of
corporate bonds. Review the legal aspects of bond financing and bond cost.
Week-9 Bank RegulationMoney and Banking Econ 311Tuesdays 7 .docxalanfhall8953
Week-9 Bank Regulation
Money and Banking Econ 311
Tuesdays 7 - 9:45
Instructor: Thomas L. Thomas
Capital Adequacy Management
Bank capital helps prevent bank failure
The amount of capital affects return for the owners (equity holders) of the bank
Regulatory requirement – Regulatory Capital – Tier 1 and Tier 2 Basle Rules
Economic Capital - What is this
2
Capital Adequacy Management:
Returns to Equity Holders
3
Traditional Economic Capital Value-At-Risk (VaR) View
Frequency of Occurrence / Probability
Mean/Average Expected Losses (m)
Unexpected Losses @ 99.9% confidence Level (s)
Economic Capital
Reserves
Value-at-Risk
VAR
Before we can develop adequate credit stress testing we need to understand the differences between traditional credit loss measures and what stress tests incorporate.
Aside form standard concentration and coverage analysis, a standard portfolio credit risk analysis typically employs a Value-at-Risk view.
Credit risk in this view generally follows a positive skewed distribution (by definition one cannot have negative defaults and thus a normal distribution is not applicable).
Reserves ALLL generally cover average expected losses over a horizon. In reality these are usually allocated to general reserves since most ALLL have two components: general reserves and specific reserves for known credits that are detraining.
Economic capital functions as a cushion against unexpected loss up to some confidence level. In this case 99.9% or a single “A” rating is the regulatory standard (once every 10,000 years)
In addition to a loss cushion economic capital represents the amount of the firm’s equity that is at risk which requires a return sufficient to cover the associated risk.
The shape of the curve or tail will then reflect the underlying credit risk of the portfolio or product.
However this view has some assumptions that can miss important risk elements.
The distribution is generally based on one variable PD in this case and does necessarily fully account for other correlated factors that when combined either change the tail or increase the likelihood of default.
Second, while the event may be rare, this methodology does not tell how severe or the magnitude of the event when it occurs beyond the confidence level prescribed for economic capital.
4
Old Measure: New Ones
RAROC - Risk Adjusted Return on Capital
EVA - Economic Value Added.
Hurdle Rate – What is it. How is it measured?
5
Time Line of the Early History of Commercial Banking in the United States
6
Historical Development of the Banking System
Bank of North America chartered in 1782
Controversy over the chartering of banks.
National Bank Act of 1863 creates a new banking system of federally chartered banks
Office of the Comptroller of the Currency
Dual banking system
Federal Reserve System is created in 1913.
7
Asymmetric Information and Financial.
From the Editor's Desk: 115th Father's day Celebration - When we see Father's day in Hindu context, Nanda Baba is the most vivid figure which comes to the mind. Nanda Baba who was the foster father of Lord Krishna is known to provide love, care and affection to Lord Krishna and Balarama along with his wife Yashoda; Letter’s to the Editor: Mother's Day - Mother is a precious life for their children. Mother is life breath for her children. Mother's lap is the world happiness whose debt can never be paid.
At Digidev, we are working to be the leader in interactive streaming platforms of choice by smart device users worldwide.
Our goal is to become the ultimate distribution service of entertainment content. The Digidev application will offer the next generation television highway for users to discover and engage in a variety of content. While also providing a fresh and
innovative approach towards advertainment with vast revenue opportunities. Designed and developed by Joe Q. Bretz
Experience the thrill of Progressive Puzzle Adventures, like Scavenger Hunt Games and Escape Room Activities combined Solve Treasure Hunt Puzzles online.
Young Tom Selleck: A Journey Through His Early Years and Rise to Stardomgreendigital
Introduction
When one thinks of Hollywood legends, Tom Selleck is a name that comes to mind. Known for his charming smile, rugged good looks. and the iconic mustache that has become synonymous with his persona. Tom Selleck has had a prolific career spanning decades. But, the journey of young Tom Selleck, from his early years to becoming a household name. is a story filled with determination, talent, and a touch of luck. This article delves into young Tom Selleck's life, background, early struggles. and pivotal moments that led to his rise in Hollywood.
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Early Life and Background
Family Roots and Childhood
Thomas William Selleck was born in Detroit, Michigan, on January 29, 1945. He was the second of four children in a close-knit family. His father, Robert Dean Selleck, was a real estate investor and executive. while his mother, Martha Selleck, was a homemaker. The Selleck family relocated to Sherman Oaks, California. when Tom was a child, setting the stage for his future in the entertainment industry.
Education and Early Interests
Growing up, young Tom Selleck was an active and athletic child. He attended Grant High School in Van Nuys, California. where he excelled in sports, particularly basketball. His tall and athletic build made him a standout player, and he earned a basketball scholarship to the University of Southern California (U.S.C.). While at U.S.C., Selleck studied business administration. but his interests shifted toward acting.
Discovery of Acting Passion
Tom Selleck's journey into acting was serendipitous. During his time at U.S.C., a drama coach encouraged him to try acting. This nudge led him to join the Hills Playhouse, where he began honing his craft. Transitioning from an aspiring athlete to an actor took time. but young Tom Selleck became drawn to the performance world.
Early Career Struggles
Breaking Into the Industry
The path to stardom was a challenging one for young Tom Selleck. Like many aspiring actors, he faced many rejections and struggled to find steady work. A series of minor roles and guest appearances on television shows marked his early career. In 1965, he debuted on the syndicated show "The Dating Game." which gave him some exposure but did not lead to immediate success.
The Commercial Breakthrough
During the late 1960s and early 1970s, Selleck began appearing in television commercials. His rugged good looks and charismatic presence made him a popular brand choice. He starred in advertisements for Pepsi-Cola, Revlon, and Close-Up toothpaste. These commercials provided financial stability and helped him gain visibility in the industry.
Struggling Actor in Hollywood
Despite his success in commercials. breaking into large acting roles remained a challenge for young Tom Selleck. He auditioned and took on small parts in T.V. shows and movies. Some of his early television appearances included roles in popular series like Lancer, The F.B.I., and Bracken's World. But, it would take a
Meet Dinah Mattingly – Larry Bird’s Partner in Life and Loveget joys
Get an intimate look at Dinah Mattingly’s life alongside NBA icon Larry Bird. From their humble beginnings to their life today, discover the love and partnership that have defined their relationship.
Matt Rife Cancels Shows Due to Health Concerns, Reschedules Tour Dates.pdfAzura Everhart
Matt Rife's comedy tour took an unexpected turn. He had to cancel his Bloomington show due to a last-minute medical emergency. Fans in Chicago will also have to wait a bit longer for their laughs, as his shows there are postponed. Rife apologized and assured fans he'd be back on stage soon.
https://www.theurbancrews.com/celeb/matt-rife-cancels-bloomington-show/
Modern Radio Frequency Access Control Systems: The Key to Efficiency and SafetyAITIX LLC
Today's fast-paced environment worries companies of all sizes about efficiency and security. Businesses are constantly looking for new and better solutions to solve their problems, whether it's data security or facility access. RFID for access control technologies have revolutionized this.
Skeem Saam in June 2024 available on ForumIsaac More
Monday, June 3, 2024 - Episode 241: Sergeant Rathebe nabs a top scammer in Turfloop. Meikie is furious at her uncle's reaction to the truth about Ntswaki.
Tuesday, June 4, 2024 - Episode 242: Babeile uncovers the truth behind Rathebe’s latest actions. Leeto's announcement shocks his employees, and Ntswaki’s ordeal haunts her family.
Wednesday, June 5, 2024 - Episode 243: Rathebe blocks Babeile from investigating further. Melita warns Eunice to stay clear of Mr. Kgomo.
Thursday, June 6, 2024 - Episode 244: Tbose surrenders to the police while an intruder meddles in his affairs. Rathebe's secret mission faces a setback.
Friday, June 7, 2024 - Episode 245: Rathebe’s antics reach Kganyago. Tbose dodges a bullet, but a nightmare looms. Mr. Kgomo accuses Melita of witchcraft.
Monday, June 10, 2024 - Episode 246: Ntswaki struggles on her first day back at school. Babeile is stunned by Rathebe’s romance with Bullet Mabuza.
Tuesday, June 11, 2024 - Episode 247: An unexpected turn halts Rathebe’s investigation. The press discovers Mr. Kgomo’s affair with a young employee.
Wednesday, June 12, 2024 - Episode 248: Rathebe chases a criminal, resorting to gunfire. Turf High is rife with tension and transfer threats.
Thursday, June 13, 2024 - Episode 249: Rathebe traps Kganyago. John warns Toby to stop harassing Ntswaki.
Friday, June 14, 2024 - Episode 250: Babeile is cleared to investigate Rathebe. Melita gains Mr. Kgomo’s trust, and Jacobeth devises a financial solution.
Monday, June 17, 2024 - Episode 251: Rathebe feels the pressure as Babeile closes in. Mr. Kgomo and Eunice clash. Jacobeth risks her safety in pursuit of Kganyago.
Tuesday, June 18, 2024 - Episode 252: Bullet Mabuza retaliates against Jacobeth. Pitsi inadvertently reveals his parents’ plans. Nkosi is shocked by Khwezi’s decision on LJ’s future.
Wednesday, June 19, 2024 - Episode 253: Jacobeth is ensnared in deceit. Evelyn is stressed over Toby’s case, and Letetswe reveals shocking academic results.
Thursday, June 20, 2024 - Episode 254: Elizabeth learns Jacobeth is in Mpumalanga. Kganyago's past is exposed, and Lehasa discovers his son is in KZN.
Friday, June 21, 2024 - Episode 255: Elizabeth confirms Jacobeth’s dubious activities in Mpumalanga. Rathebe lies about her relationship with Bullet, and Jacobeth faces theft accusations.
Monday, June 24, 2024 - Episode 256: Rathebe spies on Kganyago. Lehasa plans to retrieve his son from KZN, fearing what awaits.
Tuesday, June 25, 2024 - Episode 257: MaNtuli fears for Kwaito’s safety in Mpumalanga. Mr. Kgomo and Melita reconcile.
Wednesday, June 26, 2024 - Episode 258: Kganyago makes a bold escape. Elizabeth receives a shocking message from Kwaito. Mrs. Khoza defends her husband against scam accusations.
Thursday, June 27, 2024 - Episode 259: Babeile's skillful arrest changes the game. Tbose and Kwaito face a hostage crisis.
Friday, June 28, 2024 - Episode 260: Two women face the reality of being scammed. Turf is rocked by breaking
Scandal! Teasers June 2024 on etv Forum.co.zaIsaac More
Monday, 3 June 2024
Episode 47
A friend is compelled to expose a manipulative scheme to prevent another from making a grave mistake. In a frantic bid to save Jojo, Phakamile agrees to a meeting that unbeknownst to her, will seal her fate.
Tuesday, 4 June 2024
Episode 48
A mother, with her son's best interests at heart, finds him unready to heed her advice. Motshabi finds herself in an unmanageable situation, sinking fast like in quicksand.
Wednesday, 5 June 2024
Episode 49
A woman fabricates a diabolical lie to cover up an indiscretion. Overwhelmed by guilt, she makes a spontaneous confession that could be devastating to another heart.
Thursday, 6 June 2024
Episode 50
Linda unwittingly discloses damning information. Nhlamulo and Vuvu try to guide their friend towards the right decision.
Friday, 7 June 2024
Episode 51
Jojo's life continues to spiral out of control. Dintle weaves a web of lies to conceal that she is not as successful as everyone believes.
Monday, 10 June 2024
Episode 52
A heated confrontation between lovers leads to a devastating admission of guilt. Dintle's desperation takes a new turn, leaving her with dwindling options.
Tuesday, 11 June 2024
Episode 53
Unable to resort to violence, Taps issues a verbal threat, leaving Mdala unsettled. A sister must explain her life choices to regain her brother's trust.
Wednesday, 12 June 2024
Episode 54
Winnie makes a very troubling discovery. Taps follows through on his threat, leaving a woman reeling. Layla, oblivious to the truth, offers an incentive.
Thursday, 13 June 2024
Episode 55
A nosy relative arrives just in time to thwart a man's fatal decision. Dintle manipulates Khanyi to tug at Mo's heartstrings and get what she wants.
Friday, 14 June 2024
Episode 56
Tlhogi is shocked by Mdala's reaction following the revelation of their indiscretion. Jojo is in disbelief when the punishment for his crime is revealed.
Monday, 17 June 2024
Episode 57
A woman reprimands another to stay in her lane, leading to a damning revelation. A man decides to leave his broken life behind.
Tuesday, 18 June 2024
Episode 58
Nhlamulo learns that due to his actions, his worst fears have come true. Caiphus' extravagant promises to suppliers get him into trouble with Ndu.
Wednesday, 19 June 2024
Episode 59
A woman manages to kill two birds with one stone. Business doom looms over Chillax. A sobering incident makes a woman realize how far she's fallen.
Thursday, 20 June 2024
Episode 60
Taps' offer to help Nhlamulo comes with hidden motives. Caiphus' new ideas for Chillax have MaHilda excited. A blast from the past recognizes Dintle, not for her newfound fame.
Friday, 21 June 2024
Episode 61
Taps is hungry for revenge and finds a rope to hang Mdala with. Chillax's new job opportunity elicits mixed reactions from the public. Roommates' initial meeting starts off on the wrong foot.
Monday, 24 June 2024
Episode 62
Taps seizes new information and recruits someone on the inside. Mary's new job
Tom Selleck Net Worth: A Comprehensive Analysisgreendigital
Over several decades, Tom Selleck, a name synonymous with charisma. From his iconic role as Thomas Magnum in the television series "Magnum, P.I." to his enduring presence in "Blue Bloods," Selleck has captivated audiences with his versatility and charm. As a result, "Tom Selleck net worth" has become a topic of great interest among fans. and financial enthusiasts alike. This article delves deep into Tom Selleck's wealth, exploring his career, assets, endorsements. and business ventures that contribute to his impressive economic standing.
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Early Life and Career Beginnings
The Foundation of Tom Selleck's Wealth
Born on January 29, 1945, in Detroit, Michigan, Tom Selleck grew up in Sherman Oaks, California. His journey towards building a large net worth began with humble origins. , Selleck pursued a business administration degree at the University of Southern California (USC) on a basketball scholarship. But, his interest shifted towards acting. leading him to study at the Hills Playhouse under Milton Katselas.
Minor roles in television and films marked Selleck's early career. He appeared in commercials and took on small parts in T.V. series such as "The Dating Game" and "Lancer." These initial steps, although modest. laid the groundwork for his future success and the growth of Tom Selleck net worth. Breakthrough with "Magnum, P.I."
The Role that Defined Tom Selleck's Career
Tom Selleck's breakthrough came with the role of Thomas Magnum in the CBS television series "Magnum, P.I." (1980-1988). This role made him a household name and boosted his net worth. The series' popularity resulted in Selleck earning large salaries. leading to financial stability and increased recognition in Hollywood.
"Magnum P.I." garnered high ratings and critical acclaim during its run. Selleck's portrayal of the charming and resourceful private investigator resonated with audiences. making him one of the most beloved television actors of the 1980s. The success of "Magnum P.I." played a pivotal role in shaping Tom Selleck net worth, establishing him as a major star.
Film Career and Diversification
Expanding Tom Selleck's Financial Portfolio
While "Magnum, P.I." was a cornerstone of Selleck's career, he did not limit himself to television. He ventured into films, further enhancing Tom Selleck net worth. His filmography includes notable movies such as "Three Men and a Baby" (1987). which became the highest-grossing film of the year, and its sequel, "Three Men and a Little Lady" (1990). These box office successes contributed to his wealth.
Selleck's versatility allowed him to transition between genres. from comedies like "Mr. Baseball" (1992) to westerns such as "Quigley Down Under" (1990). This diversification showcased his acting range. and provided many income streams, reinforcing Tom Selleck net worth.
Television Resurgence with "Blue Bloods"
Sustaining Wealth through Consistent Success
In 2010, Tom Selleck began starring as Frank Reagan i
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_7 OTT App Builders to Support the Development of Your Video Applications_.pdfMega P
Due to their ability to produce engaging content more quickly, over-the-top (OTT) app builders have made the process of creating video applications more accessible. The invitation to explore these platforms emphasizes how over-the-top (OTT) applications hold the potential to transform digital entertainment.
_7 OTT App Builders to Support the Development of Your Video Applications_.pdf
Lesson 16 crisis realted liquidity provision
1. Lesson 16 Crisis Related Liquidity Provisions
The History of a Powerful Paragraph
http://www.minneapolisfed.org/publications_papers/pub_display.cfm
Federal Reserve Liquidity Provision During the Financial Crisis
of 2007-2009, Michael Fleming, FRBNY Staff Reports # 563,
July 2012.
http://www.newyorkfed.org/research/staff_reports/sr563.html
Interest on Reserves and Monetary Policy, Marvin Goodfriend ,
FRBNY Economic Policy Review 2002
http://www.newyorkfed.org/research/epr/02v08n1/0205good.pdf
2. When Banks Borrow From The Discount Window
Bank Reserves Increase
Federal Reserve
assets
+Discount Loans
Banking System
liabiliies
+Reserves
assets
+Reserves
liabiliies
+Due to Fed
3. Eligible Collateral for Discount Window Advances
Marg ins for S ec urities
(as percentage of
C ollateral C ateg ory
2
U.S . Treas uries & F ully G uaranteed A gencies
B ill/Notes /B onds /Inflation Indexed
Zero C oupon, S TR IP s
B ills /Notes /B onds - U.S . D ollar D enominated
Zero C oupon - U.S . D ollar D enominated
G overnment S pons ored E nterpris es
B ills /Notes /B onds
C orporate B onds
A A A rated - U.S . D ollar D enominated
B B B -A A rated - U.S . D ollar D enominated
Municipal B onds
U.S . D ollar D enominated
A s s et B acked S ecurities
A A A rated
B B B -A A rated
C ollateralized D ebt Obligations - A A A rated
C ommercial Mortgage B acked S ecurities - A A A rated
A gency B acked Mortgages
P as s Throughs
C MO s
C ommercial L oans & L eas es
Minimal R is k R ated
7
8
Normal R is k R ated
C ommercial R eal E s tate L oans
Minimal R is k R ated
7
8
Normal R is k R ated
C ons umer L oans - Uns ecured
C ons umer L oans & L eas es (auto, boat, etc.)
C ons umer L oans - C redit C ard R eceivables
C ons umer L oans - S ubprime C redit C ard R eceivables
S tudent L oans
3
es timated fair market value)
D uration B uc kets
0-5
>5-10
>10
99%
98%
98%
97%
97%
96%
96%
95%
96%
95%
93%
96%
95%
86%
91%
93%
96%
96%
L oans
83%
82%
90%
92%
98%
98%
G roup D epos ited
95%
98%
89%
92%
97%
4, 5
94%
92%
98%
L oans
95%
97%
95%
Indiv idually D epos ited
96%
92%
95%
91%
98%
Marg ins for L oans
(as percentage of es timated fair market value)
95%
90%
87% to 96%
87%
63% to 95%
63%
78% to 96%
78%
57% to 95%
60% to 96%
76% to 96%
57%
60%
76%
59%
54%
83%
4
5. Prior to 2003
• Discount Rate was set below Fed Funds rate
• The Discount rate served as anchor on the Funds rate
• Banks were forced to borrowed from the discount window,
because the provision of nonborrowed reserves was below
the demand for combined demand for required and excess
reserves
• There were implicit costs of borrowing from the Fed, and
banks were generally reluctant to do so, unless the Fed
funds rate was elevated relative to the discount rate
• The larger the volume of forced discount window
borrowing the great the spread between the discount rate
and the Funds rate
7. Discount Rate Policy Prior to 2003
• During times of financial market stress, such as the
failure of Continental Illinois in 1984 the implicit costs
of borrowing from the Fed became more pronounced.
• The higher the implicit costs the larger the spread
between the Funds rate and the discount rate for a given
level of borrowing.
• The FOMC would establish “Borrowing Objectives”,
instructing the Open Market Desk to provide
nonborrowed reserves in such volumes as to force a
particular volume of discount window borrowings
• In effect the FOMC was attempting to foster a
particular spread between the funds rate and the
discount rate
8. The higher the level of Net Borrowed Reserves
(borrowed reserves – excess reserves), the higher the
Funds Rate trades above the Discount Rate
9. Beginning January 2003 The Discount
rate became a penalty rate
• The discount rate was set initially 1 percent above
the prevailing Fed funds target
• By having a penalty rate the Fed attempted to
remove any implicit costs of borrowing.
• Banks were no longer discouraged from
borrowing at the discount window
• This new approach to discount window policy was
thought of as putting a ceiling on the Fed funds
rate
10. In 2003 the Fed change the way the discount window operates. Henceforth, the
discount rate was set as a spread above the FF target…On August 17, 2007 that
spread was reduced from 1% to only ½%, and on March 16, 2008 the spread was
reduced to only ¼%.
11. Cutting the discount rate usually doesn’t impact on
the funds rate, only if banks are already borrowing
heavily from the window
12. Onset of Current Crisis: Term Funding Rates (1-mo
Euro$) exceeded the discount rate early in the crisis
13. Crisis Related Adjustments to
Discount Window Policies
• The Fed’s first crisis related action was to reduce the spread
between the funds rate target and the discount rate from 1% to .
50%. This resulted in a drop in the discount rate from 6-1/4% to
5-3/4%.
• Later following the the unwinding of Bear Stearns in March 2008
the discount rate spread was reduced to only .25%.
• Initially the Fed also extended the term of borrowings from
overnight to up to 30-days, after Bear Stearns this was increased
to 90-days.
• The intent was to encourage borrowings so that stress in the interbank funding markets would ease
• Banks still would not go to window because of a perceived
stigma
14. Why a Stigma in borrowing at the
discount window?
• Banks were concerned that if it became known
that they were accessing the discount window they
would be perceived as suffering liquidity
problems
• Banks feared depositors might withdraw deposits
• Banks feared that other creditors, such as banks
lending Fed funds, would pull back credit
• Banks also feared that speculators would “short”
their stock, causing a rumor related plunge in their
stock price.
15. Why was the Fed concerned about the
lack of borrowing?
• The Fed was hoping that the stress in the term
interbank funding market would encourage
discount window advances, recall the purpose of
setting the discount rate above the funds rate was
to provide a ceiling on the funds rate, and related
interbank financing costs. If banks borrowed
from the window the stress in the markets would
be relieved.
16. What Did the Fed Do to Increase
Liquidity of Financial Institutions?
• Eased Terms at Discount Window – Lower
Discount/FFR Target Spread, Longer Borrowing Terms
• Term Auction Facility (TAF)—Instead of banks coming
to the window, the Fed auctioned credit. Banks bidding
successfully in the auction won credit at costs below
market term funding rates
• Fed opened the Primary Dealer Credit Facility (PDCF)
to ensure liquidity to dealers with appropriate collateral
• Fed activated Currency Swap Lines providing dollar
related credit to foreign central banks to enable a relending of these dollars to banks outside the US
18. Under Section 13(3) of the Federal Reserve Act the
Fed provided credit to systemically important
institutions such as AIG
19. The Various Liquidity Programs Enacted During the
2008/2009 Period Caused Bank Reserves to Rise
20. The Rise in Bank Reserves Associated with these
Liquidity Provisions would have resulted in a Fed
funds rate plunge to zero, if not for payment of
interest on reserves
21. By paying Interest on Reserves (IOR) the Fed could expand its
balance sheet without having the funds rate fall to zero. The thinking
was that IOR would put a floor on the funds rate, even when there
was an abundance of excess reserves in the banking system.
22. Fed Pays 0.25% Interest on Reserve Balances, lifts
floor on funds from zero to 0.25%
23. Why Does the Funds Rate Trade Below the Floor? Answer: Not all
deposits at Fed pay interest. GSEs don’t earn interest on deposits and
therefore have incentive to sell these deposits (reserves).
24. Fed will move towards managing the Fed funds rate within
a “corridor” sometime in the years ahead
The demand curve has a downward-sloping portion because banks want to
hold more reserves when the federal funds rate is lower
25. The Supply Curve for Bank Reserves: Discount Rate
serves as a theoretical ceiling on the funds rate
The supply of reserves is vertical when ffr is less than the
primary discount rate and horizontal when they are equal
26. The IOER serves as a theoretical floor on the funds rate
When ffr exceeds the Fed’s target, the Fed engages in purchases in the amount
of ∆R and equilibrium ffr will equal the target
27. Together the IOER and the Discount Rate define a
“corridor” for the Fed Funds Rate
When ffr exceeds the Fed’s target, the Fed engages in purchases in the amount
of ∆R and equilibrium ffr will equal the target
28. A Shift in the demand for reserves does not
cause the funds rate to trade above ceiling
If demand for reserves is D2 instead of D1, ffr will rise to equal the
discount rate
Editor's Notes
There was a stigma by the Fed. Instead of borrowers coming to the Fed to borrow, the fed instead went to them and said you can bid for the money. This way they didn’t have to bid in the Eurodollar market which cause the Libor rate to come down
Under this special section the Fed can lend money to people like us. Maiden Lane was the bad balance sheet that Bear Stearns collapsed under and the Fed used this section and lended money to this T account. Jp Morgan also lended money.
The supply curve before the liehmann brothers collapsed. Then the fed starts doing stuff and then shifted to S2 and the funds rate becomes 0. The fed didn’t really want to do this as to having the feds fund rate 0.
By giving interest on the reserves the feds funds rate increased as it can be seen by the black demand line. Also the amount of excess reserve you may want to hold will increase because the fed is now paying you interest for keeping a reserve.