A commuter scans a debit card at the gas station. A day trader makes or loses a fortune in the blink of an eye. A collector buys a priceless work of art at an online auction. Billions of electronic transactions take place every day, in every corner of the world. The payment professionals that make this financial wizardry possible will convene in San Diego, California from May 10-12, for the annual meeting and expo of the ETA (Electronic Transactions Association). Industry leader Instabill, Inc. will be exhibiting, offering solutions to sales agents who work with high risk, offshore, or international merchants.
“Sales agents should not be losing money because they can’t get their high risk merchants approved,” says Instabill founder and CEO Jason Field. Instabill provides an online payment gateway and merchant account services to businesses that may be difficult to serve, due to either a high risk profile or unique needs that can’t be met by domestic banks. “If you’ve ever had a customer that’s made you think, ‘I just can’t help this merchant,’” says Mr. Field, “Instabill may well facilitate the best payment solution.” Instabill works with merchants to find creative solutions to problems ranging from multi-currency transactions to offshore bank processing.
This is the 3rd year that Instabill will be joining the ETA expo. Attendees can find out more by visiting Instabill’s multimedia presentation at Booth 109 in the exhibition hall at the event.
2011年4月28日 星期四
Goodbye to education and hello to Mr Chips
WHEN A young Galway teacher wanted to open his first business premises in the late 1970s, he was refused the bank loan he needed to buy the property. The finance was small by today’s standards – £20,000 on a project costing £35,000 – but the bank manager just wasn’t keen on Pat McDonagh’s plans for a pool hall.
Undeterred, McDonagh crossed the street to the rival bank and secured the loan there instead, only to be refused the necessary planning permission subsequently.
Suddenly, he had an empty building and what was starting to look like a big financial liability hanging over his head. Action was needed, so McDonagh looked around the town – Ballinasloe, Co Galway – and tried to work out what it was lacking.
He settled on a shortlist of a furniture shop and a takeaway. He chose the latter and Supermac’s was born, the name based on a nickname McDonagh earned during a particularly fine performance on the school GAA field years before.
“For the first couple of years in business, I worked at least 70-80 hours per week. I had two days off in the first year – one because I was sick and one for Christmas Day,” he says. “If you’re enjoying it, it’s not really work.”
McDonagh didn’t come from a business background. His mother was a teacher and his father, who died when McDonagh was 19, a garda. Unlike his four siblings, he says, he did not shine at school and, for the most part, chose to become a teacher because the training lasted just two years. There was also the small matter of being rejected by the Air Corps because of poor eyesight but, most crucially, teaching appealed because the hours and holidays allowed time for other ways of proving himself.
By the time he started Supermac’s, McDonagh had already been making a bit on the side for years. During his school years, jobs ranged from cutting turf to working for Butlins in Mosney. He also spent a summer on a merchant navy ship sailing from the US to Europe and, after graduating as a teacher, made a few bob taking Polaroid pictures for holidaymakers at events such as the Rose of Tralee festival.
His first semi-serious business foray was into pool tables, which he would install in pubs after his day job as a principal in a two-teacher national school.
“I made a bit of money but mostly, I learned how to sell – the rules of the street,” he says, adding that today’s education system should allow for more of this.
While McDonagh was enjoying himself, the intensity of combining the first Supermac’s with his day job became too much. After 4½ years as a teacher, he left education to pursue the lifeboat-free world of entrepreneurship.
“There was more money in chips than in algebra.”
With the Ballinasloe business – a stand-up takeaway – up and running, McDonagh’s thoughts turned fairly quickly to expansion.
Not before he had digested a few elementary business errors, however. There was the time, for example, when potato supplies dried up and he ended up buying the kind of spuds that farmers use to feed cattle and which make nasty, soggy chips. And then the time the electricity went out during the Ballinasloe Horse Fair and McDonagh had to repair the fuse box with tin foil while hundreds of merry punters waited for their dinner. It only sparked a little, he promises, and only one street was plunged into darkness as a result.
Initial expansion was in Gort and Galway city, with the first sit-down Supermac’s opening in Galway’s Eyre Square during race week in 1982. The company, born in a recession, had grown as the economy had shrunk, and McDonagh had barely noticed the negative backdrop.
“We were doing pretty well. I didn’t see it as a risk at the time because I was so involved in it, so engrossed.”
For the next 10 years, McDonagh mostly opened sit-down, family-style restaurants, also going the franchise route with an outlet in Thurles, Co Tipperary, which did not initially work out. Again, lessons were learned and today, 68 out of Supermac’s 102 outlets are operated by franchisees.
Under the franchise system, Supermac’s will spend up to €250,000 fitting out the store and will then draw rent and a percentage of turnover from the business. In self-operated stores, the same costs apply but the revenue model clearly differs.
Accounts for the Supermac’s group show rental income amounted to €2.5 million in 2009. This was as operating profit came in at about €5 million, on turnover just shy of €60 million. Figures for 2010 are still being finalised but McDonagh says a “pretty level” performance was achieved.
Crucially, he also expects the numbers to include a maiden contribution from Claddagh Irish Pubs, a chain of 15 pub/restaurants McDonagh operates in the midwest region of the US. The venture was, for a time, disastrous, and led to writedowns of almost €23 million between 2005 and 2008, before it was turned around.
McDonagh is reflective about Claddagh, which he acknowledges easily qualifies as his biggest “blunder”. He says he got into the business by chance after his American operations manager moved home and asked him to invest in a new idea. This manager – Kevin Blair – spearheaded the development of the pub group and McDonagh largely left him at it.
“I probably took my eye off the ball and didn’t realise fully what was happening,” he says.
Blair was in expansion mode but, after a while, McDonagh realised the business wasn’t making money. There was a dispute about how many pubs should be opened and, more fundamentally, a legal disagreement over whether a $21 million injection from McDonagh was a loan or an investment. A court case left McDonagh as a winner of sorts, with victory followed by the company entering Chapter 11.
“I had to buy it back. I had to reinvest,” says McDonagh, with a small wince, adding that he placed trust in the wrong person but the responsibility is his own. “You can only look in the mirror.”
Lessons learned once more, he despatched a team from Ireland to shunt the business back to viability. Now, there are 10 Irish managers across 15 Irish pubs and McDonagh’s plan is to expand that. “This year, we would expect a more substantial contribution,” he says of the chain’s finances.
As well as Supermac’s, McDonagh and his wife Úna (whom he initially picked up as a hitchhiker and ended up hiring in his restaurant), hold the country franchise for the Papa John’s pizza chain and a sub-franchise for the Quiznos sandwich chain.
With so many balls in the air, McDonagh works hard to keep track of day-to-day affairs at Supermac’s, staging unannounced calls to the chain’s outlets, franchised or otherwise.
“I like to stay in the restaurant for a couple of hours and talk to staff.”
All his outlets, regardless of the brand, must confront McDonagh’s twin pet hates: the cost of insurance claims and the cost of employing staff to work on Sundays, which he says can amount to up to €25 an hour in certain locations when items such as PRSI are included.
Both have seen him participate in high-profile campaigns, with the wages issue awaiting judgment in the High Court.
The insurance claim campaign – which on one occasion saw McDonagh cause his barrister great dismay by standing up in court and asking for damaging, example-setting video evidence to be viewed even though the claimant had dropped the case – has meanwhile waned over time, in large part as a result of his efforts to expose fraudulent claims.
McDonagh says he doesn’t particularly like lawyers but experience has proved he doesn’t avoid them when he needs their services either. In the case of claims, he says, he got sick of going into work every Monday worrying about how many new cases had arisen over the weekend, rather than focusing on how much money had been made. Claims were cramping his style, frightened as he is of failing to move forward.
“There’s no such thing as standing still; you’re either going backwards or forwards.”
He is constantly watching for new trends, good or bad, in the restaurant business. Drinking at home rather than in pubs diminishes after-hours munchies, for example, while the growing trend for out-of-town shopping will hit town-centre restaurants, which tend to suffer under the burden of high rents anyway.
This is why McDonagh’s new Supermac’s openings (he plans four or five this year) will focus on out-of-town locations. “That’s the way it’s happening.”
Undeterred, McDonagh crossed the street to the rival bank and secured the loan there instead, only to be refused the necessary planning permission subsequently.
Suddenly, he had an empty building and what was starting to look like a big financial liability hanging over his head. Action was needed, so McDonagh looked around the town – Ballinasloe, Co Galway – and tried to work out what it was lacking.
He settled on a shortlist of a furniture shop and a takeaway. He chose the latter and Supermac’s was born, the name based on a nickname McDonagh earned during a particularly fine performance on the school GAA field years before.
“For the first couple of years in business, I worked at least 70-80 hours per week. I had two days off in the first year – one because I was sick and one for Christmas Day,” he says. “If you’re enjoying it, it’s not really work.”
McDonagh didn’t come from a business background. His mother was a teacher and his father, who died when McDonagh was 19, a garda. Unlike his four siblings, he says, he did not shine at school and, for the most part, chose to become a teacher because the training lasted just two years. There was also the small matter of being rejected by the Air Corps because of poor eyesight but, most crucially, teaching appealed because the hours and holidays allowed time for other ways of proving himself.
By the time he started Supermac’s, McDonagh had already been making a bit on the side for years. During his school years, jobs ranged from cutting turf to working for Butlins in Mosney. He also spent a summer on a merchant navy ship sailing from the US to Europe and, after graduating as a teacher, made a few bob taking Polaroid pictures for holidaymakers at events such as the Rose of Tralee festival.
His first semi-serious business foray was into pool tables, which he would install in pubs after his day job as a principal in a two-teacher national school.
“I made a bit of money but mostly, I learned how to sell – the rules of the street,” he says, adding that today’s education system should allow for more of this.
While McDonagh was enjoying himself, the intensity of combining the first Supermac’s with his day job became too much. After 4½ years as a teacher, he left education to pursue the lifeboat-free world of entrepreneurship.
“There was more money in chips than in algebra.”
With the Ballinasloe business – a stand-up takeaway – up and running, McDonagh’s thoughts turned fairly quickly to expansion.
Not before he had digested a few elementary business errors, however. There was the time, for example, when potato supplies dried up and he ended up buying the kind of spuds that farmers use to feed cattle and which make nasty, soggy chips. And then the time the electricity went out during the Ballinasloe Horse Fair and McDonagh had to repair the fuse box with tin foil while hundreds of merry punters waited for their dinner. It only sparked a little, he promises, and only one street was plunged into darkness as a result.
Initial expansion was in Gort and Galway city, with the first sit-down Supermac’s opening in Galway’s Eyre Square during race week in 1982. The company, born in a recession, had grown as the economy had shrunk, and McDonagh had barely noticed the negative backdrop.
“We were doing pretty well. I didn’t see it as a risk at the time because I was so involved in it, so engrossed.”
For the next 10 years, McDonagh mostly opened sit-down, family-style restaurants, also going the franchise route with an outlet in Thurles, Co Tipperary, which did not initially work out. Again, lessons were learned and today, 68 out of Supermac’s 102 outlets are operated by franchisees.
Under the franchise system, Supermac’s will spend up to €250,000 fitting out the store and will then draw rent and a percentage of turnover from the business. In self-operated stores, the same costs apply but the revenue model clearly differs.
Accounts for the Supermac’s group show rental income amounted to €2.5 million in 2009. This was as operating profit came in at about €5 million, on turnover just shy of €60 million. Figures for 2010 are still being finalised but McDonagh says a “pretty level” performance was achieved.
Crucially, he also expects the numbers to include a maiden contribution from Claddagh Irish Pubs, a chain of 15 pub/restaurants McDonagh operates in the midwest region of the US. The venture was, for a time, disastrous, and led to writedowns of almost €23 million between 2005 and 2008, before it was turned around.
McDonagh is reflective about Claddagh, which he acknowledges easily qualifies as his biggest “blunder”. He says he got into the business by chance after his American operations manager moved home and asked him to invest in a new idea. This manager – Kevin Blair – spearheaded the development of the pub group and McDonagh largely left him at it.
“I probably took my eye off the ball and didn’t realise fully what was happening,” he says.
Blair was in expansion mode but, after a while, McDonagh realised the business wasn’t making money. There was a dispute about how many pubs should be opened and, more fundamentally, a legal disagreement over whether a $21 million injection from McDonagh was a loan or an investment. A court case left McDonagh as a winner of sorts, with victory followed by the company entering Chapter 11.
“I had to buy it back. I had to reinvest,” says McDonagh, with a small wince, adding that he placed trust in the wrong person but the responsibility is his own. “You can only look in the mirror.”
Lessons learned once more, he despatched a team from Ireland to shunt the business back to viability. Now, there are 10 Irish managers across 15 Irish pubs and McDonagh’s plan is to expand that. “This year, we would expect a more substantial contribution,” he says of the chain’s finances.
As well as Supermac’s, McDonagh and his wife Úna (whom he initially picked up as a hitchhiker and ended up hiring in his restaurant), hold the country franchise for the Papa John’s pizza chain and a sub-franchise for the Quiznos sandwich chain.
With so many balls in the air, McDonagh works hard to keep track of day-to-day affairs at Supermac’s, staging unannounced calls to the chain’s outlets, franchised or otherwise.
“I like to stay in the restaurant for a couple of hours and talk to staff.”
All his outlets, regardless of the brand, must confront McDonagh’s twin pet hates: the cost of insurance claims and the cost of employing staff to work on Sundays, which he says can amount to up to €25 an hour in certain locations when items such as PRSI are included.
Both have seen him participate in high-profile campaigns, with the wages issue awaiting judgment in the High Court.
The insurance claim campaign – which on one occasion saw McDonagh cause his barrister great dismay by standing up in court and asking for damaging, example-setting video evidence to be viewed even though the claimant had dropped the case – has meanwhile waned over time, in large part as a result of his efforts to expose fraudulent claims.
McDonagh says he doesn’t particularly like lawyers but experience has proved he doesn’t avoid them when he needs their services either. In the case of claims, he says, he got sick of going into work every Monday worrying about how many new cases had arisen over the weekend, rather than focusing on how much money had been made. Claims were cramping his style, frightened as he is of failing to move forward.
“There’s no such thing as standing still; you’re either going backwards or forwards.”
He is constantly watching for new trends, good or bad, in the restaurant business. Drinking at home rather than in pubs diminishes after-hours munchies, for example, while the growing trend for out-of-town shopping will hit town-centre restaurants, which tend to suffer under the burden of high rents anyway.
This is why McDonagh’s new Supermac’s openings (he plans four or five this year) will focus on out-of-town locations. “That’s the way it’s happening.”
Earnings Per Share up 17.5% at Bar Harbor Bankshares
Bar Harbor Bankshares (the “Company”) (NYSE Amex: BHB) the parent company of Bar Harbor Bank & Trust (the “Bank”), today announced financial results for the three months ended March 31, 2011. Net income available to common shareholders amounted to $2.9 million, representing an increase of $471 thousand, or 19.6%, compared with the first quarter of 2010. The Company’s diluted earnings per share amounted to $0.74 for the quarter compared with $0.63 in the first quarter of 2010, representing an increase of $0.11, or 17.5%.
The Company’s annualized return on average shareholders’ equity amounted to 11.14% for the quarter, compared with 11.24% in the first quarter of 2010.
A large contributing factor underlying the first quarter increases in net income available to common shareholders and diluted earnings per share was the Company’s repurchase of all shares of its Preferred Stock from the U.S. Department of the Treasury (the “Treasury”) in the first quarter of 2010. The Preferred Stock was sold to the Treasury in the first quarter of 2009 as part of the Emergency Economic Stabilization Act of 2008. As a result of the repurchase, in the first quarter of 2010 the Company accelerated the accretion of $496 thousand in preferred stock discount, reducing net income available to common shareholders and diluted earnings per share by $496 and $0.13, respectively. Total preferred stock dividends and accretion of discount amounted to $653 in the first quarter of 2010, compared with none in the current quarter.
In making the announcement, the Company’s President and Chief Executive Officer, Joseph M. Murphy commented, “Considering the continued slow emergence from the national economic recession, characterized by diminished consumer confidence, spotty loan demand, still-high unemployment and depressed real estate markets, we are pleased to announce solid earnings results for the first quarter while maintaining relatively strong asset quality.”
Mr. Murphy continued his remarks by saying “During the first quarter we enjoyed a meaningful expansion of our net interest margin and significant earning asset growth, which in turn increased our linked-quarterly net interest income run rate by over $400 thousand, or 5%. In addition, credit quality remained relatively stable during the quarter, highlighted by de minimis loan charge-off experience.”
In concluding, Mr. Murphy added, “Given the uncertainties associated with a more meaningful economic recovery, we believe any community bank’s future success will be underpinned by a strongly capitalized balance sheet. In this regard, we believe that we are well positioned for any uncertainties or opportunities that may lie ahead, given our strong regulatory capital ratios and tangible common equity position.”
Balance Sheet
Assets: Total assets ended the first quarter at $1.16 billion, up $44.6 million, or 4.0%, compared with December 31, 2010. Asset growth was driven by increases in the Bank’s consumer and commercial loan portfolios, combined with an increase in investment securities.
Loans: Total loans ended the quarter at $727.7 million, up $27.0 million, or 3.9%, compared with December 31, 2010. Loan growth was principally attributed to the Bank’s end-of-quarter purchase of a Maine-based, seasoned portfolio of prime consumer loans amounting to $23.5 million. The Bank’s commercial loan portfolio continued its growth trend during the quarter, posting an increase of $3.2 million or 0.8%, and surpassing $400 million at quarter end.
Credit Quality: Total non-performing loans ended the quarter at $13.6 million, down from $13.7 million at December 31, 2010. One commercial real estate development loan to a local, non-profit housing authority in support of an affordable housing project accounted for $5.2 million of total non-performing loans, unchanged compared with year-end 2010. At March 31, 2011, this loan represented 38.5% of the Bank’s total non-performing loans.
The Bank enjoyed very low loan loss experience during the first quarter, with recoveries on previously charged off loans exceeding total loans charged off by $93, or 0.05% of average loans outstanding. Total loans charged off during the quarter amounted to $30 thousand.
For the three months ended March 31, 2011, the Bank recorded a provision for loan losses of $500 thousand, down $327 thousand on a linked-quarter basis and unchanged compared with the first quarter of 2010. The Bank maintains an allowance for loan losses (the “allowance”) which is available to absorb probable losses on loans. The allowance is maintained at a level that, in management’s judgment, is appropriate for the amount of risk inherent in the current loan portfolio and adequate to provide for estimated probable losses. At March 31, 2011, the allowance stood at $9.1 million, up $593 thousand or 7.0% compared with December 31, 2010. The allowance expressed as a percentage of total loans stood at 1.25% at quarter-end, up from 1.21% at December 31, 2010. The increase in the allowance was largely reflective of significant loan growth during the quarter and, to a lesser extent, continued elevated levels of non-performing and potential problem loans.
Securities: Total securities ended the first quarter at $379.6 million, up $21.7 million, or 6.1%, compared with December 31, 2010. Securities purchased during the quarter consisted of mortgage-backed securities issued and guaranteed by U.S. Government agencies and sponsored-enterprises.
Deposits: Historically, the banking business in the Bank’s market area has been seasonal, with lower deposits in the winter and spring and higher deposits in summer and autumn. The timing and extent of seasonal swings have varied from year to year, particularly with respect to demand deposits and NOW accounts.
Total deposits ended the first quarter at $704.5 million, down $3.8 million, or 0.5%, compared with December 31, 2010. Demand deposits and NOW accounts experienced a combined seasonal decline of $13.6 million, or 9.5%. This decline was largely offset by a $2.5 million or 1.2% increase in savings and money market accounts, and a $7.4 million or 2.1% increase in time deposits.
Borrowings: Total borrowings ended the first quarter at $347.5 million, up $47.5 million, or 15.8%, compared December 31, 2010. The increase in borrowings was principally used to fund first quarter earning asset growth and, to a lesser extent, fund seasonal deposit outflows.
Capital: At March 31, 2011, the Company and the Bank continued to exceed regulatory requirements for “well-capitalized” financial institutions. Under the capital adequacy guidelines administered by the Bank’s principal regulators, “well-capitalized” institutions are those with Tier I leverage, Tier I Risk-based, and Total Risk-based ratios of at least 5%, 6% and 10%, respectively. At March 31, 2011, the Company’s Tier I Leverage, Tier I Risk-based, and Total Risk-based capital ratios were 9.03%, 13.39% and 15.25%, respectively.
The Company’s annualized return on average shareholders’ equity amounted to 11.14% for the quarter, compared with 11.24% in the first quarter of 2010.
A large contributing factor underlying the first quarter increases in net income available to common shareholders and diluted earnings per share was the Company’s repurchase of all shares of its Preferred Stock from the U.S. Department of the Treasury (the “Treasury”) in the first quarter of 2010. The Preferred Stock was sold to the Treasury in the first quarter of 2009 as part of the Emergency Economic Stabilization Act of 2008. As a result of the repurchase, in the first quarter of 2010 the Company accelerated the accretion of $496 thousand in preferred stock discount, reducing net income available to common shareholders and diluted earnings per share by $496 and $0.13, respectively. Total preferred stock dividends and accretion of discount amounted to $653 in the first quarter of 2010, compared with none in the current quarter.
In making the announcement, the Company’s President and Chief Executive Officer, Joseph M. Murphy commented, “Considering the continued slow emergence from the national economic recession, characterized by diminished consumer confidence, spotty loan demand, still-high unemployment and depressed real estate markets, we are pleased to announce solid earnings results for the first quarter while maintaining relatively strong asset quality.”
Mr. Murphy continued his remarks by saying “During the first quarter we enjoyed a meaningful expansion of our net interest margin and significant earning asset growth, which in turn increased our linked-quarterly net interest income run rate by over $400 thousand, or 5%. In addition, credit quality remained relatively stable during the quarter, highlighted by de minimis loan charge-off experience.”
In concluding, Mr. Murphy added, “Given the uncertainties associated with a more meaningful economic recovery, we believe any community bank’s future success will be underpinned by a strongly capitalized balance sheet. In this regard, we believe that we are well positioned for any uncertainties or opportunities that may lie ahead, given our strong regulatory capital ratios and tangible common equity position.”
Balance Sheet
Assets: Total assets ended the first quarter at $1.16 billion, up $44.6 million, or 4.0%, compared with December 31, 2010. Asset growth was driven by increases in the Bank’s consumer and commercial loan portfolios, combined with an increase in investment securities.
Loans: Total loans ended the quarter at $727.7 million, up $27.0 million, or 3.9%, compared with December 31, 2010. Loan growth was principally attributed to the Bank’s end-of-quarter purchase of a Maine-based, seasoned portfolio of prime consumer loans amounting to $23.5 million. The Bank’s commercial loan portfolio continued its growth trend during the quarter, posting an increase of $3.2 million or 0.8%, and surpassing $400 million at quarter end.
Credit Quality: Total non-performing loans ended the quarter at $13.6 million, down from $13.7 million at December 31, 2010. One commercial real estate development loan to a local, non-profit housing authority in support of an affordable housing project accounted for $5.2 million of total non-performing loans, unchanged compared with year-end 2010. At March 31, 2011, this loan represented 38.5% of the Bank’s total non-performing loans.
The Bank enjoyed very low loan loss experience during the first quarter, with recoveries on previously charged off loans exceeding total loans charged off by $93, or 0.05% of average loans outstanding. Total loans charged off during the quarter amounted to $30 thousand.
For the three months ended March 31, 2011, the Bank recorded a provision for loan losses of $500 thousand, down $327 thousand on a linked-quarter basis and unchanged compared with the first quarter of 2010. The Bank maintains an allowance for loan losses (the “allowance”) which is available to absorb probable losses on loans. The allowance is maintained at a level that, in management’s judgment, is appropriate for the amount of risk inherent in the current loan portfolio and adequate to provide for estimated probable losses. At March 31, 2011, the allowance stood at $9.1 million, up $593 thousand or 7.0% compared with December 31, 2010. The allowance expressed as a percentage of total loans stood at 1.25% at quarter-end, up from 1.21% at December 31, 2010. The increase in the allowance was largely reflective of significant loan growth during the quarter and, to a lesser extent, continued elevated levels of non-performing and potential problem loans.
Securities: Total securities ended the first quarter at $379.6 million, up $21.7 million, or 6.1%, compared with December 31, 2010. Securities purchased during the quarter consisted of mortgage-backed securities issued and guaranteed by U.S. Government agencies and sponsored-enterprises.
Deposits: Historically, the banking business in the Bank’s market area has been seasonal, with lower deposits in the winter and spring and higher deposits in summer and autumn. The timing and extent of seasonal swings have varied from year to year, particularly with respect to demand deposits and NOW accounts.
Total deposits ended the first quarter at $704.5 million, down $3.8 million, or 0.5%, compared with December 31, 2010. Demand deposits and NOW accounts experienced a combined seasonal decline of $13.6 million, or 9.5%. This decline was largely offset by a $2.5 million or 1.2% increase in savings and money market accounts, and a $7.4 million or 2.1% increase in time deposits.
Borrowings: Total borrowings ended the first quarter at $347.5 million, up $47.5 million, or 15.8%, compared December 31, 2010. The increase in borrowings was principally used to fund first quarter earning asset growth and, to a lesser extent, fund seasonal deposit outflows.
Capital: At March 31, 2011, the Company and the Bank continued to exceed regulatory requirements for “well-capitalized” financial institutions. Under the capital adequacy guidelines administered by the Bank’s principal regulators, “well-capitalized” institutions are those with Tier I leverage, Tier I Risk-based, and Total Risk-based ratios of at least 5%, 6% and 10%, respectively. At March 31, 2011, the Company’s Tier I Leverage, Tier I Risk-based, and Total Risk-based capital ratios were 9.03%, 13.39% and 15.25%, respectively.
2011年4月26日 星期二
Merchant e-Solutions Certifies TGate’s Pathwaylink™ -- TGate Continues to Expands Processor Options for ISVs
PathwayLINK offers ISVs a universal payment processing platform that provides a single integration to connect to all major processors. Available for flat-fee monthly pricing, TGate's integration solution delivers true PCI-compliance and enables a secure connection to processors via any payment channel for any type of payment.
Designed to offer an entirely new level of flexibility, this approach gives ISVs the ability to keep current processing relationships in place while significantly expanding the range of processor options they can offer merchants. This increases retention levels while decreasing the overhead of development, maintenance, and compliance issues.
“The combination of T-Gate's state-of-the-art gateway technology with our seamless all-in-one payment processing and merchant account means new business for us, increased capabilities for T-Gate and, best of all, superior benefits for customers. “ said Kevin Gallagher, General Manager for e-Commerce for Merchant e-Solutions.
"Merchant e-Solutions global currency positioning with e-commerce and card-not-present solutions enables TGate to continue to expand the range of offerings
that provide our reseller and referral relationships with access to the type of processor they need," adds TGate’s President Tracy Metzger. “We are excited about adding Merchant-e-Solutions and their integrated merchant account to our list of supported processors. Their expertise in card not present and ecommerce payment solutions is a welcome addition.”
Merchant e-Solutions, founded in 1999, provides Internet-based payment processing solutions for merchants and banks. Merchant e-Solutions currently processes more than $14 billion dollars in payments for more than 65,000 merchants, supporting 150 global currencies and all major credit, debit and alternative payment solutions. The company specializes in services for e-commerce and card-not-present merchants and provides a comprehensive suite of payment solutions that are PCI compliant and designed to reduce merchant risk exposure.
Designed to offer an entirely new level of flexibility, this approach gives ISVs the ability to keep current processing relationships in place while significantly expanding the range of processor options they can offer merchants. This increases retention levels while decreasing the overhead of development, maintenance, and compliance issues.
“The combination of T-Gate's state-of-the-art gateway technology with our seamless all-in-one payment processing and merchant account means new business for us, increased capabilities for T-Gate and, best of all, superior benefits for customers. “ said Kevin Gallagher, General Manager for e-Commerce for Merchant e-Solutions.
"Merchant e-Solutions global currency positioning with e-commerce and card-not-present solutions enables TGate to continue to expand the range of offerings
that provide our reseller and referral relationships with access to the type of processor they need," adds TGate’s President Tracy Metzger. “We are excited about adding Merchant-e-Solutions and their integrated merchant account to our list of supported processors. Their expertise in card not present and ecommerce payment solutions is a welcome addition.”
Merchant e-Solutions, founded in 1999, provides Internet-based payment processing solutions for merchants and banks. Merchant e-Solutions currently processes more than $14 billion dollars in payments for more than 65,000 merchants, supporting 150 global currencies and all major credit, debit and alternative payment solutions. The company specializes in services for e-commerce and card-not-present merchants and provides a comprehensive suite of payment solutions that are PCI compliant and designed to reduce merchant risk exposure.
Instabill to Attend Electronic Transactions Association 2011 Meeting & Expo
A commuter scans a debit card at the gas station. A day trader makes or loses a fortune in the blink of an eye. A collector buys a priceless work of art at an online auction. Billions of electronic transactions take place every day, in every corner of the world. The payment professionals that make this financial wizardry possible will convene in San Diego, California from May 10-12, for the annual meeting and expo of the ETA (Electronic Transactions Association). Industry leader Instabill, Inc. will be exhibiting, offering solutions to sales agents who work with high risk, offshore, or international merchants.
“Sales agents should not be losing money because they can’t get their high risk merchants approved,” says Instabill founder and CEO Jason Field. Instabill provides an online payment gateway and merchant account services to businesses that may be difficult to serve, due to either a high risk profile or unique needs that can’t be met by domestic banks. “If you’ve ever had a customer that’s made you think, ‘I just can’t help this merchant,’” says Mr. Field, “Instabill may well facilitate the best payment solution.” Instabill works with merchants to find creative solutions to problems ranging from multi-currency transactions to offshore bank processing.
This is the 3rd year that Instabill will be joining the ETA expo. Attendees can find out more by visiting Instabill’s multimedia presentation at Booth 109 in the exhibition hall at the event.
“Sales agents should not be losing money because they can’t get their high risk merchants approved,” says Instabill founder and CEO Jason Field. Instabill provides an online payment gateway and merchant account services to businesses that may be difficult to serve, due to either a high risk profile or unique needs that can’t be met by domestic banks. “If you’ve ever had a customer that’s made you think, ‘I just can’t help this merchant,’” says Mr. Field, “Instabill may well facilitate the best payment solution.” Instabill works with merchants to find creative solutions to problems ranging from multi-currency transactions to offshore bank processing.
This is the 3rd year that Instabill will be joining the ETA expo. Attendees can find out more by visiting Instabill’s multimedia presentation at Booth 109 in the exhibition hall at the event.
2011年4月24日 星期日
Debit card or credit card- which works better
These days carrying liquid cash and use it for varied purpose is inconvenient and unsafe. Using a credit card or a debit card is always a better option. If you are confused about choosing one type over the other, then you should find out information and then proceed. There are several online sources that feature complete information about the debit and credit cards so that you can easily take a learned decision and use according to your convenience.
These days carrying liquid cash and use it for varied purpose is inconvenient and unsafe. Using a credit card or a debit card is always a better option. If you are confused about choosing one type over the other, then you should find out information and then proceed. There are several online sources that feature complete information about the debit and credit cards so that you can easily take a learned decision and use according to your convenience. However, there is a never ending debate, which goes like- debit or credit card- which one is better? Here are some common merits and demerits of both these varieties. This will give you an idea how these cards work.
Using credit cards is simple. Suppose you have visited a store (land based or online) and searching for the items that you want to purchase. Once you have found your items, all you need to do is plug in the number of your credit card and the process of purchase is over. You are not actually paying for your purchase at that time; the merchant will get the money from the company that has issued the card to you. Generally, the merchants receive money within 30 days period and that is the time within which you will also receive the bill from the credit card company. You have to pay off the full payment or remit a part of it. This is actually dependant on specific terms of different companies.
You can use a debit card in the similar fashion, at least in several respects. Consider similar example. You have visited a shop, picked up an item and now provide your debit card number to process the payment. Here also, the merchant will receive the payment through the company that provided you the card. However, the catch is that your account must contain sufficient money at that point of time. Using a debit card means you are agreeing to directly deduct money from your account immediately. If in any case, your account balance becomes nil, you cannot purchase anything by using the card, which is different in case of credit cards.
The above mentioned point shows that credit cards have a certain edge as you don’t need to have money available while purchasing anything. You can pay for the item within 30 days and based on your policy term you may not have to pay the entire sum at one time as well. However, this advantage can sometime turn into a big disadvantage. The users sometimes get carried away and keep using the card for items that might not be very essential. What happens is that they accrue huge debts and paying them off becomes troublesome. Sometimes people never recover from such big debts. This works as a benefit for the debit card users as they are aware about the balance remaining in their account and have more control over the urge to buy something, which is of less necessity.
These days carrying liquid cash and use it for varied purpose is inconvenient and unsafe. Using a credit card or a debit card is always a better option. If you are confused about choosing one type over the other, then you should find out information and then proceed. There are several online sources that feature complete information about the debit and credit cards so that you can easily take a learned decision and use according to your convenience. However, there is a never ending debate, which goes like- debit or credit card- which one is better? Here are some common merits and demerits of both these varieties. This will give you an idea how these cards work.
Using credit cards is simple. Suppose you have visited a store (land based or online) and searching for the items that you want to purchase. Once you have found your items, all you need to do is plug in the number of your credit card and the process of purchase is over. You are not actually paying for your purchase at that time; the merchant will get the money from the company that has issued the card to you. Generally, the merchants receive money within 30 days period and that is the time within which you will also receive the bill from the credit card company. You have to pay off the full payment or remit a part of it. This is actually dependant on specific terms of different companies.
You can use a debit card in the similar fashion, at least in several respects. Consider similar example. You have visited a shop, picked up an item and now provide your debit card number to process the payment. Here also, the merchant will receive the payment through the company that provided you the card. However, the catch is that your account must contain sufficient money at that point of time. Using a debit card means you are agreeing to directly deduct money from your account immediately. If in any case, your account balance becomes nil, you cannot purchase anything by using the card, which is different in case of credit cards.
The above mentioned point shows that credit cards have a certain edge as you don’t need to have money available while purchasing anything. You can pay for the item within 30 days and based on your policy term you may not have to pay the entire sum at one time as well. However, this advantage can sometime turn into a big disadvantage. The users sometimes get carried away and keep using the card for items that might not be very essential. What happens is that they accrue huge debts and paying them off becomes troublesome. Sometimes people never recover from such big debts. This works as a benefit for the debit card users as they are aware about the balance remaining in their account and have more control over the urge to buy something, which is of less necessity.
2011年4月23日 星期六
Best Bank Account Interest Rates
I hope everyone is having a pleasant Easter weekend. Many banks released their first quarter earnings this week. One thing in common reported by both the mega banks and the regional banks has been an increase in deposits. Also, many banks have been reporting weak loan demand. I'm afraid that won't help savers. With plenty of deposits and weak loan demand, banks won't have much incentive to raise deposit rates.
The Fed's monetary policy isn't helping savers either, and we'll hear the latest news from the Fed next Wednesday after their third FOMC meeting of the year. Before the Fed starts to hike rates, they will take several other steps that will slowly reverse this super-easy monetary policy. The Fed's statement after the meeting may give hints about the timeline of those steps. We may also hear some clues when Bernanke gives the Fed's first news conference after the meeting.
The market's expectation for rate hikes in December and early next year went down a little this week. Details can be seen in the following summary which is based on bond rate data and the CME Group FedWatch
The Fed's monetary policy isn't helping savers either, and we'll hear the latest news from the Fed next Wednesday after their third FOMC meeting of the year. Before the Fed starts to hike rates, they will take several other steps that will slowly reverse this super-easy monetary policy. The Fed's statement after the meeting may give hints about the timeline of those steps. We may also hear some clues when Bernanke gives the Fed's first news conference after the meeting.
The market's expectation for rate hikes in December and early next year went down a little this week. Details can be seen in the following summary which is based on bond rate data and the CME Group FedWatch
Table games revenues for community college sitting in escrow account
The money -- nearly $197,000 to date -- sits in an escrow account, earmarked for a proposed new school that might never happen.
Every three months, the account will grow with additional table-games revenue from Presque Isle Downs & Casino in Summit Township.
Local officials have until 2014 to use the money to launch a community college. If that does not happen, economic development projects throughout the county would benefit from the funds.
That is the current status of funding provided by a provision in table-games legislation approved by the Pennsylvania Legislature and crafted by state Sen. Jane Earll, of Fairview Township, R-49th Dist.
That provision requires 2 percent of the revenue from the games at Presque Isle Downs to be set aside for funding a community college -- a project that is stalled after decisions in 2010 by Erie County Council and the Erie School Board not to sponsor a community college because of cost concerns.
The provision would remain in effect after 2014 even if there is no college.
Table games opened July 8 at Presque Isle Downs. Every three months, the state sends the 2 percent share to an escrow account managed by the Erie County Redevelopment Authority, said Rick Notovny, the authority's executive director.
The account's current balance, including interest, is $196,755, Novotny said.
Early projections were that the 2 percent share would equal $1 million to $2 million per year for the community college. But based on the amount of local tax collected thus far, roughly $450,000 would be collected annually for the school.
Novotny said the table-games provision mandates that the money be used by the Redevelopment Authority for loans to local municipalities, for infrastructure projects, if the community college does not become a reality.
"The funds would be set aside as a revolving loan fund for municipalities in Erie County," Novotny said. "So if Millcreek said they wanted to put in a sewer line, or Harborcreek wanted to put in a new road, we could lend them money for that.
"We have not set up guidelines, interest rates for the loans, things like that," Novotny said. "It's too early. And if the community college is built, and sanctioned by the state, we would turn everything over to them and any future funding would go directly to them."
Erie County Executive Barry Grossman, said he and other local officials have not given up on the proposal.
Grossman is among many who believe a community college would help Erie build a skilled workforce and provide a more affordable educational option for many local residents than the region's four-year colleges and for-profit trade schools.
"We're going to keep working at it," Grossman said. "Sometime during this year, something will coalesce and an initiative will start that we will start (discussing) with the public. I'm not at liberty to talk about it now.
"I think the greatest economic development engine you can have is a community college," Grossman said. "Rather than just see that money go to municipalities, we can improve our workforce."
Every three months, the account will grow with additional table-games revenue from Presque Isle Downs & Casino in Summit Township.
Local officials have until 2014 to use the money to launch a community college. If that does not happen, economic development projects throughout the county would benefit from the funds.
That is the current status of funding provided by a provision in table-games legislation approved by the Pennsylvania Legislature and crafted by state Sen. Jane Earll, of Fairview Township, R-49th Dist.
That provision requires 2 percent of the revenue from the games at Presque Isle Downs to be set aside for funding a community college -- a project that is stalled after decisions in 2010 by Erie County Council and the Erie School Board not to sponsor a community college because of cost concerns.
The provision would remain in effect after 2014 even if there is no college.
Table games opened July 8 at Presque Isle Downs. Every three months, the state sends the 2 percent share to an escrow account managed by the Erie County Redevelopment Authority, said Rick Notovny, the authority's executive director.
The account's current balance, including interest, is $196,755, Novotny said.
Early projections were that the 2 percent share would equal $1 million to $2 million per year for the community college. But based on the amount of local tax collected thus far, roughly $450,000 would be collected annually for the school.
Novotny said the table-games provision mandates that the money be used by the Redevelopment Authority for loans to local municipalities, for infrastructure projects, if the community college does not become a reality.
"The funds would be set aside as a revolving loan fund for municipalities in Erie County," Novotny said. "So if Millcreek said they wanted to put in a sewer line, or Harborcreek wanted to put in a new road, we could lend them money for that.
"We have not set up guidelines, interest rates for the loans, things like that," Novotny said. "It's too early. And if the community college is built, and sanctioned by the state, we would turn everything over to them and any future funding would go directly to them."
Erie County Executive Barry Grossman, said he and other local officials have not given up on the proposal.
Grossman is among many who believe a community college would help Erie build a skilled workforce and provide a more affordable educational option for many local residents than the region's four-year colleges and for-profit trade schools.
"We're going to keep working at it," Grossman said. "Sometime during this year, something will coalesce and an initiative will start that we will start (discussing) with the public. I'm not at liberty to talk about it now.
"I think the greatest economic development engine you can have is a community college," Grossman said. "Rather than just see that money go to municipalities, we can improve our workforce."
Second Street District hoping for a lift from new arthouse movie theater
The coming attraction in Austin's Second Street District is getting plenty of buzz.
Violet Crown Cinema, specializing in documentaries as well as art, indie and international films, will open its doors at 434 W. Second St. on Friday, after nearly two years of planning and construction.
Nearby businesses and AMLI, which owns two apartment buildings and is the district's property manager, are hopeful the theater's arrival — combined with the recent opening of the W Austin Hotel and the ACL Live venue just a block away — will draw more people to the area, where retail space is now 80 percent occupied.
"It adds that last puzzle piece for us," said Julie Sutton-McGurk, who handles marketing for the district. "You can shop, you can eat, you can stay down here."
"The Alamo Drafthouse locations on Sixth Street and South Lamar draw people to those areas," added AMLI development manager Craig Brockman, "and we think the Violet Crown will have the same effect."
The manager of Málaga, a tapas bar downstairs from the Violet Crown, says the theater should draw much-needed foot traffic to the stretch of Second Street between Guadalupe and San Antonio streets. "Our block just doesn't see as many people as the other blocks," LisaMarie Pinder said. "When we moved here two years ago we doubled our size, but we haven't really doubled our business."
Theater customers will get four hours of free parking in the adjacent AMLI garage, a perk one former Second Street merchant says should be a tremendous help. "People don't know where to park when they come to Second Street," said Jeff Kirk, who shuttered his Kirk vintage furniture and home decor gallery on Guadalupe Street in late 2009 to focus on his Internet business. That confusion, he says, led potential customers to go elsewhere.
"There were some weekdays that would go by, and not a single person would walk in during the nine hours we were open," Kirk said.
Kirk also believes more should be done to help people navigate the district.
Sutton-McGurk says maps are in the works and soon will be in the hands of merchants. Directional signage is being discussed, she says, as well.
Violet Crown features four screens, with 50 seats or fewer in each screening room. There's also a lobby bar and patio — no ticket necessary — serving "heavy appetizers" such as french fries, pizza and spring rolls.
"This is designed to be a place where people can hang out, whether they're going to a movie or not," owner Bill Banowsky said.
Food and drink offerings are expected to account for about half of the theater's revenue, Banowsky says, attracting customers even on nonpeak days early in the week. Hours will flex based on demand.
"My goal would be for the theater to be open 24 hours a day," he said, "but I don't believe that's feasible right now."
Tickets are $9 for a matinee, $11 weekdays and $13 weekends, and customers can reserve seats online.
Spots in the front row feature specially made ottomans, which Banowsky expects will make them the first to go.
"The goal of the front row was to make that the best seat in the house," he said. "You'll have a best-in class presentation, sight and sound."
The new theater is five minutes from a pair of Alamo locations, but founder Tim League isn't worried.
"I like the concept of Violet Crown," League said. "There's a need downtown for a venue playing more arthouse films."
League says he's even been checking with Banowsky to make sure they don't double-book flicks.
The closing of the Dobie Theatre last August left the Regal Arbor Cinema in North Austin as the city's only reliable home for art and indie films.
But Austin, Banowsky believes, can indeed support two arthouses. "The Dobie was an older theater built in a very awkward space for a cinema," he said. "As is the case with many theaters, time passed it by.
"It was not inexpensive to build the Violet Crown, and I intend to be here a long time."
Violet Crown Cinema, specializing in documentaries as well as art, indie and international films, will open its doors at 434 W. Second St. on Friday, after nearly two years of planning and construction.
Nearby businesses and AMLI, which owns two apartment buildings and is the district's property manager, are hopeful the theater's arrival — combined with the recent opening of the W Austin Hotel and the ACL Live venue just a block away — will draw more people to the area, where retail space is now 80 percent occupied.
"It adds that last puzzle piece for us," said Julie Sutton-McGurk, who handles marketing for the district. "You can shop, you can eat, you can stay down here."
"The Alamo Drafthouse locations on Sixth Street and South Lamar draw people to those areas," added AMLI development manager Craig Brockman, "and we think the Violet Crown will have the same effect."
The manager of Málaga, a tapas bar downstairs from the Violet Crown, says the theater should draw much-needed foot traffic to the stretch of Second Street between Guadalupe and San Antonio streets. "Our block just doesn't see as many people as the other blocks," LisaMarie Pinder said. "When we moved here two years ago we doubled our size, but we haven't really doubled our business."
Theater customers will get four hours of free parking in the adjacent AMLI garage, a perk one former Second Street merchant says should be a tremendous help. "People don't know where to park when they come to Second Street," said Jeff Kirk, who shuttered his Kirk vintage furniture and home decor gallery on Guadalupe Street in late 2009 to focus on his Internet business. That confusion, he says, led potential customers to go elsewhere.
"There were some weekdays that would go by, and not a single person would walk in during the nine hours we were open," Kirk said.
Kirk also believes more should be done to help people navigate the district.
Sutton-McGurk says maps are in the works and soon will be in the hands of merchants. Directional signage is being discussed, she says, as well.
Violet Crown features four screens, with 50 seats or fewer in each screening room. There's also a lobby bar and patio — no ticket necessary — serving "heavy appetizers" such as french fries, pizza and spring rolls.
"This is designed to be a place where people can hang out, whether they're going to a movie or not," owner Bill Banowsky said.
Food and drink offerings are expected to account for about half of the theater's revenue, Banowsky says, attracting customers even on nonpeak days early in the week. Hours will flex based on demand.
"My goal would be for the theater to be open 24 hours a day," he said, "but I don't believe that's feasible right now."
Tickets are $9 for a matinee, $11 weekdays and $13 weekends, and customers can reserve seats online.
Spots in the front row feature specially made ottomans, which Banowsky expects will make them the first to go.
"The goal of the front row was to make that the best seat in the house," he said. "You'll have a best-in class presentation, sight and sound."
The new theater is five minutes from a pair of Alamo locations, but founder Tim League isn't worried.
"I like the concept of Violet Crown," League said. "There's a need downtown for a venue playing more arthouse films."
League says he's even been checking with Banowsky to make sure they don't double-book flicks.
The closing of the Dobie Theatre last August left the Regal Arbor Cinema in North Austin as the city's only reliable home for art and indie films.
But Austin, Banowsky believes, can indeed support two arthouses. "The Dobie was an older theater built in a very awkward space for a cinema," he said. "As is the case with many theaters, time passed it by.
"It was not inexpensive to build the Violet Crown, and I intend to be here a long time."
DSE to probe scam allegations
Dhaka Stock Exchange has decided to launch an internal committee to investigate the allegations that were raised against the bourse in a probe report on the recent stockmarket scam.
“It was decided in a board meeting of the bourse that an investigation committee will be formed with non-elected directors of the DSE after the government releases the probe report officially,” said a DSE director, who was present at the meeting on Thursday.
Although the share scam probe report is yet to be released officially by the government, the media published the report. The report alleged that some member of the DSE got price sensitive information prior to legitimate declaration and made hefty profit.
“The DSE committee's prime responsibility will be to find out the members and officers, who got prior information and reaped financial benefit,” said the DSE director asking for anonymity.
All members present at the meeting denied the allegations of the probe report and claimed it was not true, while some members said it is not an investigative report at all.
“We will take action on the allegations of the probe report for the greater interest of the market,” said a member, who was present at the meeting.
Some directors claimed that the report has no specific allegations because share placement business was not illegal.
The omnibus account is a matter of merchant banks and investors would get only statements at the end of the day; so how the probe committee could name people for manipulating in disguise of an omnibus account, said a director.
“The report named 100 people without hearing, so we can say that it is not ethical,” a DSE official said.
Some of the directors claimed that the probe report is a substandard document, which is enough to defame the government.
They claimed that the focus of the probe committee was to investigate why the market crashed, but there was “no clear mention of it” in the report.
“Investors want to know why the market experienced such a big debacle, but the committee failed to fulfil the expectations,” said another director, asking not to be named.
“I know some investors, who have bought more than Tk 10 crore shares of one company but the probe committee did not mention their names.”
“I have no idea why the probe committee did not name them,” he added.
“It was decided in a board meeting of the bourse that an investigation committee will be formed with non-elected directors of the DSE after the government releases the probe report officially,” said a DSE director, who was present at the meeting on Thursday.
Although the share scam probe report is yet to be released officially by the government, the media published the report. The report alleged that some member of the DSE got price sensitive information prior to legitimate declaration and made hefty profit.
“The DSE committee's prime responsibility will be to find out the members and officers, who got prior information and reaped financial benefit,” said the DSE director asking for anonymity.
All members present at the meeting denied the allegations of the probe report and claimed it was not true, while some members said it is not an investigative report at all.
“We will take action on the allegations of the probe report for the greater interest of the market,” said a member, who was present at the meeting.
Some directors claimed that the report has no specific allegations because share placement business was not illegal.
The omnibus account is a matter of merchant banks and investors would get only statements at the end of the day; so how the probe committee could name people for manipulating in disguise of an omnibus account, said a director.
“The report named 100 people without hearing, so we can say that it is not ethical,” a DSE official said.
Some of the directors claimed that the probe report is a substandard document, which is enough to defame the government.
They claimed that the focus of the probe committee was to investigate why the market crashed, but there was “no clear mention of it” in the report.
“Investors want to know why the market experienced such a big debacle, but the committee failed to fulfil the expectations,” said another director, asking not to be named.
“I know some investors, who have bought more than Tk 10 crore shares of one company but the probe committee did not mention their names.”
“I have no idea why the probe committee did not name them,” he added.
Card swipe deception
Many banks are rewarding their customers for using debit cards. Banks are making profits, merchants are getting sales, and shoppers are getting rebates. Why question the arrangement?
Because merchants are increasingly upset about the amount of money silently taken from them each time a card is swiped. A fight is brewing, and smart consumers won't automatically side with the banks.
On a typical sale, the card fees bring the bank more profit than the merchant, who must sooner or later raise prices or cut costs, maybe by laying off staff.
Supporters of the system say it's the free market at work, but they leave out that retailers, even the largest ones, have no real power to object or negotiate. The card issuers and their supporters have pressured Congress to delay enforcing last year's law that requires the fees to be "reasonable and proportional." They call the regulation price-fixing.
Merchants ask why it is OK for the card companies to fix prices, and at an unreasonably high level, and they can't get a good answer. That's why Congress should not back away from enforcing fair rules.
The Federal Reserve, in charge of defining and enforcing what is "reasonable," has proposed capping fees at 12 cents per sale. The current average is 44 cents. Some estimates put the banks' costs at around 4 cents.
The charges for credit cards are a separate issue from debit cards. With a credit sale, money is loaned for the transaction and there is some risk it won't be repaid, so costs are higher. Congress should review those fees too, but debit cards are a more irking issue for stores, restaurants, gas stations and motels.
When you use a debit card, the money is immediately deducted from your bank account. If funds are inadequate, the charge is rejected. It's a low-cost, safe, automated transaction.
Supporters of the high fees argue that if the fees were lower, retailers would pad their profits. Stores would not, bank spokesmen say, pass the savings along, the way banks give rebates and other rewards to card users. Merchants' spokesmen disagree, pointing out how competitive the retail and restaurant business is. Visa and MasterCard set the fees the banks collect, and the fees have been creeping higher.
The argument that card fees are unreasonable is supported by the profit margins. Visa's is 37 percent; MasterCard, 33 percent; and J.P. Morgan Chase, nearly 22 percent.
Compare that to the big retailers. Wal-Mart Stores has a profit margin of less than 4 percent. Home Depot and Target, less than 5 percent.
J. Craig Shearman, a spokesman for the National Retail Federation, tells us that retail as a whole has profits averaging around 2 percent.
High transaction fees for debit cards are bound to be a factor in driving some small stores and restaurants out of business. These days customers are paying for even minor purchases with a card. For each sale the bank is guaranteed a profit. The merchant has no guarantees.
Banks argue that without the card-fee profits they would have to eliminate their rebate programs and even charge more for checking and other services. That could be true.
What they can't explain is why card costs should be so high, and why they are hidden in a way that tricks consumers into thinking they're eating a free lunch.
Because merchants are increasingly upset about the amount of money silently taken from them each time a card is swiped. A fight is brewing, and smart consumers won't automatically side with the banks.
On a typical sale, the card fees bring the bank more profit than the merchant, who must sooner or later raise prices or cut costs, maybe by laying off staff.
Supporters of the system say it's the free market at work, but they leave out that retailers, even the largest ones, have no real power to object or negotiate. The card issuers and their supporters have pressured Congress to delay enforcing last year's law that requires the fees to be "reasonable and proportional." They call the regulation price-fixing.
Merchants ask why it is OK for the card companies to fix prices, and at an unreasonably high level, and they can't get a good answer. That's why Congress should not back away from enforcing fair rules.
The Federal Reserve, in charge of defining and enforcing what is "reasonable," has proposed capping fees at 12 cents per sale. The current average is 44 cents. Some estimates put the banks' costs at around 4 cents.
The charges for credit cards are a separate issue from debit cards. With a credit sale, money is loaned for the transaction and there is some risk it won't be repaid, so costs are higher. Congress should review those fees too, but debit cards are a more irking issue for stores, restaurants, gas stations and motels.
When you use a debit card, the money is immediately deducted from your bank account. If funds are inadequate, the charge is rejected. It's a low-cost, safe, automated transaction.
Supporters of the high fees argue that if the fees were lower, retailers would pad their profits. Stores would not, bank spokesmen say, pass the savings along, the way banks give rebates and other rewards to card users. Merchants' spokesmen disagree, pointing out how competitive the retail and restaurant business is. Visa and MasterCard set the fees the banks collect, and the fees have been creeping higher.
The argument that card fees are unreasonable is supported by the profit margins. Visa's is 37 percent; MasterCard, 33 percent; and J.P. Morgan Chase, nearly 22 percent.
Compare that to the big retailers. Wal-Mart Stores has a profit margin of less than 4 percent. Home Depot and Target, less than 5 percent.
J. Craig Shearman, a spokesman for the National Retail Federation, tells us that retail as a whole has profits averaging around 2 percent.
High transaction fees for debit cards are bound to be a factor in driving some small stores and restaurants out of business. These days customers are paying for even minor purchases with a card. For each sale the bank is guaranteed a profit. The merchant has no guarantees.
Banks argue that without the card-fee profits they would have to eliminate their rebate programs and even charge more for checking and other services. That could be true.
What they can't explain is why card costs should be so high, and why they are hidden in a way that tricks consumers into thinking they're eating a free lunch.
2011年4月21日 星期四
Fifth Third Bancorp's CEO Discusses Q1 2011 Results - Earnings Call Transcript
Good morning. My name is Mische, and I will be your conference operator today. At this time, I would like to welcome everyone to the Fifth Third Bancorp First Quarter 2011 Earnings Conference Call. [Operator Instructions] Thank you, Mr. Jeff Richardson, Director of Investor Relations. You may begin your conference.
Jeff Richardson
Thanks, Mische. Hello, and thanks for joining us today. Today, we'll be talking with you about our first quarter 2011 results. This call may contain certain forward-looking statements about Fifth Third pertaining to our financial condition, results of operations, plans and objectives. These statements involve certain risks and uncertainties. There are a number of factors that could cause results to differ materially from historical performance in these statements. We've identified a number of those factors in our forward-looking cautionary statement at the end of our earnings release and in other materials, and we encourage you to review those factors. Fifth Third undertakes no obligation and would not expect to update any such forward-looking statements after the date of this call.
I'm joined on the call by several people: Kevin Kabat, our President and CEO; Chief Financial Officer, Dan Poston; Chief Risk Officer, Mary Tuuk; Treasurer, Mahesh Sankaran; and Jim Eglseder, Investor Relations. During the question-and-answer period, please provide your name and that of your firm to the operator.
With that, I'll turn the call over to Kevin Kabat. Kevin?
Kevin Kabat
Thanks, Jeff. Good morning, everyone, and thanks for joining us. Today, we reported first quarter 2011 net income of $265 million or net income to common shareholders of $88 million or $0.10. Net income to common included the effect of $153 million of discount accretion on the TARP Preferred Stock, which is in the preferred dividend line. Excluding this item, net income to common was $241 million or $0.27 per share. It was an eventful quarter for Fifth Third. We completed and submitted our capital plan to the Federal Reserve at year-end. We issued $1.7 billion in common stock and $1 billion in senior debt in January, and in February redeemed the U.S. Treasury's $3.4 billion preferred stock investment in Fifth Third.
In March, we repurchased a warrant issued to Treasury for $280 million. The warrant gave the Treasury the right to purchase 43.6 million shares at $11.72. And this repurchase eliminates this potential future dilution at what we consider to be a reasonable cost. Also in March, we increased our quarterly common stock dividend by $0.05 to $0.06 per share. We believe this is the first step towards beginning to normalize our dividend payout after 2 years of nominal dividend. With no TLGP debt outstanding, Fifth Third has completely exited all crisis-era government programs. We have a robust capital position with Tier 1 common of 9%, Tier 1 capital of 12.2%. We're confident we meet today any capital standards that will be set in the U.S. under the Basel III framework.
Now turning to our quarterly results. Overall, they were in line with our expectations, with strengths and weaknesses reflecting broader aspects of the economy as it recovers. The interest rate environment negatively affected mortgage production and results. Loan demand, while improving, remains lower than would be typical at this stage of the cycle. However, debt capital markets have been very strong, which led to an elevated level of payoffs and refinancings during the quarter and diminished loan growth and yield relative to what we were expecting. Those effects were largely offset by the benefit of continued improving credit trends and lower credit costs. Dan and Mary will provide more details in their remarks, but I'll touch on a few high-level results.
Jeff Richardson
Thanks, Mische. Hello, and thanks for joining us today. Today, we'll be talking with you about our first quarter 2011 results. This call may contain certain forward-looking statements about Fifth Third pertaining to our financial condition, results of operations, plans and objectives. These statements involve certain risks and uncertainties. There are a number of factors that could cause results to differ materially from historical performance in these statements. We've identified a number of those factors in our forward-looking cautionary statement at the end of our earnings release and in other materials, and we encourage you to review those factors. Fifth Third undertakes no obligation and would not expect to update any such forward-looking statements after the date of this call.
I'm joined on the call by several people: Kevin Kabat, our President and CEO; Chief Financial Officer, Dan Poston; Chief Risk Officer, Mary Tuuk; Treasurer, Mahesh Sankaran; and Jim Eglseder, Investor Relations. During the question-and-answer period, please provide your name and that of your firm to the operator.
With that, I'll turn the call over to Kevin Kabat. Kevin?
Kevin Kabat
Thanks, Jeff. Good morning, everyone, and thanks for joining us. Today, we reported first quarter 2011 net income of $265 million or net income to common shareholders of $88 million or $0.10. Net income to common included the effect of $153 million of discount accretion on the TARP Preferred Stock, which is in the preferred dividend line. Excluding this item, net income to common was $241 million or $0.27 per share. It was an eventful quarter for Fifth Third. We completed and submitted our capital plan to the Federal Reserve at year-end. We issued $1.7 billion in common stock and $1 billion in senior debt in January, and in February redeemed the U.S. Treasury's $3.4 billion preferred stock investment in Fifth Third.
In March, we repurchased a warrant issued to Treasury for $280 million. The warrant gave the Treasury the right to purchase 43.6 million shares at $11.72. And this repurchase eliminates this potential future dilution at what we consider to be a reasonable cost. Also in March, we increased our quarterly common stock dividend by $0.05 to $0.06 per share. We believe this is the first step towards beginning to normalize our dividend payout after 2 years of nominal dividend. With no TLGP debt outstanding, Fifth Third has completely exited all crisis-era government programs. We have a robust capital position with Tier 1 common of 9%, Tier 1 capital of 12.2%. We're confident we meet today any capital standards that will be set in the U.S. under the Basel III framework.
Now turning to our quarterly results. Overall, they were in line with our expectations, with strengths and weaknesses reflecting broader aspects of the economy as it recovers. The interest rate environment negatively affected mortgage production and results. Loan demand, while improving, remains lower than would be typical at this stage of the cycle. However, debt capital markets have been very strong, which led to an elevated level of payoffs and refinancings during the quarter and diminished loan growth and yield relative to what we were expecting. Those effects were largely offset by the benefit of continued improving credit trends and lower credit costs. Dan and Mary will provide more details in their remarks, but I'll touch on a few high-level results.
2011年4月20日 星期三
Loading... Symbols: Authors: Wells Fargo &'s CEO Discusses Q1 2011 Results - Earnings Call Transcript
Good morning. My name is Celeste, and I will be your conference operator today. At this time, I would like to welcome everyone to Wells Fargo First Quarter Earnings Conference Call. [Operator Instructions] I would now like to turn today's call over to Jim Rowe, Director of Investor Relations. Please go ahead, sir.
Jim Rowe
Thank you, Celeste, and good morning, everyone. Thank you for joining our call today during which our Chairman and CEO, John Stumpf; and CFO, Tim Sloan, will review first quarter results and answer your questions.
Before we get started, I would like to remind you that our first quarter earnings release and quarterly supplement are available on our website. I'd also like to caution you that we may make forward-looking statements during today's call, and that those forward-looking statements are subject to risks and uncertainties. Factors that may cause actual results to differ materially from expectations are detailed in our SEC filings, including the Form 8-K filed today and the earnings release and quarterly supplement included as exhibits.
In addition, some of the discussion today about the company's performance will include references to non-GAAP financial measures. Information about those measures, including a reconciliation of those measures to GAAP measures, can be found in our SEC filings and in the earnings release and quarterly supplement available on our website at wellsfargo.com.
I will now turn the call over to our Chairman and CEO, John Stumpf.
John Stumpf
Thank you, Jim, and good morning, and thanks for joining the call and your interest in Wells Fargo. We're extremely pleased with the performance of the company in the first quarter with record earnings of $3.8 billion, up 48% from a year ago. Each of our business segments contributed to the overall profitability and the value of our diversified model was never more evident.
We generated broad-base growth across our business segments, including revenue growth in businesses as diverse as commercial and corporate banking, investment banking, commercial real estate, international banking, wealth management, brokerage, auto dealer services, merchant and payroll services. We also achieved significant improvement in credit quality during the quarter, and here, too, our improvement was broad based across our portfolios. These strong business results enabled us to continue to grow capital internally, producing an estimated Tier 1 common equity ratio under current Basel III capital proposals of 7.2%.
We're extremely pleased that we're able to reward our loyal shareholders by increasing our quarterly dividend rate, by reinstating our stock repurchase program and by calling $3.2 billion in Trust Preferred Securities. And as we just announced today, our board authorized a second quarter dividend of $0.12 per share.
As I have said many times, our merger with Wachovia is exceeding our own high expectations and has created, in our view, the most powerful platform in the industry. We completed the conversion of banking stores in Connecticut, New Jersey, Delaware and New York in the first quarter. And late last week, we completed the Pennsylvania integration. Including Pennsylvania, 74% of our banking customers are now on a single system. We've had positive customer response to the new store design and enhanced product offering while continuing to provide the same focus on providing excellent customer service.
We are successfully meeting the financial needs of our customers throughout the East as evidenced by our cross sell, now reaching 5.22 products per household, up from 5.02 just a year ago. Checking accounts in North Carolina grew by 8.5% and in Florida by 12%. Sales of credit cards more than doubled in the East from a year ago. This success will help drive revenue growth for years to come as we continue to deepen the relationships of our existing customers and grow market share.
The steady progress in consolidating our company across the nation is coming at a time of transition for our industry. Two changes that have been top of mind for investors are the fate of debit interchange revenue as part of Dodd-Frank and the recent regulatory and legal actions related to the mortgage servicing and foreclosures.
Regarding debit interchange, we believe lawmakers should take the necessary time to better understand the direct and indirect consequences of the proposed reduction in debit interchange fees on consumers, merchants and banks. Banks should be fairly compensated for the value that debit cards provide for merchants and the convenience they offer consumers. Government price controls that wouldn't even enable banks to cover the cost of providing the service make no sense, particularly for consumers. We are hopeful that congress will do the right thing, which is to delay the scheduled implementation until these issues are addressed.
As you are aware, federal banking regulators recently issued consent orders regarding foreclosure policies and practices. We take this issue seriously and are committed to complying with those orders. In addition, Wells Fargo supports the idea of national servicing standards suggested by the regulators, which we hope will provide greater clarity for customers, servicers and investors.
We are not perfect, but Wells Fargo has been and always will be committed to doing the right thing for our customers and our country. We remain dedicated to helping our at-risk customers as evidenced by our over 665,000 active trial and completed modifications we've done since the beginning of 2009.
Our outreach efforts continue to grow as we have now conducted 22 of our home preservation workshops across the country, and we plan to hold twice as many this year as we did last year. We have met with over 20,000 customers face-to-face at these events, and this effort has helped us complete almost twice as many modifications for customers as foreclosures since 2009.
We have been working with our regulators for an extended period on improving our servicing practices, and we’ve already begun instituting meaningful changes to our processes. Last summer, we adopted a single point-of-contact strategy to help customers seeking loan modifications. In the fourth quarter, we established a uniform foreclosure affidavit for each judicial state subject to local rules. So we have already started making some of the operational changes and incurring some of the costs that will result from the expanded servicing responsibilities outlined in the consent order.
While we continue to focus on helping our customers, our first quarter results demonstrate that we are off to a great start in 2011. The rest of the year holds additional opportunities as we work to convert the remaining Wachovia banking stores in the East, focus on improving our efficiency, invest our liquid assets wisely and continue to lend to our commercial and consumer customers. At the same time, we continue to reduce our exposure to higher risk portfolios, benefit from improved credit quality and build capital internally.
Jim Rowe
Thank you, Celeste, and good morning, everyone. Thank you for joining our call today during which our Chairman and CEO, John Stumpf; and CFO, Tim Sloan, will review first quarter results and answer your questions.
Before we get started, I would like to remind you that our first quarter earnings release and quarterly supplement are available on our website. I'd also like to caution you that we may make forward-looking statements during today's call, and that those forward-looking statements are subject to risks and uncertainties. Factors that may cause actual results to differ materially from expectations are detailed in our SEC filings, including the Form 8-K filed today and the earnings release and quarterly supplement included as exhibits.
In addition, some of the discussion today about the company's performance will include references to non-GAAP financial measures. Information about those measures, including a reconciliation of those measures to GAAP measures, can be found in our SEC filings and in the earnings release and quarterly supplement available on our website at wellsfargo.com.
I will now turn the call over to our Chairman and CEO, John Stumpf.
John Stumpf
Thank you, Jim, and good morning, and thanks for joining the call and your interest in Wells Fargo. We're extremely pleased with the performance of the company in the first quarter with record earnings of $3.8 billion, up 48% from a year ago. Each of our business segments contributed to the overall profitability and the value of our diversified model was never more evident.
We generated broad-base growth across our business segments, including revenue growth in businesses as diverse as commercial and corporate banking, investment banking, commercial real estate, international banking, wealth management, brokerage, auto dealer services, merchant and payroll services. We also achieved significant improvement in credit quality during the quarter, and here, too, our improvement was broad based across our portfolios. These strong business results enabled us to continue to grow capital internally, producing an estimated Tier 1 common equity ratio under current Basel III capital proposals of 7.2%.
We're extremely pleased that we're able to reward our loyal shareholders by increasing our quarterly dividend rate, by reinstating our stock repurchase program and by calling $3.2 billion in Trust Preferred Securities. And as we just announced today, our board authorized a second quarter dividend of $0.12 per share.
As I have said many times, our merger with Wachovia is exceeding our own high expectations and has created, in our view, the most powerful platform in the industry. We completed the conversion of banking stores in Connecticut, New Jersey, Delaware and New York in the first quarter. And late last week, we completed the Pennsylvania integration. Including Pennsylvania, 74% of our banking customers are now on a single system. We've had positive customer response to the new store design and enhanced product offering while continuing to provide the same focus on providing excellent customer service.
We are successfully meeting the financial needs of our customers throughout the East as evidenced by our cross sell, now reaching 5.22 products per household, up from 5.02 just a year ago. Checking accounts in North Carolina grew by 8.5% and in Florida by 12%. Sales of credit cards more than doubled in the East from a year ago. This success will help drive revenue growth for years to come as we continue to deepen the relationships of our existing customers and grow market share.
The steady progress in consolidating our company across the nation is coming at a time of transition for our industry. Two changes that have been top of mind for investors are the fate of debit interchange revenue as part of Dodd-Frank and the recent regulatory and legal actions related to the mortgage servicing and foreclosures.
Regarding debit interchange, we believe lawmakers should take the necessary time to better understand the direct and indirect consequences of the proposed reduction in debit interchange fees on consumers, merchants and banks. Banks should be fairly compensated for the value that debit cards provide for merchants and the convenience they offer consumers. Government price controls that wouldn't even enable banks to cover the cost of providing the service make no sense, particularly for consumers. We are hopeful that congress will do the right thing, which is to delay the scheduled implementation until these issues are addressed.
As you are aware, federal banking regulators recently issued consent orders regarding foreclosure policies and practices. We take this issue seriously and are committed to complying with those orders. In addition, Wells Fargo supports the idea of national servicing standards suggested by the regulators, which we hope will provide greater clarity for customers, servicers and investors.
We are not perfect, but Wells Fargo has been and always will be committed to doing the right thing for our customers and our country. We remain dedicated to helping our at-risk customers as evidenced by our over 665,000 active trial and completed modifications we've done since the beginning of 2009.
Our outreach efforts continue to grow as we have now conducted 22 of our home preservation workshops across the country, and we plan to hold twice as many this year as we did last year. We have met with over 20,000 customers face-to-face at these events, and this effort has helped us complete almost twice as many modifications for customers as foreclosures since 2009.
We have been working with our regulators for an extended period on improving our servicing practices, and we’ve already begun instituting meaningful changes to our processes. Last summer, we adopted a single point-of-contact strategy to help customers seeking loan modifications. In the fourth quarter, we established a uniform foreclosure affidavit for each judicial state subject to local rules. So we have already started making some of the operational changes and incurring some of the costs that will result from the expanded servicing responsibilities outlined in the consent order.
While we continue to focus on helping our customers, our first quarter results demonstrate that we are off to a great start in 2011. The rest of the year holds additional opportunities as we work to convert the remaining Wachovia banking stores in the East, focus on improving our efficiency, invest our liquid assets wisely and continue to lend to our commercial and consumer customers. At the same time, we continue to reduce our exposure to higher risk portfolios, benefit from improved credit quality and build capital internally.
2011年4月19日 星期二
Hancock Holding Company Announces 1Q 2011 Financial Results
Hancock Holding Company (Nasdaq:HBHC) today announced financial results for the quarter ended March 31, 2011. Net income was $15.3 million, with fully diluted earnings per share of $0.41. The first quarter's earnings were impacted by $1.6 million in merger related expenses associated with the proposed acquisition of Whitney Holding Corporation (as discussed below) and also by Hancock's recent common equity offering (also discussed below). Excluding the merger related expenses, net income was $16.4 million with fully diluted earnings per share of $0.43.
Excluding merger related items, net income of $16.4 million increased 10.8 percent from 2010's first quarter's net income of $14.8 million but declined 3.9 percent over the preceding fourth quarter's net income of $17.0 million. Fully diluted earnings per share excluding merger related items for the first quarter of 2011 were $0.43, compared to $0.40 for the same quarter a year ago and $0.46 in the 2010's fourth quarter. Hancock's return on average assets, excluding merger related items, was 0.81 percent for the first quarter of 2011, an improvement of 12 basis points over the prior year period return of average assets of 0.69 percent.
The company's pre-tax, pre-provision profit for the first quarter of 2011 increased 2.5 percent over the prior year's first quarter to $32.4 million. Pre-tax pre-provision profit is total revenue less non-interest expense and excludes one-time merger items and securities transactions.
On December 21, 2010, Hancock Holding Company entered into a definitive agreement with Whitney Holding Corporation ("Whitney"), parent company of New Orleans-based Whitney National Bank, for Whitney to merge into Hancock. The combined company will have approximately $20 billion in assets and operate more than 300 branches across the Gulf South. The transaction is expected to be completed in the second quarter of 2011, subject to customary closing conditions and shareholder and regulatory approval.
On March 25, 2011, the company completed a successful common stock offering of 6,201,500 shares of common stock at a price of $32.25 per share, which represented no discount from the last sale on the previous business day. Net proceeds were approximately $191 million. The proceeds of the offering are intended to be used for general corporate purposes, including the enhancement of Hancock's capital position and the repurchase of Whitney's TARP preferred stock and warrants upon closing of the proposed merger. The company's tangible common equity ratio stood at 11.94 percent at March 31, 2011.
Hancock's President and Chief Executive Officer Carl J. Chaney said, "We are very pleased to report improvement in our first quarter earnings as we continue to see an upturn in our asset quality measures. In addition, our stock offering this quarter generated overwhelming interest and was rated the number one equity offering in the U.S. over the past 12 months, in terms of no discount from the last sale on the previous business day. We believe the response reflected the company's 110-year history of financial strength and stability and excitement about the pending merger with Whitney which is on track to close in the second quarter of this year."
Chaney continued, "Our operating footprint will grow dramatically in Hancock's current Gulf Coast markets, and we will expand into dynamic new regions such as Houston and Tampa-St. Petersburg upon completion of the transaction. Based upon combined assets, Hancock will become the 32nd largest bank holding company headquartered in America."
The principal driver of Hancock's improved 2011 first quarter earnings from the prior year's first quarter was the continued improvement in the company's overall asset quality. The company recorded a significantly lower provision for loan losses, down $5.0 million, or 36.2 percent, compared to the prior year's first quarter. Net charge-offs of $6.8 million decreased $6.4 million, or 48.6 percent, from the 2010 first quarter and decreased $2.9 million, or 30.1 percent, from the prior quarter. Net charge-offs were 0.57 percent of average loans, down 49 basis points from the first quarter of 2010 and down 21 basis points, compared with the preceding fourth quarter.
"With our improved asset quality measures, the approaching merger with Whitney, and a favorable economic outlook for our market areas, we are very excited about what the next 12 months will bring. These events position us very favorably for future growth and prosperity," Chaney added.
Highlights & Key Operating Items from Hancock's First Quarter Results
Balance Sheet & Capital
Total assets at March 31, 2011, were $8.3 billion, up $172.7 million, or 2.1 percent, from $8.1 billion at December 31, 2010. Compared to March 31, 2010, total assets decreased $254.4 million. Hancock continues to remain well capitalized, with total equity of $1.1 billion at March 31, 2011, up $206.9 million, or 24.3 percent, from March 31, 2010, and up $201.2 million, or 23.5 percent, from December 31, 2010, due to the common stock offering in March of this year. The company's tangible common equity ratio stood at 11.94 percent at March 31, 2011.
Excluding merger related items, net income of $16.4 million increased 10.8 percent from 2010's first quarter's net income of $14.8 million but declined 3.9 percent over the preceding fourth quarter's net income of $17.0 million. Fully diluted earnings per share excluding merger related items for the first quarter of 2011 were $0.43, compared to $0.40 for the same quarter a year ago and $0.46 in the 2010's fourth quarter. Hancock's return on average assets, excluding merger related items, was 0.81 percent for the first quarter of 2011, an improvement of 12 basis points over the prior year period return of average assets of 0.69 percent.
The company's pre-tax, pre-provision profit for the first quarter of 2011 increased 2.5 percent over the prior year's first quarter to $32.4 million. Pre-tax pre-provision profit is total revenue less non-interest expense and excludes one-time merger items and securities transactions.
On December 21, 2010, Hancock Holding Company entered into a definitive agreement with Whitney Holding Corporation ("Whitney"), parent company of New Orleans-based Whitney National Bank, for Whitney to merge into Hancock. The combined company will have approximately $20 billion in assets and operate more than 300 branches across the Gulf South. The transaction is expected to be completed in the second quarter of 2011, subject to customary closing conditions and shareholder and regulatory approval.
On March 25, 2011, the company completed a successful common stock offering of 6,201,500 shares of common stock at a price of $32.25 per share, which represented no discount from the last sale on the previous business day. Net proceeds were approximately $191 million. The proceeds of the offering are intended to be used for general corporate purposes, including the enhancement of Hancock's capital position and the repurchase of Whitney's TARP preferred stock and warrants upon closing of the proposed merger. The company's tangible common equity ratio stood at 11.94 percent at March 31, 2011.
Hancock's President and Chief Executive Officer Carl J. Chaney said, "We are very pleased to report improvement in our first quarter earnings as we continue to see an upturn in our asset quality measures. In addition, our stock offering this quarter generated overwhelming interest and was rated the number one equity offering in the U.S. over the past 12 months, in terms of no discount from the last sale on the previous business day. We believe the response reflected the company's 110-year history of financial strength and stability and excitement about the pending merger with Whitney which is on track to close in the second quarter of this year."
Chaney continued, "Our operating footprint will grow dramatically in Hancock's current Gulf Coast markets, and we will expand into dynamic new regions such as Houston and Tampa-St. Petersburg upon completion of the transaction. Based upon combined assets, Hancock will become the 32nd largest bank holding company headquartered in America."
The principal driver of Hancock's improved 2011 first quarter earnings from the prior year's first quarter was the continued improvement in the company's overall asset quality. The company recorded a significantly lower provision for loan losses, down $5.0 million, or 36.2 percent, compared to the prior year's first quarter. Net charge-offs of $6.8 million decreased $6.4 million, or 48.6 percent, from the 2010 first quarter and decreased $2.9 million, or 30.1 percent, from the prior quarter. Net charge-offs were 0.57 percent of average loans, down 49 basis points from the first quarter of 2010 and down 21 basis points, compared with the preceding fourth quarter.
"With our improved asset quality measures, the approaching merger with Whitney, and a favorable economic outlook for our market areas, we are very excited about what the next 12 months will bring. These events position us very favorably for future growth and prosperity," Chaney added.
Highlights & Key Operating Items from Hancock's First Quarter Results
Balance Sheet & Capital
Total assets at March 31, 2011, were $8.3 billion, up $172.7 million, or 2.1 percent, from $8.1 billion at December 31, 2010. Compared to March 31, 2010, total assets decreased $254.4 million. Hancock continues to remain well capitalized, with total equity of $1.1 billion at March 31, 2011, up $206.9 million, or 24.3 percent, from March 31, 2010, and up $201.2 million, or 23.5 percent, from December 31, 2010, due to the common stock offering in March of this year. The company's tangible common equity ratio stood at 11.94 percent at March 31, 2011.
2011年4月18日 星期一
Do These Options-Related Stocks Belong in Your Retirement Account?
If you are an options trader, you may have noticed a very pleasant trading month in March. Overall liquidity for options traders has never been better. The Options Clearing Corporation, now known simply OCC, reported that March 2011 produced a record volume in contracts traded. Over 420 million contracts changed hands - an increase of 19% above March 2010. The OCC also reported that the first quarter for 2011 witnessed a record amount of volume. According to the Wall Street Journal, some of the increase may be attributed to the high volatility caused by the news from Japan and North Africa.
Click on all charts to enlarge:
The Chicago Board Options Exchange (CBOE) had some market share loss, with approximately 2.15 million equity option contracts traded. For the CBOE, the March 2011 volume was down more than 10% compared to March of 2010. Can an increase in option trading spell profits for trading companies, and are any of the companies worth putting into a retirement account?
We will take a look at a few trading-related companies and see if they might be a good fit. This is the third article in my series about stocks that may be good fits for retirement investing. You may see my previous one about food inflation related stocks here. I use a proprietary blend of technical analysis, financial crowd behavior, and fundamentals in my short-term trades, and while not totally the same in my retirement account investments the concept is the same. The last component for entry is the ability to sell put options at or near the offer price. I want the best of it when I enter into a trade, and I will not start out by paying a spread unless it is less than five cents and/or < 1% of the option premium.
To do well in the market, you should know the stocks you track inside and out. After all, every journey begins with a single step, so let us start by considering some interesting companies, which will give you a starting point for possible stocks that you might buy for your retirement accounts.
Click on all charts to enlarge:
The Chicago Board Options Exchange (CBOE) had some market share loss, with approximately 2.15 million equity option contracts traded. For the CBOE, the March 2011 volume was down more than 10% compared to March of 2010. Can an increase in option trading spell profits for trading companies, and are any of the companies worth putting into a retirement account?
We will take a look at a few trading-related companies and see if they might be a good fit. This is the third article in my series about stocks that may be good fits for retirement investing. You may see my previous one about food inflation related stocks here. I use a proprietary blend of technical analysis, financial crowd behavior, and fundamentals in my short-term trades, and while not totally the same in my retirement account investments the concept is the same. The last component for entry is the ability to sell put options at or near the offer price. I want the best of it when I enter into a trade, and I will not start out by paying a spread unless it is less than five cents and/or < 1% of the option premium.
To do well in the market, you should know the stocks you track inside and out. After all, every journey begins with a single step, so let us start by considering some interesting companies, which will give you a starting point for possible stocks that you might buy for your retirement accounts.
2011年4月17日 星期日
Our original Libyan misadventure
History doesn't repeat itself, Mark Twain is famously supposed to have said. But sometimes it rhymes. If so, it's improvising a perfect sonnet in Libya these days. Neither the rebels in Benghazi, desperate for more Western help against Gadhafi, nor the policymakers in Washington, who are desperate to avoid getting entangled in Libya, seem to have considered what happened the first time the United States intervened there, 206 years ago. If they did they'd surely be amazed at how closely the tumultuous events of the past two months have echoed those of 1805. And, perhaps, dismayed at the outcome that precedent foretells.
Back then, Thomas Jefferson, another president with a penchant for soaring rhetoric and cool calculation, occupied the White House. The reigning tyrant in Tripoli was Pasha Yusuf Karamanli, whose hands were as bloody as Gadhafi's; he'd seized the throne by murdering one brother and, by some accounts, their father, and banishing his other elder brother Hamet. Under Yusuf, as under Gadhafi, Libya became the most troublesome state in a troubled region -- the Barbary Coast, so called after the red-bearded Turkish captain Barbarossa, who drove the Spanish out of North Africa in the early 1500s. From Libya to Morocco, the successors to Barbarossa's corsairs now thrived on piracy, seizing ships and crews for ransom or extorting protection-money "tribute" to let them pass.
Thomas Jefferson decried these "nests of banditti" as strenuously as a succession of modern U.S. presidents have deplored the "mad dog" Gadhafi. As ambassador to France and secretary of state, Jefferson urged fighting rather than paying tribute: "Justice is in favor of this option," he wrote in 1784. "Honor favors it." He tried to assemble a coalition to share the cost and risk. Other smaller powers -- Portugal, Denmark, Sweden, Sardinia, Naples and Malta -- were willing. But Britain, France and Spain balked; they found it cheaper to pay off the pirates and expedient to let them harry merchant rivals such as the United States. And so Jefferson's scheme foundered.
The issue came to a head soon after Jefferson became president in 1801. Pasha Yusuf, chafing at the United States' growing resistance to paying tribute, declared war in picturesque fashion: He had the flagpole in front of the American consulate chopped down. In response, Jefferson dispatched one naval squadron and then another, but they cruised the Mediterranean for two years with little effect.
Meanwhile the expelled American consul for Tripoli, James Leander Cathcart, and the consul in Tunis, a blustery soldier-turned-diplomat named William Eaton, cooked up an audacious plan to break the impasse: regime change. They urged Jefferson to enlist the exiled brother, Hamet Karamanli, in a plot to overthrow Yusuf. Yusuf's subjects, Eaton claimed, were "discontented and restless" and "would rise en masse" to welcome Hamet. And this, Eaton argued in an early application of the domino theory, would put fear in the other pirate states and bring peace to all Barbary.
This scheme -- the first American intervention in another country's internal affairs -- nearly died before it was hatched. In early 1802, Yusuf, who'd been tipped off, invited Hamet to return and take the governorship of Derna, then Libya's second-largest city, and Benghazi in the east of the country. Hamet, at wit's end -- not least because brother Yusuf held his wife and children hostage -- accepted the offer. But Eaton headed him off and, with a combination of words and cash (but without authorization from his superiors) persuaded him to sit tight.
Once in power Jefferson, like Obama, waxed more cautious. "Any war with the Barbary Regencies will be a war of defence and necessity, not of choice or provocation," his secretary of state, James Madison, reminded Eaton. Still Jefferson and Madison were intrigued with the scheme: Though it wasn't the republic's way "to intermeddle with the domestic controversies of other countries," Madison wrote, "it cannot be unfair, in the prosecution of a reasonable peace, to take advantage of the hostile co-operation of others. As far, therefore, as the views of the brother may contribute to our success, the aid of them may be used for the purpose." The exact terms of that cooperation, Madison left to the consuls' discretion.
Then, on Halloween 1803, the frigate Philadelphia grounded in Tripoli's harbor, giving Yusuf more than 300 American hostages. He demanded an enormous ransom, $500,000, and the same in tribute each year. With the stakes thus raised, Jefferson and Madison wavered between action and caution. The impetuous Hamet meanwhile landed at Derna and tried to launch an uprising on his own but, failing to get the aid he expected, gave up and fled into Egypt.
Eaton, undaunted, continued lobbying for regime change. He even hustled funds for the effort with a little fast cross-Mediterranean trading in olive oil. (Perhaps if Ollie North had stuck to olive oil instead of selling missiles to Iran in the 1980s, the Contragate scheme wouldn't have gone so sour.) Eaton returned to Washington and, in December 1803, met alone with Jefferson. That colloquy seemed to tip the balance; Jefferson gave his go-ahead, at first promising $40,000 but then authorizing just $20,000 for Eaton's scheme. Madison kicked in a thousand rifles and arranged Eaton's transfer to the War Department, with the title of "Navy Agent for the Several Barbary Regencies." That way his conspiracy wouldn't compromise the State Department's diplomatic efforts.
Eaton knew his position was tenuous: "The cautious policy of the President is calculated to evade responsibility and to secure all the advantages of a miracle," he noted in a letter. "If the cooperation fails, he evades the imputation of having embarked on a speculative, theoretical, chimerical project. This fixes on me." (i.e. plausible deniability.)
But Eaton either did not realize or wishfully disregarded the way he and Hamet were being used. Madison advised Commodore Samuel Barron, the naval commander in the Mediterranean, that he might "find Mr. Eaton extremely useful" in putting pressure on Yusuf, but warned him not to commit to Hamet's cause. At the same time, without informing Eaton, he directed the new consul general for Barbary, Tobias Lear, to attempt to make peace with Yusuf and ransom the hostages for the lowest price.
Eaton reached Hamet in Egypt in early 1805 and whisked him out from under its Ottoman rulers. Pushing his authority to the limit or beyond, he inked a high-sounding "Convention between the United States of America, and his Highness, Hamet Caramanly," pledging America's "utmost exertions" to restore Hamet's rule. In return Hamet would declare a general amnesty, release all American prisoners, foreswear taking new ones or demanding further payments, and repay all expenses with tribute due from other nations -- thus involving America in the tribute business.
From the desert oases and cosmopolitan flotsam of Alexandria, Eaton assembled as motley a legion as ever set out to conquer a country: 38 Greek mercenaries, a few dozen international adventurers of other nationalities, Hamet's corps of 90 and enough Arab fighters and camel drivers to bring the total to 400. He asked Commodore Barron for 100 marines but received only eight, and one Navy midshipman.
And he somehow marched this ragtag force across nearly 600 miles of desert, facing down a mutiny and, very nearly, mass desertion when an American supply ship failed to show. Finally he and Hamet reached Derna, captured it in a fierce battle, then repelled a counterattack by a larger force from Tripoli. Local tribes rallied to the cause, swelling their ranks to about 2,000.
Eaton and his protégés now held eastern Libya, tenuously. He vowed to march on Tripoli, overthrow Yusuf, and deal "what would very probably be a death blow to the Barbary system," and pleaded for support from the U.S. fleet (the 1805 counterpart to today's air support). But Jefferson's surrogates had no confidence in the volatile Hamet; they instead seized the occasion to negotiate a better deal with Yusuf. Eaton and Hamet's advance had done wonders to concentrate the pasha's mind; he dropped his ransom price, then dropped it again, and finally settled for just $60,000 plus a few Tripolitan prisoners taken by the American fleet. Yusuf vowed not to attack U.S. ships or citizens again. Lear publicly insisted that Yusuf release Hamet's family but secretly agreed to let him keep them hostage, to insure against Hamet's raising more trouble.
Back then, Thomas Jefferson, another president with a penchant for soaring rhetoric and cool calculation, occupied the White House. The reigning tyrant in Tripoli was Pasha Yusuf Karamanli, whose hands were as bloody as Gadhafi's; he'd seized the throne by murdering one brother and, by some accounts, their father, and banishing his other elder brother Hamet. Under Yusuf, as under Gadhafi, Libya became the most troublesome state in a troubled region -- the Barbary Coast, so called after the red-bearded Turkish captain Barbarossa, who drove the Spanish out of North Africa in the early 1500s. From Libya to Morocco, the successors to Barbarossa's corsairs now thrived on piracy, seizing ships and crews for ransom or extorting protection-money "tribute" to let them pass.
Thomas Jefferson decried these "nests of banditti" as strenuously as a succession of modern U.S. presidents have deplored the "mad dog" Gadhafi. As ambassador to France and secretary of state, Jefferson urged fighting rather than paying tribute: "Justice is in favor of this option," he wrote in 1784. "Honor favors it." He tried to assemble a coalition to share the cost and risk. Other smaller powers -- Portugal, Denmark, Sweden, Sardinia, Naples and Malta -- were willing. But Britain, France and Spain balked; they found it cheaper to pay off the pirates and expedient to let them harry merchant rivals such as the United States. And so Jefferson's scheme foundered.
The issue came to a head soon after Jefferson became president in 1801. Pasha Yusuf, chafing at the United States' growing resistance to paying tribute, declared war in picturesque fashion: He had the flagpole in front of the American consulate chopped down. In response, Jefferson dispatched one naval squadron and then another, but they cruised the Mediterranean for two years with little effect.
Meanwhile the expelled American consul for Tripoli, James Leander Cathcart, and the consul in Tunis, a blustery soldier-turned-diplomat named William Eaton, cooked up an audacious plan to break the impasse: regime change. They urged Jefferson to enlist the exiled brother, Hamet Karamanli, in a plot to overthrow Yusuf. Yusuf's subjects, Eaton claimed, were "discontented and restless" and "would rise en masse" to welcome Hamet. And this, Eaton argued in an early application of the domino theory, would put fear in the other pirate states and bring peace to all Barbary.
This scheme -- the first American intervention in another country's internal affairs -- nearly died before it was hatched. In early 1802, Yusuf, who'd been tipped off, invited Hamet to return and take the governorship of Derna, then Libya's second-largest city, and Benghazi in the east of the country. Hamet, at wit's end -- not least because brother Yusuf held his wife and children hostage -- accepted the offer. But Eaton headed him off and, with a combination of words and cash (but without authorization from his superiors) persuaded him to sit tight.
Once in power Jefferson, like Obama, waxed more cautious. "Any war with the Barbary Regencies will be a war of defence and necessity, not of choice or provocation," his secretary of state, James Madison, reminded Eaton. Still Jefferson and Madison were intrigued with the scheme: Though it wasn't the republic's way "to intermeddle with the domestic controversies of other countries," Madison wrote, "it cannot be unfair, in the prosecution of a reasonable peace, to take advantage of the hostile co-operation of others. As far, therefore, as the views of the brother may contribute to our success, the aid of them may be used for the purpose." The exact terms of that cooperation, Madison left to the consuls' discretion.
Then, on Halloween 1803, the frigate Philadelphia grounded in Tripoli's harbor, giving Yusuf more than 300 American hostages. He demanded an enormous ransom, $500,000, and the same in tribute each year. With the stakes thus raised, Jefferson and Madison wavered between action and caution. The impetuous Hamet meanwhile landed at Derna and tried to launch an uprising on his own but, failing to get the aid he expected, gave up and fled into Egypt.
Eaton, undaunted, continued lobbying for regime change. He even hustled funds for the effort with a little fast cross-Mediterranean trading in olive oil. (Perhaps if Ollie North had stuck to olive oil instead of selling missiles to Iran in the 1980s, the Contragate scheme wouldn't have gone so sour.) Eaton returned to Washington and, in December 1803, met alone with Jefferson. That colloquy seemed to tip the balance; Jefferson gave his go-ahead, at first promising $40,000 but then authorizing just $20,000 for Eaton's scheme. Madison kicked in a thousand rifles and arranged Eaton's transfer to the War Department, with the title of "Navy Agent for the Several Barbary Regencies." That way his conspiracy wouldn't compromise the State Department's diplomatic efforts.
Eaton knew his position was tenuous: "The cautious policy of the President is calculated to evade responsibility and to secure all the advantages of a miracle," he noted in a letter. "If the cooperation fails, he evades the imputation of having embarked on a speculative, theoretical, chimerical project. This fixes on me." (i.e. plausible deniability.)
But Eaton either did not realize or wishfully disregarded the way he and Hamet were being used. Madison advised Commodore Samuel Barron, the naval commander in the Mediterranean, that he might "find Mr. Eaton extremely useful" in putting pressure on Yusuf, but warned him not to commit to Hamet's cause. At the same time, without informing Eaton, he directed the new consul general for Barbary, Tobias Lear, to attempt to make peace with Yusuf and ransom the hostages for the lowest price.
Eaton reached Hamet in Egypt in early 1805 and whisked him out from under its Ottoman rulers. Pushing his authority to the limit or beyond, he inked a high-sounding "Convention between the United States of America, and his Highness, Hamet Caramanly," pledging America's "utmost exertions" to restore Hamet's rule. In return Hamet would declare a general amnesty, release all American prisoners, foreswear taking new ones or demanding further payments, and repay all expenses with tribute due from other nations -- thus involving America in the tribute business.
From the desert oases and cosmopolitan flotsam of Alexandria, Eaton assembled as motley a legion as ever set out to conquer a country: 38 Greek mercenaries, a few dozen international adventurers of other nationalities, Hamet's corps of 90 and enough Arab fighters and camel drivers to bring the total to 400. He asked Commodore Barron for 100 marines but received only eight, and one Navy midshipman.
And he somehow marched this ragtag force across nearly 600 miles of desert, facing down a mutiny and, very nearly, mass desertion when an American supply ship failed to show. Finally he and Hamet reached Derna, captured it in a fierce battle, then repelled a counterattack by a larger force from Tripoli. Local tribes rallied to the cause, swelling their ranks to about 2,000.
Eaton and his protégés now held eastern Libya, tenuously. He vowed to march on Tripoli, overthrow Yusuf, and deal "what would very probably be a death blow to the Barbary system," and pleaded for support from the U.S. fleet (the 1805 counterpart to today's air support). But Jefferson's surrogates had no confidence in the volatile Hamet; they instead seized the occasion to negotiate a better deal with Yusuf. Eaton and Hamet's advance had done wonders to concentrate the pasha's mind; he dropped his ransom price, then dropped it again, and finally settled for just $60,000 plus a few Tripolitan prisoners taken by the American fleet. Yusuf vowed not to attack U.S. ships or citizens again. Lear publicly insisted that Yusuf release Hamet's family but secretly agreed to let him keep them hostage, to insure against Hamet's raising more trouble.
2011年4月14日 星期四
Stop the War, for a Just Mexico in Peace
For eight days we have been here at this sit-in, which is not only a sign of the open wound in this country, but is also—in its poverty and instability—one of the helplessness and vulnerability that has long stricken citizens who are living in the decay of their institutions and the demonic irrationality of crime. We are here, in these conditions, peremptorily demanding that the authorities find those who are guilty of the crime of tearing us from our sons: Juan Francisco Sicilia Ortega, Luis Antonio Romero Jaime, Julio César Romero Jaime, Gabriel Alejo Escalera, and that has wrung out our souls.
The omissions from the government, of Governor of Morelos Marco Antonio Adame, Jiutepec Mayor Miguel Ángel Rabadán, Temixco Mayor Nereo Bandera Zavaleta, Cuernavaca Mayor Manuel Martínez Garrigós, and the state legislature have been tremendous—I remember only one, clear and convincing thing, not to mention the more than one thousand murders that their governments never resolved: during the curfew that the cartels declared in April 2010 in the state, these authorities not only ignored us, but were obedient and cowardly (these same people closed public institutions early and left the citizens at the mercy of crime).
That simple fact, which is added to the more than one thousand unsolved murders, like those of Juan Francisco, Luis Antonio, Julio César, Gabriel, and the others who have joined them these days, brings me to demand, in the name of the dignified citizenry, that Marco Antonio Adame, Miguel Ángel Rabadán, Nereo Bandera Zavaleta, and many neglectful and corrupt lawmakers—each one of the political parties knows their own and must summon them—must immediately resign from their government positions. We know, unfortunately, that the legal framework to recall an official still doesn’t exist—we hope that soon it is approved and can be exercised. But there is shame and dignity. When you took your positions, you swore before the country, that is to say, before us the citizens, that you would enforce the Constitution or what the people demanded of you. We trusted you. Now you have demonstrated that you have been incapable of honoring that. The people gathered here in the center of the powers of Morelos to demand your resignations. If you don’t do it, you will bring the shame of the citizens of this state down on your heads.
No doubt, however and despite the opprobrium into which our authorities have plunged us, there are good police and good soldiers investigating and risking their lives to find the whereabouts of those who murdered Juan Francisco, Luis, Julio and Gabo.
But these days the murders of kids, civilians, immigrants, and women have continued to multiply, and on our backs carry the weight of close to 40,000 dead with the debt to make their names, their last names, and their stories known, in order to morally revindicate and indemnify their family members, who beyond suffering contempt and criminalization from the authorities, are poor. We, the citizens of Morelos, by holding the sit-in and demanding the resignation of our bad rulers, have left a symbol of the pain on the ground of the government’s plaza, along with the metal plates with the names of Juan Francisco Sicilia Ortega, Luis Antonio Romero Jaime, Julio Romero Jaime, Gabriel Alejo Escalera, María del Socorro Estrada Hernández, Álvaro Jaime Avelar and Jesús Chávez Vázquez.
To these plaques we will add the plaques of the victims that will continue to be recognized and appear due to the ineffectiveness of our institutions. We are making a call to the entire nation to do that same thing, in each town, each municipality, and each state, for those who are murdered there. In each plaza in the country we must have a memory of our dead in this idiotic war, a memory of our Holocaust.
(Reporter’s Note: As Sicilia said these words on Wednesday from a stage in front of the Government Palace, a group of young people attached 96 plaques bearing the names of those people who lost their lives to drug war violence in Morelos since January 1, 2011.)
Faced with these omissions, faced with every kind of violence that has gripped the country, faced with this ill-conceived war that was poorly made and poorly directed, the only thing that it has achieved besides plunging us into the horror of crime, is to expose the rottenness that is in the heart of our institutions. Faced with this madness that has pierced the fabric and the foundation of our country, a question: Where are the rulers and their powers, where is the business class of the nation, where is the Catholic church and thier claims to guard our spiritual life, where is the dignity of the union that claims to protect the nobility of the workers, where are the political parties that claim to have a plan for the nation, where are the citizens that abandoned us to the care for rottenness of the institutions, the ones who haven’t taken into account the Zapatista lessons in organizing constituent assemblies in our neighborhoods, our towns, and our colonias to create governance?
Each and everyone of them and us have serious omissions and criminal complicities that wear the makeup of legality, that have plunged us into chaos, like the poet Mandelstam said to Stalin, to where we don’t feel the ground beneath our feet.
Until now, we were sunk in their interests, mired in their small and petty ideological ambitions, their media and electioneering, their committed idiocies, their unwillingness to end this chaotic violence that is robbing our children of their hopes, their dreams, and mutilating their creativity, their liberty and their peace.
The political parties have very serious omissions when faced with organized crime. These omissions have been the currency exchange to make themselves comfortable here and there, eroding the institutions and seriously wounding the nation.
The rulers—I’m referring to the executive and legislative branches of the country, the states, and the municipalities—have remained unpunished, a big part of the so-called political class because they have not been able to gain independence from the judicial power and politics, have protected criminal interests and complicity. When Colombia managed to take political control of the judicial power, they jailed 40 percent of Congressional lawmakers who had links to crime. We are also neglected because in the name of an absurd war we are assigning billion peso budgets to feed the violence, removing education, employment, culture and the countryside. They are destroying the soil in which survival and public life have a home.
This effort is turning citizens and some honest and committed officials into useless and sterile people, without judges, magistrates and ministers to deliver justice. Today there are more incentives to operate within lawlessness. Suits and complaints are shelved for years, disputes and litigation tailored to their style, protective orders vaporized, sentences are extended and reduced, all of which takes away from the aggrieved the sensation of having received justice and invites them to take justice into their own hands. Much of the feeling that we have today of living in lawlessness is due to an ineffective judiciary, corrupt and dependent on the same political corruption.
Businessmen have been neglectful in looking after their particular interests over the people that make their lives possible. Their selfishness and their timid life have stopped them from denouncing those among them—those who run the banks and have some kind of business—those who launder money, those who have allowed themselves to administer unemployment to exploit honest work for low pay to maximize their profits. They have allowed themselves to destroy forms of trade arising from the citizenry, to expand their goods and their industries and destroy indigenous life forms.
The media monopolies have been neglectful by not allowing the democratization of the media, by manipulating the citizenry to preserve their interests, to expand their capital and negotiate with parties. It’s not possible that this nation produced the richest businessman in the world and that 50 million men, women and children are dispossessed and destitute, plunged into misery. Today we are witnesses to a war between telecom giants, a war just as stupid and absurd as the one between crime and the government, and we don’t know whether their dispute is for the markets, for the airwaves or to know who will be able to exploit the most Mexicans.
The World Bank Report on Development that begin to circulate a few days ago says, as Jorge Montaño, a member of the advisory committee noted, “employment, justice and public safety are the keys to breaking cycles of criminal and political violence… The movements of violence are greater when high levels of stress combined with the lack of legitimacy or the weak capacity of national institutions.” Mexico “is facing an unprecedented wave of violence… Drug and human trafficking, money laundering, illegal exploitation of natural resources… counterfeiting, and violations of intellectual property rights are lucrative criminal activities, which facilitate the penetration by organized crime of the already vulnerable sociopolitical, judicial, and security” of countries like ours.”
The unions have been neglectful because they are not built to defend the workers, but rather for political patronage. They have seen the state and continue seeing it as an udder for extracting corrupt profits. The clearest case of this is the education union, which has become a merchant for votes, for which the parties and officials compromise their agendas and the dignity of the country in advance.
The churches have also been neglectful. Mine, the Catholic church, to which I refer to as mine and that of the majority in this country, has been neglectful in cutting life from spirituality and the tide of love of Christ in exchange for poor sexual morals to care for the image of a very deteriorated institution. They have neglected the love and service for the poor and, similar to the union and business classes in our country, have been looking for power, political patronage, at the risk of humiliating the Word. They have been neglectful by worrying about the life in the womb of a mother—and defending it—while forsaking those who are already here. We are facing evil, and the Church must say, like St. Augustine: If they speak loudly and clearly, if they refuse the shady deals and the privileges that hide the crime, if they are faithful to God and are ready for him in their lives, we can make the number of victims rapidly decrease more.
Each and every one of them have set the supreme value of life in the economy in the most perverted sense: for the consumption of the dollar. In its name, they have destroyed all of the realms of coexistence and with that they have destroyed our land and our mutual relationships of support as we are sinking in horror, violence, and fear. Each one of us has also succumbed to this and we know our betrayals. This is why we say to them and we say to ourselves that all of this violence must end or the country is going to hell.
Among this border, the northern one, the one with helplessness, the one with the decay of institutions and the rule of impunity and crime, and the southern one, the one which resists, as it can, there is a handful of moral dignity, where families in this country are bankrupt but not beaten, they are deeply hurt, but not frightened, they are angry, full of this moral force that the indigenous and the excluded in this nation have been able to communicate.
The omissions from the government, of Governor of Morelos Marco Antonio Adame, Jiutepec Mayor Miguel Ángel Rabadán, Temixco Mayor Nereo Bandera Zavaleta, Cuernavaca Mayor Manuel Martínez Garrigós, and the state legislature have been tremendous—I remember only one, clear and convincing thing, not to mention the more than one thousand murders that their governments never resolved: during the curfew that the cartels declared in April 2010 in the state, these authorities not only ignored us, but were obedient and cowardly (these same people closed public institutions early and left the citizens at the mercy of crime).
That simple fact, which is added to the more than one thousand unsolved murders, like those of Juan Francisco, Luis Antonio, Julio César, Gabriel, and the others who have joined them these days, brings me to demand, in the name of the dignified citizenry, that Marco Antonio Adame, Miguel Ángel Rabadán, Nereo Bandera Zavaleta, and many neglectful and corrupt lawmakers—each one of the political parties knows their own and must summon them—must immediately resign from their government positions. We know, unfortunately, that the legal framework to recall an official still doesn’t exist—we hope that soon it is approved and can be exercised. But there is shame and dignity. When you took your positions, you swore before the country, that is to say, before us the citizens, that you would enforce the Constitution or what the people demanded of you. We trusted you. Now you have demonstrated that you have been incapable of honoring that. The people gathered here in the center of the powers of Morelos to demand your resignations. If you don’t do it, you will bring the shame of the citizens of this state down on your heads.
No doubt, however and despite the opprobrium into which our authorities have plunged us, there are good police and good soldiers investigating and risking their lives to find the whereabouts of those who murdered Juan Francisco, Luis, Julio and Gabo.
But these days the murders of kids, civilians, immigrants, and women have continued to multiply, and on our backs carry the weight of close to 40,000 dead with the debt to make their names, their last names, and their stories known, in order to morally revindicate and indemnify their family members, who beyond suffering contempt and criminalization from the authorities, are poor. We, the citizens of Morelos, by holding the sit-in and demanding the resignation of our bad rulers, have left a symbol of the pain on the ground of the government’s plaza, along with the metal plates with the names of Juan Francisco Sicilia Ortega, Luis Antonio Romero Jaime, Julio Romero Jaime, Gabriel Alejo Escalera, María del Socorro Estrada Hernández, Álvaro Jaime Avelar and Jesús Chávez Vázquez.
To these plaques we will add the plaques of the victims that will continue to be recognized and appear due to the ineffectiveness of our institutions. We are making a call to the entire nation to do that same thing, in each town, each municipality, and each state, for those who are murdered there. In each plaza in the country we must have a memory of our dead in this idiotic war, a memory of our Holocaust.
(Reporter’s Note: As Sicilia said these words on Wednesday from a stage in front of the Government Palace, a group of young people attached 96 plaques bearing the names of those people who lost their lives to drug war violence in Morelos since January 1, 2011.)
Faced with these omissions, faced with every kind of violence that has gripped the country, faced with this ill-conceived war that was poorly made and poorly directed, the only thing that it has achieved besides plunging us into the horror of crime, is to expose the rottenness that is in the heart of our institutions. Faced with this madness that has pierced the fabric and the foundation of our country, a question: Where are the rulers and their powers, where is the business class of the nation, where is the Catholic church and thier claims to guard our spiritual life, where is the dignity of the union that claims to protect the nobility of the workers, where are the political parties that claim to have a plan for the nation, where are the citizens that abandoned us to the care for rottenness of the institutions, the ones who haven’t taken into account the Zapatista lessons in organizing constituent assemblies in our neighborhoods, our towns, and our colonias to create governance?
Each and everyone of them and us have serious omissions and criminal complicities that wear the makeup of legality, that have plunged us into chaos, like the poet Mandelstam said to Stalin, to where we don’t feel the ground beneath our feet.
Until now, we were sunk in their interests, mired in their small and petty ideological ambitions, their media and electioneering, their committed idiocies, their unwillingness to end this chaotic violence that is robbing our children of their hopes, their dreams, and mutilating their creativity, their liberty and their peace.
The political parties have very serious omissions when faced with organized crime. These omissions have been the currency exchange to make themselves comfortable here and there, eroding the institutions and seriously wounding the nation.
The rulers—I’m referring to the executive and legislative branches of the country, the states, and the municipalities—have remained unpunished, a big part of the so-called political class because they have not been able to gain independence from the judicial power and politics, have protected criminal interests and complicity. When Colombia managed to take political control of the judicial power, they jailed 40 percent of Congressional lawmakers who had links to crime. We are also neglected because in the name of an absurd war we are assigning billion peso budgets to feed the violence, removing education, employment, culture and the countryside. They are destroying the soil in which survival and public life have a home.
This effort is turning citizens and some honest and committed officials into useless and sterile people, without judges, magistrates and ministers to deliver justice. Today there are more incentives to operate within lawlessness. Suits and complaints are shelved for years, disputes and litigation tailored to their style, protective orders vaporized, sentences are extended and reduced, all of which takes away from the aggrieved the sensation of having received justice and invites them to take justice into their own hands. Much of the feeling that we have today of living in lawlessness is due to an ineffective judiciary, corrupt and dependent on the same political corruption.
Businessmen have been neglectful in looking after their particular interests over the people that make their lives possible. Their selfishness and their timid life have stopped them from denouncing those among them—those who run the banks and have some kind of business—those who launder money, those who have allowed themselves to administer unemployment to exploit honest work for low pay to maximize their profits. They have allowed themselves to destroy forms of trade arising from the citizenry, to expand their goods and their industries and destroy indigenous life forms.
The media monopolies have been neglectful by not allowing the democratization of the media, by manipulating the citizenry to preserve their interests, to expand their capital and negotiate with parties. It’s not possible that this nation produced the richest businessman in the world and that 50 million men, women and children are dispossessed and destitute, plunged into misery. Today we are witnesses to a war between telecom giants, a war just as stupid and absurd as the one between crime and the government, and we don’t know whether their dispute is for the markets, for the airwaves or to know who will be able to exploit the most Mexicans.
The World Bank Report on Development that begin to circulate a few days ago says, as Jorge Montaño, a member of the advisory committee noted, “employment, justice and public safety are the keys to breaking cycles of criminal and political violence… The movements of violence are greater when high levels of stress combined with the lack of legitimacy or the weak capacity of national institutions.” Mexico “is facing an unprecedented wave of violence… Drug and human trafficking, money laundering, illegal exploitation of natural resources… counterfeiting, and violations of intellectual property rights are lucrative criminal activities, which facilitate the penetration by organized crime of the already vulnerable sociopolitical, judicial, and security” of countries like ours.”
The unions have been neglectful because they are not built to defend the workers, but rather for political patronage. They have seen the state and continue seeing it as an udder for extracting corrupt profits. The clearest case of this is the education union, which has become a merchant for votes, for which the parties and officials compromise their agendas and the dignity of the country in advance.
The churches have also been neglectful. Mine, the Catholic church, to which I refer to as mine and that of the majority in this country, has been neglectful in cutting life from spirituality and the tide of love of Christ in exchange for poor sexual morals to care for the image of a very deteriorated institution. They have neglected the love and service for the poor and, similar to the union and business classes in our country, have been looking for power, political patronage, at the risk of humiliating the Word. They have been neglectful by worrying about the life in the womb of a mother—and defending it—while forsaking those who are already here. We are facing evil, and the Church must say, like St. Augustine: If they speak loudly and clearly, if they refuse the shady deals and the privileges that hide the crime, if they are faithful to God and are ready for him in their lives, we can make the number of victims rapidly decrease more.
Each and every one of them have set the supreme value of life in the economy in the most perverted sense: for the consumption of the dollar. In its name, they have destroyed all of the realms of coexistence and with that they have destroyed our land and our mutual relationships of support as we are sinking in horror, violence, and fear. Each one of us has also succumbed to this and we know our betrayals. This is why we say to them and we say to ourselves that all of this violence must end or the country is going to hell.
Among this border, the northern one, the one with helplessness, the one with the decay of institutions and the rule of impunity and crime, and the southern one, the one which resists, as it can, there is a handful of moral dignity, where families in this country are bankrupt but not beaten, they are deeply hurt, but not frightened, they are angry, full of this moral force that the indigenous and the excluded in this nation have been able to communicate.
2011年4月13日 星期三
5 New Banking Trends for 2011
It’s March, but it’s not too late to publish our predictions for 2011. First of all, banks usually go into hibernation for the winter months, and leave interest rates alone until springtime. Second, the 2011 game-changer is the Durbin Amendment, and when and how the Federal Reserve decides to regulate debit merchant exchange fees will have profound implications for the entire industry.
[In Pictures: The Worst States for Millionaires.]
The Fed is still reviewing its proposals, however, so the NerdWallet Ouija board keeps showing, “Try again later.” Still, we’ve put together a list of five banking industry trends that we think will accelerate or deepen in the remaining 10 months of the year.
1. The rich get richer and the poor get poorer
Rates on low interest cards have been falling for a while, and we’re seeing an uptick in balance transfer and other promotional offers. Banks are offering juicy rewards for those with good credit, in an effort to get the penalty-dodging-APR crowd spending money. For those who front the cash for annual fees, rewards credit cards are improving too – see, for example, the new deal out of Capital One for 100,000 bonus miles. This kind of deal hasn’t been seen in years.
Vitally, credit card merchant exchange fees are not regulated by the Durbin Amendment, and often bring in higher fees than debit cards. Rewards credit cards command the highest swipe fees of all, so look for banks to push customers to get rewards cards and then to use them often.
On the other hand, interest rates have spiked for those with bad credit. The Credit CARD Act of 2009 prohibited “risk-based pricing,” in which card issuers changed the interest rate of a card if the customer’s risk profile changed. They can also no longer charge overdraft fees unless customers opt-in, and even then can do so in a limited fashion.
Unable to hike interest rates and denied lucrative overdraft penalties, banks now charge a higher rate upfront. Some banks even charge a flat fee for poor credit histories, irrespective of consumer behavior and in addition to the annual fees that come standard with poor credit. No one expects interest rates to be as low as they were in the pre-recession days, but those with bad credit will be hit harder and longer.
2. More fees, less free
This is where financial reform comes in. The Dodd-Frank bill banned overdraft fees unless customers opt in, curtailed rate hikes in credit cards, and per the Durbin Amendment, authorized the Fed to limit debit interchange fees. In years past, “free” checking was paid for by “swipe fees” and by overdraft charges on small segments of the population.
Now, banks cannot earn as much money from the overdrawing crowd. The cost of free checking, which was never truly free to begin with, will be spread over a broader customer base. Rob Windsor, president of First Financial Services Credit Union, says, “Consumers are used to getting all these services for free, including free checking, debit, credit. But none of these things are free. We need revenue to pay for them.”
The revenue will come from charging for services that were previously free. Free checking is already on its way out: many banks now charge a monthly fee, or for services such as paper statements and teller assistance. Others are becoming creative with their fees: Bank of America demands a $59 annual fee for credit card customers with bad credit, while Citibank levies a fee for customers who put less than $2,400 on their cards a year.
Debit interchange fees, interest rate hikes and overdraft charges were extremely lucrative for banks. Now, they are forced to change their revenue models and spread fees over more of their customers.
3. Pruned debit rewards programs
Banks make money off different customers in different ways. Those with poor credit pay in the form of high annual fees and high interest, penalty and cash advance rates; debit cards previously yielded overdraft and swipe fees; and rewards credit cards offered juicy premiums on merchant fees and the occasional annual fee.
[See 10 Smart Ways to Improve Your Budget.]
As we mentioned before, only the last revenue stream is still in place. Therefore, while banks spice up their rewards credit cards to get the cardholders spending and swiping, rewards debit cards are nowhere near as lucrative.
A number of banks now charge annual or monthly fees for debit rewards programs, or have removed them altogether. PNC did away with free rewards checking, and Chase and Wells Fargo have axed their entire debit rewards program for new customers. Other banks are expected to follow. Rewards checking still exists; free checking still exists. Both in the same account, however, is a feature likely to become history.
[In Pictures: The Worst States for Millionaires.]
The Fed is still reviewing its proposals, however, so the NerdWallet Ouija board keeps showing, “Try again later.” Still, we’ve put together a list of five banking industry trends that we think will accelerate or deepen in the remaining 10 months of the year.
1. The rich get richer and the poor get poorer
Rates on low interest cards have been falling for a while, and we’re seeing an uptick in balance transfer and other promotional offers. Banks are offering juicy rewards for those with good credit, in an effort to get the penalty-dodging-APR crowd spending money. For those who front the cash for annual fees, rewards credit cards are improving too – see, for example, the new deal out of Capital One for 100,000 bonus miles. This kind of deal hasn’t been seen in years.
Vitally, credit card merchant exchange fees are not regulated by the Durbin Amendment, and often bring in higher fees than debit cards. Rewards credit cards command the highest swipe fees of all, so look for banks to push customers to get rewards cards and then to use them often.
On the other hand, interest rates have spiked for those with bad credit. The Credit CARD Act of 2009 prohibited “risk-based pricing,” in which card issuers changed the interest rate of a card if the customer’s risk profile changed. They can also no longer charge overdraft fees unless customers opt-in, and even then can do so in a limited fashion.
Unable to hike interest rates and denied lucrative overdraft penalties, banks now charge a higher rate upfront. Some banks even charge a flat fee for poor credit histories, irrespective of consumer behavior and in addition to the annual fees that come standard with poor credit. No one expects interest rates to be as low as they were in the pre-recession days, but those with bad credit will be hit harder and longer.
2. More fees, less free
This is where financial reform comes in. The Dodd-Frank bill banned overdraft fees unless customers opt in, curtailed rate hikes in credit cards, and per the Durbin Amendment, authorized the Fed to limit debit interchange fees. In years past, “free” checking was paid for by “swipe fees” and by overdraft charges on small segments of the population.
Now, banks cannot earn as much money from the overdrawing crowd. The cost of free checking, which was never truly free to begin with, will be spread over a broader customer base. Rob Windsor, president of First Financial Services Credit Union, says, “Consumers are used to getting all these services for free, including free checking, debit, credit. But none of these things are free. We need revenue to pay for them.”
The revenue will come from charging for services that were previously free. Free checking is already on its way out: many banks now charge a monthly fee, or for services such as paper statements and teller assistance. Others are becoming creative with their fees: Bank of America demands a $59 annual fee for credit card customers with bad credit, while Citibank levies a fee for customers who put less than $2,400 on their cards a year.
Debit interchange fees, interest rate hikes and overdraft charges were extremely lucrative for banks. Now, they are forced to change their revenue models and spread fees over more of their customers.
3. Pruned debit rewards programs
Banks make money off different customers in different ways. Those with poor credit pay in the form of high annual fees and high interest, penalty and cash advance rates; debit cards previously yielded overdraft and swipe fees; and rewards credit cards offered juicy premiums on merchant fees and the occasional annual fee.
[See 10 Smart Ways to Improve Your Budget.]
As we mentioned before, only the last revenue stream is still in place. Therefore, while banks spice up their rewards credit cards to get the cardholders spending and swiping, rewards debit cards are nowhere near as lucrative.
A number of banks now charge annual or monthly fees for debit rewards programs, or have removed them altogether. PNC did away with free rewards checking, and Chase and Wells Fargo have axed their entire debit rewards program for new customers. Other banks are expected to follow. Rewards checking still exists; free checking still exists. Both in the same account, however, is a feature likely to become history.
2011年4月12日 星期二
Online group buying a 'sustainable' business
In spite of the growing number of online daily deals sites here, the market is far from hitting saturation point and has moved beyond fad to become a sustainable business.
Karl Chong, CEO of Groupon Singapore, told ZDNet Asia that as long as market players continue to have innovative ideas and consistently meet the changing needs and interests of consumers, this space can be "a very sustainable business".
The executive was speaking at a press event here Tuesday to elaborate on the company's business strategy, following Groupon's December acquisition of Beeconomic, a local online daily deals startup he co-founded in May 2010. The company was later renamed Groupon Singapore.
The local site today clocks 150,000 hits a day, according to Chong who declined to disclose the current number of subscribers but said it is "definitely in the hundreds of thousands".
He estimated that there are now at least 20 daily deal sites in Singapore since Beeconomic first started, but said the market will not hit saturation point any time soon.
Using the analogy of an upside-down funnel, he said the industry here has evolved from the first level of early adopters, comprising "deal hunters and geeks", to the middle level which encompasses mostly young professionals and trendsetters and "where there's a huge market to be tapped ".
The final level is the "mass market", and where Groupon Singapore is striving to become a "household name where even moms" use its service, he added.
"People who don't know about Groupon are typically from the older [demographics], but they have online spending needs as well. My mom uses Amazon to buy books and I [now] want mom to use Groupon to find out the next restaurant deal for the weekend.
"I don't believe there will be [market] saturation this early...not until parents and senior managers are using local daily deal sites. Then, we got to start thinking, 'now how do we innovate and further differentiate ourselves'," he said.
Convenience to differentiate from clones
According to Chong, Groupon Singapore has in store "a couple of innovations" this year to differentiate itself from other "Groupon clones". For one, the company later this month will launch a free Apple iPhone app which will allow consumers to buy groupons "on-the-fly and in an instant" via their mobile device.
Users login to their Groupon account to choose the deal they want, select the "buy" button and confirm the quantity they want. A unique barcode and numeric code will be generated, and presented to the participating merchant which has a list of codes of each buyer. The merchant can either scan the barcode or manually cross-check the code number on the mobile coupon, and upon redemption, press the "marked as used" button on the app.
Mobile users can use the app to check for and redeem deals any time that is convenient for them, Chong added. Groupon is also testing the app to run on the Android operating system but the immediate rollout will be for the iPhone, he said.
The company is also looking to localize its deals, which is "something none of our competitors are doing", he noted. Such efforts mean that deals can be made available in Singapore's central locations such as Orchard Road, and Groupon members will also receive more relevant deals based on their locations they frequent including the suburbs, he explained. He added that this feature will be rolled out in all neighborhoods in Singapore by the end of this month.
The company's "Visa Exclusive Deals", launched Mar. 28, is also part of its efforts to provide users more "experience-oriented deals", such as offering complimentary champagne at a restaurant that also has other discount deals on the main Groupon site.
Impact of Groupon branding
Chong acknowledged that Groupon's acquisition "changed the face of Beeconomic", giving the former startup "immediate credibility that other Groupon clones do not have". It also provides the financial support and links to relationships with premium brands previously established overseas, he said.
Because of Groupon's success in the United States, local branches of global businesses approached its Singapore office to emulate the success here, Chong said. "The [global] brand of Groupon made it easier to work out a deal with them," he added.
According to Chong, brands that have a "huge affinity with Singaporeans" such as G2000, Fox, Subway, Quiznos, Tully's Coffee and Breadtalk have inked exclusive partnerships with Groupon's local team.
The company in March worked with the local franchise owner of seven Subway outlets here, selling 41,805 groupons within 48 hours, he said.
Karl Chong, CEO of Groupon Singapore, told ZDNet Asia that as long as market players continue to have innovative ideas and consistently meet the changing needs and interests of consumers, this space can be "a very sustainable business".
The executive was speaking at a press event here Tuesday to elaborate on the company's business strategy, following Groupon's December acquisition of Beeconomic, a local online daily deals startup he co-founded in May 2010. The company was later renamed Groupon Singapore.
The local site today clocks 150,000 hits a day, according to Chong who declined to disclose the current number of subscribers but said it is "definitely in the hundreds of thousands".
He estimated that there are now at least 20 daily deal sites in Singapore since Beeconomic first started, but said the market will not hit saturation point any time soon.
Using the analogy of an upside-down funnel, he said the industry here has evolved from the first level of early adopters, comprising "deal hunters and geeks", to the middle level which encompasses mostly young professionals and trendsetters and "where there's a huge market to be tapped ".
The final level is the "mass market", and where Groupon Singapore is striving to become a "household name where even moms" use its service, he added.
"People who don't know about Groupon are typically from the older [demographics], but they have online spending needs as well. My mom uses Amazon to buy books and I [now] want mom to use Groupon to find out the next restaurant deal for the weekend.
"I don't believe there will be [market] saturation this early...not until parents and senior managers are using local daily deal sites. Then, we got to start thinking, 'now how do we innovate and further differentiate ourselves'," he said.
Convenience to differentiate from clones
According to Chong, Groupon Singapore has in store "a couple of innovations" this year to differentiate itself from other "Groupon clones". For one, the company later this month will launch a free Apple iPhone app which will allow consumers to buy groupons "on-the-fly and in an instant" via their mobile device.
Users login to their Groupon account to choose the deal they want, select the "buy" button and confirm the quantity they want. A unique barcode and numeric code will be generated, and presented to the participating merchant which has a list of codes of each buyer. The merchant can either scan the barcode or manually cross-check the code number on the mobile coupon, and upon redemption, press the "marked as used" button on the app.
Mobile users can use the app to check for and redeem deals any time that is convenient for them, Chong added. Groupon is also testing the app to run on the Android operating system but the immediate rollout will be for the iPhone, he said.
The company is also looking to localize its deals, which is "something none of our competitors are doing", he noted. Such efforts mean that deals can be made available in Singapore's central locations such as Orchard Road, and Groupon members will also receive more relevant deals based on their locations they frequent including the suburbs, he explained. He added that this feature will be rolled out in all neighborhoods in Singapore by the end of this month.
The company's "Visa Exclusive Deals", launched Mar. 28, is also part of its efforts to provide users more "experience-oriented deals", such as offering complimentary champagne at a restaurant that also has other discount deals on the main Groupon site.
Impact of Groupon branding
Chong acknowledged that Groupon's acquisition "changed the face of Beeconomic", giving the former startup "immediate credibility that other Groupon clones do not have". It also provides the financial support and links to relationships with premium brands previously established overseas, he said.
Because of Groupon's success in the United States, local branches of global businesses approached its Singapore office to emulate the success here, Chong said. "The [global] brand of Groupon made it easier to work out a deal with them," he added.
According to Chong, brands that have a "huge affinity with Singaporeans" such as G2000, Fox, Subway, Quiznos, Tully's Coffee and Breadtalk have inked exclusive partnerships with Groupon's local team.
The company in March worked with the local franchise owner of seven Subway outlets here, selling 41,805 groupons within 48 hours, he said.
Banks must fight harder for customer loyalty, says Collinson Latitude
UAE. As the GCC retail banking market becomes increasingly competitive, Collinson Latitude is calling on Middle East financial organisations to act fast or risk losing vital customers.
A global provider of incremental revenue products and services, Collinson Latitude believes Middle East banks, in particular, need to think more innovatively to retain customers who are being presented with a growing choice of financial services products.
Collinson Latitude’s Head of Middle East and Africa planning and business development, George Wilson-Howell, says: “As the economy recovers from the depths of the economic downturn, Middle East customers are demanding a better service from their banks straight away and will change banks without hesitation if disappointed.
A study this year by professional services giant Ernst & Young – ‘Retail Banking in the GCC: Competing for Customers’ – contains the daunting statistic that 25% of GCC retail banking customers plan to switch banks by the end of 2011. Banks need to think fast and act fast. It takes an awful lot of time and money to win back lost customers, but there are rapid, low-cost ways to maintain the loyalty of the customers you already hold. Superior customer service remains key, but you also need to increase your customers’ engagement with – and rewards from – your company in many areas of their lives, not just financial services. A long-term, profitable relationship will follow.
“The GCC financial services sector is a crowded market, which means each company must find ways to stand out from competitors. GCC banks understand the importance of customer loyalty but, until now, have lacked access to the latest products for rewarding customers. Collinson Latitude recognises the immense potential in Middle East financial services, from credit and debit card products through to current and savings accounts and the high-net-worth sector.”
Collinson Latitude’s multi-channel products, which include rewards and subscription-based membership programmes, can be seamlessly integrated into a financial service provider’s existing environment. Capitalising on the proven and growing popularity of online shopping is a particularly strong route to customer retention. ‘RewardAll’, for example, is a merchant-funded online shopping and rewards programme that brings together thousands of diverse online merchants globally, so that each time a customer makes a purchase through the ‘Reward All’ portal, they can earn cashback paid directly into their bank account.
A global provider of incremental revenue products and services, Collinson Latitude believes Middle East banks, in particular, need to think more innovatively to retain customers who are being presented with a growing choice of financial services products.
Collinson Latitude’s Head of Middle East and Africa planning and business development, George Wilson-Howell, says: “As the economy recovers from the depths of the economic downturn, Middle East customers are demanding a better service from their banks straight away and will change banks without hesitation if disappointed.
A study this year by professional services giant Ernst & Young – ‘Retail Banking in the GCC: Competing for Customers’ – contains the daunting statistic that 25% of GCC retail banking customers plan to switch banks by the end of 2011. Banks need to think fast and act fast. It takes an awful lot of time and money to win back lost customers, but there are rapid, low-cost ways to maintain the loyalty of the customers you already hold. Superior customer service remains key, but you also need to increase your customers’ engagement with – and rewards from – your company in many areas of their lives, not just financial services. A long-term, profitable relationship will follow.
“The GCC financial services sector is a crowded market, which means each company must find ways to stand out from competitors. GCC banks understand the importance of customer loyalty but, until now, have lacked access to the latest products for rewarding customers. Collinson Latitude recognises the immense potential in Middle East financial services, from credit and debit card products through to current and savings accounts and the high-net-worth sector.”
Collinson Latitude’s multi-channel products, which include rewards and subscription-based membership programmes, can be seamlessly integrated into a financial service provider’s existing environment. Capitalising on the proven and growing popularity of online shopping is a particularly strong route to customer retention. ‘RewardAll’, for example, is a merchant-funded online shopping and rewards programme that brings together thousands of diverse online merchants globally, so that each time a customer makes a purchase through the ‘Reward All’ portal, they can earn cashback paid directly into their bank account.
2011年4月10日 星期日
A portrait of the founder
In a way that goes deeper than ordinary parental pride, their success is his. For the achievements of Joseph P. Kennedy's three sons, centering on the high drama of the presidency, spring from the father's lifelong drive for money, and for power for his children. He has achieved both ambitions to
a fantastic degree. With the seating of his youngest son in the U.S. Senate this month, Joe Kennedy has seen the climax of a political success story without precedent in American history. The dynastic Adamses never did anything like it; neither did the Roosevelts. Inevitably Joe Kennedy's very success moves his own story into the background, and that, too, is the way he wants it. He deserves a more prominent place.
He made his fortune, as his 1908 yearbook at Boston Latin School forecast, "in a very roundabout way": stockmarket speculation, the movies, corporate reorganization, liquor importing, and real estate. He has protected his wealth in recent years by heavy investments in tax-sheltered oil ventures and municipal securities. Including the celebrated trust funds and the family charitable foundation, the Kennedy fortune stands in the neighborhood of $300 million, although some informed guesses put it as high as $500 million. In Joe's brusque public accounting, there is "enough"-- enough so that he confidently numbers himself among the 20 wealthiest men in the country.
Throughout his business career, Joe Kennedy was a smart, rough competitor who excelled in games without rules. A handsome six-footer exuding vitality and Irish charm, he also had a tight, dry mind that kept a running balance of hazards and advantages. Quick-tempered and mercurial, he could move from warmth to malice in the moment it took his blue eyes to turn the color of an icy lake. Friendships shattered under the sudden impact of brutal words and ruthless deeds, yet those who remained close to him were drawn into a fraternal bond. Restless at a desk, he was an instinctive speculator, moving into situations and moving out quickly when the possibilities were exhausted. He was a capitalist, yet one who stood apart from the system of finance, production, and distribution. He left to others the responsibility for enterprises demanding effort in good season and bad alike. He had no business, in the ordinary sense, and wanted none. As he moved from Boston to Wall Street to the chairmanship of the Securities and Exchange Commission and, on to the crowning ambassadorship to the Court of St. James's, his consuming ambition was the advancement of the Kennedy family.
"From the beginning, Joe knew what he wanted -- money and status for his family," says one who knew him intimately in Washington during the New Deal. "He had the progenitor's sense; to him, his children were an extension of himself. Therefore, what he did, he did with them always in mind. He played the game differently than if he had been after something entirely for himself."
a fantastic degree. With the seating of his youngest son in the U.S. Senate this month, Joe Kennedy has seen the climax of a political success story without precedent in American history. The dynastic Adamses never did anything like it; neither did the Roosevelts. Inevitably Joe Kennedy's very success moves his own story into the background, and that, too, is the way he wants it. He deserves a more prominent place.
He made his fortune, as his 1908 yearbook at Boston Latin School forecast, "in a very roundabout way": stockmarket speculation, the movies, corporate reorganization, liquor importing, and real estate. He has protected his wealth in recent years by heavy investments in tax-sheltered oil ventures and municipal securities. Including the celebrated trust funds and the family charitable foundation, the Kennedy fortune stands in the neighborhood of $300 million, although some informed guesses put it as high as $500 million. In Joe's brusque public accounting, there is "enough"-- enough so that he confidently numbers himself among the 20 wealthiest men in the country.
Throughout his business career, Joe Kennedy was a smart, rough competitor who excelled in games without rules. A handsome six-footer exuding vitality and Irish charm, he also had a tight, dry mind that kept a running balance of hazards and advantages. Quick-tempered and mercurial, he could move from warmth to malice in the moment it took his blue eyes to turn the color of an icy lake. Friendships shattered under the sudden impact of brutal words and ruthless deeds, yet those who remained close to him were drawn into a fraternal bond. Restless at a desk, he was an instinctive speculator, moving into situations and moving out quickly when the possibilities were exhausted. He was a capitalist, yet one who stood apart from the system of finance, production, and distribution. He left to others the responsibility for enterprises demanding effort in good season and bad alike. He had no business, in the ordinary sense, and wanted none. As he moved from Boston to Wall Street to the chairmanship of the Securities and Exchange Commission and, on to the crowning ambassadorship to the Court of St. James's, his consuming ambition was the advancement of the Kennedy family.
"From the beginning, Joe knew what he wanted -- money and status for his family," says one who knew him intimately in Washington during the New Deal. "He had the progenitor's sense; to him, his children were an extension of himself. Therefore, what he did, he did with them always in mind. He played the game differently than if he had been after something entirely for himself."
2011年4月7日 星期四
Grumpy Old Fan | Lincoln's log: lessons from Legacies
There's a weird little sequence in the middle of DC Universe: Legacies #3 when the
narration's timeline goes all hazy and oblique, in order to move the story from
sometime in the Eisenhower/Kennedy years right into the "X years ago" of modern
continuity. Because Legacies tracks some sixty-five years of costumed crimefighting,
this sequence bridges the gap between the Justice Society's retirement and
Superman's debut.
"Hazy and oblique" are also good words for describing DC's approach to long-term
continuity. The history of the DC Universe is well-settled up to the early 1950s,
but past then it becomes elastic. This is something we've come to expect: fudging
the calendar keeps our heroes both as experienced and as youthful as they need to
be. However, each passing year also widens the gap between the end of the Golden Age
(early ‘50s) and the beginning of the Silver (thought to be 12-15 years ago).
Through reader-identification character Paul Lincoln,* DCUL's writer (and longtime
DC favorite) Len Wein aims to put a human face on all those four-color adventures.
That sounds like the premise of 1994′s Marvels and its spiritual descendant Astro
City. Really, though, any halfway-entertaining super-survey needs a narrator with a
recognizable point of view. Even 1986′s History of the DC Universe, which was
basically a series of George Pérez pinups arranged in chronological order, took its
florid prose ostensibly from Harbinger's meditations on the nature of heroism.
Here, then, is our Mr. Lincoln, would-be juvenile delinquent turned Metropolis cop,
whose life is changed after an encounter with the Golden Age Atom and Sandman. Over
the course of ten issues, Paul goes from street kid to nursing home, marrying his
childhood sweetheart and becoming a father along the way, all the while constantly
and steadfastly affirming his faith in DC's costumed crusaders. As a protagonist,
Paul makes a decent narrator; but Paul isn't exactly DCUL's main problem. It's
almost as if Wein isn't confident in Paul's ability to carry the narrative, so Paul
is constantly distracted by various superheroic milestones. Moreover, either Paul is
a classic Unreliable Narrator, or Wein and company are doing some serious rewriting
of established DC continuity.
narration's timeline goes all hazy and oblique, in order to move the story from
sometime in the Eisenhower/Kennedy years right into the "X years ago" of modern
continuity. Because Legacies tracks some sixty-five years of costumed crimefighting,
this sequence bridges the gap between the Justice Society's retirement and
Superman's debut.
"Hazy and oblique" are also good words for describing DC's approach to long-term
continuity. The history of the DC Universe is well-settled up to the early 1950s,
but past then it becomes elastic. This is something we've come to expect: fudging
the calendar keeps our heroes both as experienced and as youthful as they need to
be. However, each passing year also widens the gap between the end of the Golden Age
(early ‘50s) and the beginning of the Silver (thought to be 12-15 years ago).
Through reader-identification character Paul Lincoln,* DCUL's writer (and longtime
DC favorite) Len Wein aims to put a human face on all those four-color adventures.
That sounds like the premise of 1994′s Marvels and its spiritual descendant Astro
City. Really, though, any halfway-entertaining super-survey needs a narrator with a
recognizable point of view. Even 1986′s History of the DC Universe, which was
basically a series of George Pérez pinups arranged in chronological order, took its
florid prose ostensibly from Harbinger's meditations on the nature of heroism.
Here, then, is our Mr. Lincoln, would-be juvenile delinquent turned Metropolis cop,
whose life is changed after an encounter with the Golden Age Atom and Sandman. Over
the course of ten issues, Paul goes from street kid to nursing home, marrying his
childhood sweetheart and becoming a father along the way, all the while constantly
and steadfastly affirming his faith in DC's costumed crusaders. As a protagonist,
Paul makes a decent narrator; but Paul isn't exactly DCUL's main problem. It's
almost as if Wein isn't confident in Paul's ability to carry the narrative, so Paul
is constantly distracted by various superheroic milestones. Moreover, either Paul is
a classic Unreliable Narrator, or Wein and company are doing some serious rewriting
of established DC continuity.
2011年4月6日 星期三
Getting in on the Ground Floor at Groupon and Living Social
The daily deal business has grown rapidly in its relatively short lifespan, with
valuations of startups such as Groupon and Living Social reaching billions. Along
with venture backing has come hiring as companies rush to build revenue through
sales.
Getting a job with a daily deal site, however, is no easy feat. The industry has
attracted many applicants anxious to get in on the ground floor of something new
that could one day make them rich. Successful job seekers need to have a thorough
understanding of an industry with virtually no history as well as the tenacity to
develop long-term relationships with customers.
We talked with hiring managers and executives with a few of the biggest sites in the
daily-deal, preferred-pricing, and private flash-sale spaces to find out what stands
out among the hundreds of job applications they receive every day.
Using a daily coupon site isn't enough to want and get a job at one -- that's a
little like saying you want to be a chef because you like eating out at restaurants.
Instead, you need to understand the business, which is as much about offering
coupons to consumers as it is about enticing vendors to offer discounts.
"The reps that really seem to get it are the ones who have seen a merchant light up
with excitement when [they go] in with that business's coupon," says Patrick Albus,
CEO of KGB Deals USA, "and then come to us with that same passion and excitement,
and say 'How do I go about joining your team?'"
It's also important to understand the business of a particular site. Competition has
led sites to try to distinguish themselves, so assuming all sites are alike is a
quick way to end an interview. Do the legwork that it takes to find out where the
industry itself has been, where it's going, and what has proven to be successful in
terms of establishing -- and strengthening -- a business in the space.
Have Some Experience
A college education is a must-have for most sites as is sales experience. "We're not
hiring a ton of entry-levels," says Dan Jessup, vice president of human resources at
Chicago-based Groupon. "Those that are coming in with relevant experience are
typically doing better."
Valued traits include previous business-to-business sales experience, an ability to
articulate a value proposition, a history of opening new client accounts, and above
all, an understanding of how and why small, local merchants want to advertise.
The same goes for jobs with fashion flash-sale site Ideeli, which also has a daily
deal component. "We're looking for some experience," says Joel Greengrass, vice
president of talent with the New York-based company. "We're probably not going to
hire people right out of school because the risk is too high."
Likewise, risk is a factor when considering candidates with no business experience,
he says. "We value when people are a student of retail or e-commerce," says
Greengrass.
Entry-level applicants can make it at some sites in if they have passion for what
they're selling. "Think of your friends who know all of the places to go on the
weekend," says Claire Noonan, senior manager of recruiting for Gilt City, a
subsidiary of flash-sale site Gilt Groupe. "Those are our curators."
Focus Your Resume and Cover Letter
People with years of sales experience in more mature industries are competing for
these jobs, so make sure your resume is action-and-results-oriented, say hiring
managers. "We like to see proven success in numbers," says Noonan of Gilt City. The
industry also wants people willing to help companies grow over the long term. "We
look for retention, and how someone has grown with the same company over time," says
Noonan.
An absolute must? "The ability to work independently," says Julien Vernet, VP of
sales at VillageVines, which partners with restaurants in cities like New York,
Chicago, and Los Angeles, among others, to offer long-term preferred pricing and
discounts, rather than one-day-only offers. "They need to be self-starters because
they're going to be out in the field," he says.
Also, highlight any startup experience, and be sure your cover letter is short and
sweet. "In the field, you have a limited amount of time, so you have to grab their
attention and get them to listen to you pretty quickly," says Albus of KGB Deals.
Focus on your people skills. "If someone tells us they have cultural or humanitarian
pursuits, a food blog, involvement in a philanthropy," says Noonan, it shows that
they would be a good fit.
The Interview: Go in for the Right Reasons
You will struggle in the interview if you're not passionate about the social-
couponing industry; the hiring manager will sense it if you're there just to have a
buzz-worthy company name on your resume to help you land your next job.
You'll start with a phone-screen, and move on to meetings with sales reps, managers,
and company execs. You may have to act out some mock scenarios where you try to
pitch the site to a business. While specific questions will vary, every company will
probably ask you to justify why you want to work there.
"The most basic question can make or break the interview," says Greengrass: "Why
ideeli?" He suggests you answer with reasons that show your knowledge of and
interest in the company and its mission -- not with the fact that you "like to shop
there."
At Groupon, Jessup notes that it's a common practice to call up applicants before
bringing them in for an interview to gauge the candidate's interest in working for
the company. "The interest has to go both ways," he says.
"We're looking for the person getting into the job for the right reasons," says
Jeremy Thiesen, a regional sales manager with KGB deals, who oversees two city
managers and 16 sales reps in Chicago and New York City, "which means they're not
getting into it because this is a fad job and it's in the news."
valuations of startups such as Groupon and Living Social reaching billions. Along
with venture backing has come hiring as companies rush to build revenue through
sales.
Getting a job with a daily deal site, however, is no easy feat. The industry has
attracted many applicants anxious to get in on the ground floor of something new
that could one day make them rich. Successful job seekers need to have a thorough
understanding of an industry with virtually no history as well as the tenacity to
develop long-term relationships with customers.
We talked with hiring managers and executives with a few of the biggest sites in the
daily-deal, preferred-pricing, and private flash-sale spaces to find out what stands
out among the hundreds of job applications they receive every day.
Using a daily coupon site isn't enough to want and get a job at one -- that's a
little like saying you want to be a chef because you like eating out at restaurants.
Instead, you need to understand the business, which is as much about offering
coupons to consumers as it is about enticing vendors to offer discounts.
"The reps that really seem to get it are the ones who have seen a merchant light up
with excitement when [they go] in with that business's coupon," says Patrick Albus,
CEO of KGB Deals USA, "and then come to us with that same passion and excitement,
and say 'How do I go about joining your team?'"
It's also important to understand the business of a particular site. Competition has
led sites to try to distinguish themselves, so assuming all sites are alike is a
quick way to end an interview. Do the legwork that it takes to find out where the
industry itself has been, where it's going, and what has proven to be successful in
terms of establishing -- and strengthening -- a business in the space.
Have Some Experience
A college education is a must-have for most sites as is sales experience. "We're not
hiring a ton of entry-levels," says Dan Jessup, vice president of human resources at
Chicago-based Groupon. "Those that are coming in with relevant experience are
typically doing better."
Valued traits include previous business-to-business sales experience, an ability to
articulate a value proposition, a history of opening new client accounts, and above
all, an understanding of how and why small, local merchants want to advertise.
The same goes for jobs with fashion flash-sale site Ideeli, which also has a daily
deal component. "We're looking for some experience," says Joel Greengrass, vice
president of talent with the New York-based company. "We're probably not going to
hire people right out of school because the risk is too high."
Likewise, risk is a factor when considering candidates with no business experience,
he says. "We value when people are a student of retail or e-commerce," says
Greengrass.
Entry-level applicants can make it at some sites in if they have passion for what
they're selling. "Think of your friends who know all of the places to go on the
weekend," says Claire Noonan, senior manager of recruiting for Gilt City, a
subsidiary of flash-sale site Gilt Groupe. "Those are our curators."
Focus Your Resume and Cover Letter
People with years of sales experience in more mature industries are competing for
these jobs, so make sure your resume is action-and-results-oriented, say hiring
managers. "We like to see proven success in numbers," says Noonan of Gilt City. The
industry also wants people willing to help companies grow over the long term. "We
look for retention, and how someone has grown with the same company over time," says
Noonan.
An absolute must? "The ability to work independently," says Julien Vernet, VP of
sales at VillageVines, which partners with restaurants in cities like New York,
Chicago, and Los Angeles, among others, to offer long-term preferred pricing and
discounts, rather than one-day-only offers. "They need to be self-starters because
they're going to be out in the field," he says.
Also, highlight any startup experience, and be sure your cover letter is short and
sweet. "In the field, you have a limited amount of time, so you have to grab their
attention and get them to listen to you pretty quickly," says Albus of KGB Deals.
Focus on your people skills. "If someone tells us they have cultural or humanitarian
pursuits, a food blog, involvement in a philanthropy," says Noonan, it shows that
they would be a good fit.
The Interview: Go in for the Right Reasons
You will struggle in the interview if you're not passionate about the social-
couponing industry; the hiring manager will sense it if you're there just to have a
buzz-worthy company name on your resume to help you land your next job.
You'll start with a phone-screen, and move on to meetings with sales reps, managers,
and company execs. You may have to act out some mock scenarios where you try to
pitch the site to a business. While specific questions will vary, every company will
probably ask you to justify why you want to work there.
"The most basic question can make or break the interview," says Greengrass: "Why
ideeli?" He suggests you answer with reasons that show your knowledge of and
interest in the company and its mission -- not with the fact that you "like to shop
there."
At Groupon, Jessup notes that it's a common practice to call up applicants before
bringing them in for an interview to gauge the candidate's interest in working for
the company. "The interest has to go both ways," he says.
"We're looking for the person getting into the job for the right reasons," says
Jeremy Thiesen, a regional sales manager with KGB deals, who oversees two city
managers and 16 sales reps in Chicago and New York City, "which means they're not
getting into it because this is a fad job and it's in the news."
訂閱：
文章 (Atom)