Financial

Motorists go the extra mile for the number plate of their choice

noreply@blogger.com (FUYOO1971) — Thu, 03 Mar 2011 01:34:00 +0000

KUALA LUMPUR: Malaysian motorists may be reluctant to pay their summonses but they will splurge a mind-boggling RM150mil every year for the number plate of their choice.

Records from the Road Transport Department showed that the highest bid was RM300,100 – for the number plate MCA 1 two months ago. The same bidder, Asset Nusa Sdn Bhd, also spent RM101,000 to acquire MCA 2.

The bid overtook the RM242,000 for TAY 1 last year. Prior to that, the record was held by a businessman who reportedly paid RM200,900 for TAN 1.

The JPJ website has listed out the bidders and amounts paid for the MCA 1 to MCA 9999 plates for vehicles registered in Malacca.

Among them were Noraini Abdul Ghapor, who spent more than RM19,000 on two numbers (RM14,444 for MCA 4 and RM4,888 for MCA 7777), and Tan Lay Kang, who forked out RM42,000 for three numbers (RM15,400 for MCA 8888, and RM13,300 each for MCA 3333 and MCA 9999).

Another is MCA 1949, purchased by the MCA for RM2,200 to symbolise the year the party was founded.

Duyong state assemblyman Gan Tian Loo from Malacca spent RM28,600 on MCA 5.

But it isn’t just the auspicious numbers that get the people’s attention.

A news report in 2004 noted that the plate TAH1 was bought for RM14,300 by someone who must have had a sense of humour.

Also, someone posted on a web forum several years ago that the most beautiful number plate he had seen was BBB 888 as it was designed like a piece of art.

Former Penang DAP strongman Gooi Hock Seng went around with MR 6001 to reflect his surname.

Some motorists are willing to hold off the purchase of their vehicles until they get the right number plate.

T. Manuel, who bid for 1988, said: “I waited a while and finally got it for only RM300,” he said.

Another motorist, M. Phylis Mann, said she paid RM200 for the number 1798, which she said signified long-term prosperity.

In the past, JPJ had also released special licence plates for major events such as the 1998 Commonwealth Games and meetings of Asean and the Organisation of Islamic Conference.

“I will not be surprised if we get huge bids for plates starting with WWW – the acronym for the World Wide Web,” Transport Minister Datuk Seri Kong Cho Ha said.

Another possible popular choice would be the Selangor plate carrying the letters BMW.

The JPJ has earned significant revenue from tenders of special numbers, which is its third highest source of revenue after the renewal of road tax and driving licences.

Currently there are 21,250,145 registered vehicles on the road.

Another is MCA 1949, purchased by the MCA for RM2,200 to symbolise the year the party was founded.

Duyong state assemblyman Gan Tian Loo from Malacca spent RM28,600 on MCA 5.

But it isn’t just the auspicious numbers that attract the people’s attention.

A news report in 2004 noted that the plate TAH1 was bought for RM14,300 by someone who must have had a sense of humour.

Also, someone posted on a web forum several years ago that the most beautiful number plate he had seen was BBB 888, as it was designed like a piece of art.

Former Penang DAP strongman Gooi Hock Seng went around with MR 6001 to reflect his surname.

Some motorists are willing to hold off the purchase of their vehicles until they get the right number plate.

T. Manuel, who bid for 1988, said:

“I waited a while and finally got it for only RM300,” he said.

Another motorist, M. Phylis Mann said she paid RM200 for the number 1798, which she said signified long-term prosperity.

In the past, JPJ had also released special licence plates for major events such as the 1998 Commonwealth Games and meetings of Asean and the Organisation of Islamic Conference.

“I will not be surprised if we get huge bids for plates starting with WWW – the acronym for the World Wide Web,” Transport Minister Datuk Seri Kong Cho Ha said.

Another possible popular choice would be the Selangor plate carrying the letters BMW.

The JPJ has earned significant revenue from tenders of special numbers, which is its third highest source of revenue after the renewal of road tax and driving licences.

We’re making money: Twitter

noreply@blogger.com (FUYOO1971) — Thu, 24 Feb 2011 14:13:00 +0000

Twitter has said it had become profitable, disclosing that its live messaging service is carrying 130 million daily tweets, or short messages, from its members.

The US-based company, which has been one of the fastest-growing social-networking services, said 40 per cent of tweets are transmitted by mobile devices, typically smartphones.

“We’re making money,” chief executive Dick Costolo said in Barcelona at the Mobile World Congress expo, but gave no figures.

First power line from Bakun to Bintulu completed

noreply@blogger.com (FUYOO1971) — Sat, 15 Jan 2011 11:10:00 +0000

KUCHING: The first line to transmit power from Bakun dam to Similajau, Bintulu, has been completed while Sarawak Energy Bhd's (SEB) Similajau power sub-station in Bintulu is expected to be ready by March.

Works are now underway to construct a power sub-station within the proposed Samalaju Industrial Park to supply electricity to energy-intensive industries like the aluminium smelting and solar panel plants.

Naim Holdings Bhd corporate services and human resource senior director Ricky Kho said the first 118km long Bakun-Similajau transmission line under Package A was completed six months ago.

“We are now constructing the second parallel transmission line under Package B. This new line is expected to be ready in January next year,” he told StarBizWeek yesterday.

Ricky Kho says Naim is constructing a second parallel transmission.
The transmission lines will be linked to the Bakun switch yard, which is connected to the Bakun power house.

The RM209mil Bakun-Similajau transmission line project is undertaken by a joint-venture between China's Sinohydro Corp and Naim Holdings.

According to Bakun dam developer, Sarawak Hidro Sdn Bhd, the Bakun dam is expected to produce its first 300MW in six months.

Sarawak Hidro managing director Zulkifle Osman had said wet testing of the first of the eight turbines was expected to be carried out in April when the water level reached between 185m and 190m.

The water level at the dam had now risen to more than 160m since the impoundment started about three months ago.

SEB transmission general manager Victor Wong said the Similajau sub-station project was more than 80% completed, and it would be operational in April.

“All the main structures of the sub-station have been put up, and the contractor is now doing the control wiring,” he added.

The equipment for the sub-station is supplied by Siemens and Areva.

Wong said the Similajau sub-station was designed to handle more than 4,000MW, including all the power produced by the Bakun dam (2,400MW) and Murum dam (944MW ), which is now being built by SEB.

“The Similajau sub-station is part of the state grid, and the bulk of its power will be for use of energy-intensive industries in the Samalaju Industrial Park,” he added.

Wong said these industries would get their power supply from the proposed Samalaju sub-station, expected to be completed next year. SEB plans to develop a 500kV transmission system in stages, in co-ordination with the development of several hydro electric dams in the state.

The current 275kV network will be expanded to tap the 500kV backbone, and to connect all the dams into the state grid system.

Sarawak Hidro is now in advanced negotiations with SEB, which is majority-owned by the Sarawak government, to sell the power from Bakun to the latter.

SEB's wholly-owned Syarikat SESCo generates, transmits, distributes and supplies power to the domestic, commercial and industrial sectors statewide.

On the state's plan to purchase the Bakun Dam, Chief Minister Tan Sri Abdul Taib Mahmud had said the state government was willing to raise its bid for the dam ownership to RM7bil, from an initial RM6bil, if the federal government could offer flexi payment modes such as in the form of a bridging loan.

Audi, BMW and Mercedes-Benz rely on Chinese market for 2010

noreply@blogger.com (FUYOO1971) — Thu, 19 Aug 2010 00:14:00 +0000

Big name German auto builders, Volkswagen AG and Daimler’s Mercedes-Benz, have reported drops in recent local market sales and focus on the Chinese market to regain composure.

The companies reported to have sold significantly larger numbers in China this year compared to 2009. Audi reported to have sold 53 percent more cars in July whilst Mercedes-Benz reported up to 300 percent more export sales this year compared to last. BMW also increased its exports to China by 82 percent.

This is all on the contrary to the manufacturers reporting drops in sales in their home country. According to Automotive News, Audi and Mercedes-Benz sold fewer cars in Germany the past month compared to the same period last year. Although, BMW has reported a slight increase in local sales by 4 percent.

Make Money Online with Twitter- New Social Media Marketing Software

noreply@blogger.com (FUYOO1971) — Fri, 19 Mar 2010 02:05:00 +0000

New software which takes advantage of the ever increasing popularity of Twitter allows anyone to make money online with just a few basic principles. This social media marketing software combines the sheer popularity of the website Twitter along with some clever social media marketing strategies to make anything from a few extra dollars a day to several hundred.

If you are new to the whole make money online concept you may wonder what 'social media marketing' means. Well in a nutshell its taking advantage of large social networks like Facebook and Twitter to sell and market products to make you money.

tweetomaticprofiteer.com is new software that teaches the average person on the street how to start doing this. On their website you can watch a video explaining how revenue from $200-$800 can be gained relatively easy. The good thing about Tweetomaticprofiteer is that the software does most of the job for you.

Don't worry you do not need your own product or service, nor do you need a website. With Twitter there a millions of 'buying users' online constantly. You can target these with offers and deals which aren't yours but which you will receive high commission for. tweetomaticprofiteer.com makes all this easy once set up and you can start developing your own online income stream taking advantage of one of the biggest growing online trends.

Read more and get the software here
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Kearny Financial Corp. Reports Second Quarter 2010 Operating Results

noreply@blogger.com (FUYOO1971) — Wed, 03 Feb 2010 08:28:00 +0000

Kearny Financial Corp. (NASDAQ: KRNY) (the "Company"), the holding company of Kearny Federal Savings Bank (the "Bank"), today reported net income for the quarter ended December 31, 2009 of $1,841,000, or $0.03 per diluted share. The results represent an increase of $746,000 compared to net income of $1,095,000, or $0.02 per diluted share, for the quarter ended September 30, 2009 and a decrease of $397,000 compared to net income of $2,238,000, or $0.03 per diluted share, for the quarter ended December 31, 2008.

The Company attributes the increase in net income between linked quarters to two primary factors, specifically an increase in net interest income and, to a lesser extent, a decrease in the provision for loan loss. Partially offsetting these factors was an increase in noninterest expense. In total, these factors resulted in an overall increase in pre-tax income and the provision for income taxes.

The decrease in net income between the quarters ended December 31, 2009 and December 31, 2008 resulted primarily from increases in the provision for loan loss and noninterest expense which were exacerbated by a decrease in noninterest income. Partially offsetting these factors was an increase in net interest income. In total, these factors resulted in an overall decrease in pre-tax income and the provision for income taxes.

The Company reported net income of $2,936,000 or $0.04 per diluted share for the six months ended December 31, 2009 representing a decrease of $1,038,000 compared to net income of $3,974,000 or $0.06 per diluted share for the six months ended December 31, 2008. The decrease in net income for the six-month period was attributable to the same factors as the year-over-year decline in quarterly net income.

Kearny Federal Savings Bank operates from its administrative headquarters in Fairfield, New Jersey, and 27 retail branch offices located in Bergen, Hudson, Passaic, Morris, Middlesex, Essex, Union and Ocean Counties, New Jersey. At December 31, 2009, Kearny Financial Corp. had total assets of $2.20 billion which included net loans receivable of $1.02 billion and total investment securities, including mortgage-backed and non-mortgage-backed securities, of $815.9 million. As of that same date, deposits and borrowings totaled $1.50 billion and $210.0 million, respectively, while stockholders' equity totaled $480.5 million or 21.8% of total assets.

The following is an overview of the Company's financial results for the quarter ended December 31, 2009:

Net Interest Income

Net interest income during the quarter ended December 31, 2009 was $14.4 million, an increase of $1.1 million compared to net interest income of $13.3 million during the quarter ended September 30, 2009 and an increase of $723,000 compared to net interest income of $13.7 million during the quarter ended December 31, 2008. The Company's net interest margin increased by 17 basis points to 2.91% for the quarter ended December 31, 2009 from 2.74% during the prior linked quarter ended September 30, 2009. The net interest margin was unchanged from 2.91% for the same quarter one year earlier ended December 31, 2008.

The increase in net interest income and net interest margin between linked quarters resulted from an increase in interest income augmented by a concurrent decrease in interest expense. The increase in interest income was primarily attributable to an increase in the average balance of investment securities offset by a reduction in the average balance of comparatively lower yielding other interest-earning assets. This change was primarily attributable to the Company reinvesting a portion of its excess liquidity into investment securities near the end of the prior quarter ended September 30, 2009. The lower interest expense during the current quarter reflected a continued decline in the cost of deposits resulting primarily from the continued downward repricing of certificates of deposit.

The increase in net interest income for the year-over-year comparative quarters ended December 31, 2009 and December 31, 2008 resulted from a decrease in interest expense that outpaced a concurrent decrease in interest income. The decrease in interest expense was generally attributable to the same factors noted in the linked period comparison. However, the impact of the downward repricing of certificates was partially offset by growth in the average balance of all interest-bearing deposit types. The decrease in interest income was largely attributable to declines in the overall yield on most interest-earning asset types. That decline was particularly highlighted in the reduction in the yield on other interest-earning assets which reflected the sharp decline in short term, market interest rates to historical lows. The impact of the reduction in the yield on the Company's interest-earning assets was partially offset by the overall growth in their average balances.

More specifically, total interest income increased $499,000 to $23.7 million during the quarter ended December 31, 2009 compared to $23.2 million during the quarter ended September 30, 2009. However, total interest income decreased $1.2 million compared to $24.9 million during the quarter ended December 31, 2008. Total interest expense decreased $640,000 to $9.3 million during the quarter ended December 31, 2009 compared to $9.9 million during the quarter ended September 30, 2009 and decreased $1.9 million compared to $11.2 million during the quarter ended December 31, 2008.

Interest income from loans decreased $140,000 to $14.7 million during the quarter ended December 31, 2009 compared to $14.9 million during the quarter ended September 30, 2009. By comparison, interest income on loans decreased $706,000 during the quarter ended December 31, 2009 compared to $15.4 million during the quarter ended December 31, 2008. The decrease in interest income on loans between both comparative periods resulted from decreases in both the average balance and average yield of the related assets. During the quarter ended December 31, 2009, average loans receivable were $1.04 billion with an average yield of 5.65%. By comparison, during the quarters ended September 30, 2009 and December 31, 2008, average loans receivable were $1.05 billion and $1.09 billion, respectively; with average yields of 5.67% and 5.69%, respectively.

The Bank continued to experience a reduction in the aggregate outstanding balance of residential first mortgages, home equity loans and home equity lines of credit, whose combined average outstanding balances declined $12.3 million to $802.4 million between the quarters ended September 30, 2009 and December 31, 2009 due primarily to continuing depressed residential loan demand. By contrast, average commercial loans, including non-residential mortgages, multi-family mortgages and commercial business loans increased $3.6 million in aggregate to $221.1 million over the same period reflecting the Company's long-term expanded strategic emphasis in commercial lending coupled with a continuing favorable pricing environment for these loans.

Interest income from mortgage-backed securities increased $260,000 to $8.1 million during the quarter ended December 31, 2009 from $7.8 million during the quarter ended September 30, 2009. However, interest income from mortgage-backed securities decreased $809,000 compared to $8.9 million during the quarter ended December 31, 2008. The increase in interest income between linked periods was primarily attributable to an increase in the average balance of mortgage-backed securities that was partially offset by a decline in their average yield. By contrast, the decline in interest income between the year-over-year comparative quarters resulted from a decrease in the average yield of mortgage-backed securities that was only partially offset by a smaller comparative increase in their average balance. During the quarter ended December 31, 2009, average mortgage-backed securities, excluding net unrealized gains, were $706.1 million with an average yield of 4.58%. By comparison, during the quarters ended September 30, 2009 and December 31, 2008, the average balance of mortgage-backed securities was $655.8 million and $697.9 million, respectively; with average yields of 4.78% and 5.10%, respectively. The average yield has been decreasing due to the repayment of higher coupon mortgage loans underlying the securities coupled with the effect of the Company reinvesting incoming cash flows into securities whose comparatively lower yields reflect the overall decline in market interest rates.

Interest income from non-mortgage-backed securities increased $394,000 to $612,000 during the quarter ended December 31, 2009 compared to $218,000 during the quarter ended September 30, 2009 and increased $324,000 from $288,000 during the quarter ended December 31, 2008. The increase in interest income between the linked periods resulted from increases in both the average balance and average yield of non-mortgage-backed securities. By comparison, the increase in interest income between the year-over-year comparative quarters resulted from an increase in the average balance of non-mortgage-backed securities that was partially offset by a decrease in their average yields. During the quarter ended December 31, 2009, average non-mortgage-backed securities totaled $71.6 million with an average yield of 3.42%. By comparison, during the quarters ended September 30, 2009 and December 31, 2008, the average balance of non-mortgage-backed securities totaled $32.2 million and $32.1 million, respectively, with average yields of 2.71% and 3.58%, respectively.

Interest income from other interest-earning assets, comprised primarily of interest-earning cash and cash equivalents, decreased $15,000 to $215,000 during the quarter ended December 31, 2009 compared to $230,000 during the quarter ended September 30, 2009 and decreased $71,000 from $286,000 for the quarter ended December 31, 2008. The decrease in interest income between the linked periods resulted from a decrease in the average balance of other interest-earning assets that was partially offset by an increase in their average yield. By comparison, the decrease in interest income between the year-over-year comparative quarters resulted from a decline in the average yield on other interest-earning assets that was partially offset by an increase in their average balance. During the quarter ended December 31, 2009, the average balance of other interest-earning assets totaled $159.8 million with an average yield of 0.54%. By comparison, during the quarters ended September 30, 2009 and December 31, 2008, the average balance of other interest-earning assets totaled $196.9 million and $66.0 million, respectively, with average yields of 0.47% and 1.73%, respectively.

Interest expense attributed to deposits decreased $640,000 to $7.2 million during the quarter ended December 31, 2009 from $7.8 million during the quarter ended September 30, 2009 and decreased $1.9 million compared to $9.1 million during the quarter ended December 31, 2008. The decline in interest expense between both sets of comparative quarters resulted from decreases in the average cost of interest-bearing deposits, partially offset by comparative increases in their average balances. Management continued to adhere to a disciplined deposit pricing policy during the reporting period. Nevertheless, the Bank continued to experience deposit inflows between the linked quarters. During the quarter ended December 31, 2009, average interest-bearing deposits were $1.42 billion with an average cost of 2.02%. By comparison, during the quarters ended September 30, 2009 and December 31, 2008, average interest-bearing deposits were $1.39 billion and $1.29 billion, respectively, with average costs of 2.25% and 2.81%, respectively. The decrease in the cost of deposits over the comparative quarters was attributed primarily to decreases in the average cost of certificates of deposit, which decreased to 2.53% during the current quarter compared to 2.86% during the linked quarter and 3.65% during the same quarter one year earlier.

Finally, interest expense attributed to Federal Home Loan Bank ("FHLB") advances was unchanged at $2.1 million during the quarters ended December 31, 2009 and September 30, 2009 and decreased $101,000 compared to $2.2 million during the quarter ended December 31, 2008. During both quarters ended December 31, 2009 and September 30, 2009, the average balance of FHLB advances were $210.0 million with an average cost of 3.95%. By comparison, during the quarter ended December 31, 2008, average advances were $217.7 million with average cost of 4.00%.

Provision for Loan Losses

The provision for loan losses totaled $605,000 during the quarter ended December 31, 2009 compared to provisions of $858,000 for the linked quarter ended September 30, 2009 and $109,000 for the prior year quarter ended December 31, 2008. The provision in the current period continued to reflect required net increases to the allowance for additional estimated specific losses on several impaired mortgage loans on residential properties located in New Jersey. All such loans were originated by Countrywide Home Loans, Inc. ("Countrywide") and purchased by the Bank during prior years. The provision also reflected changes to balances of general valuation allowances attributable to the application of historical and environmental loss factors to the remaining non-impaired portion of the loan portfolio in accordance with the Company's allowance for loan loss calculation methodology. Further discussion of the allowance for loan losses is presented in the Loans and Credit Quality section below.

Noninterest Income

Noninterest income attributed to fees, service charges and miscellaneous income, including REO operations, decreased $48,000 to $570,000 during the quarter ended December 31, 2009 from $618,000 during the quarter ended September 30, 2009 while decreasing $166,000 from $736,000 during the quarter ended December 31, 2008. The decrease in noninterest income between the linked periods was attributable, in part, to a decline in deposit and branch-related fees and charges coupled with net REO expenses recorded during the current quarter with no such expenses recognized during the earlier comparative quarter. The decline in noninterest income between the quarters ended December 31, 2009 and December 31, 2008 was partly attributable to those same factors. However, the year-over-year reductions in those same categories were exacerbated by comparative declines in income from the Bank's official check clearing agent. The clearing agent is no longer able to compensate its clients at a meaningful level for use of the float on official checks due to significant losses and reduced yields in its investment securities portfolio. Additionally, miscellaneous income during the earlier comparative quarter ended December 31, 2008 included the recognition of a $132,000 gain on sale of deposits with no such income recognized during the current quarter.

Net losses on investment securities recorded against noninterest income during the quarter ended December 31, 2009 totaled $55,000 and were attributable to a non-cash, pre-tax charge to earnings resulting from additional other-than-temporary impairment in the value of certain non-agency collateralized mortgage obligations in the Bank's held to maturity securities portfolio. These securities were originally acquired upon the in-kind redemption of the Bank's interest in the AMF Ultra Short Mortgage Fund ("AMF Fund") during the quarter ended September 30, 2008. During the prior linked quarter ended September 30, 2009, the Company recorded net losses attributable to additional other-than-temporary impairments of value totaling $98,000 attributable to these same securities. No other-than-temporary impairment losses on securities were recorded during the quarter ended December 31, 2008.

Noninterest Expense

Noninterest expense increased $154,000 to $11.2 million during the quarter ended December 31, 2009 from $11.0 million during the quarter ended September 30, 2009 and increased $618,000 compared to $10.6 million during the quarter ended December 31, 2008. The increase in noninterest expense between linked quarters was largely attributable to an increase in federal deposit insurance premium expense with lesser increases and decreases in other noninterest expense categories combining to partially offset the increase in deposit insurance expense.

Increases in federal deposit insurance premium expense also contributed to the increase in noninterest expense between the quarters ended December 31, 2009 and December 31, 2008 which also reflected increases in compensation expense. As above, lesser increases and decreases in other noninterest expense categories combined to partially offset the year-over-year increases in deposit insurance and compensation expenses.

More specifically, federal deposit insurance premium expense increased $236,000 to $393,000 during the quarter ended December 31, 2009 from $157,000 during the quarter ended September 30, 2009. The increase in deposit insurance expense was attributable, in part, to an increase in the assessment rate charged by the Federal Deposit Insurance Corporation ("the FDIC") on the balance of insurable deposits held by the Bank. However, the comparative increase in FDIC insurance premium expense between the linked periods also reflects the absence in the current period of certain adjustments to the related expense accrual that had reduced the expense during the earlier comparative period to reflect the revised premium assessment calculation methodology.

Federal deposit insurance premium expense increased by approximately $281,000 between the quarters ended December 31, 2009 and December 31, 2008. As noted above, the increase was attributable to the comparative increase in the regular quarterly assessment rate coupled with the effect of the year-over-year growth in the balance of insurable deposits held by the Bank.

Employee compensation-related expenses increased by approximately $452,000 between the quarters ended December 31, 2009 and 2008. Such increases reflected additional costs associated with staff augmentation attributable, in part, to branch expansion. More generally, however, the increase in expense also reflects the increase in compensation-related costs attributable to annual increases in wages and salaries of existing staff and overall increases to benefits costs including employee health care benefits. The increase in year-over-year compensation expense also reflects an actuarial adjustment that reduced pension expense in the earlier comparative period for which a lesser reduction in expense was recorded during the current period.

Provision for Income Taxes

The provision for income taxes during the quarter ended December 31, 2009 was $1.3 million compared to $803,000 during the quarter ended September 30, 2009 and $1.5 million during the quarter ended December 31, 2008. The change in income taxes between both sets of comparative quarters was primarily attributable to the comparative increase or decrease in pre-tax income. The Company's effective tax rates during the quarters ended December 31, 2009, September 30, 2009 and December 31, 2008 were 41.2%, 42.3% and 40.2%, respectively.

Cash and Cash Equivalents

Cash and cash equivalents, which consist primarily of interest-earning deposits in other banks, increased $80.9 million to $202.5 million at December 31, 2009 from $121.6 million at September 30, 2009. Several factors contributed to the reported increase in short term, liquid assets including continued net deposit growth, despite the continuation of the Bank's disciplined approach to deposit pricing during the quarter. Cash inflows from deposit growth were augmented by net reductions in the loan and mortgage-backed securities portfolio as asset repayments outpaced new originations and purchases. Notwithstanding its improvement during the current quarter, the Company's net interest margin has generally come under pressure during recent quarters as the growing balance of interest-earning deposits reflects the decline in short term market interest rates to historical lows of 0.00% to 0.25%.

Coupled with the related activity from the prior quarter ended September 30, 2009, the balance of the Company's cash and cash equivalents has decreased approximately $9.0 million from $211.5 million at the end of the prior year ended June 30, 2009.

Loans and Credit Quality

Loans receivable, excluding deferred fees and costs and the allowance for loan losses, decreased $30.5 million to $1.03 billion at December 31, 2009 from $1.06 billion at September 30, 2009. The reductions in the loan portfolio continue to reflect diminished loan demand by qualified borrowers coupled with aggressive pricing in the marketplace for certain loan products. These factors impacted the Company's one-to-four family mortgage loan portfolio, in particular, which declined $31.4 million to $785.2 million at December 31, 2009 from $816.6 million at September 30, 2009. Aggregate growth in the remaining loan categories, including commercial real estate, construction, business and consumer loans, totaled $811,000. Loan originations for the three months ended December 31, 2009 decreased $27.9 million to $31.3 million from $59.2 million for the quarter ended September 30, 2009 while purchases of loans from other originators declined from $20.7 million to zero for the same comparative periods.

Coupled with the related activity from the prior quarter ended September 30, 2009, the balance of the Company's loans receivable, excluding deferred fees and costs and the allowance for loan losses, has decreased approximately $16.3 million from $1.04 billion at the end of the prior year ended June 30, 2009.

At December 31, 2009, non-performing assets totaled $19.8 million or 0.90% of total assets and comprised 51 nonperforming loans totaling $19.4 million, or 1.88% of total loans, plus three real estate owned ("REO") properties totaling $390,000. By comparison, at September 30, 2009 non-performing assets totaled $20.5 million or 0.95% of total assets and comprised 56 nonperforming loans totaling $19.9 million, or 1.87% of total loans, plus four REO properties totaling $652,000.

Loans reported as nonperforming loans at December 31, 2009 include 25 mortgage loans totaling $11.4 million on residential properties located in New Jersey originally acquired from Countrywide. At December 31, 2009, the Bank owned a total of 192 residential mortgage loans with an aggregate outstanding balance of $97.4 million that were originally acquired from Countrywide and continue to be serviced by their acquirer, Bank of America through its subsidiary, BAC Home Loans Servicing, LP. Of these loans, an additional 11 loans totaling $4.4 million are 30-89 days past due and are in various stages of collection.

Coupled with the related activity from the prior quarter ended September 30, 2009, the balance of the Company's nonperforming assets has increased approximately $6.5 million from $13.3 million or 0.62% of total assets at the end of the prior year ended June 30, 2009.

Charge offs, net of recoveries, against the allowance for loan loss during the current quarter ended December 31, 2009 totaled $41,000 and related to writing down the value of one loan to the fair value of its associated real estate collateral at foreclosure. By comparison, charge-offs against the allowance for loan loss during the prior quarter ended September 30, 2009 totaled $482,000 including $384,000 in charge offs to write down the value of two loans at foreclosure and $98,000 in charge offs associated with two troubled debt restructurings. Recoveries of prior charge offs were negligible during the two linked quarters. The allowance for loan losses as a percentage of total loans outstanding was 0.72% at December 31, 2009 compared with 0.64% at September 30, 2009 reflecting total allowances of $7.4 million and $6.8 million, respectively, at the close of each quarter.

Coupled with the related activity from the prior quarter ended September 30, 2009, the balance of the Company's allowance for loan losses has increased by $940,000 from $6.4 million or 0.62% of total loans at June 30, 2009.

Securities and Mortgage-backed Securities

Mortgage-backed securities available for sale, all of which are government agency pass-through certificates, decreased $31.5 million to $717.7 million at December 31, 2009 from $749.2 million at September 30, 2009. The net decrease primarily resulted from continued principal repayments totaling approximately $36.7 million coupled with reductions in the unrealized gain within the portfolio of $3.4 million to $20.9 million at December 31, 2009. Partially offsetting these decreases in the portfolio were purchases of mortgage-backed securities totaling $8.6 million all of which represent issues eligible to meet the Community Reinvestment Act investment test. Based on its evaluation, management concluded that no other-than-temporary impairment was present within this segment of the investment portfolio at December 31, 2009.

Mortgage-backed securities held to maturity decreased $134,000 to $3.7 million at December 31, 2009 from $3.8 million at September 30, 2009. The reduction was primarily attributable to principal repayments net of adjustments for other-than-temporary impairments in the value of certain non-agency collateralized mortgage obligations in the portfolio. Such adjustments reflect additions to valuations for newly identified other-than-temporary impairments offset by the accretion of previously recognized impairments. At December 31, 2009, an analysis of the non-agency collateralized mortgage obligations resulted in the conclusion that securities having an aggregate amortized cost, adjusted for prior impairment charges, of $579,000 were other-than-temporarily impaired by an additional $65,000. Of this impairment, $55,000 was determined to be credit-related, and therefore recognized through earnings, while $10,000 was determined to be noncredit-related and therefore recognized through other comprehensive income. At December 31, 2009, the Company's non-agency collateralized mortgage obligations have a total book value, net of other-than-temporary impairment charges, of $2.0 million and a total fair value of $1.8 million with the difference attributed to temporary impairments of value. The remainder of the held to maturity mortgage-backed securities portfolio is comprised of government agency mortgage pass-through securities and collateralized mortgage obligations that were not other-than-temporarily impaired based upon management's evaluation at December 31, 2009.

Coupled with the related activity from the prior quarter ended September 30, 2009, the combined balances of the Company's mortgage-backed securities portfolios totaling $721.3 million at December 31, 2009 have increased approximately $33.2 million from $688.1 million at the end of the prior year ended June 30, 2009.

Non-mortgage-backed securities classified as available for sale decreased by $92,000 to $29.5 million at December 31, 2009 from $29.6 million at September 30, 2009. The decrease in the portfolio was primarily attributable to principal repayments partially offset by an increase in the fair value of the portfolio. The net unrealized loss for this portfolio was reduced to $1.7 million at December 31, 2009 from $1.9 million as of September 30, 2009. Non-mortgage-backed securities classified as held to maturity increased by $15.0 million to $65.0 million at December 31, 2009 from $50.0 million at September 30, 2009. The increase in the portfolio was fully attributable to the purchase of agency debentures during the quarter. Based on its evaluation, management has concluded that no other-than-temporary impairment is present within either segment of the non-mortgage backed securities portfolio at December 31, 2009.

Coupled with the related activity from the prior quarter ended September 30, 2009, the combined balances of the Company's non-mortgage-backed securities portfolios totaling $94.5 million at December 31, 2009 have increased approximately $66.5 million from $28.0 million at the end of the prior year ended June 30, 2009.

Deposits

Deposits increased $41.0 million to $1.50 billion at December 31, 2009 from $1.46 billion at September 30, 2009. As noted earlier, management continued to adhere to a disciplined deposit pricing policy during the reporting period. Nevertheless, growth was reported across all categories of deposits. For the quarter ended December 31, 2009, interest-bearing demand deposits increased $24.9 million to $199.3 million, savings deposits increased $11.3 million to $316.1 million, certificates of deposit increased $4.5 million to $925.6 million and non-interest-bearing demand deposits increased $329,000 to $56.0 million. In general, depositors have been lengthening the maturities of their certificates of deposit, particularly by transferring maturing accounts to 24-month and 36-month certificates of deposit in order to improve the yield.

Coupled with the related activity from the prior quarter ended September 30, 2009, the balance of the Company's deposits has increased approximately $75.8 million from $1.42 billion at the end of the prior year ended June 30, 2009. The growth in deposits during the six months ended December 31, 2009 included an increase in the balance of non-interest-bearing deposits totaling $4.8 million coupled with an increase in interest-bearing deposits of $71.0 million.

Federal Home Loan Bank Advances

As a result of the Bank's strong liquidity position, there were no additional borrowings drawn during the quarters ended December 31, 2009 and September 30, 2009. Moreover, no borrowings matured during those same periods. Consequently, the balance of FHLB advances remained unchanged at $210.0 million at December 31, 2009 from the prior quarter ended September 30, 2009 and the prior fiscal year ended June 30, 2009.

Stockholders' Equity and Capital Management

During the quarter ended December 31, 2009, stockholders' equity decreased $1.5 million to $480.5 million from $482.0 million at September 30, 2009. The decrease was attributable, in part, to a $1.8 million decrease in accumulated other comprehensive income resulting primarily from a decline in the unrealized gain on the available for sale securities portfolios. Also contributing to the decrease in stockholders' equity was a $1.8 million increase in treasury stock resulting from the repurchase of 176,700 shares of the Company's common stock as well as a $1.1 million cash dividend to shareholders. Partially offsetting these reductions were increases to stockholders' equity including net income of $1.8 million, increases to paid-in-capital totaling $1.0 million attributable primarily to benefit plan related adjustments and $364,000 of Employee Stock Ownership Plan shares earned.

At December 31 2009, the Company's total equity to asset ratio was 21.8% while the equity to assets ratio of the Bank was 20.9%. As of that same date, the Bank's ratio of tangible equity to tangible assets was 17.45% while its Tier 1 (Core) Capital and Total (Risk-based) Capital to risk-weighted assets were 37.91% and 38.39%, respectively, far in excess of the 6.0% and 10.0% levels, respectively, required by the Office of Thrift Supervision to be classified "well-capitalized" under regulatory guidelines.

Statements contained in this news release that are not historical facts are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from those currently anticipated due to a number of factors, which include, but are not limited to factors discussed in documents filed by Kearny Financial Corp. with the Securities and Exchange Commission from time to time. The Company does not undertake and specifically disclaims any obligation to update any forward-looking statement, whether written or oral, that may be made from time to time by or on behalf of the Company.

KEARNY FINANCIAL CORP.
FINANCIAL HIGHLIGHTS
(Dollars in Thousands, Except Per Share Data, Unaudited)
At
----------- ----------- -----------
December 31, September 30, June 30,
2009 2009 2009
----------- ----------- -----------
Selected Balance Sheet Data:
Assets $ 2,203,237 $ 2,164,649 2,124,921
Cash and cash equivalents 202,520 121,605 211,525
Securities available for sale 29,541 29,633 28,027
Securities held to maturity 65,000 50,000 0
Net loans receivable 1,021,705 1,052,859 1,039,413
Mortgage-backed securities available
for sale 717,654 749,166 683,785
Mortgage-backed securities held to
maturity 3,677 3,811 4,321
Goodwill 82,263 82,263 82,263
Deposits 1,497,021 1,456,005 1,421,201
Federal Home Loan Bank advances 210,000 210,000 210,000
Total stockholders' equity 480,486 481,957 476,720
Consolidated Capital Ratios:
Equity to assets at period end 21.81% 22.26% 22.43%
Tangible equity to tangible assets
at period end (1) 18.43% 18.79% 18.98%
Share Data:
Outstanding shares 68,978,300 69,155,000 69,241,600
Closing price as reported by NASDAQ $ 10.07 $ 10.42 $ 11.44
Book value per share $ 6.97 $ 6.97 $ 6.88
Tangible book value per share (1) $ 5.62 $ 5.60 $ 5.58
Asset Quality Ratios:
Non-performing loans to total loans 1.88% 1.87% 1.26%
Non-performing assets to total
assets 0.90% 0.95% 0.62%
Allowance for loan losses to total
loans 0.72% 0.64% 0.62%
Allowance for loan losses to
non-performing loans 38.02% 34.29% 48.92%
(1) Tangible equity equals total stockholders' equity reduced by goodwill,
core deposit intangible assets and accumulated other comprehensive
income.
(Dollars in Thousands, Except Per Share Data, Unaudited)
For the Three For the Six
Months Ended Months Ended
----------------------------- ------------------
December September December December December
31, 30, 31, 31, 31,
2009 2009 2008 2009 2008
-------- --------- -------- -------- --------
Summary of Operations:
Interest income $ 23,655 $ 23,156 $ 24,917 $ 46,811 $ 50,077
Interest expense 9,263 9,903 11,248 19,166 23,165
-------- --------- -------- -------- --------
Net interest income 14,392 13,253 13,669 27,645 26,912
Provision for loan losses 605 858 109 1,463 109
-------- --------- -------- -------- --------
Net interest income
after provision for
loan losses 13,787 12,395 13,560 26,182 26,803
Non-interest income,
excluding loss on
securities 570 618 736 1,188 1,459
Loss on securities (55) (98) 0 (153) (415)
Non-interest expense 11,171 11,017 10,553 22,188 21,171
-------- --------- -------- -------- --------
Income before taxes 3,131 1,898 3,743 5,029 6,676
Provision for income
taxes 1,290 803 1,505 2,093 2,702
-------- --------- -------- -------- --------
Net income $ 1,841 $ 1,095 $ 2,238 $ 2,936 $ 3,974
======== ========= ======== ======== ========
Per Share Data:
Net income per share -
basic $ 0.03 $ 0.02 $ 0.03 $ 0.04 $ 0.06
Net income per share -
diluted $ 0.03 $ 0.02 $ 0.03 $ 0.04 $ 0.06
Weighted average number
of common shares
outstanding - basic 68,015 68,074 68,829 68,045 69,017
Weighted average number
of common shares
outstanding - diluted 68,015 68,074 68,829 68,045 69,017
Cash dividends per
share(1) $ 0.05 $ 0.05 $ 0.05 $ 0.10 $ 0.10
Dividend payout
ratio (2) 62.09% 77.81% 39.14% 67.95% 44.89%
(1) Represents dividends declared per common share.
(2) Represents dividends declared, excluding dividends waived by Kearny
MHC, divided by net income.
For the Three For the Six
Months Ended Months Ended
--------------------------------- ----------------------
December September December December December
31, 30, 31, 31, 31,
2009 2009 2008 2009 2008
---------- ---------- ---------- ---------- ----------
Average Balances:
Loans
receivable $1,043,412 $1,050,538 $1,085,396 $1,046,975 $1,068,078
Mortgage-backed
securities:
Mortgage
pass-through
securities 701,664 651,135 692,776 676,399 705,657
Collateralized
mortgage
obligations 4,426 4,626 5,140 4,526 2,768
---------- ---------- ---------- ---------- ----------
Total
mortgage-backed
securities 706,090 655,761 697,916 680,925 708,425
Non-mortgage-backed
securities:
Tax exempt
securities 18,153 18,167 18,194 18,160 18,199
Taxable
securities 53,429 13,996 13,945 33,713 17,693
---------- ---------- ---------- ---------- ----------
Total non-
mortgage-backed
securities 71,582 32,163 32,139 51,873 35,892
Other interest-
earning assets 159,778 196,865 66,015 178,322 87,990
---------- ---------- ---------- ---------- ----------
Total interest
earning
assets 1,980,862 1,935,327 1,881,466 1,958,095 1,900,385
Non-interest-
earning assets 207,936 217,270 162,973 212,085 157,030
---------- ---------- ---------- ---------- ----------
Total assets $2,188,798 $2,152,597 $2,044,439 $2,170,180 $2,057,415
========== ========== ========== ========== ==========
Interest-bearing
deposits
Interest-bearing
checking 185,909 171,051 154,559 178,480 154,552
Savings and
clubs 310,043 304,237 289,843 307,140 293,197
Certificates
of deposit 926,123 917,429 845,266 921,776 852,424
---------- ---------- ---------- ---------- ----------
Total interest-
bearing
deposits $1,422,075 $1,392,717 $1,289,668 $1,407,396 $1,300,173
Federal Home
Loan Bank
advances 210,000 210,000 217,685 210,000 217,842
---------- ---------- ---------- ---------- ----------
Total interest-
bearing
liabilities 1,632,075 1,602,717 1,507,353 1,617,396 1,518,015
Non-interest-
bearing
liabilities 75,558 74,215 66,917 74,369 68,960
Stockholders'
equity 481,165 475,665 470,169 478,415 470,440
---------- ---------- ---------- ---------- ----------
Total
liabilities and
stockholders'
equity $2,188,798 $2,152,597 $2,044,439 $2,170,180 $2,057,415
========== ========== ========== ========== ==========
Average interest-
earning assets
to average
interest-bearing
liabilities 121.37% 120.75% 124.82% 121.06% 125.19%
For the Three For the Six
Months Ended Months Ended
----------------------------- ------------------
December September December December December
31, 30, 31, 31, 31,
2009 2009 2008 2009 2008
-------- --------- -------- -------- --------
Performance ratios:
Yield on average:
Loans receivable 5.65% 5.67% 5.69% 5.66% 5.72%
Mortgage-backed
securities:
Mortgage pass-through
securities 4.56% 4.76% 5.09% 4.66% 5.06%
Collateralized
mortgage obligations 7.59% 7.44% 7.07% 7.51% 12.69%
-------- --------- -------- -------- --------
Total mortgage-backed
securities 4.58% 4.78% 5.10% 4.68% 5.09%
Non-mortgage-backed
securities:
Tax exempt securities 3.48% 3.48% 3.49% 3.48% 3.49%
Taxable securities 3.40% 1.70% 3.71% 3.05% 2.89%
-------- --------- -------- -------- --------
Total
non-mortgage-backed
securities 3.42% 2.71% 3.58% 3.20% 3.19%
Other interest-earning
assets 0.54% 0.47% 1.73% 0.50% 2.13%
-------- --------- -------- -------- --------
Total interest-earning
assets 4.78% 4.79% 5.30% 4.78% 5.27%
Cost of average:
Interest-bearing checking 1.15% 1.13% 1.50% 1.14% 1.49%
Savings and clubs 1.04% 1.04% 1.06% 1.04% 1.06%
Certificates of deposit 2.53% 2.86% 3.65% 2.69% 3.78%
-------- --------- -------- -------- --------
Interest-bearing
deposits 2.02% 2.25% 2.81% 2.13% 2.89%
Federal Home Loan Bank
advances 3.95% 3.95% 4.00% 3.95% 4.00%
-------- --------- -------- -------- --------
Total interest-bearing
liabilities 2.27% 2.47% 2.98% 2.37% 3.05%
Net interest rate
spread (1) 2.51% 2.32% 2.32% 2.41% 2.22%
Net interest margin (2) 2.91% 2.74% 2.91% 2.82% 2.83%
Non-interest income to
average assets 0.09% 0.10% 0.14% 0.10% 0.10%
Non-interest expense
to average assets 2.04% 2.05% 2.06% 2.04% 2.06%
Efficiency ratio 74.93% 79.99% 73.26% 77.36% 75.73%
Return on average assets 0.34% 0.20% 0.44% 0.27% 0.39%
Return on average equity 1.53% 0.92% 1.90% 1.23% 1.69%
(1) Interest income divided by average interest-earning assets less
interest expense divided by average interest-bearing liabilities.
(2) Net interest income divided by average interest-earning assets.

Panel Investigating Financial Crisis to Question Bankers

noreply@blogger.com (FUYOO1971) — Mon, 11 Jan 2010 01:01:00 +0000

WASHINGTON -- The Financial Crisis Inquiry Commission will require top bankers and regulators to testify under oath in the coming week when its first public hearings get under way, the panel's chairman and vice chairman said Friday.

Chairman Phil Angelides, a Democrat, and Vice Chairman Bill Thomas, a Republican, said in an interview that the commission also plans to call Federal Reserve Chairman Ben Bernanke and Treasury Secretary Timothy Geithner to testify under oath in the months ahead.

J.P. Morgan Chase & Co. Chief Executive James Dimon, Bank of America Corp. Chief Executive Brian Moynihan, Morgan Stanley Chairman John Mack, Goldman Sachs Group Inc. Chief Executive Lloyd Blankfein and Federal Deposit Insurance Corp. Chairman Sheila Bair are among those expected to testify on Wednesday and Thursday.

The panel, established by Congress last year, got off to a slow start due to the complications of hiring staff and opening an office. But looming hearings show the panel is shifting into action and beginning to make its weight felt among banks and regulators.

But its focus isn't going to be on influencing legislation to overhaul financial-sector regulations, which has been moving through Congress as some lawmakers had envisioned. Instead, the committee is settling into the task of developing a detailed investigative report -- due in December -- on the causes of the financial crisis.

"There is anger and confusion across this country, and people want to know," said Mr. Angelides, a former California state treasurer. He said one of the commission's roles is to act as a proxy for the American people in unraveling the complex crisis, despite encountering some angst over its investigation into the events that precipitated it.

"There's an undercurrent of, 'Hey, things are moving along. Why dig this stuff up?' " Mr. Angelides said.

Mr. Angelides said the emphasis is about gathering "facts and about the series of events that occurred" rather than trying to "get people."

The commission is expected to hold eight or nine hearings, on a range of topics including regulation, subprime lending, how companies became "too big to fail," derivatives, and the role of the credit-rating agencies. The leaders said they hadn't yet issued subpoenas but would do so if they felt government or industry officials were withholding information.

"I've found that if you have [the power to issue subpoenas] and you ask nicely, you don't have to tell them the consequences of 'no,' " said Mr. Thomas, the former chairman of the House Ways and Means Committee.

Asked why a representative of Citigroup Inc. wasn't on the witness list for next week's hearings, Mr. Angelides said, "They'll have their day. They shouldn't feel bad, or left out."

Your request is being processed... Goldman Sachs CEO Lloyd Blankfein Named Financial Times Person Of The Year

noreply@blogger.com (FUYOO1971) — Fri, 01 Jan 2010 08:10:00 +0000

Goldman Sachs CEO Lloyd Blankfein has been named Person of the Year by the Financial Times. The investment bank "not only navigated the 2008 global financial crisis better than others on Wall Street," the paper writes, "but is set to make record profits, and pay up to $23BN in bonuses to its 31,700 staff."

But while the FT may agree that Blankfein is doing "God's work," others view the bank as indicative of exactly what is wrong with Wall Street. Indeed, Blankfein himself apologized last month for Goldman Sachs' role in the financial crisis. And Goldman Sachs's trading practices are currently under investigation by the federal government.

In response to the FT's decision to honor Blankfein, noted bank analyst Christopher Whalen has canceled his subscription to the paper. "Mr. Blankfein and his colleagues at Goldman Sachs, in my view, have done more to damage the reputations of global financial professionals than any other organization in 2009, yet you applaud them," he wrote in a letter to the paper. "Not only is your suggestion ridiculous and repugnant, but it illustrates to me the fact that the FT is part of the problem in global finance, not as one would hope and expect, part of the solution."

Kuwait’s HITS Telecom listed at Dubai Financial Market

noreply@blogger.com (FUYOO1971) — Fri, 25 Dec 2009 17:36:00 +0000

Dubai Financial Market (DFM) has announced the listing of Kuwait’s HITS Telecom Company. The company shares commenced trading on Wednesday, December 23rd 2009, under the trading symbol “HITSTELEC”, which appears on DFM screens, trading systems and publications within the telecommunication sector.

The new listing of HITS Telecom, which is the first non-UAE telecom company to join DFM, brings the total number of securities listed on the exchange to 88, including 66 public shareholding companies and further increases the number of Kuwaiti companies listed on DFM to 17.

Essa Kazim, Executive Chairman, Dubai Financial Market; Dr. Sultan Bahberi, Chairman of HITS Telecom Holding and senior representatives from both sides attended the listing ceremony.

Commenting on this development, Kazim said: “We are delighted to welcome HITS Telecom to DFM, which offers greater opportunities for our investors and further strengthens the telecommunications sector on the market.. Today’s listing reinforces DFM’s position as the market of choice for Kuwaiti companies seeking a dual listing, it reflects the high level of confidence businesses have in our exchange and the role DFM plays to support the growth story 0f successful companies.”

“Dubai Financial Market is constantly looking to expand and diversify the opportunities available to investors by encouraging and partnering with companies from around the region, active in different sectors to benefit from trading on the region’s leading stock exchange. Undoubtedly, regional companies look upon DFM as an attractive exchange with a proven track record of professionalism and state-of-the-art facilities. These companies are keen to capitalize on their growth through a trading and fundraising channel by listing on DFM.” Kazim added.

Khalid Al-Mutawa, Vice-Chairman, HITS Telecom company, said: "The listing of HITS Telecom on DFM has many positive implications supported by the strong economy in the UAE in general, and Dubai in particular, as the emirate’s leadership has a clear vision for the economic path. Furthermore, listing on a highly regulated, active and liquid exchange constitutes unlimited value-added benefits including the expansion of our shareholders base by attracting new partners, not only from the local market but also from other regional markets.”

“HITS Telecom is actively involved in a strategic plan to target new markets in line with its goal to grow within the telecommunications sector. Undoubtedly, this expansion will have significant benefits for the company, as some of its regional subsidiaries will be operational in the near future,” he added.

Founded in Kuwait in 1999, HITS Telecom has been listed on the Kuwaiti Stock Exchange since 2004 with its main activity focused on managing its various companies and subsidiaries across the group. Currently, HITS Telecom owns and operates companies across four continents, with a focus on the emerging/developing markets . The company’s business in Africa and Latin America is mainly concentrated on the mobile network operations (MNO), while its activities in the Middle East and Europe are focused on the virtual networks (MVNO).

Community Bankers Meet With Obama as Regulation Fight Heats Up

noreply@blogger.com (FUYOO1971) — Thu, 24 Dec 2009 07:30:00 +0000

WASHINGTON—Community bankers got their first exclusive meeting Tuesday with President Barack Obama amid an intensifying fight within the industry over legislation that would tighten federal financial regulation.

Mr. Obama used the White House parley with executives from smaller banks to reiterate his push for bankers to do more lending to small businesses. "The pendulum may have swung too far in the direction of not lending," Mr. Obama said, adding that the White House is working on ways to cut "red tape" that banks complain is making it harder to lend. He suggested the White House wouldn't intervene with federal regulators though, which many bankers complain are being too strict.

"We don't have direct influence over our independent regulators," Mr. Obama said. A top focus for the White House in the coming months will be to push for more lending, he said, and that can only be done with the cooperation of financial institutions.

But getting bankers to sing from the same hymnal won't be easy. Two bankers' groups, the American Bankers Association and the Independent Community Bankers of America, are challenging each other, and delivering competing messages on Capitol Hill as Congress weighs a wide-ranging overhaul of financial industry regulation. The ABA and ICBA both claim to speak for "community banks," but they took starkly different positions on a recent House bill. The ICBA supported it, while the ABA opposed it.

The spat among bankers promises to become nastier as the Senate takes up the bill.

"The name-calling is really partly a strategy to build their brands against each other, and I think it's foolish," said Ed Mierzwinski, consumer program director at U.S. PIRG, a coalition of consumer groups that frequently fights against the banking industry. "To the extent that it hurts them, it's great that they are fighting with each other and using up their bandwidth."

ABA officials say ICBA officials have been too willing to throw their support behind controversial legislation in exchange for modest changes in the bill. ICBA officials counter that the ABA is conflicted because it represents both small community banks and large Wall Street firms that are often at odds with each other.

Conflicting messages from the industry "will invite the enactment of a bill that will truly hurt us badly for years to come," ABA Chairman Art Johnson wrote in a letter to chief executives earlier this month.

ICBA officials bristled at the letter, and Chief Executive Cam Fine said he felt it attacked his group's "leadership personally." He had his own criticism of his group's rival.

"ABA represents both the very largest financial firms and some smaller institutions whose best interests are not always the same," he said.

The ICBA backed a provision in the House bill that would allow the government to go in and break up big banks if regulators believe the company could pose a risk to the broader economy. The ABA opposed this measure. ICBA has also argued for stricter limits on the amount of deposits banks should be able to control, an idea the ABA has fought.

Community banks are traditionally held in higher esteem in Washington than are large banks, in part because community bankers are in each lawmaker's district and the group collectively wields considerable influence. After the House passed its bill earlier this month that would raise fees and impose new limits against large financial companies, House Financial Services Committee Chairman Barney Frank (D., Mass.) said large banks didn't wield as much influence.

"It's not the big banks that have the clout," he said. "It's the community banks and the credit unions."

The financial crisis has exposed cracks in part of the financial system, with several large companies getting bailed out by the federal government. In addition, 165 banks have failed since January 2008. There are more than 8,000 banks in the country, and most are small, with less than $10 billion in assets.

The ABA, created in 1875, says its members represent 95% of the total assets within the banking system, though it won't disclose exactly how many banks pay dues.

The ICBA, created in 1930, says it speaks for more than 5,000 dues-paying banks. Combined, the groups spent close to $10 million lobbying Congress in the first nine months of the year, according to the Center for Responsive Politics.

Twitter finally in the money with Google link

noreply@blogger.com (FUYOO1971) — Sat, 12 Dec 2009 16:02:00 +0000

Biz Stone, a co-founder of Twitter, was in the audience at the launch this week of Google’s new weapon in the search engine wars.

He was looking remarkably cheerful, as well he might. The announcement of a stream of millions of Twitter updates in Google’s results pages marked the moment when the faddish micro-blogging site truly entered the mainstream and started to make real money.

Now Google’s millions of users can see a scroll of updates, many from Twitter, in their results pages when they do a search for a vast number of popular queries.

A search for “Tiger Woods” produces a page with a new “Latest Updates” box. In it there is a constantly refreshing and scrolling list of tweets, blog posts and news stories, all flowing on to the page in real-time within seconds of their publication to the web. Designarchives tweets: “Holiday shopping is officially in full swing, kinda like Tiger Woods was.”

While not everyone will want up-to-the-second delivery from the globe’s virtual water-cooler, Twitter’s partnership with Google, and a similar deal struck with Microsoft and its Bing search engine, give the three-year-old company a solid revenue stream.

The deals are each worth several million dollars a month to Twitter, industry insiders said. The cash marks the first tangible evidence that the service can make money after months of monetisation promises from Twitter executives.

Twitter has seen explosive growth in the past two years to more than 50 million users, driven in part by celebrity endorsements but also by the service’s ability to deliver breaking news, sometimes ahead of traditional media, such as the plane crash on the Hudson river in New York. The Treasury used the service this week to deliver summaries of the Pre-Budget Report as Alistair Darling was addressing the Commons.

But while Twitter has become established as a cultural phenomenon, critics have pointed to the lack of a business model and questioned its longevity. Analysts said that Google’s exposure of tweets to a wider audience — the search engine processes billions of search queries a day — will help the company to cement its position as a window into the world’s conversations.

Greg Sterling, analyst with Sterling Market Intelligence, said: “The value is the institutionalisation of Twitter that comes from the deal with Google. The inclusion in the search results will make it more visible.”

He said that Twitter was difficult for many people to get started on. “Twitter can seem ridiculous to those who are not using it to get commercial offers or information from sources that they value. There will be some education for parts of the market from this,” he added.

Twitter’s real-time insight into what people are discussing has huge value to marketeers and companies that want to reach consumers and understand how their brands are perceived, according to experts.

That potential has seen venture capitalists pile into the company. Twitter has gathered $100 million in funding to finance its operations, valuing the company at $1 billion.

The latest stakes were sold in October to three of Twitter’s existing investors — Benchmark Capital, Institutional Venture Partners and Spark Capital — and two new shareholders, Insight Venture Partners and T Rowe Price.

The cash has given Twitter breathing space. Executives have said they are in no hurry to introduce advertising to the site, which may put off users. They have also said they will remain independent despite rumours of overtures from Google and Microsoft. Last year they turned down a $500 million offer from Facebook.

Mr Stone said last month that 2010 would be Twitter’s “revenue year”. The company will capitalise on corporate use of the service by introducing fees on accounts primarily used for commercial purposes. A report from NeXt Up Research forecast that Twitter would have about $140 million in revenue a year by 2014. A new poll of 1,200 UK businesses using Twitter found that 22 per cent would be prepared to pay for additional services. Nearly half the companies surveyed by Accredited Supplier said Twitter would be the world’s largest social media property by 2020.

Computer maker Dell said it had pulled in more than $6.5 million from its (free) Twitter accounts.

Tweets will push up profits: Analysis by Murad Ahmed

Google’s desire to obtain real-time information — such as the deluge of messages that come out of services such as Twitter every second — is in keeping with its mission: “To organise the world’s information and make it universally accessible and useful.”

These tweets are a cash cow waiting to be milked. Google executives have never been shy in explaining why they want more and more information to be searchable. The better and more relevant data that they can offer its users, the more advertising they can sell next to these search results.

This billion-dollar revenue stream is the driving force behind almost everything Google does. Whether that is Street View, which gives people a pedestrian-eye view of roads around the country, or Google Books, an attempt to scan and digitise millions of texts — the aim is simple: make Google the indispensable holder of the world’s information.

Realising this, Microsoft, with its Bing search engine, and this week, Yahoo, have also announced similar deals to contain real-time search information within search results.

But why is real-time search valuable? Because it is instant. Whereas news articles take hours and days to prepare, and blog posts take minutes, tweets and micro-blogs can be tapped out and published in seconds.

Biz Stone, co-founder of Twitter, once explained that he first saw the power of the service when the first he heard about an earthquake a few miles away was through people tweeting about it. He felt the tremors a few minutes later.

Some worry that people will tweet less, or more privately, now that these messages are just a Google search away from being discovered.

Yet analysts said there is little evidence of that happening. Twitter has thrived because of its openness, just like other social networks such as Facebook and MySpace. People seem happy to trade in privacy to be part of these communities. Tweets will continue to grow. Google, Microsoft and others believe that their profits can follow suit.

Bankers Say Financial Overhaul Bill ‘Over-reacts to the Crisis’

noreply@blogger.com (FUYOO1971) — Tue, 01 Dec 2009 06:28:00 +0000

A trade group of the nation’s largest banks sent a letter to each member of the House Financial Services Committee on Sunday urging them to vote against a bill that would give the government more power to break up a failing financial services firm. (Read letter to HFSC.)

Amendments to the bill would also allow the government to potentially break up healthy financial company, if the government determined its potential collapse could imperil the broader economy. The House panel is scheduled to vote on the bill Wednesday.

The Financial Services Roundtable, whose members including Bank of America Corp., Citigroup Inc., and J.P. Morgan Chase & Co., wrote in an 11-page letter “the bill will have a significant impact on our fragile economic recovery and the long-term growth of the economy.”

The letter says “the bill damages the ability of financial institutions, especially larger financial institutions, to finance the economic recovery and facilitate long-term economic growth.”

The trade group says higher capital requirements for banks and a requirement that banks pay into a fund to handle future financial collapses would “reduce lending and other activities by large financial companies.” For example, the bankers said requiring banks to finance in advance a $150 billion would equate to a loss of $3 trillion in new loans.

Large financial companies will have higher costs of funding “and may accelerate the failure of a troubled institution,” the Financial Services Roundtable said.

Many of the bills that have passed through the House Financial Services Committee to overhaul financial regulation have gone with little Republican support, but the measure to be voted on Wednesday could be different. The bill includes an amendment championed by Rep. Ron Paul (R., Texas) that would subject the Federal Reserve to much more scrutiny. Some Republicans might vote for the broader bill because it includes Rep. Paul’s amendment.

Making jobs in a recession

noreply@blogger.com (FUYOO1971) — Tue, 24 Nov 2009 14:49:00 +0000

Daunted by approaching Thanksgiving, with its mandated menus and gratitude? Here's something easy to be thankful for: Jim Purcell's pizza and his foolish midlife itch.

Purcell must be a fool. In a recession, he's starting a restaurant chain. He has tripled down on his idea of an upscale pizza place called Tazinos, opening restaurants in Oak Creek, his home, and in Menomonee Falls and Kenosha. He's got big windows, fashionable colors, carpet on the floors (so you don't see staff mopping). He's got big TVs, so customers don't stay home to see games.

And he's got pizza, basic or suburban-mom kinds like chicken or pesto. It's all-you-can-eat, but he dreads the word "buffet." It suggests, says Purcell, "10 people scarfing over one pizza," and his unbleached-flour product really is a notch or three higher. It's a pizza and salad bistro, the sign says.

Purcell's got plans. The big one is to go national. He has started what he hopes is a national chain. "We have a ton of potential," he says.

So he's nuts, yes?

Restaurants have a dauntingly high failure rate, says Douglas Kennedy, who teaches the business at the University of Wisconsin-Stout. Starting a chain is a second expertise, in franchising. It takes a particular kind of entrepreneurial nerve, he says.

Purcell has it. He says he was soul-searching: "I'm 50 years old. What am I going to do now?" was his thinking. He'd owned a bakery and a pizzeria. He worked for years in the supply business, being grocer and equipment supplier to fast-food chains, eventually through his own company, which he sold. He figures he knows enough about the business side of restaurants, where dreams often falter, to make Tazinos work.

His oldest restaurant has been open a year. Purcell says he's in a "holding pattern" because banks are skittish, but he sees the recession as having cleared the field of competitors. Kennedy confirms there's something to that. "These times of weakness are times of opportunity for a player with a good idea," he said.

Such bright vistas are nice for Purcell. It's more than that, though. "This isn't about me. It's about all these guys," said Purcell of his staff. But in a way, he's wrong. It is about him and people like him who are fool enough to try starting a business. Such people are doing work that benefits us all.

They end up making jobs. Tazinos now employs about 100 people, and Purcell says it's a pleasure to walk into a restaurant and see people he's put to work: "I'm like, 'That guy loves his job.' "

Building one of the restaurants takes about 12 construction workers 90 days, so that's more work, and Purcell says Tazinos spends about 90% of its money, even including equipment, within 100 miles of Milwaukee. This is production that leads to consumption that permits recovery.

Purcell is doing it by betting there's an unfilled need - for a nicer pizza experience below $10 - and filling it. Other people do the actual filling, by mixing dough, managing staff and installing ovens, but none of their supply would ever meet customers' evident demand without someone like Purcell organizing it in the first place.

There are easier, safer ways to make money. "I really didn't want to go out and create my own brand," said Purcell, but other franchises didn't seem to fit. Then, he says, starting a chain could create chances for other people to open a restaurant and make opportunity. "I think I can really make a difference in people's lives," he said.

That sounds almost altruistic. Maybe Purcell means that. But suppose he's in it just for money. Here's a beautiful thing: We all still benefit. He only gets big if the customers stay happy. In getting big, he'll still end up employing many people in jobs that didn't exist before and, if the franchising thing works, creating opportunities for other entrepreneurs.

That's what a recovery looks like. Purcell gets rich by restarting a little bit of the economy. And the pizza's good, too. What a great country we live in.

Home Business & Finance News U.S. Politics International Technology Entertainment Sports Lifestyle Oddly Enough Health Science Special Coverage Video

noreply@blogger.com (FUYOO1971) — Sun, 08 Nov 2009 12:08:00 +0000

Perfect World to Announce Third Quarter 2009 Financial Results on November 16,
2009

BEIJING, Nov. 3 /PRNewswire-Asia/ -- Perfect World Co., Ltd. (Nasdaq: PWRD)
("Perfect World" or the "Company"), a leading online game developer and
operator based in China, today announces that it will release unaudited
financial results for the third quarter ended September 30, 2009, before the
market opens on Monday, November 16, 2009.
(Logo: http://www.newscom.com/cgi-bin/prnh/20090416/CNTH023LOGO )
The Company will host a corresponding conference call and live webcast at
7:00 am Eastern Standard Time (8:00 pm, Beijing time) on Monday, November 16,
2009.
The dial-in details for the live conference call are as follows:
- U.S. Toll Free Number: 1-866-519-4004
- International Dial-in Number: +65-6735-7955
- Mainland China Toll Free Number: 10-800-819-0121
- Hong Kong Toll Free Number: 80-093-0346
- U.K. Toll Free Number: 080-8234-6646
Conference ID: PWRD

A live and archived webcast of the conference call will be available on
the Investor Relations section of Perfect World's website at
http://www.pwrd.com .
A telephone replay of the call will be available after the conclusion of
the conference call through 10:00 am Eastern Standard Time, November 23, 2009.
The dial-in details for the replay are as follows:
- U.S. Toll Free Number: 1-866-214-5335
- International Dial-in Number: +61-2-8235-5000
Conference ID: 7973 (PWRD)

About Perfect World Co., Ltd. (http://www.pwrd.com )
Perfect World Co., Ltd. (Nasdaq: PWRD) is a leading online game developer
and operator based in China. Perfect World primarily develops online games
based on proprietary game engines and game development platforms. The
Company's strong technology and creative game design capabilities, combined
with extensive knowledge and experiences in the online game market, enable it
to frequently introduce popular games that are designed to cater to changing
customer preferences and market trends promptly. The Company's current
portfolio of self-developed online games includes massively multiplayer online
role playing games ("MMORPGs"): "Perfect World," "Legend of Martial Arts,"
"Perfect World II," "Zhu Xian," "Chi Bi," "Pocketpet Journey West," "Battle of
the Immortals" and "Fantasy Zhu Xian;" and an online casual game: "Hot Dance
Party." While a substantial portion of the revenues are generated in China,
the Company's games have been licensed to leading game operators in a number
of countries and regions in Asia, Europe and South America. The Company also
generates revenues from game operation in North America. The Company plans to
continue to explore new and innovative business models and remains deeply
committed to maximizing shareholder value over time.
For further information, please contact:

Perfect World Co., Ltd.
Vivien Wang
Investor Relations Officer
Tel: +86-10-5885-1813
Fax: +86-10-5885-6899
Email: ir@pwrd.com
Web: http://www.pwrd.com

Christensen Investor Relations
Kathy Li
Tel: +1-212-618-1978
Fax: +1-480-614-3033
Email: kli@christensenir.com

Roger Hu
Tel: +852-2117-0861
Fax: +852-2117-0869
Email: rhu@christensenir.com

SOURCE Perfect World Co., Ltd.

Perfect World Co., Ltd., Vivien Wang, Investor Relations Officer,
+86-10-5885-1813, +86-10-5885-6899, ir@pwrd.com; Christensen Investor
Relations, Kathy Li, +1-212-618-1978, +1-480-614-3033, kli@christensenir.com;
Roger Hu, +852-2117-0861, +852-2117-0869, rhu@christensenir.com

Financial Models: When Everything Goes Up, Risk Goes Down

noreply@blogger.com (FUYOO1971) — Wed, 04 Nov 2009 01:31:00 +0000

Here's how standard risk metrics continue to be dangerous.

Morgan Stanley has highlighted that the positioning beta, a measure of risk, for emerging market bond funds appears to have come down against their benchmarks.

Yet as Morgan Stanley's Regis Chatellier points out, a prime reason for this has been because market volatility for emerging markets has come down. There hasn't been a major change in funds' actual positioning.

Morgan Stanley: After reaching a peak this summer, net risk exposure – as captured by our positioning beta – has fallen to the point where EM funds are now neutral relative to their benchmark (see graph of positioning beta exposure on the left). This fall in beta risk exposure is largely due to a decline in EM bond volatility rather than a change in funds’ positioning. In fact, EM funds have been simultaneously overweight selective high-beta credits which have seen their volatility decreasing (in particular Argentina) and have increased their exposure to low-beta credits (notably Mexico), the combined result being a sharp decline in beta exposure versus benchmark.

We're not faulting Morgan Stanley, their technical piece clearly states the situation and in fact highlights the issue. We're just hoping that fund managers don't truly view themselves as positioned with less risk right now just because almost everything went up in the last few months and volatility came down. Volatility can change quite quickly.

CI Financial sells Blackmont to Macquarie for $93.3-million Read more: http://www.financialpost.com/story.html?id=2145765#ixzz0VHSAflNh The New Fina

noreply@blogger.com (FUYOO1971) — Thu, 29 Oct 2009 00:33:00 +0000

Australia's Macquarie Group said Monday it has agreed to buy investment dealer Blackmont Capital Inc. from CI Financial Corp. for $93.3-million in cash.

CI said it will be keeping Blackmont's capital markets division, which produces independent financial research.

"Macquarie will provide an excellent home with strong support for Blackmont's retail advisors, and foster the continued growth of their practices," Bill Holland, CI chief executive, said in a release.

CI expects to close by the end of the year.

Macquarie will be rebranded "Macquarie Private Wealth" and added to its Banking and Financial Services Group. Bruce Kagan, Blackmont chief executive, will continue to run the company while Macquarie director Earl Evans will become president, Macquarie said in a release.

"This transaction will enable us to deliver more to our people and clients. Macquarie brings to Blackmont a strong balance sheet, a commitment to growth, broad equity research and access to new products and proprietary deal flow," Mr. Kagan said in a release from Macquarie.

The sale to Macquarie had been rumoured in recent weeks, with the selling price estimated at between $105-million and $140-million.

CI had originally acquired Blackmont as part of its deal for Rockwater Capital in early 2007 for $251-million.

What to do with extra PAC money?

noreply@blogger.com (FUYOO1971) — Tue, 27 Oct 2009 12:25:00 +0000

Something wasn’t sitting right with former Rep. Jim McCrery after he finished a telephone interview on the donations made to former colleagues while he sits out a mandatory yearlong ban on lobbying them directly.

Sure, he had kept his campaign committee open for business — which he insists help his firm, Capitol Counsel — but he spent most of his leadership political action committee's money before he left and turned over the reins to fellow Louisiana Republican Charles Boustany.

He wanted that known. He dialed back.

"I just wanted to get a little bit of credit for doing something the right way," he said. "Rather than take it with me and dole it out as see fit, I thought it best to turn it over to a sitting member of Congress." McCrery's perspective raises a question with no easy answer: What do you do with a leadership PAC when you're no longer in office?

Is it better to keep the money and parcel it out to former candidates and colleagues? Or is it better to hand over a large sum of money to a single friend? If it isn't spent to influence Congress or help friends, should it be used for travel or other creature comforts? Or should you close out the PAC by making charitable contributions?

In McCrery's case and that of former Rep. Dave Hobson (R-Ohio), the answer was to bequeath the PAC to a home-state colleague.

Hobson inherited his Pioneer PAC from close a friend, former Rep. John Kasich (R-Ohio). Hobson then willed it to Kasich's successor in the House, Rep. Patrick Tiberi (R-Ohio).

It's a legal maneuver but one that could potentially result in the transfer of huge sums of money from an outgoing lawmaker to a sitting member he or she might try to influence in the future.

To illustrate: Former Rep. Tom Reynolds, a New York Republican who is still under the one-year lobbying ban, has nearly $550,000 in his Together for Our Majority PAC. He's free to will that entire amount to a former colleague, although he’s given no indication that he intends to do so.

Reynolds did not respond to an e-mailed request from POLITICO for comment.

When McCrery left, there was less than $10,000 in his PAC’s coffers, leaving Boustany enough to pay salaries while he rebuilt the war chest.

"In effect, the money was zeroed out," Boustany says. "I inherited the infrastructure."

Will UK go bust after the elections?

noreply@blogger.com (FUYOO1971) — Mon, 26 Oct 2009 15:09:00 +0000

Sir Howard Davis made some very refreshing comments at recent HSBC clients gathering in London. It is clear that the public do not understand the scale of the crisis which was caused by a collapse of the giant pyramid scheme. The demands of those who are still at work, from postal workers to university professors, make it clear that the current crisis appears as something unreal. And, ironically, it is.

The government have no idea of the size of liquidity hole they are trying to plug. It may still be some hundreds of billions, if not trillions, of pounds. On top of that they keep on spending money to sustain artificially the lifestyle the UK cannot afford any longer (if it ever afforded at all). This puts the country in even more debt. As the government does not want to lose the next elections (or to lose them by the least possible margin), they keep the public in delusion of affluence like someone who got unemployed and is draining his credit cards to their limits.

The Conservatives, seeing the public mood and appetite for continued high lifestyle, are too afraid of telling the harsh truth: that the UK is already in a very deep debt hole and tightening of the belt has to start now. They do not want to be accused of scaremongering by the Labour, which may well result in scuppering their elections chances of near-certain (at the moment) victory.

It is this rather unholy alliance of interests of both sides of political spectrum: the Labour's and the Conservatives' that contributes not only to irresponsible but economically irrational behaviour. We try to live financially as nothing has happened. After the publication of the recent economic figures, the time till the next elections increasingly looks like the last dance on the Titanic. The reality check will come after the elections. Doesn't matter who wins: there is a pretty good risk that the UK will be bust by then.

We seem to believe that what happened to Albania in 1996 – 1997, Argentina in 1999 – 2002 and is happening in Zimbabwe now will never happen to us. That all these can happen to others. Well, it may already have started happening…

FACTBOX: German parties' plans on financial policy

noreply@blogger.com (FUYOO1971) — Sun, 25 Oct 2009 12:32:00 +0000

BERLIN (Reuters) - German Chancellor Angela Merkel's conservatives sealed a coalition deal with the Free Democrats (FDP) on Saturday after marathon talks.

Below is what they agreed on finance policy, according to a draft coalition agreement and party officials.

TAX RELIEF

* From 2010, the parties will implement 14 billion euros ($21.01 billion) in tax relief agreed by the outgoing government. Additional corporate and inheritance tax reforms, and changes to child allowances will take the total tax relief for 2010 to an estimated 21 billion euros.

* From 2011, they plan income tax relief worth a total of 24 billion euros annually, with low- and medium-income households and families with children set to benefit most.

* Under the corporate tax reform taking effect from 2010, rules governing the deduction of interest rate payments from taxable profits will be made more attractive. Writing off losses against tax will become easier.

* Inheritance tax rules are to be simplified from 2010 with the aim of helping family owned businesses.

* Also from 2010, child benefit will be increased by 20 euros to 184 euros ($276) per month and the child tax allowance will rise to 7,008 euros from 6,024 euros now.

* Merkel has ruled out tax increases but left open the possibility that social security contributions might rise, saying the government will review the situation in 2011.

BUDGET DEFICIT

* The parties say in the draft coalition accord: "We stand for a solid budget and finance policy," adding that compliance with the European Union Stability Pact is a priority for them.

* They aim to boost economic growth to generate revenues to tackle Germany's swollen budget deficit, and say they will review all state spending.

* The parties say the state should reduce its stakes in banks and other companies as soon as possible and work must now begin on exit strategies.

FINANCIAL MARKET SUPERVISION

* The parties agree German banks will have to meet tougher capital requirements and that supervisory powers for financial markets, until now split between Germany's Bundesbank and watchdog Bafin, will be concentrated at the central bank.

* They will work "vehemently" to avoid financial market inflation risks.

* The parties back the development of a European rating agency.

* In future, no financial product, market institution or financial market may go unregulated or supervised, they say.

In New York City, Obama presses for proposal financial industry overhaul

noreply@blogger.com (FUYOO1971) — Fri, 23 Oct 2009 03:32:00 +0000

Obama presses for financial industry overhaul

NEW YORK — President Barack Obama is asking the financial industry to support his push for changes he says would help prevent another economic crisis and would be good for the country in the long run.

Obama made his plea Tuesday night a Democratic Party fundraiser in New York City, speaking to donors who paid $30,000-per-couple to hear him just two weeks before the Nov. 3 elections.

Obama defended administration efforts to bail out the financial industry, calling it unpopular but the right thing to do.

Now, he says the right thing for the industry to do would be to support the changes he has proposed, including creating a federal agency to protect consumers.

Banks still a good place to keep emergency funds

noreply@blogger.com (FUYOO1971) — Wed, 21 Oct 2009 01:18:00 +0000

The month of October began with the Federal Deposit Insurance Corporation (FDIC) taking control of the assets of Warren Bank and turning them over to Huntington Bank. On a national level, the FDIC has taken control of nearly 100 banks, year to date.

If the current rate continues, that number will easily exceed 100 by the end of the year. Fortunately, the takeovers are virtually seamless to the depositors, provided that their account balances are under the maximum FDIC limits.

It's important to the nation's stability that we have a dependable and reliable banking system. Just a year ago, many experts thought that the entire banking system was about to collapse. Although several banks continue to have financial problems, it appears that the banking industry has sidestepped a potential freefall.

As a financial advisor, I believe everyone should have adequate liquid cash reserves, and a bank is an appropriate place to keep them. I have recently received a number of faxes and e-mails, all asking the same underlying questions. "Why are the interest rates at the bank so low?" And "Isn't there a better place to put our money?"

Certainly there are investment vehicles with higher interest rates. For example, a little due diligence will uncover a number of equities with yields in the 8 percent to 10 percent range. Depending on your circumstances and risk tolerance, some of your money probably should be in equities.

But let me issue a word of caution. Only bank and credit union deposits have an underlying guarantee beyond the institution itself. Other investments may or may not have better rates, but in all likelihood they are not as secure because they simply lack the extra layer of the FDIC guarantee. There are many reasons why interest rates are so low. One contributing factor is the fee that banks are required to pay for the FDIC protection. Not long ago, a typical bank would contribute 12 to 14 cents into the system for every $100 worth of deposits. Today, that number is closer to 16 cents. Additionally, to shore up the program that's taken over nearly 100 banks this year, the FDIC has come up with a special assessment for banks.

Simply stated, they are asking member banks to prepay three years worth of assessments. I have little doubt that the added expense of the increased fees and the special assessment are significant reasons why bank interest rates are so low.

On top of that, the collapse of the real estate market has left many banks scrambling to stay afloat. As more and more homeowners default on their mortgages, the banks not only stop collecting money, they are suddenly becoming homeowners.

The bottom line is that, even though rates are low, it's important to have emergency funds in the bank. Over the past year, many investors took some serious losses on their investments, even as their housing values plummeted.

Such downturns illustrate why it is so important to have adequate cash reserves. And it's vital that those reserves are in a safe place. You do not want to, nor should you take risks with your safe money. Interest rates may be at historical lows, but it's good to know that if your bank gets into trouble, you won't lose your emergency money.

Financial shares slip after bank earnings

noreply@blogger.com (FUYOO1971) — Tue, 20 Oct 2009 00:16:00 +0000

BOSTON (MarketWatch) -- U.S. financial stocks fell on Thursday but closed off their lows following a late day rally in the broader market.

Major financilal stocks ended were mired in the red as quarterly earnings reports from Goldman Sachs Group Inc. and Citigroup Inc. didn't live up to investors' lofty expectations.

Goldman /quotes/comstock/13*!gs/quotes/nls/gs (GS 186.25, +0.75, +0.40%) slipped after the company said its third-quarter earnings topped analyst forecasts, but investors may have been hoping for an even better showing after J.P. Morgan Chase & Co. /quotes/comstock/13*!jpm/quotes/nls/jpm (JPM 46.12, +0.14, +0.30%) reported a blowout quarter earlier this week.

Goldman posted quarterly profit of more than $3 billion. See full story.
/quotes/comstock/13*!xlf/quotes/nls/xlf XLF 15.33, +0.04, +0.26%

Meanwhile, Citi /quotes/comstock/13*!c/quotes/nls/c (C 4.58, +0.04, +0.88%) shares fell 5% and were the biggest decliner among the financial stocks in the S&P 500 after the troubled banking giant said its per-share loss narrowed, but it continued to book huge credit losses in the tough economic climate. See complete article.

An exchange-traded fund tracking financial stocks, Financial Select Sector SPDR Fund /quotes/comstock/13*!xlf/quotes/nls/xlf (XLF 15.33, +0.04, +0.26%) , slipped more than 1.2% in afternoon trade. The ETF jumped over 3% on Wednesday after J.P. Morgan's quarterly results easily surpassed Wall Street estimates.

Elsewhere on the earnings front, Charles Schwab Corp. /quotes/comstock/15*!schw/quotes/nls/schw (SCHW 18.32, -0.21, -1.13%) said its third-quarter net income slipped by about a third from the year-ago period. The online broker's stock fell about 5%. Read more.

In other news, shares of Capital One Financial Corp. /quotes/comstock/13*!cof/quotes/nls/cof (COF 37.36, +0.08, +0.22%) were losing ground after the credit-card firm said delinquencies and charge-offs rose in September with more borrowers in financial straits.

Shares of Invesco Ltd. /quotes/comstock/13*!ivz/quotes/nls/ivz (IVZ 23.80, +0.68, +2.94%) closed off 3.6% Thursday after Pali Research downgraded the asset manager's shares to neutral from buy. Analyst Douglas Sipkin in a research note said the stock, which closed at $23.97 on Wednesday, was essentially at his target price of $24.

"We think that for shares to move materially higher in the short term, an acquisition is becoming crucial. One transaction in particular, [Morgan Stanley's] Van Kampen, has been discussed as a target," he wrote.

Additionally, Sipkin noted Invesco's asset growth in the third quarter lagged peers. "Invesco is still one of the best-positioned managers for the long-term, just at current levels we think it is fairly valued for now," the analyst said.

CIT Group Inc. /quotes/comstock/13*!cit/quotes/nls/cit (CIT 1.19, -0.02, -1.65%) was among the few financial stocks moving strongly to the upside Thursday. The lender, which is trying to stave off bankruptcy, is in negotiations with some bondholders to amend the terms of its $28 billion debt exchange, Bloomberg reported Thursday.

Separately, Reuters reported CIT is moving closer to finalizing the terms of a new loan that would give the company $3 billion to $6.5 billion. The terms of the loan, which is being arranged by Bank of America Corp. /quotes/comstock/13*!bac/quotes/nls/bac (BAC 17.23, +0.07, +0.41%) , could be finalized as soon as this week, Reuters said.

Financial Press Perennially Surprised by “Placement Agents”

noreply@blogger.com (FUYOO1971) — Tue, 20 Oct 2009 00:14:00 +0000

The financial pages this morning are filled with the disclosure by Calpers that money-management firms seeking business from the big California pension fund paid $50 million to a firm run by a former Calpers director acting a middleman, or “placement agent.”

The fear is that big firms—in this case, Leon Black’s Apollo Management LP is named—may have been involved in another pay-to-play scandal.

Here’s the Journal this morning:

These so-called placement agents came under scrutiny in March, when New York Attorney General Andrew Cuomo announced two arrests. In that case, a connected middleman allegedly received kickbacks for helping investment firms gain access to billions of dollars of New York pension money.

Actually, these so-called placement agents came under scrutiny ten years ago. Here’s the Journal from 1999:

The Connecticut state treasurer has moved to unwind or cancel $561.5 million in investments made by her predecessor and will seek “reparations” from investment firms ultimately implicated in a widening corruption scandal.

Denise L. Nappier, the current treasurer, said in a statement that her office also plans to force investment-services firms to disclose fees paid to consultants or placement agents who placed past state pension-fund investments. The state will also require fees to be disclosed as a condition of future business with the state, she said.

The announcement comes four days after Ms. Nappier’s predecessor, Paul J. Silvester, pleaded guilty in federal court in Hartford, Conn., to steering state pension funds in return for kickbacks and other favors, often through placement agents and go-betweens. (1)

In the earlier case, the big named firms seeking and getting Connecticut business included the Carlyle Group, which included George H.W. Bush among its senior advisers, and then Wall Street stalwart PaineWebber, the Bear Stearns of its day, now part of UBS.

I remember all this because I’m the one who wrote that. Charlie Gasparino and I mustered a decent follow-up (2), but that’s as far as it went. Too bad.

In the earlier case, Carlyle’s placement agent was a man named Wayne Berman, founder of something called Park Strategies with one Alfonse D’Amato, then a former Senator and busy Mr. Fix-It. The Connecticut scandal forced Berman to resign as a top fund-raiser for George W. Bush’s presidential campaign.

In the current case, the go-between is knee-deep in California Republican circles:

Mr. [Al] Villalobos’s connections in the state of California go back decades. He worked as a consultant to California Gov. Ronald Reagan and later helped raise money for California Gov. Pete Wilson, who named Mr. Villalobos to the State Personnel Board. That board, which administers the state’s civil-service system, picked him as its representative on the Calpers board in 1993.

This isn’t about corrupt Republicans. Nor is this one of those plus ca change posts. I’ll leave those lofty musings to James Grant.

It is to say that business news outlets had better gear up their investigative capacity or be condemned forever to play catch-up on the same thing over and over again.

1. “Connecticut Treasurer Moves to Unwind Or Cancel Investments Made by Silvester”
The Wall Street Journal
29 September 1999

2. “Heard On The Street: Federal Probe Targets PaineWebber’s Pension Funds”
13 October 1999

To fix financial system, protect consumers first

noreply@blogger.com (FUYOO1971) — Fri, 16 Oct 2009 17:10:00 +0000

THE NEW Consumer Financial Protection Agency proposed by the Obama administration is needed to correct obvious flaws in the financial system and to prevent a repeat of last year’s economic collapse. Predatory marketing of subprime mortgages was a root cause of the current recession. Those toxic loans were bundled in opaque mortgage-backed securities that went hurtling through the global financial system, destroying enormous sums of investor wealth and nearly paralyzing credit markets. Nothing could be more clearly in the national interest than to avoid a recurrence of that financial pathology.

The proposal for a consumer-protection agency is slated for a vote today in Representative Barney Frank’s House Financial Services Committee. The new agency would safeguard investors and the larger economic system as well. Under new rules whose enforcement the agency would supervise, consumers eligible for conventional mortgages would not be steered instead into deceptively packaged subprime mortgages. Banks would be prevented from suddenly jacking up credit card fees and hiding rate increases in pages of fine print. And financial institutions would be pushed to describe their products as clearly, comprehensibly, and concisely as possible.

In their lobbying campaign against the new rules, the big banks and the Chamber of Commerce assert that local merchants may be prevented from providing traditional forms of credit to customers. But the legislation now wending its way through Frank’s committee would apply only to financial institutions, not local merchants. Frank is properly trying to work with community banks and credit unions in drafting legislation that does not impede their ability to do business.

But Frank cannot waver on one point: To prevent the megabanks from getting around any new rules, the legislation must preserve the ability of the states to impose consumer-finance protections of their own. State attorneys general usually do a good job defending the consumer’s interest, while international financial giants have a history of getting their way with the feds.

Now is the time to build fortifications against the next financial bust. And as the country has just learned, protection of investors begins with protection for home buyers and other consumers.

Away from the financial bust, tech stocks boomed

noreply@blogger.com (FUYOO1971) — Thu, 15 Oct 2009 03:54:00 +0000

SEATTLE — Intel Corp. and other technology stocks helped lead the way as markets climbed out of the trough they fell into in March — even as the recession kept many big corporations and consumers sitting on their wallets instead of spending on computers and other high-tech products.

Wary investors could find much to like about technology companies, including solid profits — if slower growth than in the past — and cash-laden balance sheets. Unlike in the last bust, technology companies were not to blame for the economic turmoil.

"Technology looks relatively safe," said Ryan Jacob, portfolio manager for the Jacob Internet Fund, which owns stakes in such companies as Apple Inc., Google Inc. and Yahoo Inc.

While the Dow Jones Industrial Average has risen 53 percent — crossing back over the 10,000 mark Wednesday — and the S&P 500 has improved 61 percent since March 9, the tech-heavy Nasdaq has jumped an even sharper 71 percent. Financial stocks have rebounded more, but they had farther to go after being beaten down in the market meltdown.

Intel's shares have improved 70 percent since March, in part because the chip maker was able to extend its dominance into the popular "netbook" category of small computers. Investors like how Intel's chips keep getting more powerful yet cheaper to make. An upbeat outlook from Intel on Tuesday was one of the developments that helped lift the Dow past 10,000.

Apple's shares have been even stronger. The stock has more than doubled since Wall Street hit its low point this year on March 9.

Investors were relieved to see CEO Steve Jobs return from medical leave, but they've also been stoked about Apple's push into the mobile market with the iPhone. Apple's cell phone market share is still tiny, leaving it plenty of room to grow in a market that is bigger than personal computers. The iPhone also is priced competitively, unlike Apple's premium-priced Mac computers.

Even as the sagging economy tamped down advertising budgets, Google's ad sales remained healthy, although they improved at the slowest pace in the company's 11-year history. Management also impressed investors with financial discipline as it laid off a few hundred workers and took away some employee perks to boost profits. Google's stock has improved 84 percent since March to about $534 per share, though that is still well below the record of $747 reached in 2007.

Retail companies were hurt badly by the downturn, but Web retailer Amazon.com Inc. fared decently, with shares rising 60 percent since March. People may have been shopping less elsewhere, but they flocked to Amazon for deals, pushing the company's revenue higher in both the first and second quarters of the year.

Among the tech companies that make up the Dow Jones industrials, Microsoft Corp. has been one standout. It is sitting on $30 billion in cash, and is in position to reap significant benefits once companies and shoppers start buying computers again. Microsoft shares have increased 74 percent since March.

Another Dow component, Hewlett-Packard Co., has won points with investors because of CEO Mark Hurd's cost-cutting and his expansion beyond HP's core markets of PCs and printer ink, where profits are under pressure from low-cost competitors. In response, HP is becoming a bigger player in the more profitable businesses of computer networking and technology services. Hewlett-Packard shares have gained 88 percent since March.

Tech's impressive returns should continue through the fourth quarter, which is the strongest time of year for tech companies, said Robert Stimpson, a portfolio manager for Kansas City, Mo.-based Oak Associates. The fourth quarter is typically lucrative because of holiday shopping by consumers and because corporations hold off on some tech purchases until the end of the year, when they have optimal insight about what still fits in their budgets.

While information-technology companies outperformed, telecommunications services has been one of the weakest sectors this year.

The sector has long-term challenges. Phone companies are losing landlines at a rapid pace. Nearly everyone already has a cell phone, so further growth in wireless can't be counted on. Also, competition is reducing monthly service fees.

But some of the underperformance in telecom stocks can be attributed to other factors. Carriers with relatively steady income, such as Dow components AT&T Inc. and Verizon Communications Inc., weren't dragged down as much as companies in other sectors by the 2008 meltdown. As a result, these stocks have has less of a rebound to make this year. AT&T shares have risen 23 percent since March 9, while Verizon's stock has gained just 14 percent.