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“I cant afford it, I’m broke” he said.

…to which I responded “broke is a mindset”

He says “Broke Is a Fact!”

This intrigued me, so I did an experiment.

The other week was really interesting.

In one day I spoke to a Banking & Finance billionaire…

…a millionaire…

…a million pound bonus CEO…

…a six figure salary Investment Banker…

…200 interns at most major banks…

…7 graduates on my facebook group that could not get a job…

…and 1 student that said he was too broke to invest in one of my training programs.

Now although this is a normal week for me in my line of business,

but this time I was looking through different glasses.

I remember what it was like to be short of cash, but broke has never been in my vocabulary.

Even when I had £100,000 debt, I still thought I was rich.

Everybody else thought I was deluded.

I spent and spent and spent on training, business ideas, professional qualifications and things that I knew would further my life.

I have never used the words “I can’t afford it”, because it is so limited in terms of mindset.

…so when I had a conversation with a student that said he could not afford it, he was offended by my broke is a mindset comment.

And it set my brain thinking that particular day…

What is the difference between a Banking & Finance billionaire…

…a Banking & Finance millionaire…

…a £100,000 salary in Banking & Finance…

…a £25,000 salary in Banking & Finance…

…and broke with a Banking & Finance Masters?

Interesting?

…so interesting, I thought I would share the results with you here…

So, I decided to speak to them all in one day.

First, the broke student.

His belief was that money is scarce…

…and that he is ‘just’ a student…

…and students don’t have money!

When I was a student I was self funded, had a job and owned a business because I wanted to have all the money I needed at uni.

Just because I was a student, didn’t mean I wanted to be broke for a second.

Why did we both have two different realities?

Interesting?

A few hours later I met an Investment Banker with regards to raising finance for a private equity deal.

I don’t know for sure, but my guess is that he might be on £100,000 plus bonus.

As an Investment Banker, you get to meet serious business geniuses and Venture Capitalists.

In my Investment Banking days, When I was raising finance for them, I always used to ask myself “How did you start this”

I was always curious about the founder, how it began, the inspiration, the vision and the mission behind the idea.

This particular Investment Banker never thought about those things.

He was focused on sealing the deal and moving to the next stage.

Interesting?

I then got on the phone to my business partner Peter Hargreaves, he owns Hargreaves Lansdown, a FTSE listed Wealth Management Company with his own personal net worth of £500 million, in the Times Rich List.

I was excited about a new project I was working on in October where I was going to run a Bank sponsored day for students and graduates who want to work in Banking & Finance with all proceeds going to a charity I am a volunteer and fundraiser for called “Peace One Day”.

The day is going to hook students and graduates up with the biggest influencers in Banking & Finance and tell them about new opportunity in the new economy with billionaires and inspiring leaders. (Put November 22nd in your diary)

Immediately Peter asked me about how profitable the event will be. I told him I don’t know, he said get back to me when you have thought about it.

Interesting?

Then on the same day I met Mike Harris, who created three multi billion pound businesses in a row, two of them in Banking and Finance.

I asked him about two of his Banking & Finance businesses…

…he told me they were both born out of his mission to “Transform Banking”.

In his mission to transform banking, he created First Direct, the first telephone bank and Egg, the first online bank.

I asked him, how do you create a multi billion pound business.

His response…

“You need to have a mission, you need to transform something, you need to revolutionise, you need passion”

There was a bit more to the four hour conversation than that, but that is the essence.

Interesting?

I immediately gave Mike Harris a value proposition and we agreed to do a consultancy swap for half a day each.

We agreed that I would consult him for half a day on my value proposition and he’ll consult me for half a day on building an iconic brand.

(I’ll teach you how to get a result like this in another conversation!)

To which I immediately accepted.

Consulting from a multi billionaire on building an iconic brand…

Result

Then later that evening I went to a party I had organised with over 200 interns from every major Bank in the world.

‘The Banking & Finance VIP Party’

At the party there were a few people that didn’t recognise me and asked me where I was interning.

I told them I owned Benedix and I was here to meet and network with my clients who have secured their first job in Banking & Finance and discuss next steps to turn it into more.

He was shocked!

He though I was too young to own a company.

Interesting?

I spoke to hundreds of interns that evening from Goldmans, Citi, Deutsche, Barclays Capital and every major bank.

The theme of their conversation with me…?

Simon, how can I turn this into a full time offer and they were buzzing over the £25-£35k salary they were receiving.

Interesting?

You see, I could of told them about how to build an iconic multi billion pound brand, from the conversation I was having earlier that day, but there mind was not thinking higher than getting the £30k job.

Interesting?

So what is the point in all this, Simon?

OK.

The results of my interesting day?

We get paid what we believe we should be paid.

We tend to earn the same amount of money as the people we spend most of our time with.

We all have unlimited potential, but limited beliefs.

What if I introduced the broke student to the billionaire and they hung out for three months.

Do you think the broke student might see things differently, meet some new contacts, be introduced to a new way of thinking, come up with an idea?

They say our income is the average of the 5 people we spend most of our time with.

The Take away

Billionaires think differently from millionaires…

…millionaires think differently from £100k salaries…

£100k salaries think differently from £25k salaries…

£25k salaries think differently from broke students.

Students who can afford our programs think differently from those who can’t?

So we all have unlimited potential, but the only thing that determines our result is our belief.

Mike Harris believes he can transform.

And he transforms.

Peter Hargreaves believes profit is king.

And he profits in a huge way.

The Investment Banker believes he can seal the deal.

And he sealed the deal.

The interns believe £25k is amazing.

And they got their internship.

The student that can’t afford to invest in the training to get his career moving believes he is broke.

And he still has not enrolled on my Banking & Finance Professional Program, to get a different result.

I believe anything is possible, we have unlimited potential and everything is belief, combined with strategy.

Get the belief and strategy right and anything can be done.

The strategy comes from those who have achieved the result you want to achieve.

Nowhere else.

The belief is from within.

But there are ways of increasing your belief.

Hang out with those who believe differently.

Skeptics are controlled by fear.

Opportunists, feel the fear and do it anyway.

Being skeptical is easy.

Taking a risk means you grow and learn.

You risk looking foolish if it goes wrong, but the alternative is being a skeptic and never trying.

Opportunists have the same fear.

But that fear is the fear of not achieving the result they want.

That fear drives both the skeptic and the opportunist.

They both get different results.

I think it’s interesting anyway?

Surround yourself with people who have the result you want and eventually you will have that result.

Please comment and let me know your thoughts.

To your success

Simon

Cayman Bank to raise capital, such as debt or equity capital for its clients and Advice on the possible merger of customers and acquisition transactions. At the top of the global investment banks and the stock market including stocks, bonds and Treasury bills its institutional investors. These international investment Commercial banks in reality for the respective accounts. There are many existing Investment banks are also involved in managing third party assets. The international investment bank consists of several departments, such as Departments of the Debt Capital Markets, Equity Capital Markets, Asset Management, Risk Management, marketing, treasury management, mergers and acquisitions and Research.

 

Cayman banking  could be very confusing for a normal installation individual and that is a reason for people to seek help from qualified investment deals. Really good suppliers of the various global financial services should a solid foundation in terms of dealing with the international market. Must also available in a situation, in time for global financial services and solutions Customers can ask of them. A few features that a good international Financial services is to be able to offer for sale, trade, Advice and above all, the various strategies to improve a company’s Capital.

 

Cayman Banks are the first order must also be supported by competent persons who offers a high level of playability, along with a wide and the impressive performance. Must correctly distinguish the exact Needs of each customer, as the financial proposals made, and offer tailored financial strategies. First-class international financial services Doctors also maintain good corporate governance. These companies are trying meeting all their social responsibility to their shareholders, and other interested groups. Improve the corporate values and to convey in this its employees and provides market-based financial solutions and advice their customers.

 

Some global financial markets, investment banks are higher than those in New address York, Tokyo and London, among others. global investment banking actually works for

Provision of high-quality service for a wide range of clients around the world. Customer’s international investment banks including public sector, large enterprises,

Hedge funds, financial institutions and other organizations.

 

Cayman banking  is very important for many customers around the world. If a many things for them and offers flexibility for customers. Primary the aim of the international deal to ensure financial success their customers. This is the reason why these banks offer a lot Solutions, strategies and services that require the raising of capital Public and private sector, restructuring and financial solutions or financial advice. Ensured through the provision of these services that these international investment banking units offer a broad knowledge of financial markets and coordinated implementation of their worldwide customers.

Over the past few years, a rising emphasis has been placed on companies and financial institutions’ Corporate Social Responsibility. But what does Corporate Social Responsibility (CSR)” mean anyway? This is indeed one of the most frequently asked questions for all those dealing with CSR matters.

 CSR is also known as corporate responsibility, corporate citizenship, responsible business, sustainable responsible business (SRB), or corporate social performance. Different organizations have developed different definitions and there is large common ground between them.

 A simple definition refers to CSR as how companies and financial institutions take into consideration the impact on society of their operational activities. Consequently, it requires a built-in, self-regulating mechanism whereby businesses would monitor and ensure their adherence to law, ethical standards, and international norms to produce an overall positive impact on society.

 It is not surprising to see that CSR is subject to considerable amount of debate and criticism. Advocates argue that businesses benefit in many ways by operating with a perception broader and longer than their own immediate, short-term profits. Opponents argue that CSR diverts from the basic economic role of business; others argue that it is nothing more than superficial window-dressing;

 Largely, the banking industry in the Middle East does not realize the central importance of having a defined CSR policy. Many banks do not fully understand the worth of CSR.

 There are obvious and real gains on hand for banks which have well-designed and successful CSR strategies. They can promote their profile in the community they serve, enhance local, and cross-border economic performance, and enable community development, at the same time strengthening their profitability.

 CSR focuses more on how companies and financial institutions can contribute through their core business, in addition to traditional charitable donations.

 

 CSR practices are often implemented in banks’ core business, which are credit and investments. Project finance is one of the methods to get capital for investment opportunities.       

 Banks consider how to fairly balance the risk and interests of the various participating parties, including protecting the interest of those who are directly and indirectly affected – specifically the local community that reside within or close to the area impacted by the project.

 It is recommended that banks recognize their responsibility to prevent or limit social and environmental harm that may have been caused by activities financed by them; they need to adopt appropriate analysis and verification procedures.

 Banks have impact on the environment directly and indirectly. Lending and investments activities have an indirect impact on the environment. Therefore, banks should be encouraged to consider environmentally-friendly purposes in their credit decisions. To this end, banks may offer incentives to credit facilities for “green” investments such as improving a buildings’ insulation or more efficient lighting systems which use alternative energy sources. The bank may apply less stringent rules in relation to collaterals or offer discounted loans to such clients for these types of investments.

 There are approaches that explore how banks are linking the traditional credit risk assessment with the borrower’s environmental risk assessment. In other words a bank can assess the environmental credit risk of the borrowing customer and then factor in the results of this assessment at some stage of the creditworthy assessment process.

 

 Community involvement is the basis of all accomplished CSR policy initiatives and extends far beyond the standard charitable measures. Banks should introduce innovative schemes such as:

permanent  learning programs for disadvantaged sectors of society;
sponsorship of young entrepreneurs; 
provision of academic scholarships and research proposals;
support environmental issues such as recycling and waste management;
community support programs;
health support programs;
financial support for art and culture;

 Banks may also support non-governmental organizations engaged in drug prevention measures for the youth with a mentorship and parental training programmes. Bank employees can be mentors for pupils at the senior level of the compulsory school during one school year.

 

 It is essential that there should be a transparent and strong commitment to adoption of CSR practices. This can be reached through explicit reference to CSR activities adopted by banks through the following means:

dedicating sections of Annual Reports to CSR matters;
publishing of Sustainability Reports and/or policy statements on CSR; and web-based information.

 It should be noted that corporate sustainability for banks is much more than mere charity. In this context, banks are encouraged to improve the future of the people in all communities they operate  through CSR programmes, which in turn will sustain their business in the future.

 In Europe, a dramatic change has been in the type of CSR reporting which has changed from simply environmental reporting to sustainability (social, environmental and economic reporting which has now become typical among top listed companies). There has been an increase in the number of companies publishing CSR information as part of their annual reports.

 

 Just like other business sectors, the business of banking has a direct impact on the environment through consumption of paper, energy, waste management and means of transport used. Direct environmental impact can be reduced by keeping environmental order in banks themselves, through limiting the consumption of energy and paper, ensuring good waste management and requiring suppliers’ to conform to environmental standards. A bank can minimize the impact in a systematic manner through implementing an environmental policy; it can even go further and apply for environmental certification in accordance with ISO 14001.

 The ISO 14001 is a standard for environmental management systems that is applicable to any business. It aims to reduce the environmental footprint of a business and to decrease the pollution and waste a business produces.

 Good examples from the banking sector include Deutsche Bank, Barclays Bank and Alpine Bank of Colorado. They have constructed a comprehensive Sustainability Management System in accordance with ISO 14001 and permitted an independent certification agency to monitor their commitment in the field of sustainability by making sure they comply with the requirements of ISO 14001 standard.

 F

 The market in which banks operate today requires new range of products targeting new customer segments including groups who are not yet fully integrated in society, and not dealing with banks such as temporary workers, low-income families, and micro businesses operating in poor areas of the country.

 This situation represents for banks a challenge in terms of designing suitable products for these distinct segments, and the opportunity to develop a new type of business beneficial to all. Some good examples of responding to the challenge would be microfinance and financial e

Banks are encouraged to promote financial education projects involving different target groups. This is achieved in two ways. Firstly, by concluding agreements with strategic partners which are recognized by the target groups in order to inform them better on financial services and products which they will use in their daily life.  Secondly, by developing contacts with the local authorities towards certain target groups. These target groups include primary schools, secondary schools, higher education, universities, and the general public world.

 Some initiatives involve surveys which provide insight into the challenges and opportunities related to financial literacy in the target groups of children, teens, students and young adults. Another consists of developing new products, educational materials and events intended to stimulate financial skills and knowledge. Perhaps the best example is an educational website with fun, online exercises for children, tips and advice for parents on how to educate children financially.

 

 The key factors for a successful CSR policy can be summarized as follows:

Continuous support of senior management and all staff
Reporting CSR – internally and externally, on a long-term basis, with regular reviews
Include CSR as integral part of corporate strategy of the bank

 The advantages for banks in adopting well-designed CSR initiatives lie in the following areas:

Encourages sustainable behavior by customers;
Supports development of separate business models for various segments;
Provides real benefits for the society as a whole;
creates higher employee motivation, and superior performance levels;
Makes banks more aware of their potential role in society;
Creates positive publicity and/or increased brand recognition.

 

Hany Abou-El-Fotouh is Chief of Staff  & Group Board Secretary, CI Capital Holding – the investment banking arm of Commercial International Bank which is the largest private bank in   Egypt . He provides advice and direction to the Board and management with respect to corporate governance practices and formulates corporate policies.

 Hany is a leading expert on money laundering and terrorist financing controls in the MENA region. Founder of the Middle East Compliance Officers’ Forum (MECOF), he has been honored for his work in promoting compliance culture and awareness in the MENA region

 Hany writes articles to different newspapers and journals on a variety of subjects. He is a public speaker and professional trainer.  Previously, he worked in various senior positions in leading banks in Egypt and GCC countries like HSBC, Oman International Bank, Banque Saudi Fransi among others

 Hany is a certified member of the Association of Certified Anti-Money Laundering Specialists (ACAMS) and Certified Director by Egyptian Institute of Directors

 

Even if you have deposited cash with your bank in the prescribed format, with a valid counter-foil, there can be a freak chance that the money may not appear in your account. Therefore it is important to keep one’s guard up with every cheque or cash transaction done. Any irregularities should be brought to the notice of the bank immediately in writing and the evidences should be preserved

Banking facilities in India have taken several technological leaps in the past decade but deficiency in service still remains on some fronts. With cash and cheque transactions, one needs to be especially careful as the chances of fraud are always there.

When Pooja G Joshi deposited five lakh rupees in cash with her Vijaya Bank branch in Mumbai in June 1997, little did she know that she would have to fight a 10-year long consumer court battle to claim her money from the bank. Pooja Joshi had a savings and current account with the bank for her business. She deposited five lakh rupees in her account by filling in the printed pay-in-slip issued to her by the bank. Since the cashier was not available on the day, the then chief manager of the bank accepted the cash and put his initials on the counter-foil and also stamped it with the rubber stamp of the bank. Four months later, when Joshi’s chartered accountant was going through her business accounts, he drew his client’s attention to the fact that the five lakh rupees had not been credited to her account. When Joshi’s letter to the bank did not elicit a satisfactory response, she sent Vijaya Bank a legal notice which was returned unaccepted. She then filed a case in the Maharashtra State Commission seeking redress.

The State Commission decided the case in favour of the consumer. The Bank pleaded that the consumer had never deposited the amount, and that it was not true that their cashier was not available on the day the consumer claimed she had deposited the money. The bank said that the acknowledgement of the chief manager shows clearing of transfer transaction only and not a cash transaction specifically, as the consumer had alleged. The purported counter-foil may have been issued for transfer or for clearing a cheque, Vijaya Bank claimed.

The State Commission did not find much merit in the bank’s arguments and directed the bank to credit and pay a sum of Rs 5 lakh to the respondent with interest at the rate of 7.5% p.a. w.e.f. 3.6.1997 till realisation and to pay a compensation of Rs 1 lakh.

Vijaya Bank filed an appeal in the National Commission where the Commission noted the following points:

• When the bank acknowledged that the signatures on the counter-foil presented by the consumer as evidence was indeed that of its Chief Manager, this means that some transaction did take place, whether by cheque or cash. Why then was that amount not credited to the consumer’s account?

• The bank has not provided any evidence to show that money had not been received by it. The bank did not file the affidavit in evidence of the Chief Manager who had put his signatures and the rubber stamp of the bank on the counter-foil. The National Commission said that it is the chief manager who could have been in a position to rebut the assertion made by the consumer in an effective manner. Instead of filing the affidavit of the then chief manager, the bank filed the affidavit of the assistant manager of the bank who did not have any personal knowledge of the transaction. The bank also did not file an affidavit of its cashier who was unavailable on the day Joshi’s transaction took place.

With this evidence in place, the National Commission did not have any hesitation in deciding that the verdict of the Maharashtra State Commission was a fair one. The Bank was held liable for deficiency in service as it had accepted Rs 5 lakhs in cash but had not credited it to its customer’s account.

 

 

• While depositing a cheque in the bank, along with pay-in -slip, the counter foil should be kept for record till the money is credited to your account.

• One should write the account number at the back of the cheque even though account number is written on the pay-in -slip so that there is no chance of misappropriation of the cheque

• If you don’t have access to e-statements or e-banking facility, check your account balance after every transaction through the ATM in order to ensure that there is no double transaction, even by mistake.

• While taking cash from the bank, count the cash when received from the counter or the ATM. If there is any discrepancy, report it to the bank there and then.

• Write your contact phone number on the pay-in-slip.

• While writing the pay-in slip, check the account number twice, try to maintain the same signatures. Dividend cheques generally need to be signed at the back of cheque before being deposited

• PAN number is required for withdrawal of fifty thousand or more rupees in cash.

 

 

This financial crisis began with a failure to protect consumers. Effective, affirmative and preventative consumer protection needs to be a major part of the global solution.

1. Consumers face the paradox of being blamed for the present crisis due to insufficient prudence (irresponsible borrowing) while hampering recovery because of an excess of prudence (insufficient consumption).

Consumers International (CI) believes governments and the Financial Services sector need to stop shifting the blame and put their own houses in order.

2. Following years, if not decades, of reckless behaviour, banks are now scrabbling for lower risks. As a result they are refusing to lend across the board. Not only does this restrict consumers in need of credit, but it also puts investment in vital public infrastructure under threat. As a result, the failure of private financial institutions is crippling investment in public goods such as universal water, electricity and healthcare provision.

CI believes the financial sector and the governments that regulate it must prevent such irresponsible behaviour by fully incorporating risk assessment and risk coverage in to banking practice.

3. The banks have become too complex; using consumer deposits to leverage elaborate and unsustainable investments.

CI believes the restructured financial services industry must re-establish a clear division between retail banking and investment banking. This is a basic precursor to protecting consumer deposits and reining in irresponsible investor lending.

4. While consumers struggle to get credit and small businesses face bankruptcy, banks and major industries plead they are ‘too big to fail’. If this indeed the case and the social costs of their demise are so great that taxpayers have to step in, then CI believes any support must come with strict conditions on future investment.

There needs to be a regulatory quid pro quo where bail-outs require commitments on sustainable development, ethical standards and greater corporate responsibility. Transparency is also needed from root to branch. Not least in the provision of consumer financial services.

 

To read more log on to www.consumer-voice.org

 

 

The banking area is one of the rapidly expanding sector in Indian economy. The banksare increasing related to products and services to their customers. This expansion has make the way to the companies seeking to recruit more employee to cover with the demand for their services. With the emergence of online banking becoming growing among popular banks. The banks are hiring both professional bankers as well as
information technology personnel to meet the requirements for their services and to provide more reliable services and satisfaction to their clients.
The investment banking sector area looking forward to hire more financial persons as opposed to their commercial bank employees who will hire a large span scope of employee. There is requirement for financial analysts as investment banks are growing their portfolios all across the channels. These financial experts will have the profile of investing the customer monetary assets in various financial instruments to optimized the
return on their investment. The eligibility for financial analyst will be graduates from the recognized universities with strong accounting and finance academic backgrounds. There are growth opportunities for financial analysts in the coming years, and they can grow from trainees to middle and senior management levels according to the hirechy process of the respected banks.
Investment banks will also aim at recruiting marking persons who can sell different financial products and services to their customers. The investment banks will hire employee who can explain their various products and show their customer the advantages accruing from signing up with the bank. Since investment is usually long term process the marketers of investment products need to be persuasive in a bid to grow their banking market.There are various other opportunities in the investment banking areas. The banks hire Information Technology persons who will support their operations area. The world is becoming a global city now and customers are investing all over the places using the power of the internet and latest IT technologies. The banks business in foreign exchange with different currencies being traded over the net, thus
the requirement for information technologists to increase the bank operations.

Banking has changed in many ways through the centuries. The oldest forms of banking were often simple loans issued to businesses to purchase their goods. Once the goods were sold, the lender collected the money for the loan with interest. Today’s banks have diversified their services and products, with the goal of providing fast and efficient service. By putting a community’s surplus funds to work through deposits and investments, banks are able to assist individuals in purchasing cars and homes, start businesses, send children to college, and countless other advantages.

These activities conducted by the bank are divided into retail banking, business banking, corporate banking, private banking, and investment banking. While most banks operate as profit-making, private enterprises, some are owned by the government and considered non-profits. These banks might supervise commercial banks, oversee monetary policy, and act as a lender of last resort.

The definition for the various bank activities are defined below:

Retail Banking – deals directly with individuals and small businesses.

Business Banking – services which are provided to mid-market businesses

Corporate Banking – services designed for large business entities

Private Banking – offer services to private individuals possessing sizable assets

Investment Banking – relates to services on the financial markets (such as stocks and bonds)

Retail Banks Defined

The term commercial bank distinguishes it from an investment bank. Following the Great Depression, the U.S. Congress ordered banks to engage only in banking activities. Investment banks were confined to capital market activities, such as the stock and bond markets. As this separation is no longer mandatory, “commercial bank” indicates what people normally refer to as a bank. It can also refer to a financial institution that deals mostly with deposits and loans from large corporations.

Locally operated, community banks are generally created to empower employees to make decisions that serve the best interests of their clients and partners. Meanwhile, community development banks or CDBs are those designed to serve residents in low- to moderate-income areas, as well as spur economic growth. The retail bank products are designed for customers who are considered “financially underserved.” CDBs exist in cities around the country, from Chicago and New Orleans to New York City and Washington, D.C.

Postal savings banks were offered by post offices for those who did not have a safe and convenient method for saving money. The United States began this system in the early 1900s to encourage saving among the poor. It was abolished in 1966. In Japan, one of the nation’s leading bankers is the post office, which holds trillions of yen belonging to overly-conservative citizens.

Managing the assets of high net worth individuals, private banks originally defined banks that were not incorporated and owned by an individual or a general partner with limited partners. In this case, creditors could look at the entirety of the bank’s assets, as well as the assets of the proprietor/general partners. Private banks have a long tradition in Switzerland, however most have since been incorporated.

Located in a typically low-tax jurisdiction, or tax haven, offshore banks are located outside the country of residence of the depositor. Some depositors seek the services of these banks for their easy access to deposits, less restrictive legal regulation, and increased privacy for the depositor. It is believed that as much as half of the world’s capital flows through offshore centers. Swiss banks hold approximately 35 percent of the world’s private and institutional funds, while the Cayman Islands, in terms of deposits, represent the fifth largest global banking center.

Specializing in accepting savings deposits and making mortgage loans, the savings and loan association are often mutually held, meaning the depositors and borrowers are members with voting rights. These rights allow them to direct the goals of the organization. Many fondly recall the old savings and loan run by George Bailey in the 1946 film It’s a Wonderful Life.

Investment Banks Defined

Investment banks are concerned with helping companies and governments raise funds by issuing and selling securities in the capital markets. They also provide corporations advice on mergers and acquisitions, the trading of derivatives, commodity and equity securities, and underwrite stock and bond issues.

While merchant banks were traditionally banks that engaged in trade financing, today the term refers to banks which offer capital to firms in the form of shares rather than loans. While venture capital firms are concerned with immature, high-potential growth companies, merchant banks tend not to invest in new companies.

Retail and investment banking combined creates universal banks, also known as financial services companies, who engage in everything from commercial and retail lending to offshore banking to customers in other countries through its subsidiaries. Some big banks are diversified and engage in multiple activities, including bancassurance, or the sale of insurance products in a bank.

In today’s diverse and unpredictable economy, the need for a sustained profit plan and long term growth strategy has become essential for both individuals and corporations. Merchant banking principally involves providing financial services and advice for individuals and corporations. Merchant banking operations consists of providing clients with a variety of financing options to sustain long term growth.

Merchant banks tend to have operations in a variety of countries throughout the world allowing them to offer an extensive network distribution to help their clients explore opportunities with alternative finance options.

In banking, a merchant bank is a financial institution that primarily invests its own capital in a client’s company. Merchant banks provide fee based corporate advisory services for mergers and acquisitions, as well as other financial services. Merchant banking operations focus on commercial international finance, stock underwriting, and long-term company loans. These banks work with financial institutions with their primary function being stock underwriting. They also work in the area of private equity where the securities of a company are not available for public trading.

The most common private equity investment strategies include venture capital, leveraged buyouts, distressed investments, growth capital, and mezzanine capital. Leveraged buyout generally means that they acquire majority control over existing or mature corporations. Growth capital and venture gains means they invest in newer or rising corporations without acquiring majority control.

Today, merchant banks are involved in a number of tasks such as credit syndication, portfolio management, mergers and acquisitions counseling, and acceptance of credit, etc. Their investments include private equity, structured equity, and bridge debt. They generally invest in private or public companies to finance growth, acquisitions, and management/leveraged buyouts and recapitalizations. In some cases, they provide an invested company with short-term financing for a particular project, or provide short-term liquidity.

Merchant Banking operations can focus on a particular country or they can expand their operations in other countries. They can assist sustainable companies undergoing a financial restructuring requiring short-term liquidity. These banks provide their partners with financial analysis, capital structuring and strong industry relationships. They provide the corporate lending, leveraged finance, and investment banking and industry expertise. Merchant Banking operations provide all types of domestic and foreign banking transactions, corporate finance services, product knowledge, and management services.

Global merchant banking operations provide individual and corporate investors with the opportunity to participate globally for access to international investment opportunities, providing global companies access to a particular market, and opportunities for co-investment.

When searching to partner with a Merchant Banking Service Company in order to enhance your business operations, you should find a well established, full-service merchant financial services company. You want a large, credible firm that can demonstrate a good track record. Ask the merchant banks how long they have been in business and who some of their customers are, particularly from your market, so they can demonstrate their experience and understanding of your needs.

Merchant banking operations provide the support, knowledge, and resources to effectively assist clients and corporations with improving, expanding, and sustaining their business and business investments.

In Many Cases, The Lender Or Agency Simply Wants To Get Rid Of Foreclosure Bank Owned Properties Quickly – Even If It Means Selling At A Low Price
Upkeep of foreclosure bank owned properties costs more than selling them cheap. Whether you are a homebuyer or a foreclosure homes investor, foreclosure bank owned properties allow you to buy properties at a fraction of their market value. Lenders aren’t chartered to own and manage property, so they face close scrutiny and pressure from state and federal regulators to dispose of foreclosed properties quickly – especially if they’re on a regulator’s “watch list”.

The second reason why foreclosure bank owned properties are sold at below market value has to do with their condition. And because they’re dealing directly with the bank they can eliminate the 6 percent sales commission if they act fast – before the bank lists the property with a real estate agent. Bank foreclosed homes are sought out by investors because of their profit potential.

In many cases, the lender or agency simply wants to get rid of foreclosure bank owned properties quickly – even if it means selling at a low price. Foreclosure bank owned properties are an excellent opportunity for anyone who wants to save money on their next real estate purchase. It is not uncommon to find bank foreclosed homes sold at prices much lower than their market value.

Foreclosure bank owned properties are priced at up to 5% to 50% off their market value, simply because of the way you can buy and sell foreclosure bank owned properties. It is possible to gain a nice return on your investment when you invest in bank foreclosed homes. Foreclosure bank owned properties are homes that have been repossessed by a government agency or lender due to non-payment of the mortgage. When their REO departments are loaded with foreclosures, investors are able to finagle below-market interest rates with little or no cash down.

When A Homeowner Cannot Pay The Mortgage For A Few Months At A Time, The Bank Will Initiate Foreclosure Proceedings Against The Owner
In order to get the best deals on foreclosure bank owned properties, you need to be prepared and shop wisely. The owner will be anxious to sell to avoid having a foreclosure as a black mark on their credit report. Bank foreclosed homes are homes that are owned by banks or other lending institutions because of the lender having foreclosed on the property. Once you find some foreclosure bank owned properties you like, though, you still need to research.

Researching foreclosure bank owned properties can help you tell the deals from the duds. After the foreclosure is final, the bank foreclosed home will be offered for sale, either directly by the bank, or through real estate auctions. When a homeowner cannot pay the mortgage for a few months at a time, the bank will initiate foreclosure proceedings against the owner.

You cannot let emotions rule your purchase, and you cannot assume that all foreclosure bank owned properties are sold at below market value. If the property has accumulated enough equity, the investor will make a very nice profit. What Are Bank Foreclosed Homes?

Bank Foreclosed Homes Auctions
Bank Foreclosed Homes Auctions. For each home you consider, determine your closing costs, actual house costs, incidental costs, and financing costs. Sometimes the bank foreclosed homes will be sold at real estate auctions.

Once you calculate the cost of any repairs needed, add it to the total cost of the property. Remember to account for the time that it will take to repair the bank foreclosed home.

This approach means that you wouldn’t reimburse them for any accumulated charges such as interest, late charges, foreclosure fees, legal fees, nor any advances they might have made toward senior loans, property taxes, insurance. Sometimes an inspection is not possible, so you should only make bids that leave a nice margin for any unknown repairs. Get a market value for the home and an estimate for the repairs that need to be done.

To figure the number of loan payments made, start when the deed of trust recorded and end with the delinquency date that’s listed on the recorded Notice of Default. On the other hand, if you do it carelessly, you could end up paying a lot more for the bank foreclosed home than it is worth. Hiring a professional assessor and inspector to examine the property for you.

Find out how much homes in the same neighborhood sell for as well. At the most, you shouldn’t pay the bank any more for their equity in the property than what they originally lent on it minus the payments that were actually made on the loan.

If You Are Looking For An Investment, Make Sure That You Will Get At Least 15% Or More In Profit Through Renting Or Selling, And Remember That Many Foreclosure Bank Owned Properties Allow You To Earn More On Your Investment
An important aspect of investing in bank foreclosed homes is having good listings so that you can get to the properties before they are gone. Good bank foreclosed homes do not stay in the market long.

If you are seeking a home, look for foreclosure bank owned properties in areas you would like to live that have the amenities you want. A better use of your time and money is to sign up with an online bank foreclosed homes listings service.

Whether you are looking for foreclosure bank owned properties that are investments or a home will determine which foreclosure bank owned properties are deals for you. These foreclosure bank owned properties you are considering should save you money on your home so that you can enjoy equity fast. If you are looking for an investment, make sure that you will get at least 15% or more in profit through renting or selling, and remember that many foreclosure bank owned properties allow you to earn more on your investment.

Bank Foreclosed Homes Listings. Buying up lenders’ REO’s (real estate owned) is a workable approach when it’s a Buyer’s market and lenders have lots of REO’s they are anxious to get rid of. Finally, insist that the lender provide you with all the customary buyer safeguards such as escrow, title insurance, homeowner’s warranty, termite clearance. You can get bank foreclosed homes listings from courthouses, lending institutions, government agencies.

And Lender Deals Typically Include Title Insurance, Which Removes Much Of The Risk That Accompanies Buying Homes Earlier In The Foreclosure Process
If the property fails to sell at auction, or if the lender ends up as the highest bidder, the home becomes REO, or “real estate owned” by the bank. Often these homes are sold to buyers who don’t even know they are buying a foreclosure, and go through the entire process as they would with any other home. And lender deals typically include title insurance, which removes much of the risk that accompanies buying homes earlier in the foreclosure process.

Banking jobs, especially investment banking jobs are very much in demand. Every young kid who is good with figures wants to be an investment banker. Why? This is simply because investment banking is one of the most lucrative jobs around!  But we all know that it takes time and dedication to succeed. You need to start off with entry level banking jobs just like everyone else!

Some Job Profiles

Having said that, I must tell you that investment banking is not the only banking job around, there are different types of banking jobs, but it is not surprising that about 67% if the total banking jobs are those of a bank teller’s.  Some important job positions in a bank are:

Bank Manager – The man who runs the show. You need to supervise the daily operations of the bank and find out whether bank employees are doing their work as planned.
Accountants – If you are good with accounts and are qualified, you can become an accountant with a bank. This job is an important one because the work done by an accountant or rather, a team of accountants is presented before investors, tax authorities etc. and determines the financial standing of the bank.

Financial advisors- As a financial advisor, you will be making recommendations and suggestions to people who are clients. This is a very important job and also one which holds great responsibility.

Banking Job Tips

Banking careers are undoubtedly one of the most promising fields, but in order to succeed, you should keep a few things in mind:

• Research – Be aware of all the latest goings on in the business world. If you don’t know about the latest happenings, then you won’t be able to raise money for your bank or clients. After all, it is your responsibility to ensure that people are making a wise investment. It can’t be taken lightly, now can it?

• Networking – Banking careers, almost like every other field have become synonymous with networking. One can’t get anywhere until they establish all the right contacts. So get to know people. Attend gatherings, parties to-dos etc. Anything that will get you in front of people from your field!

• Fees – As an investment banker, you need to do some research before you quote your fee.  Try to ensure that you get back a good amount, as compared to what you invested in the first place.

• Dedication – Everyone knows that you can’t succeed in any field without dedication. This is especially true for banking jobs. You have to devote all of your time to the service of the bank and to clients. If you are an investment banker, you will have additional responsibility. People will want to know from you how they should spend their money, don’t disappoint them!

Mortgage banking jobs are also quite interesting. So if investment banking or being a bank teller is not your thing, you can always go in for this job. There are various types of banking jobs, take your pick wisely, make sure you are equipped to handle your office!

The 2007-2010 financial crises can be described as the worst crisis the world has faced since the Great Depression.  It has had severe impact in the world economy and ripples of the crisis have been felt even by the developing nations that were not directly linked to the epicenter of the crisis. One of the main factors that have contributed to the spread of the crisis all over the world has been the interconnectedness of the global economy as a result of globalization. The rate at which the recent economic crisis spread to the rest of the world is not the same rate at which the Great Depression spread because the world economy is more interconnected today than it was in the 1930s.

The recent economic crisis started in the United States and spread to other parts of the world.  It build up slowly starting in 2001 and  peaked up in 2008 when financial institutions started to crumble and the economy started to slow down.  Although it was highly anticipated that an economic crisis would finally ensue as a result of housing bubble in 2001, it was delayed and most people thought that the crisis would not happen in any way.   When the crisis finally struck in 2006, it spread very fast and within two years, it had eroded consumer wealth and claimed a number of financial institutions.

The recent economic crisis was trigged by a subprime mortgage crisis in the United States.   Since 1980s, United States had repealed a number of regulations in the financial sector and had allowed it to operate with minimal regulations. In addition, from Clinton administration to Bush administration, Americans had been encouraged to continue spending as a way of stimulating economic growth. The real estate sector was one of the areas that were doing very well and investment institutions rushed to put their money in the sector not knowing the dangers that were hidden. Since 2001, the Federal Reserve kept the interest rate low in a bid to avoid a financial crisis but this encouraged Americans to borrow and invest in the real estate sector.  Housing prices kept on rising as the demand for houses increased.   Due to lax in regulations, new loans schemes emerged and it became easier for individuals without capability to repay loans, otherwise referred to as subprime lenders, to access loans.  Apparently, the supply of housing units surpassed demand and housing prices began to fall.  The interest rates began to rise and it became difficult to service the loan with rising interest rates and falling house prices. Eventually, the rate of loan default increased and institutions rushed to repossess homes to recover their loans leading to increased foreclosure. During the boom in the real estate sector in the U.S., international investors with excess capital had found a promising sector to put their money into. They bought collateralized mortgages and when the calamity of the subprime crisis befell on the housing sector, they were also not immune. This led to spread of the crisis from the United States real estate sector to the rest of the world.

There were many factors that led to the economic crisis.  The crisis in the subprime sector was contributed by different factors but chief among them was lack of proper regulations of the financial market.  The government allowed rise of shadow banking system, which was not well regulated and that used bait method to attract borrowers to borrow loans with hidden interest rates. The government did not come in time to regulate the mortgage sector even after alarm was raised over shadow banking.  In addition, there was flawed assessment of the credit worth of borrowers and people who had no capacity to repay the loan were eventually given loans and later defaulted.

The most important cause of financial crisis that is the focus of this study was corporate governance. In both U.S and UK, corporate governance laws were overlooked and financial institutions underestimated the risk they were putting their investment into. Even when it was clear that there would be an eventual crisis in the mortgage sector in the U.S, financial institutions continued to invest in the sector. The risk assessment aspect was overlooked by most financial institutions. In addition, executives of financial institutions continued to receive fat pay and bonuses even when their institutions were dipped into the crisis. Although there were existing rules on corporate governance, they were overlooked and not strictly enforced as should have been the case. The idea of “too big to fail” was finally proved wrong as big financial institutions fall one after the other.

It is in the light of deficiency in corporate governance and regulatory environment that both U.S and UK implemented a number of factors that were aimed at correcting the situation. The U.S Congress passed the tightest regulations of the financial sector in July 2010 that are meant to streamline operations of the sector. Realizing the rot in corporate governance, UK commissioned Sir David Walter to give recommendations on what should be done to streamline corporate governance in the financial sector. Sir David Report gave 39 recommendations that were to be followed to ensure that the financial sector observed the laid down laws on corporate governance. The report did not give new laws to be followed but it gave recommendations on what had to be done to ensure that the existing laws were followed.  It appears that the two countries have decided to tackle the problem right from its roots by formulating and implementing regulations of the financial sector, as will be discussed in this study.

Bank crisis in the US

Bank crisis in the United States started in 2007 and peaked in 2008. It happened at the same time as the subprime mortgage crisis, which has been described as the main cause of 2008 global economic crisis.  Subprime mortgage crisis was a real estate crisis that was triggered by a sudden rise in mortgage deliquesces consequently leading to increased foreclosures in the country.  This had adverse consequences on banks and financial markets in the United States and other parts of the world as well.

The 2008 bank crisis in the United States did not start at once but it had piled over long period of time.  The problem can be traced to 2001 when there was a massive stock market and capital spending bubble. It became evident that the country was facing a recession and Federal Reserve had to cut interest rates down to 1% which remained until 2004 when they were raised slowly. This means that because the interest rates were low, the financial services industry saw opportunity in a lot of money that they could make and they all went into real estate but they were unaware that the low interest rates just masked large risks.  However, Americans were expecting a downturn after such a bubble burst but it was not yet coming. It was soon realized that the money that was being lost in the stock market could be fast offset by increasing home prices and therefore they continued spending freely.  Consequently, as Americans continued with free spending, United States was still getting into bad debts with the rest of the world.  Foreigners continued to use their dollar IOUS from these accumulated debts to lay foundation for their bubbles as well.

In 2006, it became evident that the market could not hold any longer. Those who could least afford to purchase their own homes, hereby referred to as subprime borrowers continued defaulting on their loans, with prices having overgrown their range of affordability.  However, it was not until 2007 when HSBC issued a stern warning, just a harbinger of things that were to come when it write down tens of billions of dollars in losses. HSBC had made a large loss from its ill-timed acquisition of subprime lender Household International in 2002. Policy makers did not first see reason to raise the alarm and they sat down watching for the system to correct itself. However it became evident that things were not moving in the right direction when two Bear Stearns hedge funds blew up in 2007.  It became evident that the potential risk had been underestimated and fear gripped the market.  In August 2007, BNP Paribas, a French bank, froze withdrawals in three investment funds and panic gripped the market.  If this bank, that had zero exposure to U.S mortgage market could have found it difficult, the financial institutions in the United States were hiding untold stories.  The year 2007 therefore marked the beginning of the credit crisis that was later to spread to other parts of the world. Fear spread not only in the stock market but also among the financial institutions. There was mutual distrust among large banks because no bank knew how far the other bank had been affected by the financial crisis.  Interbank lending became difficult which means that most banks could not easily access credit. Credit became dry in the market and the economy started a downward spiral.

At the same time, housing prices in the United States continued to fall.  There were massive losses in the mortgage-relative derivative assets that were held by large global banks. These instruments had come to be referred to as derivative because they were largely derived from value in underlying assets including mortgages. The first cases of mortgaged-related losses were concentrated on these instruments and investment vehicles like RMBSs (Residential Mortgage Backed Securities), CDOs (Collateralized Investment Vehicles) and CDOs.  Among the leading investment institutions, Merrill Lynch became the first institution that reported large losses of .5billion in 2007. Three weeks after this loss, Merrill Lynch came again and announced that losses had reached billion. That year alone, aggregate losses from all global institution grew to 0 billion. While things cooled a bit in 2008, the fall of hedge funds Peloton and Carlyle Capital brought in another wave of panic.  The sudden collapse of Bear Stearns, which was the fifth largest investment bank in United States brought market confidence to all time low. In June 2008, Lehman Brothers accounted that it had made a loss of billion and the crisis came to a full view once again as panic spread in the market.

At this time, the market did not recede that fast.  It remained under constant stress. The market remained in panic as IndyMac, which was an aggressive mortgage lender was taken over by FDIC. Next on the line was GSEs. Fear and panic gripped the market and questions were now raised about Fannie Mae and Freddie Mac, which were the largest mortgage lender in the market.  To restore market confidence, the government had to take over the two institutions to stabilize the stock market. Financial shares came under severe assault. Those that were considered weakest had come under selling pressure that eventually led to collapse of Lehman Brothers.  The company was not able to access government support and it could neither close on a merger and it filed for bankruptcy on September 15, 2008. On the same weekend, Merrill Lynch eventually sought cover and was taken over by Bank of America. Eventually it was evident that there was no institution that was too big to fail and assault on financial sector continued as AIG, the world largest insurance company, succumbed to the crisis.  With the fall of AIG, more fear gripped the marked and the entire banking system was almost collapsing.  It was important for the government to take  prompt measures and rescue financial institution that were on verge of collapsing because this would have a huge impact on the financial sector.

There were many factors that contributed to the 2008 financial crisis. The growth of the housing bubble between 1997 and 2006 had led to 124% increase in housing prices and sudden decline in prices led to lose value and increase default of loans. There was also easy access of credit that baited people to take loans they could not repay back leading to default of loans. Low interest rates from 2001 encouraged people to borrow and fault assessment of creditworthy of borrowers further increased default of loans. Subprime lending therefore became the biggest factor that contributed to the credit crisis. Increased lending to borrowers with weakened credit histories and greater risk of defaulting loans led to massive loan default. The predatory lending gave rise to unscrupulous lenders who used bait-and-sight method to entice lenders to take loans inform of home financing but the cost of repaying these loans became higher later and the rate of default increased. Another major factor that led to financial crisis in the United States was deregulation. The regulatory framework did not guarantee tightened control of the financial sector and therefore financial instructions came up with financial innovations like shadow banking system, derivatives, and off-balance sheet financing. There were weak laws while the existing laws were also not well enforced thereby leading to the financial crisis. A number of regulations on financial sector that had been implemented after Great Depression were phased off through different acts like Depository Institution Deregulation and Monetary Control Act 1980, Gramm-Leach-Billey Act 1999 that repealed Glass-Steagall Act of 1933, 2004 relaxing of net capital rule by SEC, and others that weakened regulation of financial sector.

Closely tied to regulatory factor was corporate governance factor. There was evidence failure and weaknesses in corporate governance arrangements that eventually lead to collapse of the financial sector.  The effectiveness of corporate governance could have been realized during the financial crisis but when they were put to test, corporate governance routines showed that they were not in a position to serve their purpose and safeguard against taking of excessive risk.  There was evident greed among the executives that had been trusted to take up leadership of the financial regulations. Apart from taking home fat salaries and bonuses, executives were less concerned with the risk they were taking in name of getting more profits for their companies. Even when companies started making huge losses, executives continued to be awarded huge salaries and bonuses.  

Bank crisis in the UK

The case of bank crisis in the UK is a perfect illustration of the fact that the belief that bankers can create wealth and bring about economic productive cycle is mere illusion. Before 2001 when the bank crisis started in the UK and U.S, UK banks had no previous exposure to wholesale lending markets. This was a new experience to UK banks, which could be described as nothing more than a euphemism for collective international banks. The new borrowers in the block were Northern Rock and Halifax among others. Their entry into the market was something to be celebrated but their exit was not celebrated.

UK financial crisis was an overspill of what was happening in the U.S. The interconnectedness of the two economies meant that what was happening in one economy affected the other.  The events taking place in the U.S were fast catching up with the UK and the timeliness of the crisis in the two countries was almost the same. First, it was spread of fear and panic in the U.S market but there was little concern in the UK. No one in UK thought that the crisis that was affecting U.S subprime sector could in any way affected the UK.  On September 13, 2007, BBC revealed that Northern Rock had asked to be granted emergency financial support from the Bank of England as a last resort as the crisis made inroads into the UK. Northern Rock was among the new lenders that had relied heavily on the markets instead of the saver’s deposit to fund the mortgage lending. This means that once the confidence of the market was affected, Northern Rock was shaken from its core. In the same month, it had been revealed that the rate at which banks lend each other had risen to its highest since December 1998. The Bank of England set its base rate at 5.75%. The rise in the interbank lending rate was contributed by the fact that no bank understood how the other had fallen deep into the mucky of economic crisis.  There was general mistrust among the UK banks.

In the wake of realization of the problems that were facing Northern Rock, fear gripped the UK market.   In September 14, 2007, depositors lined up to withdraw their saving in Northern Rock. In one day alone, depositors withdrew more than £1 billion from Northern Rock, what can be considered the biggest run in the history of banking industry in UK.   Northern Rock dipped into more trouble as more and more depositors lined up to withdraw their saving until the UK government intervened and assured depositors of the security of their savings. The problem of Northern Rock continued until it was partially nationalized by the government on February 17, 2008.