Busted: Bankers and The Global Economy

August 28, 2008

IBM Continues to Escalate Global Tracking

IBM’s strong financial performance lately can be attributed in part to the growth of IBM’s System z10 mainframe. On an increasing basis IBM has been developing global banking and tracking software to serve the needs of multinational corporate clients. In fact, IBM has received a notable patent for tracking which could be used for the creative tracking of not only data and products, but human beings as well.

The IBM mainframe allows for additional protection of sensitive data such as credit card information and client’s personal information from hackers which is a very attractive feature in banking operations. From a computer standpoint, the beauty of the mainframe allows for a policy-based system that distributes, manages and tracks all data in a simplified fashion over older computing. Multinational bankers are investing in the system because of huge expandability promises combined with flexibility in use for multiple types of banking simultaneously: commercial banking, Islamic banking, investment banking and insurance.

If you use your imagination, you can visualize where this advance in computing is taking the global banking system and other multinational corporate capabilities. IBM is almost single-handedly creating the means to elevate a digital revolution in the global economy, quickly becoming a completely digital economy. ~ E. Manning

August 4, 2008

U.S.: What Banking Fraud Means to Depositors

There have been a number of bank failures and the recent accumulation is increasing in pace. The FDIC sees many bank failures down the road. If you are uncertain why banks should fail, you are at the right place. “Busted: Bankers” highlights corruption and fraud in the global banking industry without the restrictions of mainstream media and politics.

The public word is that regulators are bracing for 100-200 bank failures over the next 12-24 months. If the FDIC is anywhere near right, the United States has what could be considered to be an alarming increase in the number of U.S. commercial bank failures. This debacle, despite props from the Federal Reserve, has been caused by creative banking instruments and outright fraudulent activities in the name of profits for bankers and investors. The resulting contraction of the housing market and credit squeeze on a global basis are of their making, a hefty portion at taxpayer expense.

FDIC insurance is the ultimate standard for protecting the assets of banking depositors in the United States. The FDIC has raised their mandatory banking insurance rates to cover the expected expense of bailout. The government claims that the FDIC has ample resources. While this reality is debatable if several shoes drop at once, the U.S. federal government backs the FDIC. Deposits that meet requirements under the $100,000 account limit are fully protected, as good as the government that backs them.

How do you protect your money and keep that money in a safe bank? To begin, always look for the FDIC logo at your bank branch. If you are using online services or a bank, look for the logo as well. However, don’t assume that the FDIC label is accurate in the name of safety and healthy skepticism.

Simply go to the fdic.gov and locate “bank find“. In this way, you can be certain that the bank that you selected is FDIC insured. The FDIC also has a list of bank rating agencies on its Web site that can evaluate the financial stability of a bank. To get a free evaluation, check out bankrate.com, remembering where your loyalty lies. Banking information is generally set up to secure confidence. The information you are given is designed to that end. However, regardless of bank strength, FDIC insurance will secure compliant deposits. That is what you really need to know about.

As an individual, personal deposits are insured up to $100,000 in an FDIC-insured institution, including savings, checking, certificates of deposit and money market accounts. This assumes that your accounts are non-brokered. When you register with the bank directly, make sure that your deposits are non-brokered and will reside with the institution instead of being handled by a third-party. This will ensure your financial safety.

While banking fraud has meant plenty as far as creating a troubled economy, as a depositor, you are fully protected with FDIC insurance. The protection is as good as the government protection that is trusted in, which in essence, comes straight out of taxpayer pockets. Bank runs and panic aren’t a necessary part of your reactions.

In the meantime, investing and spending with a certain amount of prudence is importance. If you are involved in large financial transactions, plan ahead without waiting until the last moment. Some depositors with IndyMac put off dealing with large transactions until the last moment, putting a financial kink in meeting their obligations. The problems could have been prevented by securing a cashier’s check a few days ahead instead of at the last minute. A good rule of thumb is to avoid putting off anything that you can do today, especially where your financial life is concerned. ~ E. Manning

April 5, 2008

Banking Sees Downturn In Revenue Growth

For the first time in living memory, the U.S. commercial banking industry faces a decrease in growth and revenue, resulting in the need for draconian cuts. As additional proof of a flaring crisis early last year, the entire financial services sector, consisting mostly of commercial banks, quietly fielded job cuts that totaled a record 153,000. This is expected to be followed up with another 200,000 job losses in the banking industry alone and the effects from the subprime crisis set in. Considering that approximately 2 million jobs exist within the U.S. commercial banking industry, a job loss of 10% in one year is noteworthy.

Financial services companies collectively announced in January of 2008 that they were cutting 16,000 U.S. jobs and would remove 6,000 more positions in February. March figures at this date are unavailable. August of 2007 saw a peak bloodletting level of 36,000. Labor market analysts expect an increase in cuts this year as the economy worsens and further cost cutting measures are required. Despite huge losses in the double-digit billions, the industry is resisting significant layoffs. Larger layoffs in the securities industry are expected as well with the collapse of Bear Stearns. Huge layoffs in the tens of thousands from any one large company haven’t happened yet, but are expected at any time while the industry takes a close look at its internal health.

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