WEBODIGY Business & Finance Journal

The investors (bankers) at Bank of America (BoA) seems to be an abundance of good fortune. They will gain another bonus in 2007 after the last day to get bonus. The bonuses are distributed after the company took over Merrill Lynch.

As reported by the AP, Friday (8/1/2010), the investors are hoping when the bonus will be distributed later with a bonus equal to 2007 yesterday. Where do they get the bonus in cash 25 per cent more than their salary, and the rest of the stock in cash payments for good corporate performance.

As is known, Merrill in 2007 and pay bonuses to employees BoA for USD518 billion. Nevertheless, said if the bonus will be given the BoA can not further specified.

BoA spokesperson Robert Strickler did not say much about it. “No one could be decided today (the amount of bonus),” he said, when asked about giving a bonus of company policy.

Meanwhile, the CEO of BoA who had just served to replace Ken Lewis who resigned, Brian Moymihan, admitted that if the employee was impressed with Merrill until these bonuses after the acquisition of Merrill by BoA.

As for the last month, a bank based in Charlotte, New York City United States has returned the loan funds from the government equal to USD45 billion. The loan is due to the global economic crisis in 2008.

At that time, the BoA has told the U.S. Bapepam if the company can not pay the bonus for its shareholders up to $ 5, 8 miliiar. The Company also agreed to pay to the government for USD33 million to fix the problem and will be brought to court on February 1 next.

For your information, BoA recorded a loss in the third quarter of 2009 more than $ 2, 2 billion because they have to pay interest on the loan fund raising.

Finance Minister Sri Mulyani said a number of issues related to government measures to save the Bank Century.

Sri Mulyani at a press conference at the Finance Ministry building in Jakarta to respond to the investigation of audit Audit Agency (BPK) associated bailout Century Bank.

In his explanation, Sri Mulyani said the government back to save the Bank Century because it was feared would affect systemic for national banks.

“condition at that moment in November 2008, the global financial crisis, the closure of Century Bank in accordance with common sense could cause a chain effect.”

According to Sri Mulyani, the closure of Century Bank can also lead to rush or lose the trust of customers of national banks”will occur rush or queue not only at Century Bank, but also other banks, there are 23 other banks and a number of BPR that had similar problems with Bank Century”.

The experience of Indonesia, which had hit the same crisis in 1997 was also a consideration of the government to save the Bank Century.

A number of indicators

Finance Minister Sri Mulyani also mentioned a number of indicators that the reference of the Committee of Financial Sector Stability (KKSK) which was chaired by Sri Mulyani in making decisions.

Sri Mulyani said it noticed in detail the developments related to the macroeconomic conditions of the world at that time.

Financial markets experiencing strong pressure due to the collapse of international financial institutions such as Lehman Brothers and AIG.

“The condition of the macro as the last months of 2008 was under pressure and there is disruption of banking and financial system that is estimated to have the real potential of creating a deterioration of the situation and could potentially create instability,” he said.

Some of the underlying background rescue Century Bank is:

The first is the strong pressure from the financial market collapse of financial institutions such as Lehman Brothers International, AIG, and others.

At that time according to Sri Mulyani, Indonesia Stock Exchange plummeted by 50%

“The world capital markets have seen pressure from stock index. IHSG in January 2008 reached 2830, but in November fell to 1155, the decline of more than 50%. And we made a suspension of capital markets several times” Mulyani said.

At that time the value of foreign exchange reserves within 3 months fell from U.S. $ 59.45 billion to U.S. $ 51.64 billion.

In addition, the exchange rate also depreciates in the Rp9.800 per U.S. dollar in January to Rp 12,100 per U.S. dollar.

Sri Mulyani also said the policy of Century Bank is right to step measured in accordance with the principles of legislation, the authority in determining the policies and decisions, and have a useful principle and responsible.

Former Vice President Jusuf Kalla, on Thursday, declared ready and willing to fulfill the call of the House of Representatives Committee Questionnaire related scandal Century Bank.

“I have not received a summons related to the Parliament the right questionnaire for the Century, but as a citizen I am required to meet the calls,” he said in Makassar, South Sulawesi, on Thursday.

About its readiness to answer questions that may be related to House members proposed that, Kalla insists that he will respond in accordance with the experienced and known.

“It all depends on what was asked later, angketnya committee also has not been established,” he said.

Right questionnaire was discussed at Century Consultative Body, the House of Representatives. Up to now more and more members of the House of Representatives supports the right of inquiry, even the Democratic Party faction which had not yet given dukngan, have expressed support.

According to the plan, the committee discussed the questionnaire Century Bank after it was decided at the plenary session of December 1, 2009.

For the formation of committees, each faction immediately submit the names of the committee as a candidate questionnaire totaling 30 people.

Thus, the committee can get to work questionnaire and answer the public doubts the government with the scandal of this Century Bank.

Bailout to save the Century Bank disbursed Boediono served as Vice Governor of Bank Indonesia (BI).

Boediono himself has expressed support for the right questionnaire for the case of granting bail Century Bank to the issue could become clear.

“I support the right of inquiry (Century Bank) and I’m sure the government can get through the process properly, because many can be explained in the forum (right Questionnaire) is,” said Vice President Boediono as a dialogue with Jakarta Foreign Correspondent Club (JFCC) Jakarta.

Vice President explained that at that time the government and BI have implemented a policy of “bailout” of Century Bank in accordance with existing legal corridor. According to the policy Boediono made considering the global crisis.

Meanwhile, the Association of the Society for humanity and Justice (Humanika) held a demonstration in front of the MPR / DPR, Thursday (26.11.2009) this afternoon.

Protesters urged and supported the use of questionnaires to investigate the rights flows Rp6, 7 trillion in the Century Bank. In addition, they also demanded legal action against officials who had issued a policy in the disbursement of bailouts

In the action, hundreds of people from various parts of students and society doll throwing two illustrated Finance Minister Sri Mulyani and Vice President Boediono with rotten tomatoes. They considered these two figures most responsible for the scandal bertagung Century Bank.

Koodinator action of Humanika, Sugeng Priadi said, “Essentially we encourage the board members to the right of this poll should not be stopped. Angket Century must pass in a plenary session.”

He admitted so appalled by the amount of money to people who digelontorkan these defaulted bank without any transparency. “Miris once Rp6, 7 trillion wasted, where the flight does not know. If the money was used to kesahatan, education, and others will be more beneficial,” Sugeng said.

According to him, Century Bank scandal is similar BLBI case, because the only benefit the officers or businessmen who rob people of money is so big.

“That’s what we demand. This should be completed. This is not to just get here, just a wind-wind course, pushed around, but after a committee formed diparipurnakan and it stuck,” explained Sugeng warned.

After doing the action almost one hour, the protesters later dispersed. Demo does not interfere with traffic flow around the Senayan the falling rain. From various sources

The scholars Nahdlatul Ulama (NU) has not one word or do not have the same opinion concerning the existence of Islamic banks, at least so that Halaqah raised in the Pre-Congress-32 NU Commission Waqi Maudlu “ iyah iyah.

The meeting was followed by the area manager NU envoy in Indonesia as well as institutional administrators, committee, and autonomous bodies NU, in Jakarta, Tuesday.

Vice Chairman of the Institute Takmirul Masajid Indonesia (LTMI) NU Mukhlas Syarkun rate, in some cases, Islamic banks were no different from conventional banks. In fact, he mentioned there was a violation of sharia in practice.

Mukhlas said Islamic banks are not familiar with flowers, but in practice the provision of credit, for example, introduced a system of collateral. Meanwhile, not all people, especially the poor, who can provide collateral to obtain credit.

“This is where Islamic banks could be called not shar` i because only people who can provide collateral to receive credit. While the very poor, no nothing, could not provide collateral, can not take credit, “he said.

Mukhlas was more in agreement with the concept of Grameen Bank in Bangladesh that developed the concept of micro credit which gives small loans to poor entrepreneurs who are unable to borrow from commercial banks.

Financial institutions was initiated by Muhammad Yunus is different from conventional banks because it does not use the collateral system.

To ensure repayment, Grameen Bank uses a system of “solidarity groups”. The groups applying for a loan together, and each member serves as a guarantor of the other members, so they can develop together.

“The concept of a bank like this, in my opinion, more than a shar` i Islamic bank itself, because it can lift the poor economy the poorest, “said Mukhlas.

The dissenting opinion stated Commission Chairman Waqi Maudlu “ iyah iyah KH Masyhuri Naim. According to him, banks generally do not conflict with Sharia Islamic law. One reason is the lack of bank interest that is forbidden in Islam.

“It’s just that in practice it is not entirely well as in his own theory. But it’s only natural. We are not not agree with Islamic banks. We only criticize the weaknesses in the practice Islamic banks themselves,” said NU was rais Syria.

According to Masyhuri, various issues surrounding the economy and Islamic banking in Halaqah raised will be discussed and examined in more detail in congress in Makassar, South Sulawesi, in January 2010.

Former Governor of Bank Indonesia (BI) Boediono only confirmed case of smiles when the Bank Century. “It’s later,” he said briefly as a reporter after attending confirmed breaking of fast with President Susilo Bambang Yudhoyono at the TNI Headquarters Cilangkap, Friday night.

Even when pressed further, vice president-elect of RI 2009-2014 period once again just smiled as he removed President Yudhoyono left Cilangkap TNI.

Former Governor of Bank Indonesia Boediono and Minister of Finance Sri Mulyani Indrawati to surface behind the rescue PT Bank Century Tbk on November 21, 2008.

The two officials assessed the country’s economy is responsible for saving and capital injections Century who jumped from Rp630 billion initially be Rp6, 7 trillion.

Head of BNI economist Tony Prasetiantono rate, instead Century needs to bail out to save the national economy. He confirmed that the rescue effect, the largest depositor’s benefit because the savings in the Century to be safe.

“But this is a normal and natural because all depositors to be saved,” he said.

Tony believes that the government did bail out without pretensions impartial Century a major customer.

“I’m sure once the integrity Boediono and Sri Mulyani. They’re not the adventurous type who wants to benefit large depositors,” he said.

According to him, in the case of Century, the same position of all depositors. However, the most disadvantaged are the biggest depositors. “But, it’s to save the financial system, not to save certain individuals,” he said