WEBODIGY Business & Finance Journal

WASHINGTON – Government of the United States (U.S.) back over the four banks. Thus, the number of lots that have been closed for this year has as many as 26 banks.

As quoted by Reuters on Sunday (8/3/2010), the closure of banks was carried out due to poor credit quality of the bank provided. The largest of the four banks are closed Sun American Bank of Boca Raton, Florida which has assets worth USD535, 7 million and deposits of USD443, 5 million.

In addition, regulators shut down Centyinnial Bank of Odgen Utah, Waterfield, Bank of Germantown in Marryland and the Bank of Illinois of Normal.

In the meantime, Chairman of the Federal Deposit Insurance Corporation (the FDIC) Sheila Bair predicted the bank failures will remain high until 2010, although the economy has been running better. Where the banking industry continues to experience losses from poor credit quality.

During 2009, the government listed 140 banks had closed. Significant rise compared to 2008 which only 25 banks and 2007 that only three banks are closed.

The banking industry has shifted from the initially focus only on mortgage financing (mortgage) and insurance assets (securities) to switch to loans in the retail and commercial hit by the crisis.

Furthermore, 12 branches of Sun American Bank will be open again on Monday as branches of First-Citizens Bank & Trust Company of Raleigh, North Carolina. However, FDIC can not find a buyer for Centennial Bank that a guarantee will be sent on Monday to retail depositors to fund their insurance.

FDIC also must create new depository institutions to take over the operations of Waterfield Bank. and the bank will remain open until 5 April the next to allow depositors to access their insurance funds and time to move their accounts.

While Heartland Bank and Trust of Bloomington, Illinois, agreed to take over the deposits from the Bank of Illinois, the two branches will reopen Saturday as branches of the Heartland.

TOKYO – Meeting discussion conducted monetary policy the Central Bank of Japan (Bank of Japan / BoJ) indicates a stop-gap measure to spur economic recovery. All this is a barrier is the rate of deflation and weak demand.

Many people hope that the BoJ rate remained at 0.1 percent level, as has been done since December 2008. This is to keep running so as to sustain the credit growth.

BoJ being confronted turunya consumer price index (CPI) for almost a year, is also considering to extend short-term loan facilities to companies and households, became six months.

Japanese media reported that the Central Bank will inject fresh funds of up to 20 trillion yen (equivalent to USD222 billion) into the local financial markets.

Meanwhile, the yen continues to move sharply higher. This becomes an important record in Japan’s economic prospects. Prime Minister of Japan Yukio Hatoyama has also been urging stern steps to stem yen strength.

Just FYI, BoJ officials meeting came after the central bank urged governments to exert all efforts to reduce deflation. The risk of deflation can lead to reduced corporate profits and push economic activity as consumers delay spending. At the end of economic growth will be slowed.

“I hope the parliamentary session today will find a way to combat deflation,” said Minister of Finance of Japan Naoto Kan, as quoted by AFP, Tuesday (16/3/2010).

It suggests that he wants Japan to push deflation until the end of the year. How, with encouraging early deadlines from BoJ estimates for two years.

Just FYI, Japan plunged into recession in 2008, as the impact of the decline in the global economy. However, economic growth returned in the second quarter last year.

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.

Company-medium scale companies in the Asia Pacific region and Japan (APJ) proved to have a strong desire to use technology to the latest data center, although sometimes the desire is not matched with a strong fund. A study conducted Applied Research in collaboration with Symantec showed that medium-sized companies are pioneers in using the latest technologies such as cloud computing, deduplikasi, replication, storage virtualization and continuous data protection. “Mid-size companies are leading in terms of applying the latest technology, it is contradictory because the company as they also limit in terms of budget for implementation. That is, they want to spend money for a particular technology that is felt very important, and not all,” explained Andy Darmawan, Senior Technical Consultant Symantec Indonesia, at the Grand Hyatt Hotel, Jakarta, Tuesday (2/2/2010). Andy continued, the survey also showed that one third of those correspondents who ask, who reached the 1780 respondents, believe that many applications create increasingly complex data centers. In addition, the security aspect was considered necessary for these respondents, with the level of urgency to reach 84 percent. “Most companies have 10 or more inisitaif data center with sufficient rank or very important and 50 percent expect significant changes in the data coming centernya in 2010,” he added. For this reason, Symantec offers several solutions for medium-sized companies that deal with such problems. One is, have software that supports the information situation separately. The reason is very important for such companies to adopt new technologies with complex data centers. “Equally important is to install deduplikasi closer to the source of information to reduce redundancy and reduce storage and networking,” said Andry.

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.