Archive for November, 2009

Still on the Map

Monday, November 23rd, 2009

Judging from the attendance at the FELABAN Conference, Miami is still very much on the map and Latin America is still doing business. So is trade finance which was one of the driving forces in attendance. With over 1,300 attendees in a down economy it is a tribute to Miami holding its ground and an indicator that things are coming back.

Another positive sign was the attendance of the Chinese for the first time; a good indication of things to come with their interest in Latin America. And don’t forget about China as a target for wealth management as they have now surpassed the U.K. in number of millionaires.

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Make Your Resume Fit Our Times

Monday, November 23rd, 2009

Give employers the real scoop, not just the work history. Employment expectations have changed: hardworking survivors have had to handle multiple assignments, others have ridden the wave of name changes on their institutions, and some job seekers look like job-hoppers as they have been made redundant more than once.

There is no shame in being laid off, especially during a downturn in the economy. So include a one-liner that details your company’s cutbacks. For an acquisition, state the current name with the name of the acquired firm in parentheses. For multiple acquisitions, lead in with a short paragraph describing the evolution and how your position fluctuated as a result. Remember, being retained through a series of restructurings implies you are valued. Hanging on after layoffs also usually means you are stuck with an increased workload, which is difficult to present on your resume. Don’t put in too many bullet points; it is the kiss of death and makes the resume hard to read. Only include information relevant to your career objectives. If necessary use bold subheadings under your official title and allude to the increase in responsibility when noting you were selected the handle mission-critical projects.

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How Do Bank’s Mortgage Loan Portfolios Stack Up?

Monday, November 23rd, 2009

By now banks have had the opportunity to examine real estate portfolios. What have they found…?

First of all, there is definitely a correlation between the LTVR and non-performance. It seems that the threshold is about 70% with a LTVR over that amount showing an increasing number of non-performing loans. In fact, the percentage is three times higher for LTV’s in the 70 -79% range and close to four times higher for LTV’s in excess of 80%.

Another significant finding, the percentage of problem loans for primary homes in our survey was 5%, for secondary residences it was 12% and it was over 25% for investment properties. When the LTVR variable is considered, the results are dramatic. Almost 50% of loans that have a LTV in excess of 80% and are in the investment property category are past due. Our study also shows that most, over 95%, of HELOC loans $100,000 and under are current while half of the HELOC loans over $500,000 are not.

And what about CRA loans? According to Edward Pinto, mortgage finance industry consultant and former chief credit officer of Fannie Mae in the 1980’s:

“Whatever the precise magnitude of the CRA’s role, there is no question that as the government pursued affordable-housing goals-with the CRA providing approximately half of Fannie’s and Freddie’s affordable-housing purchases-trillions of dollars in high-risk lending flooded the real-estate market, with disastrous consequences. Over the last 20 years, the percentage of conventional home-purchase mortgages made with the borrower putting 5 percent or less down more than tripled, from 8 percent in 1990 to 29 percent in 2007. Adding to the default risk: of these loans with 5 percent or less down, the average down payment declined from 5 percent to 3 percent of the loan’s value."

(Entire article click http://www.city-journal.org/2009/19_4_snd-cra.html)

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Lunch with Diego Folino

Monday, November 23rd, 2009

Diego Folino is President and CEO, Standard Chartered Bank International (Americas), LTD. Diego arrived in Miami to take the helm of Standard Chartered Bank’s (SCB) operation in Miami and private banking efforts in the Americas. He started almost two years ago when SCB acquired American Express Bank International’s world-wide banking operations.

Diego, with over 20 years of international banking experience, has a long history with SCB and came to Miami after heading up the bank’s operation in Mexico. Diego spent about 7 years in Mexico positioning the bank as a top competitor in its core business areas. Prior to that, he spent 12 years with Bank of America in Mexico, where he held various positions within the corporate finance world.

Since his arrival here, he has led and executed the integration of the acquired business, managed the cultural change and integration, created and incorporated a new U.S. Broker Dealer "Standard Chartered Securities (Americas) Inc." and as he describes in simple words, he now has the house in order to kick off a new chapter of the bank in the region.

We have a world class bank in our midst. Last week, Standard Chartered invested $100,000,000 in the formation of a new bank in Brazil. Many in our community do not know the Bank and would be surprised by the magnitude of that investment. In sponsoring the opening cocktail event for 1,300 participants at the FELABAN Conference, they demonstrated their interest in Latin America to the banking community.

Headquartered in London, SCB is listed on both the London Stock Exchange and the Hong Kong Stock Exchange and is particularly strong in Asia, where many of its senior management reside. Standard Chartered is the number one foreign bank in mainland China, India, South Korea and Taiwan. A substantial portion of its assets are in growth areas of Asia, Africa and the Middle East. The Bank was founded in 1853 as The Chartered Bank of India and Australia, thus its strong Asian roots. Today Standard Chartered has about 70,000 employees in more than 70 countries with over 1,600 branches and outlets. It has one of the world’s highest market caps and has come through the difficult recessionary period in a very strong financial position.

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Changing the Rules on the Fly

Monday, November 23rd, 2009

One thing businesses, including banks, do not like is changing the rules in mid-stream. It makes planning and running the business in an orderly fashion difficult if not impossible. Simultaneously, we have accounting rules, tax laws, salary guidelines, regulatory supervision and oversight, reporting, and even controls over minute fees all being changed and enforced at a time when mere survival is a success story. Top that off with the fact that most legislators making the changes do not fully understand your business. Managing a bank is tough enough but made even tougher by the changing of the rules on the fly. The Foreign Tax Compliance Act of 2009 that is now moving quickly through Congress is a perfect example of this. This will dramatically change the way U.S. banks and foreign banks with a U.S. presence, deal with American accounts, U.S. taxes and foreigner’s accounts in the U.S. It might be called The Law of Unintended Consequences. Talk about changing the rules on the fly; it even extends changes far beyond our borders. Take a look at it on our blog and see our comments in The Miami Business Review.

Follow this bill’s progress
Read the full text of this bill

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On the Move – Where Your Friends are Hanging Out

Monday, November 23rd, 2009

Hugo Castro has been named Chairman of Pacific National Bank. Hugo has a long and successful banking career which includes not only leadership roles but also acquiring and remolding banks in both Dade and Broward counties. Miguel Jimenez, formerly from Bank of America, has been named Senior Vice President and Manager of International Trade Services for BB & T Bank which recently acquired Colonial Bank and immediately has become a major player in South Florida. Hans Mueller left Coconut Grove Bank and joined Gibraltar Bank as their senior lender.

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