The Obama Administration has appointed Kenneth R. Feinberg to review and reduce the salary of the executives for the following 7 companies: Citigroup, Bank of America, General Motors, Chrysler, GMAC, Chrysler Financial, and American International Group. These 7 companies have received a total of approximately $250 in bail out funds from the Troubled Assets Relief Program (TARP).
Feinberg’s official title is Special Master on Compensation, bestowed upon him be the Obama administration. Feinberg has sole discretion to set compensation for the five top senior executives plus the next 20 highest-paid people at each of the seven companies.
Feinberg’s plan will reduce cash salaries of the executives at these companies by an average of 90%. Other reductions will include eliminating the use of corporate jets for personal travel, chauffeured drivers, and payment of country club memberships.
The official announcement of these cuts is supposed to be announced by The Treasury Department on Thursday, October 29, 2009.
Resources:
Murakami, Tomoeh and Dennis, Brady. U.S. to cut pay for bailed-out bosses. The Washington Post. 22 Oct. 2009. Viewed 27 Oct. 2009. http://www.washingtonpost.com/wpdyn/content/article/2009/10/21/AR2009102102719.html
Tuesday, October 27, 2009
US Bank Stock Quote
Stock Quote
USB (Common Stock)
Price 24.25 Change + 0.10
Volume 15,095,698 % Change 0.41%
Intraday High 24.35 52 Week High 32.35
Intraday Low 23.92 52 Week Low 8.06
Today's Open 24.30 Currency US Dollar
Previous Close 24.15 Exchange NYSE
10/27/09 4:00 p.m. ET Pricing delayed 20 minutes
USB (Common Stock)
Price 24.25 Change + 0.10
Volume 15,095,698 % Change 0.41%
Intraday High 24.35 52 Week High 32.35
Intraday Low 23.92 52 Week Low 8.06
Today's Open 24.30 Currency US Dollar
Previous Close 24.15 Exchange NYSE
10/27/09 4:00 p.m. ET Pricing delayed 20 minutes
Sunday, October 18, 2009
U.S. Bank & H1N1
I feel as though I am working in a hospital, with all the hand sanitizers outside every bathroom door, behind the teller line, even randomly along the hallway.
U.S. Bank has a dedicated intranet site, where H1N1 information is posted, and related questions are answered. Many “staying well” tips are posted on the site, most of which I am sure you have heard on the local news, i.e. wash your hands frequently, cough or sneeze into your elbow, not your hand, and STAY AT HOME IF YOU ARE SICK. If you are a cash handler, you are to wash / sanitize your hands hourly, at a minimum.
We have had meetings with management to review contingency plans, the mechanics of how to work from home, with your home computer, and plans for staff shortages.
The bank is also having a flu clinic, providing free flu vaccines for employees, Oct 22, 2009. At this point, I have not been able to determine if these vaccines are for the seasonal flu, H1N1, or both. Given the limited availability of the H1N1 vaccines, I would anticipate the vaccines are for the seasonal flu strand. In years past, there has barely been enough participation in the flu clinics to have the clinic. This year, the organizers had to add additional time slots to the schedule.
If employees are absent due to the H1N1 flu, they must take sick time. As would be the case with any illness. If an employee has no sick time left, unpaid time off may be taken.
U.S. Bank has a dedicated intranet site, where H1N1 information is posted, and related questions are answered. Many “staying well” tips are posted on the site, most of which I am sure you have heard on the local news, i.e. wash your hands frequently, cough or sneeze into your elbow, not your hand, and STAY AT HOME IF YOU ARE SICK. If you are a cash handler, you are to wash / sanitize your hands hourly, at a minimum.
We have had meetings with management to review contingency plans, the mechanics of how to work from home, with your home computer, and plans for staff shortages.
The bank is also having a flu clinic, providing free flu vaccines for employees, Oct 22, 2009. At this point, I have not been able to determine if these vaccines are for the seasonal flu, H1N1, or both. Given the limited availability of the H1N1 vaccines, I would anticipate the vaccines are for the seasonal flu strand. In years past, there has barely been enough participation in the flu clinics to have the clinic. This year, the organizers had to add additional time slots to the schedule.
If employees are absent due to the H1N1 flu, they must take sick time. As would be the case with any illness. If an employee has no sick time left, unpaid time off may be taken.
Stock Price
Price 23.41 Change - 0.6
Volume 13,848,655 % Change 2.50%
Intraday High 23.59 52 Week High 32.35
Intraday Low 23.23 52 Week Low 8.06
Today's Open 23.53 Currency US Dollar
Previous Close 24.01 Exchange NYSE
10/16/09 4:03 p.m. ET Pricing delayed 20 minutes
Volume 13,848,655 % Change 2.50%
Intraday High 23.59 52 Week High 32.35
Intraday Low 23.23 52 Week Low 8.06
Today's Open 23.53 Currency US Dollar
Previous Close 24.01 Exchange NYSE
10/16/09 4:03 p.m. ET Pricing delayed 20 minutes
Sunday, October 11, 2009
U.S. Bank / vertical integration
U.S. Bank is much more vertically integrated than smaller financial institutions. I would suspect most large financial institutions are in similar positions.
Over the 14 years I have been at the bank, we have gone from a locally owned financial institution to the 6th largest bank in the U.S. Through these mergers, I have seen the bank’s processes become more and more vertically integrated.
When we were Citizens Bank and Trust, our computer system was outsourced through Computer Services Industries (CSI), here in Paducah. As a small town bank, many divisions including the credit card sector, merchant processing group, and our investment / brokerage division, were outsourced through other companies. Employees for those companies would work inside the bank, service Citizen’s Bank customers, but they truly worked for another company. All of these processes are now in house.
Some functions are still outsourced. An outside company does our shredding, and various companies service our armored car needs. Both of these areas of business have significant, and expensive, insurance and security requirements. Someday these processes may be brought in house, but for now, they are still vendor serviced.
Over the 14 years I have been at the bank, we have gone from a locally owned financial institution to the 6th largest bank in the U.S. Through these mergers, I have seen the bank’s processes become more and more vertically integrated.
When we were Citizens Bank and Trust, our computer system was outsourced through Computer Services Industries (CSI), here in Paducah. As a small town bank, many divisions including the credit card sector, merchant processing group, and our investment / brokerage division, were outsourced through other companies. Employees for those companies would work inside the bank, service Citizen’s Bank customers, but they truly worked for another company. All of these processes are now in house.
Some functions are still outsourced. An outside company does our shredding, and various companies service our armored car needs. Both of these areas of business have significant, and expensive, insurance and security requirements. Someday these processes may be brought in house, but for now, they are still vendor serviced.
Saturday, October 10, 2009
U.S. Bank competitive strategy
Our text describes a best-cost provider strategy as a strategy representing an attractive combination of price, features, quality, service, and other appealing attributes.
This tactic best describes US Bank’s competitive strategy - US Bank attempts to provide customers with more value for the money. One of the main ways in which US Bank attempts to provide increased value is through superior customer service, incorporated in everything from our core values, detailed in an earlier post, to our five quality customer service steps. In every teller class I teach, I always emphasize how people can get the same basic banking products from a variety of financial institutions, but what differentiates US Bank from competitors is them, the employee, and the service they provide our customers.
The text also states “the target market for best-cost provider is value-conscious buyers – buyers who are looking for appealing extras at an appealing low price.”
US Bank offers appealing extras like internet banking, mobile banking, and internet bill pay at no additional costs. US Bank caters to an expanding Hispanic market by offering bi-lingual brochures, disclosures, and often, bi-lingual employees. Other extras include cash back on certain debit and credit card purchases, discounted loan rates and increased earnings rates, based on a customer’s total relationship with the bank.
The company’s culture is not completely focused on price and price alone. Granted, price is a consideration, but it is not the only consideration, nor would I want it to be, when dealing with my current financial status or financial future.
This tactic best describes US Bank’s competitive strategy - US Bank attempts to provide customers with more value for the money. One of the main ways in which US Bank attempts to provide increased value is through superior customer service, incorporated in everything from our core values, detailed in an earlier post, to our five quality customer service steps. In every teller class I teach, I always emphasize how people can get the same basic banking products from a variety of financial institutions, but what differentiates US Bank from competitors is them, the employee, and the service they provide our customers.
The text also states “the target market for best-cost provider is value-conscious buyers – buyers who are looking for appealing extras at an appealing low price.”
US Bank offers appealing extras like internet banking, mobile banking, and internet bill pay at no additional costs. US Bank caters to an expanding Hispanic market by offering bi-lingual brochures, disclosures, and often, bi-lingual employees. Other extras include cash back on certain debit and credit card purchases, discounted loan rates and increased earnings rates, based on a customer’s total relationship with the bank.
The company’s culture is not completely focused on price and price alone. Granted, price is a consideration, but it is not the only consideration, nor would I want it to be, when dealing with my current financial status or financial future.
Thursday, October 1, 2009
Stock Price
USB (Common Stock)
Price 21.11 Change - 0.75
Volume 22,432,664 % Change 3.43%
Intraday High 21.85 52 Week High 37.31
Intraday Low 21.11 52 Week Low 8.06
Today's Open 21.75 Currency US Dollar
Previous Close 21.86 Exchange NYSE
10/01/09 4:02 p.m. ET Pricing delayed 20 minutes
Price 21.11 Change - 0.75
Volume 22,432,664 % Change 3.43%
Intraday High 21.85 52 Week High 37.31
Intraday Low 21.11 52 Week Low 8.06
Today's Open 21.75 Currency US Dollar
Previous Close 21.86 Exchange NYSE
10/01/09 4:02 p.m. ET Pricing delayed 20 minutes
Banks Respond
In an effort to get out in front of the overdraft legislation discussed in my last blog, several banks have announced new overdraft policies. Banks may be trying to comply with most of the proposed overdraft legislation to keep this area from being governmentally regulated.
Beginning today, October 1, 2009, Bank of America will not charge their customer’s any overdraft fees if the customer’s account is overdrawn less than $10 for one day. The bank will continue to charge a $35 fee if the account is not brought into the positive within five days. Customers will be allowed to opt out of the overdraft program. BofA will charge their customer’s a maximum of four overdraft fees per day. Interestingly enough, BofA had just increased the maximum overdraft fees charged to customers’ accounts from 5 to 10 earlier this year.
Effective first quarter of 2010, JPMorgan Chase will make customers opt-in if they desire overdraft protection. JPMorgan Chase will not charge customers a fee if they are overdrawn $5 or less, and the maximum overdrafts fees charged per day will be decreased from the current cap of 6 to 3.
Effective first quarter of 2010, US Bank will not charge customers any overdraft fees if they are overdrawn $10 or less. Overdraft fees will be limited to 3 a day. New customers will choose to opt-in or opt-out of overdraft privileges. Existing customers will continue to be able to opt-out of overdraft privileges. US Bank will also establish an annual cap on the amount of overdraft fees that can be charged on any single account.
References:
Dale, Steve. “US Bank Restructures Overdraft Policies and Fees.” 24 Sept. 2009. News Release received via internal email.
Woelfel, Joseph. “BofA, JPMorgan to Limit Overdraft Fees,” The New York Times, 23 Sept. 2009.
Beginning today, October 1, 2009, Bank of America will not charge their customer’s any overdraft fees if the customer’s account is overdrawn less than $10 for one day. The bank will continue to charge a $35 fee if the account is not brought into the positive within five days. Customers will be allowed to opt out of the overdraft program. BofA will charge their customer’s a maximum of four overdraft fees per day. Interestingly enough, BofA had just increased the maximum overdraft fees charged to customers’ accounts from 5 to 10 earlier this year.
Effective first quarter of 2010, JPMorgan Chase will make customers opt-in if they desire overdraft protection. JPMorgan Chase will not charge customers a fee if they are overdrawn $5 or less, and the maximum overdrafts fees charged per day will be decreased from the current cap of 6 to 3.
Effective first quarter of 2010, US Bank will not charge customers any overdraft fees if they are overdrawn $10 or less. Overdraft fees will be limited to 3 a day. New customers will choose to opt-in or opt-out of overdraft privileges. Existing customers will continue to be able to opt-out of overdraft privileges. US Bank will also establish an annual cap on the amount of overdraft fees that can be charged on any single account.
References:
Dale, Steve. “US Bank Restructures Overdraft Policies and Fees.” 24 Sept. 2009. News Release received via internal email.
Woelfel, Joseph. “BofA, JPMorgan to Limit Overdraft Fees,” The New York Times, 23 Sept. 2009.
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