1: CAST SERVICE HIGHLIGHT

Workforce Management & Staff Modeling
Effectively manage work force productivity and resource levels

Proactively managing productivity, service delivery, staff levels and related costs are essential components in optimizing shareholder value. In recent years, campaigns to 'cut costs at all costs' have led to inefficient and arbitrary staff reductions, hampering overall productivity and negatively impacting service levels. Such efforts are typically not sustainable.  As a result, areas of excess cost and substandard service levels have persisted in most organizations. 

Factors influencing staff and productivity management

• Inefficiencies from merging disparate operations, technologies and staffing practices
• Limited understanding of the implications of newly installed technologies
• Inefficiencies resulting from arbitrary, across the board staff reductions
• Inadequate performance metrics
• Lack of tools for objectively monitoring and managing productivity
• Perception that managing staff levels and productivity is an occasional, emergency activity

Why CAST for Work Force Management and Staff Modeling 

• 18 years experience reengineering operational areas in banking, insurance and capital markets 
• Proven approach to developing work force management standards and performance metrics 
• Comprehensive staffing models 
• Demonstrated expertise in organizational design 
• Established implementation tools and techniques 
• Proven tools for monitoring and measuring benefit

2: AMERICAN BANKER - Advisers, Retirees Far Apart on Retirement-Plan Priorities

American Banker    Monday, April 19, 2010

By Ruthie Ackerman

WASHINGTON -- Jafor Iqbal wonders if advisers are from Mars and retirees are from Venus.

It's a vast gap between these two groups, especially when it comes to what each thinks are the risks in retirement, Iqbal, Limra International Inc.'s associate management director of retirement research, said at the group's retirement industry conference last week.

When asked in a survey to rank retirement risks in order of importance, Iqbal said retirees named health care as their top priority, followed by inflation, volatility and, lastly, longevity (how long their money will last). Advisers rank longevity as their top priority on behalf of clients, followed by volatility, health care and inflation.

What do these differences mean for the more than 40 million retired Americans and their advisers?

For one, it means there is a significant lack of communication and understanding about what clients want and how advisers can help. This gap may lead preretirees and retirees to make poor decisions regarding their futures.

Here's an example: Iqbal said only one in six retirees is able to work in retirement, yet 58% plan to do so. "Advisers need to warn their clients that they can't depend on working in retirement, because their age, health and skill set may prevent them from doing so."

According to the Limra study, most advisers do not always counsel clients about some critical risks that could affect their financial security in retirement. The report surveyed retirees age 55 to 80 with $200,000 of investible assets who have been retired for one to 10 years.

Marie Rice, a corporate vice president and director of Limra Retirement Research, said in an interview at the conference that although most advisers are careful about managing their clients' assets in retirement, they are not addressing some key issues and may be putting clients' long-term financial well being in danger.

"Basic retirement planning should include things like: when a client should retire; planning expenses and income in retirement; ordering assets from which withdrawals should be made; and planning any minimum distributions," Rice said.

Yet, the research revealed that fewer than four in 10 retirees have some sort of plan that lowered the risk that their money would run out during retirement, and nearly 25% had more than $100,000 of debt, according to Limra.

Respondents said most advisers are not actually helping with the details of retirement income. For retirees using advisers, 45% said their adviser did not talk to them about minimizing exposure to retirement risk, 42% said their adviser did not talk about which assets should be drawn for income, 41% said their adviser did not talk about minimizing the amount of taxes paid in retirement, 29% said they did not talk about determining which assets should be used first, 27% did not talk about planning for expenses and income in retirement and 13% did not advise on when to retire.

But a separate online study of 922 advisers that Limra conducted in September and October found that 90% of advisers said that they are actively involved in retirement planning; 77% said they are managing assets; 73% said that they do expense planning; 66% said they advise when to claim Social Security and 62% advise when to claim pension plans.

Why the disconnect?

For one, Rice said, when clients look at their statements they see a large lump of money. They are not dividing the big pot to see how much monthly income they will actually have in retirement. "Logic doesn't always work with retirees," she said. "Emotions get involved. Retirees and preretirees need to be shown how much monthly income they will have, not large buckets of money."

To help advisers help their clients, Limra identified five questions preretirees and retirees should ask advisers when developing a retirement plan: When do you want to retire? How do you expect to plan for your expenses and income? Which funds does it make sense to draw from first? Do you know that annuities have minimum distributions you need to perform, and that if you don't perform them there are penalties? What are the retirement risks you worry about, and which ones should you be worrying about?

3: AMERICAN BANKER - Affluent Ready to Work Longer

American Banker   Thursday, April 22, 2010

By Matt Ackermann

According to Bank of America Corp.'s Merrill Lynch Affluent Insights Quarterly survey, issues related to retirement and health care rank highest among financial concerns. Among those who identified health care as a top concern (62%), more than half (56%) reported feeling unsure of how rising costs should factor into their retirement planning, up from 40% in January. This may help to explain why the number of survey respondents concerned about whether their assets will last throughout their lifetime rose to 61% from 53% during the last quarter.

Sallie Krawcheck, the president of B of A global wealth and investment management, said in a press release Tuesday that "they want to preserve capital, minimize risk and hopefully make up some of their losses, but they're not entirely sure where to begin. This desire for guidance bodes well for wealth managers who are willing to really listen and give clients what they need."

The study, the third in a series of quarterly surveys of affluent investors' concerns as they approach retirement, suggests that affluent individuals over 65 appear to be working longer.

Andy Sieg, head of retirement and philanthropic services for B of A Merrill Lynch, said many individuals surveyed indicated that they plan to continue working, even if only part time, "into their late 60s and 70s, pursuing dream jobs and devoting more time to charitable causes."

Affluent baby boomers between 51 and 64 are the most concerned about whether their assets will last through retirement (73%) and whether they will be able to live the lifestyle they had hoped to in retirement (61%.)

Forty percent of those respondents expect to retire later, compared with their expectations a year earlier.

Often referred to as the "sandwich generation," more than 45% of this group said that they have had to make sacrifices to support their family, 44% of these individuals have cut back on personal luxuries, 26% are now saving less for retirement and 19% have invited their adult-age children and/or parents to live with them to cut monthly expenses.

Individuals between 35 and 50 have similar concerns regarding health care, retirement and income, but this group is also concerned with funding their children's education (52%) and knowing how to manage a proper cash flow and liquidity strategy (31%).

During the past year, regulators have launched a number of initiatives to increase retirement savings, but 52% of respondents think more needs to be done. For instance, half of respondents said health care should be provided to all retirees, while 44% think more financial resources should be put toward Social Security.

In fact, 47% of affluent individuals between 35 and 50 assume Social Security will not play a role in their retirement, and nearly 70% are skeptical about Medicare, believing it will play little or no role in their retirement.

4: AMERICAN BANKER - For Brokers at Wire Houses, the Outlook Remains Wary

American Banker    Wednesday, April 28, 2010

By Ruthie Ackerman

The financial meltdown of the last 18 months may be easing, but the crisis continues to impact the wealth management industry.

A report by Aite Group, "New Realities in Wealth Management: Has the Dust Settled?," says that, though financial advisers expect this to be a great year, wire houses are still feeling the turbulence, and breakaway brokers, though waning, are still a concern.

Alois Pirker, research director with Aite Group and co-author of the report, said in a phone interview Monday that a post-recession spike in confidence is common, and the ones whose outlook improves the earliest will reap rewards earliest.

Even though independent registered investment advisers are the most confident segment of the financial industry, according to the report, some -- especially wire-house brokers -- remain cautious.

"The market-share carousel is still turning as we speak," Pirker said. "We see firms gaining traction just by being bold in a crisis situation by onboarding clients and being confident about their business," he said. "I think 2010 will be a pivotal year where we see some gaining substantial market share and traction and some losing because they haven't moved into growth mode early enough."

According to the report, on average, wire-house brokers predict revenue growth of 13.4% from the fourth quarter of 2009 -- when the survey was conducted -- to the fourth quarter of 2010, while other industry segments expect much stronger growth. The independent RIA channel expects revenue growth of 24%. Fifty-two percent of RIAs said they expect production to rise more than 20%; only a third of wire-house brokers expect such an increase.

If growth expectations are met, this is bearish news for wire-house firms, who would have lost market share for a third straight year. The report's conclusions should not come as a surprise to wire houses, which have been restructuring since last year, mostly because of an increase in mergers and acquisitions.

To succeed, wire houses need to retain their most productive financial advisers and to hire top producers, according to Aite. That strategy appears to be working somewhat; with a focus on retention packages and lock-in contracts, the trend of breakaway brokers has slowed from the high levels of early 2009.

Despite such inducements, 85% of advisers surveyed by Aite said there is some likelihood they will break away. Twenty percent said it is more likely than not that they will break away.

In a press release, Pirker said: "While the situation at wire houses has certainly stabilized over the past year, our survey shows that only 15% of wire-house advisers currently have no plans to break away from their employer. While switching firms has slowed in the last couple of quarters, a large share of wire-house brokers is prepared to jump ship should their firm take another reputational hit. Even as positive market performance restores stability, the major players in the industry continue to face serious competitive threats."

Pirker said in the interview that what most surprised him about the report's findings is that, though many in the wire-house channel believed that all firms' book of business declined, there were a substantial number of firms that gained 20% in their book of business.

What differentiated the firms that gained from those that didn't, Pirker said, was "the ability to work with clients through the crisis and to be there in every stressful situation.

The ones who are top-performing and confident in their ability to help clients are ultimately more convincing with the client."

Ultimately, there were winners and losers in every channel. "The channel alone doesn't determine your growth perspective," Pirker said.

But it's clear the channel gained substantially. From the end of 2008 to the end of 2009, RIAs gained $350 billion in assets as a channel, taking 1.5% of market share in 2009 alone. One reason: RIAs have the fiduciary standard on their side.

5: AMERICAN BANKER - 'Pitiful' OTS Blamed for Wamu's Fall

American Banker    Monday, April 19, 2010

By Joe Adler

Related Links

Wamu Policing Slammed; Levin Blames OTS Execs - April 16, 2010

Levin Uses Wamu in Push For Key Reform Provisions - April 13, 2010

Sen. Levin to Hold Hearings on Crisis - April 12, 2010

WASHINGTON -- More than 18 months after the largest bank failure in U.S. history, regulators of the collapsed Washington Mutual Inc. faced a day of reckoning Friday, with a key lawmaker accusing them of gross incompetence.

The bulk of Sen. Carl Levin's ire was directed at the Office of Thrift Supervision and its former director, John Reich, who was grilled for more than an hour about why he allowed risky lending practices to proliferate at Wamu and whether he was too cozy with its executives.

The OTS only acted forcefully, Levin charged, to block the Federal Deposit Insurance Corp. from seeking more information.

"You wouldn't even give them a desk," said Levin, the chairman of the Senate Permanent Subcommittee on Investigations. "About the only time OTS showed backbone was against another agency's moving, in your view, into your turf. … I don't see your blood pressure getting up against a bank which is engaging in the kind of dangerous practices that that bank engaged in."

In reference to internal OTS e-mails, Levin sought to portray Reich as almost reverent toward Kerry Killinger, the thrift company's former chief executive. He noted an e-mail to Killinger in which Reich said he was "sorry" for an action against the thrift.

"Are you at all embarrassed by this?" Levin asked. "You should be."

"I'm not disturbed by it," Reich replied. "I make no apology for that e-mail whatsoever."

And as in other high-profile hearings involving former regulators and executives of troubled institutions, Reich was defiant, arguing that Wamu's collapse was not his fault and that, in fact, it should not have been closed by the government.

His comments to Killinger just reflected his personal style, he said, and he was not too close to the CEO.

"I am by nature, Mr. Chairman, a humble person," he said. "I'm a casual person and an informal person, and it's not at all unusual for me to address the people who run the institutions that I supervise by their first names, if I know them, particularly if I'm 10 years older than they are."

In his prepared remarks, Reich categorically denied any effort to protect the thrift.

"As director of the agency, I never felt beholden to 'preserve' Wamu or any other chartered entity under our supervision for the purpose of preserving OTS' revenue stream or its standing as a separate regulatory agency," he said.

Reich's defense echoed comments earlier in the week by Killinger, who said Wamu should have been rescued by the government but was not because it lacked good connections with Washington policymakers.

Wamu was closed because of liquidity problems sparked in part by a run on the bank, Reich said. "Though asset quality was a growing and continuing concern at Wamu, this was a liquidity failure, not a capital failure," he said.

The former OTS chief said that government programs, including an expansion of deposit insurance coverage, introduced within two weeks after Wamu's collapse could have prevented its failure.

He also said other companies later got massive assistance in order to prevent their failure.

"Although Washington Mutual has been referred to as the largest failure in American history, in fact the largest failure in American history was Citi," he said. "It wasn't allowed to fail. It was bailed out."

Though Reich also spent much of his last years at the OTS defending the thrift charter, he ultimately blamed Wamu's problems on the charter, saying it barred the company from diversifying.

"In my personal opinion, the thrift charter is obsolete because the … statute requires that two-thirds of their assets be invested in real estate loans, which is a concentration," Reich said.

But Levin was not persuaded. He derided Reich and the agency for waiting months to downgrade Wamu's Camels rating or to take any public enforcement action against it until too late.

"Even after all these years and all these violations, you finally decide in early 2008 you're going to push it from a 2 to a 3, you don't make that public," and "you delay" issuing the memorandum of understanding with Wamu "for months," he said. "You apologize in an e-mail. 'I'm so sorry,' you say. You're so sorry … . It's not only feeble enforcement. It's pitiful enforcement."

In response, Reich said he did regret not reining in loan products at Wamu that he himself felt were too risky, but ultimately, he said, the thrift giant failed because uncertainty about the banking industry caused a systemwide panic.

Reich also defended himself regarding e-mails in which he expressed disdain for FDIC Chairman Sheila Bair, who was pressing the OTS for tougher action against Wamu. In an e-mail to another OTS employee, Reich said, "I cannot believe the continuing audacity of this woman."

On Friday, Reich said he regretted those words.

"Characterize it how you may," he told Levin, but "I have the highest regard for Sheila Bair. … These were tense times. People's blood pressure increases under situations like this, and sometimes we say things that we wish had not appeared in print."

Reich said the OTS' reluctance to give the FDIC access was intended to limit confusion.

"When the FDIC enters the premise, confusion develops about who really is the primary regulator," he said.

The agency's reputation has been battered by the financial crisis as several large thrifts, including BankUnited and IndyMac, failed. Regulatory reform legislation would eliminate the agency.

Levin has also directed some relatively light criticism at the FDIC. In response, Bair, who testified separately from Reich, acknowledged that a 2002 interagency agreement dictating when the FDIC may get involved should be beefed up.

6: AMERICAN BANKER - Retail Banking Treads Water But Wachovia Fitting in Well

American Banker    Thursday, April 22, 2010

By Jeff Horwitz

Wells Fargo & Co.'s even progress in integrating Wachovia Corp. says a lot about the company. That Wells' revenues still dropped to the lowest levels since last March says just as much about its industry.

From an operational perspective, Wells' first-quarter results were sound, adding to the case that the company has a solid grasp on the business lines and credit exposures, many of them unfamiliar, that it had inherited from Wachovia. Wells' former peer came cheaply because of its outsized exposure to such morasses as condo development, structured finance and option adjustable-rate mortgages.

Evidence that integration is going swimmingly peppered Wells' earnings, with fee-based businesses such as treasury services, retail brokerage operations and investment banking picking up the slack from retail banking, where revenue, two-thirds of Wells' total, was down 2% from a year earlier.

Reflecting the tough environment, key lending metrics like nonperforming assets (more than 4% of assets) and total loans (down $58 billion over 12 months) worsened. With good lending opportunities scarce and the bank unwilling to take on more interest rate risk, Wells has stockpiled an astounding $41 billion in short-term securities, the financial equivalent of treading water.

When presenting the company's results (net income fell 25%), Wells executives walked a fine line between talking up the potential of its core retail franchise and highlighting its increasing ability to compensate for the broader banking environment's weakness.

"Though the signs of strength we're seeing in the economy are encouraging, we're not counting on them alone to deliver the performance you've come to expect from Wells Fargo," said John Stumpf, Wells' chief executive.

Economic drag is hardly a concern solely for Wells, even if the other three coast-to-coast institutions -- Bank of America Corp., Citigroup Inc. and JPMorgan Chase & Co. -- compensated for lending weakness with big capital markets trading gains.

"If [retail banking] is attractive anywhere in the country, it will be attractive for them because of the markets they're in and their skill in serving them," said Credit Suisse's Moshe Orenbuch. "Loans are down across the industry, and the mortgage business is starting to cool. You just have to recognize the reality of that."

Wells has far exceeded the low bar it set for itself in the form of a $37 billion allowance for losses at the time of the Wachovia purchase. Its modified Wachovia mortgages significantly outperform the industry average redefault rates. It has switched Wachovia's funding away from high-cost certificates of deposit to cheap deposits, expanded its retail brokerage operations and significantly boosted revenue in Wachovia's Charlotte-based capital markets operation.

And the company has further boosted one of its favorite stats, cross-selling. Mentioned every chance Wells gets, the number grew faster than it has at any point in the past year, to six products per legacy Wells customer and 4.85 for legacy Wachovia.

In an interview after Wells' earnings call, Chief Financial Officer Howard Atkins argued that those kind of results show Wells is where it wants to be. "Nobody has the kind of community banking business we have," he said. "We think we've got a better shot at [sustainable earnings growth] than someone else who has 80% of their revenue coming from investment banking or any single source."

To Orenbuch, it may make sense to value the company's retail and middle-market franchises above the notably abrupt and possibly unsustainable capital markets gains of banks like Citi and B of A. But it leaves Wells temporarily reliant on noninterest income, up 7% from a year earlier.

Wachovia's old brokerage operations stand out, with profits up 60% year over year, to $282 million. Another star was its wholesale banking group, which increased its revenue to $5.3 billion from $4.9 billion even as the unit's average loans fell by 17%. While data on revenue breakdown is scarce, Wells has not and will not build up its proprietary trading, Atkins said. Instead, the wholesale bank's gains came from offering Wachovia's capital markets services to Wells' business clients.

7: AMERICAN BANKER - WaMu Policing Slammed; Levin Blames OTS Execs

American Banker    Friday, April 16, 2010

By Joe Adler

WASHINGTON -- The Office of Thrift Supervision was more focused on blocking the Federal Deposit Insurance Corp. from reining in Washington Mutual Inc. than it was in regulating the thrift company itself, congressional investigators and two watchdogs said Thursday.

A day before officials representing both agencies are scheduled to answer for the biggest failure in U.S. history, Sen. Carl Levin released a scathing report on Wamu's oversight, asserting that the OTS viewed the Seattle company as a "constituent," repeatedly ignored its own examiners' findings about Wamu's risky strategy and responded to the FDIC's more aggressive tone by fighting a turf war.

"Bank regulators are supposed to be our first line of defense against unsafe and unsound banking practices, but OTS didn't defend us," the Michigan Democrat told reporters ahead of Friday's hearing of the Permanent Subcommittee on Investigations. "Instead, although OTS repeatedly identified serious problems with Wamu, it failed to act based on the problems that it itself saw. These agencies, in particular the OTS, are supposed to be like a fire inspector to protect us … but instead stood and watched idly while the incendiary threat grew higher and higher."

Ahead of the hearing, Levin released a raft of documents, including internal FDIC and OTS memos that documented their arguments during Wamu's final days. Earlier this week, Levin also released internal Wamu documents detailing the company's risky lending practices and held a contentious hearing with former Wamu Chief Executive Kerry Killinger.

Similarly critical findings were released Thursday by the inspectors general of the FDIC and Treasury Department; a joint report concluded both regulators could have done more. "OTS's examinations of Wamu identified concerns with Wamu's high-risk lending strategy, including repeat findings concerning Wamu's single-family loan underwriting, management weaknesses and inadequate internal controls," the watchdog agencies said. "However, OTS's supervision did not adequately ensure that Wamu corrected those problems early enough to prevent a failure of the institution."

While the scrutiny has put both regulators in the hot seat, Levin's criticism was more squarely directed at the OTS. He noted the FDIC's numerous attempts to downgrade Wamu's regulatory rating.

According to his report, the FDIC was so frustrated by the OTS' refusal to downgrade the company's Camels rating in the summer of 2008 -- months before its September failure -- that the FDIC informed Wamu directly that it would lower the rating. (Regulators usually agree on ratings, but the FDIC is allowed to assign its own rating for deposit insurance assessment and other purposes.)

In response, then-OTS Director John Reich complained about FDIC Chairman Sheila Bair to his deputy, Scott Polakoff, writing in a Sept. 10, 2008, e-mail, "I cannot believe the continuing audacity of this woman."

Levin also pointed to repeated OTS efforts to block FDIC examiners from participating in Wamu's oversight. In a 2006 e-mail, FDIC Regional Director George Doerr told a senior official at the agency, "Please read info about OTS denying us space and access to information. The situation has gone from bad to worse."

Levin said that the OTS "did not allow the FDIC examiners to access critical … documents, refused to permit the FDIC to participate on a file review" and "continually rebuffed the FDIC's more critical view of the bank's condition."

"The OTS fought a turf war at the same time that its largest financial institution it oversaw was losing value, losing capital and losing deposits," Levin said.

Still, while Levin said the FDIC was "significantly less" to blame for the poor oversight, it "should have acted more vigorously."

Levin noted claims by the FDIC that current requirements bar it from getting involved with institutions overseen by other regulators that still appear healthy, but Levin said agency officials should have pressed the issue. "They were rejected and they were repulsed when they made requests of the OTS. That's something they should have taken to a higher level and insisted upon," he said. "They had the right to do that."

The joint IG report said that the "FDIC has enforcement powers to act when a primary regulator, such as OTS, does not take action," but "it did not use those powers for Wamu in 2008 because of the significant procedural steps necessary to invoke such action."

The report said the FDIC was hampered by an interagency agreement dictating how and when the FDIC's backup oversight authority is triggered. "We concluded that the interagency agreement did not provide FDIC with the access to information that it needed to assess Wamu's risk to the" Deposit Insurance Fund, said the inspectors general, who said that the FDIC revisit the agreement.

Levin also pointed to evidence that the OTS saw its relationship with Wamu -- whose exam fees contributed a significant chunk of the OTS budget -- as "collaborative."

He cited a May 2007 e-mail from Reich that stated, "Kerry Killinger, the CEO of Washington Mutual … will be in town Friday and wants to have a lunch meeting. He's my largest constituent, asset-wise."

Levin said that was proof the agency was not looking at Wamu objectively. "A constituent of OTS is not Wamu. OTS is supposed to work for us, the people, the taxpayers of the United States," Levin said.

Referring to statements by Killinger at his hearing earlier in the week that Wamu failed because it was not among the exclusive group of "too big to fail" institutions, Levin said, "The evidence indicates that there is another club that he was very much a member of, and that's OTS thrifts, which were allowed to dodge tough oversight."

Critics have warned for years that OTS was susceptible to capture by a large thrift company like Wamu, and many have suspected it had a too-cozy relationship with the company. As a result, the regulatory reform bills pending in Congress would eliminate the OTS and fold its functions into the Office of the Comptroller of the Currency.

William Ruberry, the OTS spokesman, defended the agency, noting in a statement that it has already adopted the single recommendation made by the IG report -- that the agency ensure it uses a system to formally track the status of examiner recommendations.

8: ANNOUNCEMENTS - Bank of America Merrill Lynch Names...

...C. John Mostofi Global Commercial Banking Midwest Region Executive

Eugene Godbold Continues to Lead National Commercial Real Estate Banking

Bank of America Merrill Lynch today announced that C. John Mostofi has been named Midwest Region executive for Global Commercial Banking. Mostofi succeeds Eugene (Gene) Godbold, who will continue to lead Commercial Real Estate Banking, a national business. Both are based in Chicago.

9: ANNOUNCEMENTS - J.P. Morgan Teams With SWIFT...

...In Support Of Open Architecture eBam Standards

Corporate Clients to Benefit from Streamlined Management of Global Bank Accounts and Improved Security and Auditing Capabilities

J.P. Morgan today announced that it is teaming with SWIFT in support of delivering open architecture Electronic Bank Account Management (eBAM) standards to its corporate clients. With this announcement, J.P. Morgan becomes one of the first banks to advocate the adoption of the ISO 20022 eBAM standard across the industry. The ISO 20022 eBAM standard streamlines the management of global bank accounts, especially valuable to multinational businesses that are managing hundreds of accounts across several banking relationships.

10: ANNOUNCEMENTS - NBC Bank Selects...

...Wolters Kluwer Financial Services to Comply with Reg E Changes

MINNEAPOLIS--(BUSINESS WIRE)--Wolters Kluwer Financial Services announced today NBC Bank of Oklahoma City, Okla. has selected it to help the bank manage compliance with the Federal Reserve Board’s upcoming changes to Regulation E (Reg E). The changes, which take effect July 1 for new accounts and Aug. 15 for existing ones, require financial institutions to gain approval from consumers before charging overdraft fees on one-time debit card or ATM transactions.

LINK TO FULL ARTICLE: http://www.businesswire.com/news/home/20100422005989/en/NBC-Bank-Selects-Wolters-Kluwer-Financial-Services

11: BANKINSURANCE.COM - Bank Annuity Earnings Tick Up 0.4% In 2009

NEWS IN BRIEF - APRIL 26 - MAY 2, 2010

U.S. bank holding companies (BHCs) generated $2.62 billion in annuity fee income in 2009, up 0.4% from $2.61 billion earned in 2008, according to the Michael White-ABIA Bank Annuity Fee Income Report, which is based on data reported to the Federal Reserve Board (FRB) and Federal Deposit Insurance Corporation (FDIC).

That $2.62 billion of total annuity income comprised 13% of total BHCs' combined mutual fund and annuity income of $20.17 billion and 17.5% of total combined annuity and insurance brokerage fee income of $14.96 billion.  In addition, among the top 50 BHC annuity earners, annuity revenue comprised a mean 8.5% of the companies' noninterest income, the White-ABIA Report shows.

Just under 43% (42.8%) of the nation's 913 large top-tier BHCs, or 391, sold annuities last year, led by BHCs with over $10 billion in assets, where 94.7% sold annuities and generated $2.48 billion in annuity revenue, up 1.2% from $2.45 billion in 2008.  In contrast, 35.4% of BHCs with $500 million to $1 billion in assets sold annuities and saw annuity income drop 15.2% to $21.9 million, down from $25.8 million in 2008.

Banks were not the primary source of annuity earnings generated by BHCs.  Of the nation's 7,247 banks, 985 or 13.6% reported annuity income.  Their combined annuity earnings of $824.2 million accounted for 31.5% of total BHC annuity sales.  The rest were generated by nonbank BHC subsidiaries.

San Francisco-based, $1.24 trillion-asset Wells Fargo & Company topped the list of BHC annuity generators, reporting annuity income, driven by the Wachovia acquisition, surged 475% to $678 million, up from $118 million in 2008.  New York City-based, $2.03 trillion-asset JPMorgan Chase ranked a distant second, with a 9.64% decline in annuity earnings to $328 million.  New York City-based, $771.5 billion-asset Morgan Stanley ranked third with $253 million, followed closely by Charlotte, NC-based, $2.2 trillion-asset Bank of America, which saw a 73% jump in annuity earnings to $251.8 million, helped by the Merrill Lynch acquisition.  Pittsburgh-based, $269.9 billion-asset PNC Financial Services ranked 5th, reporting a 74.5% surge in annuity earnings to $121.3 million, helped by earnings generated by newly acquired National City.

In contrast, 6th place Birmingham, AL-based, $137 billion-asset Regions Financial reported annuity income fell 14.6% to $93.5 million; 7th place Atlanta, GA-based, $174 billion-asset SunTrust Bank's reported annuity earnings tumbled 35% to $80.5 million, and 8th place Minneapolis, MN-based $281 billion-asset U.S. Bancorp reported annuity income dropped 34% to $66 million.  Ninth place Cleveland, OH-based, $92 billion-asset Keycorp and 10th place Winston-Salem, NC-based, $165.8 billion-asset BB&T Corp. reported modest earnings increases, rising respectively, 7.6% and 0.3% to $60.7 million and nearly $46.1 million, the Michael White-ABIA Bank Annuity Fee Income Report reveals.  The American Bankers Insurance Association in Washington, DC sponsors the report.  To read more about its initial findings, click here.

12: BANKINSURANCE.COM - B of A Sells $1.9 Billion Portfolio to AXA Private Equity

NEWS IN BRIEF - APRIL 26 - MAY 2, 2010

Charlotte, NC-based, $2.2 trillion-asset Bank of America Corp. (BofA) has sold a $1.9 billion portfolio of limited partnership interests in private equity funds to Paris-based AXA Private Equity.  BofA Global Principal Investments Executive Jim Forbes said, "The transaction allows Bank of America to reduce its private equity fund investments and unfounded commitments and manage its risk-weighted capital over the long-term, while allowing the bank's private equity team to focus on its core investment business."  AXA Private Equity said the acquisition strengthens its position in the U.S. and brings its global private equity transactions negotiated in April to $2.6 billion.  AXA Private Equity Fund of Funds Managing Director Vincent Gombault said, "We feel the market conditions are right to make acquisitions."  He described the acquired BofA portfolio as including "commitments in some of the best-managed funds" and said this "offers strong potential in terms of value creation for our customers."

13: BANKINSURANCE.COM - Few Consumers Seek Out Financial Advisors

NEWS IN BRIEF - APRIL 19 - 25, 2010

Just over 5% (5.6%) of Americans say they are working with a financial advisor to deal with current economic conditions, although 15.3% say they are putting more money into their 401(k)s, IRAs and other savings products.  Slightly more (18.2%) say they are paying off and/or refinancing their debt, but a striking 66% say they are sticking to a budget and closely monitoring their expenses, according to an early March survey of 1,000 conducted for Buffalo, NY-based, $908 million-asset M&T Bank by Gfk Customer Research North America.  To read the detailed survey results, click here.

14: BANKINSURANCE.COM - Group Calls for Investigation into FINRA

NEWS IN BRIEF - APRIL 19 - 25, 2010

The Alliance for Economic Stability has sent a letter to the U.S. Congress' Financial Crisis Inquiry Committee (FCIC) accusing the Financial Institutions Regulatory Authority (FINRA) of "allowing practices that were the most direct cause of the financial crisis" and urging the FCIC to investigate FINRA and its oversight of firms' compliance with capital requirements.

15: BANKINSURANCE.COM - Insurance Comprises 30% of Noninterest Income at BB&T

NEWS IN BRIEF - APRIL 26 - MAY 2, 2010

Winston-Salem, NC-based, $163.7 billion-asset BB&T Corp. reported insurance earnings in the first quarter inched ahead 0.4% to $253 million, up from $252 million in first quarter 2009, and, as by far the largest contributor to noninterest income, comprised 30.0% of that revenue, which fell 18% to $844 million, down from $1.03 billion, as mortgage banking income was sliced over 50% to $89 million, and the company recorded $3 million in securities losses compared to a $150 million securities gain in 2009.  Trust and investment advisory revenues climbed 18.8% to $38 million to comprise 4.5% of noninterest income, and income from bank-owned life insurance (BOLI) jumped 35% to $31 million to comprise 3.7% of noninterest income.  But, investment banking and brokerage fees and commissions slipped 3.7% to $79 million to comprise 9.4% of noninterest income.  Net interest income on a 3.88% net interest margin jumped 57.2% to $739 million, up from $470 million, as loan loss provisions fell 15% to $575 million, down from $676 million, but net income reflecting the decline in noninterest earnings and increased expenses especially tied to foreclosed properties, dropped 39% to $194 million, down from $318 million in first quarter 2009.  BB&T Chairman and CEO Kelly King said, "BB&T enjoyed a solid first quarter of 2010 with continued improvement in underlying credit trends.  The build in our allowance for credit losses slowed substantially."

In 2009, BB&T Corp. reported $922.5 million in insurance brokerage income, which comprised 26.5% of its noninterest income and 11.1% of its net operating revenue.  The company ranked third in insurance brokerage earnings among BHCs engaged in significant banking activities, according to the Michael White-Prudential Bank Insurance Fee Income Report.

16: BANKINSURANCE.COM - New York Insurance Brokers Challenge Regulation 194

NEWS IN BRIEF - APRIL 19 - 25, 2010

The Board of Directors of the Council of Insurance Brokers of Greater New York (CIBGNY) has unanimously agreed to challenge the legality of New York Insurance Department Regulation 194, which requires insurance agents to disclose in writing how much they would be paid for selling a proposed insurance product and the factors used to determine that compensation.  CIBGNY Legislative Chairman Anthony Calafiore said, "While we have no problems in disclosing that we are compensated for providing insurance, it should be at the time of sale, not when quoting the account."  CIBGNY President Anthony Aquilino added, "There has been no clamoring by consumers for compensation disclosure….  The Insurance Department could not cite one instance of consumer complaint."  The CIBGNY said the regulation adds "tremendous costs to the producer" while providing no additional protection to the consumer.

17: BANKINSURANCE.COM - Rising Insurance, Trust and Investment Fee Income...

...Drive Revenue Growth at Wells Fargo

NEWS IN BRIEF - APRIL 26 - MAY 2, 2010

San Francisco-based, $1.24 trillion-asset Wells Fargo & Co. Chairman and CEO John Stumpf said, "Once again the resiliency and advantages of Wells Fargo's diversified business model proved themselves in a difficult business environment."  Among the drivers for year-over-year revenue growth of 2% in the first quarter were insurance, trust and investment fees, Chief Financial Officer Howard Atkins said.  Insurance brokerage fee income grew 7% to $621 million, up from $581 million in first quarter 2009, and combined trust and investment fees jumped 20% to $2.67 billion, up from $2.22 billion.  Insurance and combined trust and investment fee income comprised, respectively, 6.0% and 25.9% of noninterest income, which rose 7% to $10.3 billion, up from $9.64 billion, despite a 1% slip in mortgage banking income to $2.47 billion and a 4% slide in service charges to $1.33 billion.  Net interest income on a 4.27% net interest margin fell 15% to $5.82 million, down from $6.82 billion, as loan loss provisions climbed 17% to $5.33 billion, up from $4.56 billion.  Net income, bolstered by noninterest earnings, including insurance, trust and investment fee income, but impacted by the 15% drop in interest income, declined 16.4% to $2.55 billion, down from $3.05 billion in first quarter 2009.  Stumpf said, "We're encouraged by signs of improvement in the credit cycle and by the savings and cross-sell opportunities we're realizing as more Wachovia bank stores convert to Wells Fargo."

In 2009, Wells Fargo reported $1.725 billion in insurance brokerage income, which comprised 4.2% of its noninterest income and 1.9% of its net operating revenue.  The company ranked first in insurance brokerage earnings among BHCs engaged in significant banking activities, according to the Michael White-Prudential Bank Insurance Fee Income Report.

In 2009, Wells Fargo reported $1.732 billion in trust income, which comprised 4.2% of its noninterest income and 2.0% of its net operating revenue.  The company ranked fifth in trust earnings among BHCs with assets over $10 billion, according to the Michael White's Bank Fiduciary Fee Income Report.

18: BANKINSURANCE.COM - SEC Charges Goldman with Securities Fraud

NEWS IN BRIEF - APRIL 19 - 25, 2010

The Securities and Exchange Commission (SEC) has filed securities fraud charges against New York City-based Goldman, Sachs & Co. (Goldman) and the company's employee Fabrice Tourre alleging they made material misstatements and omissions regarding ABACUS 2007-ACI, a synthetic collateralized debt obligation (CDO) tied to subprime residential mortgage-backed securities (RMBS), which Goldman structured and marketed to investors in early 2007.  According to the SEC, the materials Goldman used to market ABACUS represented that the RMBS portfolio underlying the CDO had been selected by ACA Management (ACA), an expert in analyzing RMBS credit risks, but did not disclose that hedge fund Paulson & Co., which had "an economic interest directly adverse to investors," played a significant role in selecting the ABACUS portfolio.  That adverse position was known to Goldman, for, after selecting the portfolio, Paulson entered into credit default swaps (CDS) with Goldman to buy protection on specific layers of ABACUS, the SEC said.  Goldman disclosed neither Paulson's role in selecting the ABACUS portfolio, nor Paulson's short position betting against the fund's positive performance, according to the complaint.

The SEC alleges that Tourre devised ABACUS, prepared its marketing materials and knew of both Paulson's role in selecting the portfolio for ABACUS and Paulson's short interest in the product.  Yet Tourre misled ACA Management into believing that Paulson had invested $200 million for a long position in ABACUS, when, in fact, Paulson had paid Goldman $15 million to structure and market ABACUS, according to the SEC.

The ABACUS deal closed on May 26, 2007.  By October 24, 2007, 83% of the RMBSs in the portfolio had been downgraded, and 17% were on negative watch.  By January 29, 2008, 99% of the portfolio had been downgraded, and, ultimately, ABACUS investors lost over $1 billion, while Paulson earned $1 billion betting against ABACUS, the SEC said.

SEC Director of Division Enforcement Robert Khuzami said, "Goldman wrongly permitted a client that was betting against the mortgage market to heavily influence which mortgage securities to include in an investment portfolio, while telling other investors that the securities were selected by an independent, objective third party."  The SEC filed its complaint against Goldman and Tourre in U.S. District Court for the Southern District of New York and is seeking injunctive relief, disgorgement of profits, prejudgment interest and civil penalties from both defendants.  To read the SEC's complaint, click here.

19: BANKINSURANCE.COM - Strong Interest Earnings Overpower...

...Declining Noninterest Income at U.S. Bancorp

NEWS IN BRIEF - APRIL 26 - MAY 2, 2010

Minneapolis, MN-based, $281.2 billion-asset U.S. Bancorp reported first quarter trust and investment management fees decreased 13.0% to $221 million, down from $254 million in first quarter 2009 and investment product fees and commissions slid 11.5% to $23 million down from $26 million to comprise, respectively, 11.3% and 1.2% of noninterest income, which slipped 1.7% to $1.95 billion, down from $1.99 billion in first quarter 2009.  Net interest income on a 3.90% net interest margin grew 40.3% to $1.09 billion, up from $777 million, as loan loss provisions slipped 0.6% to $1.31 billion, down from $1.32 billion, and net income grew 11.1% to $669 million, up from $602 million a year ago.  U.S. Bancorp President and CEO Richard Davis said, "Our first quarter earnings … were driven by solid year-over-year growth in total net revenue, moderating credit costs and on-going operational efficiency."  He added, "Higher fee revenue, notably in payments and corporate banking, reflected our on-going investments and business line growth initiatives."

In 2009, U.S. Bancorp reported $138 million in investment program income (securities brokerage plus annuity commissions), which comprised 1.6% of its noninterest income and 0.8% of its net operating revenue.  The company ranked 16th in investment program earnings among U.S. bank holding companies with assets over $10 billion, according to the Michael White's Investment Program Income Report.

In 2009, U.S. Bancorp reported $972 million in trust income, which comprised 11.6% of its noninterest income and 5.8% of its net operating revenue.  The company ranked eighth in trust earnings among U.S. bank holding companies with assets over $10 billion, according to the Michael White's Bank Fiduciary Fee Income Report.

20: BANKINSURANCE.COM - SunTrust Looking to Sell Ridgeworth Investments

NEWS IN BRIEF - APRIL 19 - 25, 2010

Atlanta, GA-based, $174.2 billion-asset SunTrust Banks is in discussions to sell portions of its RidgeWorth Investments subsidiary, which manages $63.1 billion in assets.  SunTrust said the move is "consistent with the Company's ongoing strategy of managing its business mix to maximize client satisfaction and shareholder value."

21: BANKINSURANCE.COM - Trust and Brokerage Earnings Up,...

...Insurance Down at Regions Financial

NEWS IN BRIEF - APRIL 26 - MAY 2, 2010

Birmingham, AL-based, $137 billion-asset Regions Financial Corporation reported first quarter insurance brokerage fee income slipped 3.6% to $27 million down from $28 million in first quarter 2009, while trust income rose 4.3% to $48 million, up from $46 million, and combined brokerage, investment banking and capital markets fee income grew 8.8% to $236 million, up from $217 million.  Insurance, trust and combined brokerage, investment banking and capital markets fee income comprised, respectively, 3.3%, 5.9% and 29.1% of noninterest income, which dropped 23.8% to $812 million, down from $1.07 billion, hit by a 304% plunge in leveraged lease termination gains from $323 million down to $19 million.  Net interest income on a 2.77% net interest margin tumbled 84.1% to $61 million, down from $384 million, as loan loss provisions jumped 54.6% to $779 million, up from $425 million.  The company reported a net loss of $255 million compared to net income of $26 million in first quarter 2009.  Regions Financial President and CEO Grayson Hall said, "Substantial credit costs continued to more than offset the underlying strength of our core business."  He added, "We will continue to de-risk our balance sheet and implement best-in-class risk management practices."

In 2009, Regions Financial reported $110.7 million in insurance brokerage income, which comprised 3.1% of its noninterest income and 1.6% of its net operating revenue.  The company ranked 11th in insurance brokerage earnings among U.S. bank holding companies with assets over $10 billion, according to the Michael White-Prudential Bank Insurance Fee Income Report.

In 2009, Regions Financial reported $923.9 million in combined brokerage, investment banking and capital markets fee income, which comprised 26.3% of its noninterest income and 13.5% of its net operating revenue.  The company ranked 10th in combined investment broking and banking earnings among U.S. bank holding companies with assets over $10 billion, according to the Michael White's Bank Broker-Dealer Fee Income Report.

22: BANKINSURANCE.COM - Warburg Pincus Moves on Primerica

NEWS IN BRIEF - APRIL 19 - 25, 2010

New York City-based, $1.86 trillion-asset Citigroup has sold 16.4 million shares of common stock in subsidiary Primerica to private equity funds managed by Warburg Pincus for $230 million in cash and has given the Pincus funds warrants to acquire 4.1 million additional shares for seven years at an $18 per share exercise price.  Warburg Pincus Managing Directors Michael Martin and Daniel Zilberman have been appointed to Primerica's Board of Directors.  Duluth, GA-based Primerica distributes term life insurance, mutual funds, variable annuities and other financial products through 100,000 licensed representatives.  Citigroup now owns 40% of Primerica's stock, which it began offering in the open market two weeks ago.

23: BANKINSURANCE.COM - Women Account For 64% of New York Life's Fixed Annuity Sales

NEWS IN BRIEF - APRIL 19 - 25, 2010

New York Life Insurance Company announced that 64% of its $1.9 billion in fixed annuity sales in 2009 were purchased by women.  New York Life Retirement Income Security Senior Vice President Angela Kyle said, "Research has continued to identify the increased need among women to be proactive about planning for their financial needs in retirement."  According to the study Lifetime Income for Women by David Babbel, Ph.D., "Women are faced with financing a substantially longer retirement than men -- a healthy 65 year-old woman has a 50% chance of living beyond age 88 and a 25% chance of living beyond 94."

24: DISABILITY INS - MetLife Study Finds Less Than Half of Americans...

...Out Of Work Because Of a Disability Had Income Protection in Place

Emotional and Financial Recovery Slow

NEW YORK, April 28, 2010 -- Three in five individuals who were out of work for at least six months because of a disability did not have disability income protection, according to findings from a new MetLife study released today.  The MetLife Study of the Emotional and Financial Impact of Disability also found that among those individuals who did have coverage, only about one-third of their income, on average, was protected.  This is likely insufficient to meet their needs since financial recovery among survey participants was slow -- only 17% of those whose disability occurred at least a year ago felt that they had completely recovered financially.  

25: DISABILITY INS - Most Americans "Live to Work,"...

...But Don't Prepare for Illness or Injury That Could Put Their Income at Risk

• Most Americans get satisfaction from their job, according to survey conducted for CIGNA.
• 86 percent of workers say they know they can take steps to prepare for a work-stopping 
  injury or illness, but only 36 percent have done so.
• Few Americans readily make the connection between staying healthy and staying on the job.

PHILADELPHIA--(BUSINESS WIRE)--Most American workers say they derive satisfaction from their job and "live to work." But only about a third say they have actively prepared for being sidelined due to an injury or illness, even though nearly nine out of 10 say they know there are steps they can take to protect themselves. These are some of the findings from a Yankelovich survey among full and part-time employees conducted for CIGNA (NYSE:CI).1

26: DISABIILTY INS - Only One in Four American Working Adults...

...Have Disability Insurance, LIMRA Finds

LIMRA Supports May as Disability Insurance Awareness Month

WINDSOR, Conn., May 3, 2010--Despite the fact that more than 70 percent of American households rely on two incomes to make ends meet, only 26 percent of Americans have any type of disability insurance, according to LIMRA's research.

27: K@W - Be There or Be Square: The Rise of Location-based Social Networking

To find the hottest restaurant, bar or concert venue in town, many young adults are no longer checking in with their friends. They're "checking in" virtually via Foursquare, a location-based social networking site. While Foursquare is being touted as the Next Big Thing, experts say the true potential lies in companies knowing exactly where customers are and pitching offers or services based on the spots these customers frequent. The challenge for Foursquare and others, observers suggest, is transitioning beyond buzz and finding uses for geo-targeting that are both profitable and practical.

LINK TO FULL ARTICLE:  http://knowledge.wharton.upenn.edu/article/2468.cfm

28: K@W - How Much Should You Charge? Why 'Smart Pricing' Pays Off

Your company has developed a new product that you think will be a winner. A lot of money has been poured into research and development, analysis of the competition and advertising. But there is one key element you may have overlooked: What do you charge for the product? Wharton marketing professors Jagmohan Raju and John Zhang say companies frequently don't put anywhere near as much thought into pricing as they should. In their new book, Smart Pricing, Raju and Zhang argue that firms ought to engage in innovative pricing to achieve maximum profitability, and they show how companies like Google are doing just that.

LINK TO FULL ARTICLE: http://knowledge.wharton.upenn.edu/article.cfm?articleid=2471 

29: M&A - MB Stands Ready to Buy Additional Failed Banks

MB Financial Inc., which Friday bought its fifth and sixth failed banks since 2009, said Monday that it has the wherewithal to bid on more collapsed lenders even as it digests newly acquired Broadway Bank and New Century Bank.

30: MISCELLANEOUS - Organizers of New Bank Include Former BofA and First Union Execs

Union National is using the nameof the former Charlotte bank that was a predecessor to First Union.

A proposed Charlotte bank is being organized by a roster of former First Union Corp. and Bank of America Corp. executives, according to a legal notice.

31: PERSONNEL CHANGES - Bank of America Names...

...Charles H. Noski Chief Financial Officer

Bank of America today announced that Charles H. Noski has been named executive vice president and chief financial officer of the corporation, effective May 11.

32: PERSONNEL CHANGES - BNY Mellon Appoints...

...Scott Freidenrich As Executive Vice President and Treasurer

BNY Mellon, the global leader in asset management and securities servicing, today announced the appointment of Scott Freidenrich as executive vice president and treasurer. Freidenrich will report to Thomas P. Gibbons, the company's chief financial officer, and be responsible for leading and developing the company's Treasury Group.

33: PERSONNEL CHANGES - Terrance Dolan and Jeffry von Gillern...

...Named Vice Chairmen at U.S. Bancorp

Diane Thormodsgard and William Chenevich Announce their Retirements

U.S. Bancorp announced today that Terrance R. Dolan will succeed Diane L. Thormodsgard as vice chairman of Wealth Management and Securities Services, and Jeffry H. von Gillern will succeed William L. Chenevich as vice chairman of Technology and Operations Services. Both appointments are effective July 1, 2010. Thormodsgard and Chenevich are retiring effective June 30, 2010.

34: PERSONNEL CHANGES - Thomas R. Watjen and William A. Linnenbringer...

...Join the Board of SunTrust Banks, Inc.

SunTrust Banks, Inc. Chairman and Chief Executive Officer James M. Wells III, announced today that Thomas R. Watjen and William A. Linnenbringer have been elected to SunTrust's Board of Directors.

35: REGULATORY - Americans for Financial Reform...

...Detail How to Keep Wall Street Reform Bill Strong

Washington, DC - As the Senate considers amendments to the Wall Street accountability bill, Americans for Financial Reform detailed which of those amendments will strengthen the bill and which are designed to gut it.

Heather Booth, Director, Americans for Financial Reform: “If anyone doubts that this is a good bill, that will make significant change consider that the financial service industry is spending $1.4 million a day to stop it. And we’re working hard to strengthen it. Some of those dollars spent by the big banks can dismantle all that’s good in here without anyone really knowing they’re doing it. They’re doing it behind closed doors and in secret meetings. We refuse to let them get away with weakening the Wall Street reform bill through lobbyist loopholes as we work for ensuring the big banks are accountable.”

36: REGULATORY - Bank Rule Reform Falls Short Again In Senate

Senate Republicans on Tuesday blocked a sweeping overhaul of banking rules for a second straight day as they sought to extract more concessions from Democrats eager to crack down on Wall Street.

37: REGULATORY - Financial Reform Bill Puts GOP In Dilemma

Apr 20, 2010 10:13 EDT

- John Kemp is a Reuters market analyst. The views expressed are his own -

Financial reform legislation is set to reach the Senate floor as early as this week. With U.S. President Barack Obama and Senate Majority Leader Harry Reid holding most of the cards, pressure on Senate Republicans and Wall Street to find a compromise is becoming intense.

38: REGULATORY - FINRA Fines HSBC Securities (USA) $1.5 million,...

...US Bancorp $275,000 for Auction Rate Securities Violations

FINRA Found HSBC Sold ARS After Increased Risk Became Apparent; Both Firms Voluntarily Bought Back Over $700 Million in ARS from Customers

39: REPORTS - ABIA Announces 2009 And Q4 Fixed Annuity Sales In Banks

Fixed Indexed and Income Annuity Sales Rise Significantly

WASHINGTON – U.S. sales of fixed annuities by banks and other depository institutions decreased by 7.5 percent in the fourth quarter compared to 2008. Estimated indexed annuity sales more than doubled, and income annuities were up 44 percent year-to-year.  But fixed rate annuity results were down significantly due to their falling credited rates and diminishing rate advantage over bank certificates of deposit.

40: REPORTS - ABIA And Marshberry Release Bank-Insurance Viability Index

Significant difference between the EBITDA margin of top 25% and Average bank-owned agency

WASHINGTON – The ABIA and MarshBerry Bank-Insurance Viability Index shows the EBITDA margin of top 25 percent performing banks improved by 11 percentage points over the average bank-owned agency. Operating EBITDA, which is profitability excluding contingent income, was 8.9 percentage points better than Average. While contingent income does add to the margin in both the Best and Average Agency, this ratio confirms that agency profitability is driven by factors other than contingent income.

41: REPORTS - Michael White-ABIA Report Flat Bank Annuity Fee Income in 2009

FOR IMMEDIATE RELEASE -- Radnor, PA, and Washington, DC, April 23, 2010 -- Income earned from the sale of annuities at bank holding companies (BHCs) rose 0.5% from $2.61 billion in 2008 to $2.62 billion in 2009, according to the Michael White-ABIA Bank Annuity Fee Income Report™.

Compiled by Michael White Associates (MWA) and sponsored by American Bankers Insurance Association (ABIA), the report measures and benchmarks the banking industry’s performance in generating annuity fee income. It is based on data from all 7,247 commercial and FDIC-supervised banks and 913 large top-tier bank holding companies operating on December 31, 2009.

42: CAST MANAGEMENT CONSULTANTS

ABOUT CAST . SERVICES . CLIENTS . CAREERS . CONTACT

CAST Management Consultants, Inc.
700 S. Flower Street, Suite 1900
Los Angeles, CA 90017
ph. 213.614.8066  fx. 213.614.0760
www.castconsultants.com

You have received this email through your affiliation with CAST Management Consultants.
If you no longer wish to receive these newsletters, let us know.