1: CAST SERVICE HIGHLIGHT

Non-Earning Asset Reduction
A proven approach to quickly grow the revenues associated with Non-Earning Assets (NEA) on either an enterprise-wide or line of business basis 

Over the last 15 years, CAST has observed extensive mergers and acquisitions within the banking industry, frequently resulting in underperforming and largely untapped revenue potential from overlooked assets. For banks that have not carefully addressed this potential or have unsuccessfully attempted to increase NEA revenues in the past, CAST has developed a focused and highly proven technique for realizing improvements in the order of 5 to 10 basis points on total assets.

Factors Contributing to Under-Performing Assets 

• Incomplete understanding of customer behavior related to various types of fees
• Misaligned product structures and incentives
• Insufficient tools for measuring and monitoring performance
• Limited understanding of competitive practices
• Inappropriate product structures and features
• Lack of product alignment across organizational silos
• Failure to actively manage the timing of fund inflows and outflows
• Ineffective procedures and policies

Why CAST for Non-Earning Asset Improvement 

• Extensive experience in Cash Management, Operations, Finance
• 15 year successful track record in non-earning asset optimization
• Proven tools for monitoring and measuring performance
• Database of non-earning asset best practices
• Knowledge of the inter-relationships of various insurance and financial service products
• Proven, fact-based approach to analysis and implementation
• Cross industry experience in non-earning asset improvement

If you would like additional information, please contact Tom Vleisides at (213) 614-8066 ext. 244 or email tvleisides@castconsultants.com.

2: AMERICAN BANKER - As Investors Grow Restive, Advisers See Opportunity…

… to Peddle Calm

American Banker   Wednesday, July 14, 2010

By Howard Stock

Affluent investors ended the first half of the year on a sour note, their confidence slipping seven points in June, to minus-12 on Spectrem Group's Affluent Investor Confidence Index, but advisers say that falling confidence presents an opportunity rather than an obstacle.

The last time affluent investors' confidence fell so far so fast was in June 2009, when the Spectrem index dropped by eight points. This June's decline means affluent investors, those with $500,000 to $1 million to invest, are feeling bearish.

Millionaires, too, lack confidence in the investment climate; their index fell six points, to minus-7. Though all wealthy investors were worried about their accounts, richer clients were less worried.

At 26% (29% for millionaires), the political climate is what most worries wealthy investors, particularly the uncertainty about future tax hikes and the potential impact of the nation's bloated deficit, said George Walper, the president of the Spectrem Group in Chicago. Other prominent concerns were the economy (24%), market conditions (10%), unemployment (5%), inflation (4%) and health-related issues (3%).

All this worry is a clear sign to advisers to expect gloomy clients, but Walper said the news is not all bad.

"This is an opportunity," he said. "Make sure you understand your clients' psychological feeling about the market and Washington; listen to that, and build solutions for them," be they additional financial planning or simply portfolio tweaking.

"People are shifting toward far more conservative investment strategies," Walper said. "The definition of that is in the eyes of clients, which is why it's so important to really know your clients well."

Barry Jones of Axa Advisors in Davison, Mich., said he agrees that what appears like a negative is actually a positive for advisers.

"Market gyration is a great reason to sit down with clients to articulate what's going on," he said. "A lot of people are keeping their money on the sidelines."

The goal is to get them to move that money into a relatively safe investment strategy that will reward the client far more than the certificates of deposit and money market funds many have chosen.

For the past eight months, Jones said, he has been talking to clients about Curian's dynamic risk account, a seesaw consisting of one- to three-year Treasuries on one side and a basket of global equities, commodities and emerging-market-debt exchange-traded funds, among other things.

When the portfolio falls any more than 1.2%, Jones said, assets are shifted to Treasuries. If it gains by 1.4%, assets are shifted from Treasuries to growth investments. Almost 10% of Jones' $60 million book is now with Curian, which he combines with annuities for guaranteed income and pools of "sometime" money in long-term growth strategies.

Maris Ogg, the president of Tower Bridge Advisors in West Conshohocken, Pa., also seesaws between market exposure and safety, depending on how the market is acting.

Most of her firm's clients fall between 60:40 and 40:60 ratios of stocks to bonds, she said. The firm uses a proprietary but "simple" market indicator based on factors such as bond and earnings yields and risk premiums to figure out whether the market is overpriced or underpriced relative to the past 25 years.

Right now, she said, the market is more undervalued 25% of the time, making it a buyer's market.

Typically, she said, "we'll pull back when stocks go up," that is, sell them and move the money to cash until a suitable bargain emerges or into hedges against sudden slumps with puts and covered calls.

Market volatility is making both advisers and clients skittish, so they are holding back until prices stabilize.

"With volatility so high, all you can do is offer sympathy and keep people calm," Ogg said.

However, she noted that it is sometimes an adviser's job to counter excessive client negativity. The market will become more stable in November when "there will be more of a balance in Congress, and a stop to the anti-business agenda. The underlying economic numbers are clearly moving in the right direction," she said.

In short, just because investors are scared does not mean they will stay on the sidelines if an adviser can offer a viable alternative for getting a return. What seems to work is active management that minimizes downside risk.

"This strategy works tremendously well in a sideways market," Jones said. "I think we'll be stuck in it for a long time, so it's very attractive to clients right now."

3: AMERICAN BANKER - B of A Merrill Retirement Services Buildup Showing Results

American Banker   Tuesday, July 13, 2010

By Matt Ackermann

Bank of America Merrill Lynch's expansion of its retirement services business is picking up momentum.

Enlarging the operation has been a key initiative for the Charlotte company for the past year, and its "recommitment" to the business is really beginning to see results "in terms of sales traction in the marketplace," Andy Sieg, head of B of A Merrill Lynch retirement and philanthropic services, said in an interview last week.

In the first six month of this year, the unit generated more than $13 billion in new retirement business, which is more than it accumulated for all of 2009. At March 31, the unit was responsible for about $500 billion in client assets.

"The pace of sales is running well ahead of our forecast and objectives," Sieg said. "The momentum is strong and these additions will redouble momentum."

B of A Merrill Lynch said in an internal memo Thursday that it hired two veterans from Fidelity Investments, Rich Linton as head of business retirement solutions, and Steve Ulian as head of institutional retirement and benefits solutions.

Linton, 42, will be responsible for managing B of A Merrill Lynch's small-business retirement solutions including its Advisor Alliance platform, which was formerly MLConnect, and the SEP/Simple offering, which is an individual retirement account offering for small businesses.

He was an executive vice president of the adviser retirement group at Fidelity, where he held a variety of senior executive positions since he started at the Boston company in 1990.

Ulian, 46, will run B of A Merrill Lynch's proprietary 401(k) platform, defined benefit plan administration, requests for proposals, pricing and underwriting as well as equity plan services.

He was an executive vice president in sales and relationship management for Fidelity's workplace investing group. He has worked at Fidelity since 2005. Before that, he was a national sales manager and an operations team leader at Deutsche Bank/Scudder Investments, where he led its retirement services business.

Both Linton and Ulian will take on responsibilities that were handled by John Furlong, who left in January to pursue other opportunities. They will report to Sieg, who said the pair will help B of A Merrill Lynch penetrate both ends of the retirement market.

He said Ulian will focus on delivering integrated benefits solutions to mid- and large-market companies and Linton will focus on smaller businesses.

Sieg said Linton will work with executives throughout the parent bank to cross-sell retirement solutions to its 4 million small-business customers.

In June, B of A Merrill Lynch relaunched Advisor Alliance, a retirement services platform for companies with fewer than 100 employees, to attract more business from small businesses. The platform allows Merrill Lynch advisers to sell record keeping and retirement plan administration services to small-business owners.

Sieg said he thinks there are opportunities to work more closely with small-business owners. Bank of America Global Commercial Bank has relationships with one out of every three midsize businesses nationally. This year the company's global commercial bank had referred more than 2,100 clients to the B of A Merrill Lynch institutional retirement business, as of June 30.

Sieg said B of A has "only scratched the surface of the referral opportunities that exist between these two businesses."

Adding retirement assets has been a major initiative at B of A since it hired Sallie Krawcheck in August as the $2.39 trillion-asset company's head of wealth management and brokerage operations. In October, B of A rolled out My Retirement Income, a group of products that let customers nearing or in retirement automatically transfer funds from a Merrill Lynch cash management account into a B of A deposit account monthly or quarterly.

Sieg said his unit will continue to look to hire to support its growth.

4: AMERICAN BANKER - Key Aims to Be an Acquirer, Not a Takeover Target

American Banker    Wednesday, July 7, 2010

By Matt Monks

KeyCorp's chairman and chief executive, Henry Meyer, said the Cleveland lender -- having just hired a high-profile strategic planner -- has the strength to be a buyer of other banks as the recession eases, not a takeover target like some market watchers have speculated.

"I see the opposite," Meyer said in an interview last week. "I think Key is very well positioned to be an acquirer. We have got as broad a footprint as any bank in the country."

With more than 1,000 branches in 14 states, he said the $95 billion-asset company has the reach to do deals from "Maine to Alaska" as the banking industry consolidates in the next few years.

Keefe Bruyette & Woods Inc. analysts said in a report last week that Key was among several regional banks that could be taken over in the next 18 months as stiff financial and regulatory headwinds crimp banks' ability to improve profits. But Meyer said he is upbeat about Key's prospects as a stand-alone player given its scale and progress in "digging out of a crisis."

After two years of losses on bad construction and commercial loans, Key's net loss narrowed sharply last quarter on falling problem loans and expenses. Meyer said Key has lots of capital; with an unusually far-reaching branch network, it is in a lot of markets where it can build density by buying other banks. It also has ample opportunity for boosting market share organically, something it has been focusing on by overhauling and opening new branches in 2009 and 2010.

"Going on the offense is the way I have been talking to our employees," Meyer said. "We are looking at the future, and we want to be strategically prepared to do better in this new environment."

To that end, Meyer hired a veteran commercial banker with a background in consulting and aerospace engineering to oversee strategic planning.

Mark Williams, who starts this week in the newly created position of director of strategy, comes to Key from rival PNC Financial Services Group Inc., where he had worked since 2005 and oversaw various corporate banking units. He worked as a McKinsey & Co. consultant and engineer in General Electric Co.'s aircraft division earlier in his career.

Williams sits on Key's management team and answers directly to Meyer, whereas prior strategic planners worked under the chief financial officer. Meyer said Williams is a "strategic thinker" with a "tremendous resume." He "will help us prioritize where we will focus spending our money," Meyer said.

Scott Siefers, an analyst with Sandler O'Neill & Partners LP, said that Williams "brings plenty of experience to the table." He said the hire shows how Key is looking beyond fixing its problems to increasing profits, a transition it began last year.

If loan losses keep falling like they did last quarter, that would enable it to start releasing reserves, freeing up capital to do deals in places like the Northwestern and Northeastern U.S., Siefers said. Acquisitions are among the most efficient ways to grow profits, he said.

"They'll definitely survive. They have plenty of capital and plenty of reserves," Siefers said. "It is certainly possible they could be a consolidator a little later on."

The big worry market watchers have about Key involves the strength of its core earnings, he said, because its profits excluding taxes and loan provisions have lagged behind its competitors.

For his part, Meyer declined to discuss Key's profit outlook. But he said Key has a competitive edge on a number of fronts. It is ahead of other midsize banks in technology, he said, having developed a process that reduces the need for paper checks. Though it is among the 20 largest banks in the country, it has maintained a local touch, with the majority of lending decisions made at the local level.

Meyer said reform may also work to Key's favor in some ways because the new regulations may be most painful for large and small banks. Lawmakers have stigmatized large banks for being large, he said, while small banks have fewer resources to cover compliance costs. The "negatives in this regulatory reform bill are going to fall very heavily on community banks. … A company like Key at roughly $100 billion [of assets] is very well positioned," he said.

"We're medium, and we've got a lot of room to continue to grow both our size and our profitability at a time when the small banks are going to be having trouble."

5: AMERICAN BANKER - Worthwhile Wordplay?

US Banker    July 2010

By Howard Stock







Wealth isn't what it used to be.

Though the affluent are bouncing back from the recession, the number of high-net-worth households is still far short of what it was three years ago, and wealth management marketing is starting to change in response.

Consider the semantic shift in U.S. Trust's new advertising campaign, titled "What Is Worth?"By describing its services as "worth management," the unit of Bank of America Corp. hopes to persuade the ultrawealthy that it can add value to their lives beyond just managing money.

This approach reflects a broader adjustment happening across the wealth management sector." Growing wealth isn't something we're talking about today anymore," says Sophie Schmidt, senior wealth management analyst at the Boston consulting firm Aite Group. "A better strategy is to preserve wealth and to get more value from it. The message is that you're more than just a number."

At least one community bank also uses wordplay similar to U.S. Trust's. As part of its "Life in the New Economy" campaign over the past year, First Independent Bank in Vancouver, Wash., ran a wealth management ad with the headline, "Never confuse wealth with worth."

Tammi Olund, senior marketing manager at the $911 million-asset bank, says the intent of the ad is to position First Independent as an adviser. "It's talking about, 'what really is 'value' to you?' It's more than the numbers in your bank account. It's the life you create," she says.

Marketing experts say they have noticed more companies downplaying the "wealth" in wealth management lately, though often in subtle ways. One reason is that more are trying to market those services to a broader audience." Wealth management comes with the baggage that it only caters to extreme wealth, whereas a firm looking to expand its universe of clients needs to offer services beyond those targeting the extremely wealthy," says Robert Passikoff, president of the New York consulting firm Brand Keys. "In this economy, a lot of people aren't sure they have wealth anymore."

Schmidt says the "worth management" concept from U.S. Trust could help distract investors from the catastrophic market drop that made so many wealthy people feel much less so. "Worth management" shifts the emphasis from what the bank can do for a person's money to what the bank can do for the person.

But industry observers disagree over whether this terminology could--or should--become more widespread.

Passikoff says he can envision "worth management" fully replacing "wealth management," just as the word "broker" has largely replaced "adviser."

James Gregory, chief executive of the consulting firm CoreBrand in Stamford, Conn., dislikes the idea, however. "'Worth' has a lot of meanings, so 'worth management' doesn't really make a lot of sense, whereas 'wealth management' is very clear as to what it is," he says.

Kris Gamble, creative director in the marketing departmentat broker-dealer Raymond James in St. Petersburg, Fla., says the industry is starting to question whether the label "wealth management" works. He is unsure how that might play out, though. "Wealth management implies the very rich, and many people don't consider themselves that," Gamble says. "But the challenge of the switch is that you'd need to generate greater awareness of what it is. A small part of my brain connected 'worth management' to recruitment or outplacement services."

Investment Centers of America in Bismarck, N.D., switched to an entirely different label. The broker-dealer, which services banks, renamed its wealth management department the "Financial Solutions Team" last year.

"The problem was, because the department was called 'wealth management,' many advisers weren't using the service for clients they considered under the wealth radar," says Byron Hill, the company's senior vice president of wealth management. His team provides advisers with financial plans for their clients.

Hill says the name change generated positive feedback, though there's been only a slight uptick in business.

The U.S. Trust campaign began in May and runs through December. Jean Fitzgerald, the managing director in charge of U.S. Trust's advertising, says upcoming print ads expand on the "worth" theme, with lines like "What is knowing your best interest is ours as well worth?"

6: ANNOUNCEMENTS - Independent Insurance Agents & Brokers of New York Unveils…

… Web CE Program on Producer Compensation Transparency Reg

Group prepares agents and brokers for regulation while challenging it in court  

(DeWitt, New York, Jul. 8, 2010) -- The Independent Insurance Agents & Brokers of New York announced that next week it will present an online continuing education program to inform insurance producers about New York's new regulation on producer compensation transparency. Titled Producer Compensation Disclosure -- Regulation 194, the program will run on July 14, 2010 at 10 a.m., with a second presentation on August 12, 2010 at 2 p.m.

LINK TO FULL ARTICLE:  http://www.insurancebroadcasting.com/insurance-news-071210-13.htm

7: ANNOUNCEMENTS - LIMRA Announces Strategic Partnership with Socialware

WINDSOR, Conn., July 13, 2010--LIMRA and Socialware have formed a strategic partnership, enabling the two organizations to work together in helping the financial services industry understand and address social media opportunities, risks and implications.

LINK TO FULL ARTICLE: http://www.limra.com/newscenter/NewsArchive/ArchiveDetails.aspx?prid=139

8: ANNOUNCEMENTS - MetLife Sponsors The Learning Center At The American College

- Renamed to The MetLife Learning Center as Part of Five-Year Sponsorship --

- A Leading Provider of Insurance and Financial Products Joins Forces with Industry Leader in Education for Financial Professionals -

BRYN MAWR, PA -- July 1, 2010 -- The American College is pleased to announce that it has signed an agreement with MetLife to sponsor the new 'MetLife Learning Center,' located on The College's campus in the suburbs of Philadelphia. The Center is a state-of-the-art advanced meeting and classroom facility that will serve as the primary location for the institution's stellar academic programs. The MetLife Learning Center will be the home of The College's master's degree residency courses each year, as well as other learning opportunities. With the ability to easily draw upon The College's distinguished faculty and guest speakers, this seminar and lecture space can be customized to meet the unique needs of individual companies and financial services professionals.

LINK TO FULL ARTICLE: http://insurancenewsnet.com/article.aspx?id=204152&type=pressreleases

9: ANNOUNCEMENTS - Orange County California Selects TIAA-CREF as Sole Provider…

… for New Defined Contribution Retirement Plan

Innovative Hybrid Plan is a Significant Step Toward a More Sustainable Public Pension Structure

NEW YORK--(BUSINESS WIRE)--TIAA-CREF today announced it has been selected by Orange County, California as the sole provider for the defined contribution portion of a new hybrid defined benefit/defined contribution (DB/DC) retirement plan for County employees that will help with funding pension obligations while continuing to support retirement security.

LINK TO FULL ARTICLE: http://www.businesswire.com/news/home/20100706005087/en/Orange-County-California-Selects-TIAA-CREF-Sole-Provider

10: ANNOUNCEMENTS - RMS Unveils New Approach to Quantifying Longevity Risk

New Medical-Based Model Indicates a Lower View of Risk than Traditional Longevity Models

Calif -- July 12, 2010 -- A ground-breaking medical-based approach to quantifying longevity risk that takes account of changing mortality phases was unveiled by Risk Management Solutions (RMS) today. The RMS® Longevity Risk Model examines expected future waves of mortality improvement that depend on changing social patterns, healthcare expenditure, and the development of new medical treatments, as well as historical phases of change. Exploring how transitions occur between the different phases provides companies with a better assessment of longevity risk than conventional models that use forward projections of past statistical trends.

LINK TO FULL ARTICLE: http://www.rms.com/newspress/PR_071210_LongevityRisk.asp

11: BANKINSURANCE.COM - 2009 Group Life Sales Up, Term and Credit Life Down

NEWS IN BRIEF - JULY 12 - 18, 2010

New group life insurance policies issued in the U.S. in 2009 rose 7.6% over 2008 numbers, countering the downward trend among all other life insurance categories, according to Oldwick, NJ-based A.M. Best.  Term life slid 5.9% to $1.3 trillion, down from $1.38 trillion, and credit life dropped 34.5% to $67.4 billion, down from $102.9 billion.  New York City-based AIG Life Group was most affected by the decreases, falling from being the number one supplier of ordinary life products to number seven and dropping from first to eighth position in credit life and from first to sixth in term life, A.M. Best found.

BankInsurance.com News in Brief' is provided each Thursday courtesy of Michael White Associates @ www.BankInsurance.com.

12: BANKINSURANCE.COM - BankAmerica Completes Sale of First Republic Bank

NEWS IN BRIEF - JULY 5 - 11, 2010

Charlotte, NC-based, $2.34 trillion-asset Bank of America Corp. has completed its sale of San Francisco-based, $20 billion-asset First Republic Bank to First Republic’s management-led group backed by $1.86 billion from investors Colony Capital and General Atlantic.  First Republic Bank Chairman Jim Herbert and President and Chief Operating Officer Katherine August-de Wilde will continue to lead the bank, and Colony Capital and General Atlantic will each add a representative to First Republic’s board of directors.  Chairman and CEO Herbert said, “First Republic’s capital strength, credit discipline and distinctive brand will enable the company to continue to grow.”  Colony Capital Chairman and CEO Tom Barrack said, “First Republic is in an excellent position to grow safely and steadily because of its strong balance sheet, liquidity and market momentum.”  First Republic Bank is the parent of First Republic Investment Management, First Republic Securities, First Republic Wealth Advisors and First Republic Trust Company and has offices in San Francisco, Palo Alto, Los Angeles, Santa Barbara, Newport Beach, San Diego, Portland, OR, Boston, New York City and Greenwich, CT.

BankInsurance.com News in Brief' is provided each Thursday courtesy of Michael White Associates @ www.BankInsurance.com.

13: BANKINSURANCE.COM - Congress to Revisit Federal Insurance Regulation

NEWS IN BRIEF - JULY 12 - 18, 2010

U.S. House of Representatives Financial Services Committee Chairman Barney Frank told the National Conference of Insurance Legislators (NCOIL) at their meeting in Boston last week that he expects optional federal charter legislation to be on the agenda during Congress’ next session.  “There is a movement to federalize more insurance law,” Frank said.  The type of insurance most conducive to federal regulation, he said, is life insurance, which he described as having more in common with other financial products than many other insurance products.  At the same time, Frank admitted, “There are no federal officials who know very much about it [insurance],” BestWire reports.

BankInsurance.com News in Brief' is provided each Thursday courtesy of Michael White Associates @ www.BankInsurance.com.

14: BANKINSURANCE.COM - Employers Offer Fewer Employee Benefits

NEWS IN BRIEF - JULY 5 - 11, 2010

Employers are downsizing the retirement savings and financial planning benefits they offer their employees.  While in 2006, 48% of companies offered individual investment advice as a benefit, this year that percentage fell to 40%.  Retirement planning services and traditional defined benefit plan offerings have faired even worse dropping, respectively, from 52% and 48% in 2006 to 39% and 27% in 2010, according to the Society for Human Resource Management (SHRM) based in San Diego, CA.  Long-term health care insurance benefits are also on the decline, and at a faster pace, dropping from 39% of companies in 2009 to 31% in 2010, SHRM found.

BankInsurance.com News in Brief' is provided each Thursday courtesy of Michael White Associates @ www.BankInsurance.com.

15: BANKINSURANCE.COM - Seniors’ Increasing Appetite For Life Insurance Continues

NEWS IN BRIEF - JULY 12 - 18, 2010

U.S. applications for individually underwritten life insurance among individuals aged 60 and older continued up in May, rising 8.1% over May 2009 applications, according to the U.S. MIB Life Index.  This rise, however, contrasted with a 7.2% drop among individuals aged 0-44 and a 3.1% slide among individuals aged 45-59, leading to an overall a 3.9% decline in applications among all age groups combined, Braintree, MA-based MIB Group found.

BankInsurance.com News in Brief' is provided each Thursday courtesy of Michael White Associates @ www.BankInsurance.com.

16: BANKINSURANCE.COM - Treasury Sells 2.6 Billion More Citigroup Shares

NEWS IN BRIEF - JULY 5 - 11, 2010

The U.S. Treasury has completed the sale of its second tranche of Citigroup common stock generating about $10.5 billion in gross proceeds on 2.6 billion shares originally acquired at $3.25 per share.  At an average selling price of $4.03 per share and commissions paid to Morgan Stanley ranging from .003 to .0175 per share, Treasury is estimated to have earned a profit of just under $2 billion in the transactions.  The U.S. government still owns about 5.1 billion (17.6%) Citigroup shares, which it intends to sell by December 14, 2010.  Thus far, Treasury has retrieved $20 billion of the $45 billion it fronted to Citigroup in exchange for shares under the Troubled Asset Relief Program (TARP), Reuters reports.

BankInsurance.com News in Brief' is provided each Thursday courtesy of Michael White Associates @ www.BankInsurance.com.

17: BANKINSURANCE.COM - U.S. Consumers Continue To Look to the Future…

… for Economic Improvement

NEWS IN BRIEF - JULY 5 - 11, 2010

The percentage of U.S. consumers who believe it will take a year or more for the economy to improve has risen from 41% in June 2009 to 43% in June 2010.  At the same time, in June 2009, 7% believed the economy had already started to grow, and in June 2010, that number had risen to 14%, according to individual Harris polls of over 2,200 American adults conducted online.

BankInsurance.com News in Brief' is provided each Thursday courtesy of Michael White Associates @ www.BankInsurance.com.

18: BANKINSURANCE.COM - U.S. House Passes Financial Reform…

… Preserving State Insurance Regulation

NEWS IN BRIEF - JULY 5 - 11, 2010

The U.S. House of Representatives has passed the Dodd-Frank Wall Street Reform and Consumer Protection Act.  The legislation creates a Bureau of Consumer Financial Protection within the Federal Reserve that is authorized to regulate all consumer financial products sold by banks except those involving “the business of insurance.”  State insurance regulation is explicitly protected, despite the fact that the legislation creates a Federal Insurance Office (FIO) in the Treasury Department with the power to monitor all activities related to the “business of insurance,” except health and long-term care insurance.  The FIO Director will serve as an advisor on the Financial Stability Oversight Council (FSOC) and will share responsibility with the Trade Representative Office and Congress in negotiating international insurance agreements.  FIO’s power is further limited by the requirement that it request insurance information from state regulators before requesting it directly from insurers.  Importantly, the legislation classifies fixed indexed annuities sold by insurers that comply with the model regulations of the National Association of Insurance Commissioners as insurance products, thereby taking regulatory authority over these products away from the Securities & Exchange Commission.

The Senate has yet to act on the financial services reform legislation and is in recess until mid-July.  For the Independent Community Bankers of America’s (ICBA) summary of the conference report on the legislation, click here.  For more detailed information about the relevant insurance and consumer protection provisions in the pending legislation from the American Bankers Insurance Association (ABIA), click here.  For more detailed information about

BankInsurance.com News in Brief' is provided each Thursday courtesy of Michael White Associates @ www.BankInsurance.com.

19: IT/SYSTEMS - Farmers Insurance Introduces New e-Reader System…

… to Give Agents Access to an Extensive Library of Sales and Training Resources

LOS ANGELES, July 7 /PRNewswire/ -- Being a successful agent in today's world requires not just a sound grasp of insurance products and services but continuous learning and personal development.  With more demands being placed on agents, keeping up-to-date on changing product features or regulatory modifications becomes even more of a challenge.  Helping to make sure its agents remain among the best in the industry, Farmers Insurance® recently introduced a new method for agents to access the latest company tools -- an e-Reader accessible portal.

LINK TO FULL ARTICLE:  http://www.prnewswire.com/news-releases/farmers-insurance-introduces-new-e-reader-system-to-give-agents-access-to-an-extensive-library-of-sales-and-training-resources-97978344.html

20: IT/SYSTEMS - Insurers Choose CSC as the Top IT Services Provider for Third Year

Company Also Receives RAVE Award Honorable Mention for Agency Link

FALLS CHURCH, Va., Jul 07, 2010 (BUSINESS WIRE) -- CSC /quotes/comstock/13*!csc/quotes/nls/csc (CSC 46.00, +0.70, +1.55%) today announced it was named the top provider in information technology (IT) services in the Vanguards in Insurance Practices Awards and also received a RAVE Award Honorable Mention for its Agency Link agent portal software.

The awards were presented at the ACORD LOMA Insurance Systems Forum, hosted by ACORD, a nonprofit insurance standards organization, and LOMA, a worldwide leader in learning and professional development within the insurance and financial services industry, and were determined by insurance carriers who either named the top technology providers in various categories or shared their client experiences.

LINK TO FULL ARTICLE:  http://www.businesswire.com/news/home/20100707005197/en/Insurers-Choose-CSC-Top-Services-Provider-Year

21: IT SYSTEMS - NavGate Technologies Unveils Unique Solution…

… to Educate Consumers and Employers about Long-Term Care Costs

MADISON, Wis.--(BUSINESS WIRE)--NavGate Technologies has announced the release of its newest analytics software, CareOptions Analytics Program™ (CAP™), a tool used by advisors to educate consumers and employers about the critical issues of long-term care and disability and their associated costs. A tactical field software application, CAP is a first-of-its-kind resource designed to assist insurance professionals, financial planners, CPA's, workplace consultants, social workers and care planners in helping consumers and employers plan for long-term care, disability and caregiver needs.

LINK TO FULL ARTICLE:  http://www.businesswire.com/news/home/20100630005097/en/NavGate-Technologies-Unveils-Unique-Solution-Educate-Consumers

22: K@W – Managing Technology - Clear and Present Danger:

...Cyberattacks, Hackers...and the Increasing Threat to Information Security

 After cyber attacks this year on Google, AT&T and others, experts at Wharton and in the IT industry say information security within organizations is increasingly becoming a concern to top managers and directors. As a result, more and more companies will be approaching information security risks in the same way they deal with other major threats, and in a much more integrated fashion. They may not have a choice, some observers note, given that 75% of organizations recently surveyed say they suffered a security breach in the past year.

LINK TO FULL ARTICLE:   http://knowledge.wharton.upenn.edu/article/2535.cfm

Reproduced with permission from Knowledge@Wharton (http://knowledge.wharton.upenn.edu), the online research and business analysis journal of the Wharton School of the University of Pennsylvania. All materials copyright of the Wharton School of the University of Pennsylvania. http://knowledge.wharton.upenn.edu

23: K@W – Finance and Investment - Why It Pays to Link...

...Executive Compensation with Corporate Debt

The recent financial crisis, triggered primarily by bad bets in the financial sector, has added momentum to the idea that executive compensation should be tied more closely to corporate debt rather than equity. Last month, for example, American International Group (AIG) announced that it will link incentive pay to the value of the troubled insurer's bonds. In a new paper, Wharton finance professor Alex Edmans and doctoral student Qi Liu argue that these types of incentives protect bondholders' interests and the value of the firm, particularly when a company's solvency is in question.

LINK TO FULL ARTICLE:  http://knowledge.wharton.upenn.edu/article/2533.cfm

Reproduced with permission from Knowledge@Wharton (http://knowledge.wharton.upenn.edu), the online research and business analysis journal of the Wharton School of the University of Pennsylvania. All materials copyright of the Wharton School of the University of Pennsylvania. http://knowledge.wharton.upenn.edu

24: MISCELLANEOUS - Are Bad Business Practices Really Bad?

Corp! Magazine Highlights Five Successful, “Bad” Business Practices

(July 12, 2010)  -- With Best Practices available for everything from accounting to Xeroxing, how is it possible any business employs mediocre or bad processes? The June 10, 2010 issue of Corp! magazine, which seeks to inform, intrigue, and entertain business owners and top level executives by providing features, news and profiles flips the whole notion of best practices on its head by highlighting “bad” business practices that actually work for companies. “Take a break from the quest to do things right and embrace your inner delinquent” says David A. Fields. Managing Director, Ascendant Consulting, LLC of Ridgefield, Connecticut.  “There are five “bad” business practices, which, surprisingly enough, will boost your bottom line.”

LINK TO FULL ARTICLE:  http://www.insurancebroadcasting.com/headlines-071410.htm#a8

25: MISCELLANEOUS - Bloomberg Poll: Americans Skeptical Financial Overhaul…

…Will Avert Future Crisis

Almost Four out of Five Americans Surveyed Have Little or No Confidence Measure will Prevent or Soften Future Crisis

Almost Half Say Bill Will Do More to Protect Financial Industry than Consumers

NEW YORK--(BUSINESS WIRE)--Americans harbor doubts that a financial-regulation bill about to be passed by Congress will do what President Barack Obama says it will: help avoid another crisis and make their finances safer, a Bloomberg National Poll shows.

“That explains some of the apparent contradiction in seeing a need for more regulation yet having little confidence that what is currently on the table will do much for consumers. They just feel they’ve been played and they don’t want to be fooled again.”

LINK TO FULL ARTICLE:  http://www.businesswire.com/news/home/20100713007180/en/Bloomberg-Poll-Americans-Skeptical-Financial-Overhaul-Avert

26: MISCELLANEOUS - Expanding European Life Settlement Association…

… Welcomes New U.S. Member and Launches New Education Committee

The European Life Settlement Association (ELSA) today announces the establishment of an Education Committee -- a new force helping to deliver ELSA's aims of promoting greater education, transparency and the provision of better information about life settlements to investors, the public, media and regulators.

ELSA also welcomes to the association its first US law firm, Locke Lord Bissell & Liddell LLP, and one of its partners, Brian Casey, who will participate in the ELSA Standardization of Documents Committee.  Mr. Casey is the Co-chair of Locke Lord's Corporate Insurance Practice Group with a practice focused on insurance-linked securities and structured finance, multi-state insurance regulation, insurance company mergers and acquisitions, and reinsurance.  Mr. Casey is also a member of the board of the US based Life Insurance Settlement Association (LISA).

LINK TO FULL ARTICLE:  http://www.globalfundwire.com/2010/05/10/45890/expanding-european-life-settlement-association-launches-new-education-committee

27: MISCELLANEOUS - Finantix Moves to the Gherkin and Launches Seminars…

… for Wealth Management Practitioners

On July 20th Finantix moves to London's Gherkin building and will hold its inaugural seminar on "Multi-channel wealth management"

Finantix is entering its new offices in the landmark Gherkin building, which offers breathtaking views of the City of London. The move was not only prompted by the recent hiring of business analysts, project managers and sales specialists, but also reflects the optimism of the company about its opportunities in the growingly active advisory technology market.

LINK TO FULL ARTICLE: http://www.bobsguide.com/guide/news/2010/Jul/13/Finantix_moves_to_the_Gherkin_and_launches_seminars_for_wealth_management_practitioners.html

28: MISCELLANOUES - Global Recovery on Track, But Downside Risks Intensifying:

…Fitch Ratings

The outlook for the global economy and sovereign credit is at a critical and uncertain juncture. Economic data show the global recovery is strengthening, but concerns over sovereign debt sustainability in some euro area countries and renewed market volatility raise the risk of a double-dip recession. Financial market fears about the solvency of some European governments and the future of the euro zone cast a shadow over the outlook.  Fitch Ratings believes the risk of a break-up of the euro zone in the medium term is low.

29: MISCELLANEOUS - Internet Marketing Strategies for the Insurance Industry:

...More Results -- Less Cost

Cleveland OH - 07/08/10 - - A complimentary webinar to outline strategies and techniques that insurance industry professionals and organizations can use on the Internet to enhance and support overall marketing objectives will be conducted on Tuesday, July 20.

30: MISCELLANEOUS - MassMutual Retirement Services Call Center Wins Gold Award…

… for 'Creating a Culture That Inspires World-Class Excellence'

2010 Represents Third Consecutive Year of 'Best in Class' Service

SPRINGFIELD, Mass., July 6 /PRNewswire/ -- The MassMutual Retirement Services Division's Call Center has earned the first-place gold award from the International Quality and Productivity Center (IQPC) for "Best Job Creating a Culture That Inspires World-Class Excellence." This is the third consecutive year that MassMutual is among the Best in Class winners. Gordon Pullan, assistant vice president and head of MassMutual's Retirement Services Call Center, accepted the award on behalf of MassMutual at the IQPC's 11th Annual Call Center Excellence Awards held in June in Las Vegas.

LINK TO FULL ARTICLE:  http://www.prnewswire.com/news-releases/massmutual-retirement-services-call-center-wins-gold-award-for-creating-a-culture-that-inspires-world-class-excellence-97880334.html

31: MISCELLANEOUS - Transamerica Welcomes TPAs to Online Education…

… and Industry Speakers Series

Transamerica Retirement Services Industry Speakers Bureau and TPA Administrator Training Institute Provide Third Party Administrators with Resources to Help Build and Expand Retirement Plan Business

LOS ANGELES--(BUSINESS WIRE)--Transamerica Retirement Services is providing third party administrators with two new resources to help them better understand the opportunities available in the retirement market, and provide them with strategies and tools to grow their own business. Recently launched, the Transamerica Retirement Services Industry Speakers Bureau and the TPA Administrator Training Institute offer valuable industry insight for all TPAs and administrators currently or interested in working with Transamerica Retirement Services.

32: MISCELLANEOUS - Wolters Kluwer Financial Services Releases Annual Top 10 Lists…

… of Criticisms on Insurance Market Conduct Exams

July 12, 2010 -- Wolters Kluwer Financial Services has released its annual lists of the top 10 reasons insurance companies are found to be out of compliance during market conduct examinations. The categories with the most criticisms comprise the top 10 lists for property and casualty, and life and health insurance.

The company's Insurance compliance business reviewed and analyzed the content in last year's market conduct exams to give insurers insight into what regulators are looking for during compliance audits. Claims-handling, licensing and underwriting issues continued to dominate the lists of examination criticisms by insurance departments across the U.S.

LINK TO FULL ARTICLE: http://www.wolterskluwer.com/WK/Press/Latest+News/2010/Jul/pr12Jul10a.htm

33: PERSONNEL CHANGES - AEGON Appoints Global Head of Human Resources

AEGON has appointed Carla Mahieu as its global head of human resources, reporting to CEO Alex Wynaendts.

The appointment, effective September 1, 2010, is part of the strategic objective to more fully leverage AEGON’s considerable resources across its businesses.

Ms. Mahieu, a Dutch national, brings more than 25 years’ experience to the new position, having held senior management positions in human resources at Royal Dutch Shell and Royal Philips Electronics as well as the recruitment firm Spencer Stuart. Ms. Mahieu’s appointment will support AEGON’s efforts to attract, develop and retain the best talent in the international life insurance, pension and investment industry.

LINK TO FULL ARTICLE:  http://www.prnewswire.com/news-releases/aegon-appoints-global-head-of-human-resources-97831104.html

34: PERSONNEL CHANGES - Allianz Life Hires Jeannee Hoppe as Senior Director…

… of Market Management and Product Innovation

MINNEAPOLIS--(Business Wire)-- Allianz Life Insurance Company of North America (Allianz) today named Jeannee Hoppe as the new senior director of Market Management and Product Innovation. In this role, Hoppe will be responsible for managing the development and implementation of the Market Management strategies and programs, which encompass both market strategy and market research.  

LINK TO FULL ARTICLE:  http://www.businesswire.com/news/home/20100701005828/en/Allianz-Life-Hires-Jeannee-Hoppe-Senior-Director

35: PERSONNEL CHANGES - Gail J. McGovern Resigns...

…from the Hartford's Board of Directors

The Hartford Financial Services Group, Inc. (NYSE: HIG) today announced that Gail J. McGovern has decided to resign from The Hartford's Board of Directors in light of her responsibilities as the President and Chief Executive Officer of the American Red Cross. Her resignation is effective July 31, 2010.

"On behalf of the Board of Directors and the management team at The Hartford, I want to thank Gail for her dedicated service and commitment to the company's shareholders," said Liam E. McGee, Chairman, President and Chief Executive Officer of The Hartford. "Her contributions over the last seven years are greatly appreciated and we will certainly miss her insightful perspectives."

36: PERSONNEL CHANGES - Lincoln Financial Group Names Peter Sims…

… National Sales Manager, 401 (k) Distribution; Announces National Expansion of Sales Force

PHILADELPHIA, July 7 /PRNewswire-FirstCall/ -- Lincoln Financial Distributors, the wholesale distribution subsidiary of Lincoln Financial Group (NYSE: LNC), today announced that Peter Sims has been named national sales manager for its 401 (k) business, including the Lincoln Director(SM) and Lincoln SmartFuture® defined contribution retirement programs, which is a target growth area for Lincoln Financial Group.  Sims will report to John Kennedy, head of Retirement Solutions Distribution.

LINK TO FULL ARTICLE:  http://www.lfg.com/LincolnPageServer?KPage_PageID=LFG_Page&LFGPage=%2Flfg%2Flfgclient%2Fabt%2Fivrel%2Findex.html&KURL=%2Flfg%2Flfgclient%2Fabt%2Fnews%2F2010%2F20100707%2Fcontent.xml

37: PERSONNEL CHANGES - Roger Crandall to Become Chairman of MassMutual

Roger W. Crandall has been elected Chairman of the Board of Massachusetts Mutual Life Insurance Company (MassMutual) by the company’s Board of Directors, effective December 28, 2010.

Mr. Crandall, who has been President and Chief Executive Officer since January 1, 2010 and will retain both titles, succeeds Stuart H. Reese, who will retire as Non-Executive Chairman and member of the Board of Directors.

LINK TO FULL ARTICLE:  http://www.prnewswire.com/news-releases/roger-crandall-to-become-chairman-of-massmutual-96469344.html

38: PERSONNEL CHANGES - Sarah Russell Appointed CEO…

… of AEGON’s Global Asset Management Business

AEGON has appointed Sarah Russell as the new Chief Executive Officer of AEGON Asset Management, effective August 1.

Ms. Russell succeeds Erik van Houwelingen, who is leaving AEGON to pursue career opportunities elsewhere. Ms. Russell’s appointment marks a new stage in the development of AEGON’s global asset management organization, which was established in October last year.

Ms. Russell has spent nearly 20 years in international finance and investment management both in Europe and her native Australia. Ms. Russell has a master’s in applied finance from Macquarie University in Sydney and was, until recently, the Chief Executive Officer of ABN AMRO Asset Management.

39: PERSONNEL CHANGES - The Hartford Names David N. Levenson President …

…of Wealth Management

Succeeds John C. Walters who will leave the company in July

The Hartford Financial Services Group, Inc. today announced that it has named David N. Levenson President of Wealth Management, effective July 1. John C. Walters, current president of Hartford Life, will leave The Hartford at the end of July to pursue other opportunities.

"I look forward to working with Dave as we implement our go-forward strategy and officially roll out the new organizational structure on July 1," said Liam E. McGee, Chairman, President and Chief Executive Officer of The Hartford. "Dave has a proven track record of building and managing several successful businesses at The Hartford, including launching the company's mutual funds operations and revitalizing the retirement plans business. The breadth of his experiences across the organization and his leadership skills makes him an excellent choice to lead Wealth Management."

LINK TO FULL ARTICLE:  http://www.businesswire.com/news/home/20100630005854/en/Hartford-Names-David-N.-Levenson-President-Wealth

40: PRODUCTS - Allstate Introduces GoodForLife(SM); …

 …New Financial Product Is Life Insurance - and More

NORTHBROOK, Ill., July 12 /PRNewswire-FirstCall/ -- Allstate (NYSE: ALL) today announced the launch of GoodForLife, a unique multi-coverage life insurance product that provides consumers a benefit, not only in the event of sickness, accident or death, but also when consumers enjoy a long life.

GoodForLife takes the complexity out of protecting families from the unexpected by bundling life insurance with severe accident and critical illness benefits in one simple and affordable product.  And, if all goes as planned, at age 65 GoodForLife features a return of premium, as well as a paid up death benefit with no additional payments.

LINK TO FULL ARTICLE: http://www.prnewswire.com/news-releases/allstate-introduces-goodforlifesm-new-financial-product-is-life-insurance---and-more-98236249.html

41: PRODUCTS - John Hancock Launches Disciplined Value Mid Cap Fund

Firm expands core value choices with adoption of Robeco Boston Partners' fund

BOSTON, July 12 /PRNewswire/ -- John Hancock Funds has completed the adoption of the Robeco Boston Partners Mid Cap Value Fund and has launched it as the newly established John Hancock Disciplined Value Mid Cap Fund (JVMAX).  The reorganization was effective after the close of business on July 9. The John Hancock Disciplined Value Mid Cap Fund is now available for sale to retail investors through their financial advisers.

42: PRODUCTS - The Hartford Enhances Group Life Insurance Coverage…

… by Expediting Payment of Death Benefits

Innovative life insurance program sets new industry standard while addressing the significant financial hardships that funeral expenses can cause

Paying for an unexpected funeral would be a financial hardship for two out of three Americans, according to a recent national survey1 by The Hartford Financial Services Group, Inc. (NYSE: HIG). To help consumers during one of the stressful points in their lives, The Hartford today is launching Life Conversations Express Pay, a new program that accelerates payment of death benefits for consumers protected by group life insurance policies.

LINK TO FULL ARTICLE:  http://www.businesswire.com/news/home/20100628005868/en/Hartford-Enhances-Group-Life-Insurance-Coverage-Expediting

43: REGULATORY - Consumer Group Opposes New Insurance Tax

RIMS maintains tax on foreign-based insurance companies will have crippling effect on consumers

NEW YORK (July 14, 2010) -- The Risk and Insurance Management Society, Inc. (RIMS) today announced its continuing opposition to any effort to move forward legislation that would increase taxes on foreign-based insurance companies and, therefore, the cost of insurance to its members.  

H.R. 3424, which was introduced by Rep. Richard Neal (D-MA), will negatively impact members nationwide, but particularly those in regions threatened by natural disasters and terrorism events, as they depend largely on foreign-based reinsurers to protect them. The bill will be the subject of a hearing today in the House of Representatives Select Revenue Measures Subcommittee chaired by Rep. Neal.

44: RESEARCH - Gen Y Takes Prudential To School on Life Insurance

Series of focus groups and research reveal the nuances of this growing market

 “You think you know, but you have no idea,” summarizes how the average Gen Yer feels about the life insurance process according to a study released today by Prudential Individual Life Insurance, a unit of The Prudential Insurance Company of America, a subsidiary of Newark, N.J. based Prudential Financial, Inc. (NYSE:PRU).

LINK TO FULL ARTICLE:  http://www.businesswire.com/news/home/20100706005880/en/Gen-takes-Prudential-school-life-insurance

45: RESEARCH - LIMRA Explores Whether Pre-Retirees are More like the Grasshopper...

…or the Ant

WINDSOR, Conn., July 12, 2010--Much like the fable "The Grasshopper and the Ant," pre-retirees fall into two categories: those that have diligently prepared and saved for retirement (the ant) and those who have not (the grasshopper).  A new LIMRA study finds that less than half of pre-retirees (aged 55-70) have adequately saved for retirement and, like the grasshopper, are likely to suffer the consequences in retirement--the "winter" of their lives.

According to the new LIMRA research report, "Scaling the Pre-Retiree Market," the majority of the 30 million pre-retirees are woefully unprepared for retirement--so much so that it might change the essence of retirement.  Consider the following:

LINK TO FULL ARTICLE:  http://insurancenewsnet.com/article.aspx?id=206509&type=breakingnews

46: RESEARCH - Majority of Consumers Report No Increase in Debt over Past Six Months

…According To American Express Spending & Saving Tracker

Survey Suggests Summer Weather Prompts Spontaneous Spending on Everything From Summer Outings to New Wardrobes

In a mid-year financial check up, three-quarters (75%) of Americans say their debt has not increased over the past six months and in fact more than a third (38%) say their debt has actually decreased, according to the latest American Express Spending & Saving Tracker. While consumers are focused on keeping their debt at bay, they also expressed positive long and short-term spending intentions. For example, more than one-quarter (26%) of the general population say that the summer weather specifically encourages more spontaneous spending.

47: RESEARCH - MIB Life Index Reports U.S. Life Insurance Activity Declines...

…3.9% in June

2010 Results Through Q2 Remain Level with 2009

BRAINTREE, Mass., July 7 /PRNewswire/ -- U.S. application activity for individually underwritten life insurance declined -3.9% in June year-over-year, all ages combined, according to the MIB Life Index(SM).  June's decline was the largest year-over-year drop in U.S. application volume since March 2009.  Overall, the U.S. Life Index experienced alternating monthly gains and losses over the first two quarters of the year resulting in application activity being off fractionally at June's close, down -0.2% YTD.  June's activity was off -1.4% from May levels; declines are atypical for this time period.

The U.S. MIB Life Index by age group for June showed ages 0-44, off -7.2%; ages 45-59, off -3.1%; and ages 60+, up +8.1% year-over-year.  After growth in ten of the last twelve months, ages 45-59 had its largest year-over-year percentage decline since May 2009.  Activity in the 60+ age group has paused from double digit growth to single digit for the first time since March 2009.

LINK TO FULL ARTICLE:  http://insurancenewsnet.com/article.aspx?id=205475&type=breakingnews

48: RETIREMENT - The Hartford Launches New Educational Campaign to Help Doctors...

… Lawyers, and Other Professionals Overcome New Financial Challenges to Retirement

Prescribing the right solutions can help professionals save for retirement as they face rising taxes due to health care reform, increasing business expenses

SIMSBURY, Conn., July 12, 2010 -- The Hartford Financial Services Group, Inc. (NYSE: HIG) is launching a new educational campaign to help financial advisors consult doctors, lawyers and other professionals on planning for retirement in the face of rising taxes, health care reform and increasing business expenses.

The campaign, "Take Charge, Not Cover," encourages professionals to take control of their financial destiny and provides financial advisors with a broad range of tools to help meet the special retirement planning needs of high-net-worth individuals, especially the owners of professional practices.  By working with The Hartford, advisors can better consult professionals on reducing the impact of both personal and business taxes, and significantly increase the assets they accumulate for retirement.

LINK TO FULL ARTICLE: http://www.insurancebroadcasting.com/insurance-news-071410-4.htm

49: STATS - BestWeek: US Life Industry's New Business Issued Fell in 2009...

…in Four of Five Segments

OLDWICK, N.J.--(BUSINESS WIRE)--New business issued (insured amounts) by the United States life insurance industry fell in all categories in 2009 from 2008 except for group life, which rose 7.6%, according to an annual Best's statistical study that appears in this week's BestWeek U.S. Canada.

LINK TO FULL ARTICLE: http://www.businesswire.com/news/home/20100709005802/en/BestWeek-Life-Industry%E2%80%99s-Business-Issued-Fell-2009

50: STATS - Employees Report More Cut Backs in Compensation…

…Health Care Benefits, and Company Perks in Second Quarter as Reports

Fri Jul 2, 2010 8:00am EDT

SAUSALITO, CA, Jul 02 (MARKET WIRE) -- While employee reports of layoffs declined in the second quarter, employees reveal companies may be cutting more than headcount to trim costs for recovery. In the second quarter, nearly half (45 percent) of employees(1) reported their employers made changes to the number of staff, organizational structure, compensation and benefits or other perks in the past six months. While these employees reported fewer instances of layoffs (47 percent) than in recent quarters, they reported higher rates of compensation cuts and changes (57 percent), including bonus reductions or eliminations (27 percent), reductions in health and/or dental benefits (22 percent) and removal of company perks (i.e., commuter subsidies, 20 percent), according to the Q2 Glassdoor.com(R) Employment Confidence Survey of 2,418 U.S. adults conducted on its behalf by Harris Interactive(R)(2). 

LINK TO FULL ARTICLE:  http://www.marketwire.com/press-release/Employees-Report-More-Cut-Backs-Compensation-Health-Care-Benefits-Company-Perks-Second-1285126.htm

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