Sunday, August 24, 2014

Here’s How Much Banks Have Paid Out Since the Financial Crisis - TIME


  • http://time.com/3154590/bank-payouts-since-financial-crisis/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+timeblogs%2Fcurious_capitalist+%28TIME%3A+Business%29
  • Noah Rayman @noahrayman
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Aug. 21, 2014
    

Bank of America's new settlement with the Justice Department is among the largest


The Bank of America deal announced Thursday, the government’s largest-ever settlement with a single company, means the nation’s second-biggest bank will shell out $16.65 billion over allegations that it knowingly sold toxic mortgages to investors.
The landmark agreement is a win for the government—particularly the Department of Justice, which spearheaded the probe—after drawing criticism for its sometimes weak response to the financial crisis in 2008. The sum surpasses Bank of America’s entire profits last year and is significantly higher than the $13 billion it offeredduring negotiations in July.
But the deal also caps a string of settlements that the Justice Department and other regulators have imposed on banks in the wake of the recession. Since the crisis, the six largest banks by assets have paid more than $123.5 billion in settlements over faulty mortgages, according to previous data from SNL Financial and incorporating the latest settlement. Authorities have forced the banks to pay the majority of that amount, and more deals are likely: Goldman Sachs and Wells Fargo are both reportedly on deck.
Here are seven of the largest government settlements:
$25 Billion
Wells Fargo, J.P. Morgan Chase, Citigroup, Bank of America, Ally Financial
February 2012
In what President Barack Obama called a “landmark” settlement, five of the nation’s largest banks agreed to a $25 billion settlement with 49 states and the feds to end an investigation into faulty foreclosure practices (Oklahoma reached a separate deal). Most funds were directed toward mortgage relief.
$16.65 Billion
Bank of America
August 2014
The settlement announced on Aug. 21 includes $7 billion for consumer relief, such as mortgage modification and forgiveness, and $9.65 billion in cash. But the deal doesn’t absolve the Charlotte-based bank of future criminal claims or claims by individuals.Bank of America has paid more than $60 billion in losses and legal settlements spawning from troubled mortgages—the most of any bank.
$13 Billion
J.P. Morgan Chase
November 2013
The largest U.S. lender agreed to what was then a record-setting settlement with the Justice Department over its role in the sale of the mortgages. “JPMorgan was not the only financial institution during this period to knowingly bundle toxic loans and sell them to unsuspecting investors, but that is no excuse for the firm’s behavior,” Holder said at the time.
$11.6 billion
Bank of America
January 2013
The bank, which acquired the mortgage lender Countrywide Financial in 2008, agreed to a $11.6 billion settlement over claims that it and Countrywide improperly sold mortgages to Fannie Mae.
$9.5 billion
Bank of America
March 2014
Ahead of the Justice Department settlement, Bank of America agreed to pay $9.3 billion to settle additional allegations that it sold faulty mortgages to Fannie Mae and Freddie Mac.
$9.3 Billion
Thirteen Banks
February 2013
Federal regulators finalized a deal with thirteen lenders — including the three largest — for faulty processing of foreclosures. The sum allowed for borrowers who went through foreclosure to access up to $125,000.
$7 Billion
Citigroup
July 2014
Citigroup, the third-largest bank, and the Justice Department announced the deal in July amid allegations that the company misled investors about the mortgage-backed securities. The settlement, which included about $2.5 billion for consumer relief, surprised some analysts by its size, but was a harbinger of what was in store for Bank of America in the coming weeks.

Saturday, August 23, 2014

Don’t Count the iPhone 6’s September 9 Debut Out Yet - TIME

http://time.com/3158884/iphone-6-september-9/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+timeblogs%2Fcurious_capitalist+%28TIME%3A+Business%29

Aug. 22, 2014
    

The new iPhone line reportedly had a backlight engineering problem that goofed up the assembly process earlier this summer.


Reuters is reporting that Apple may be having difficulty prepping a sufficient number of screens for the next iPhone. Apple is expected to unveil the new line at media event on September 9. The problem, says Reuters, involves a “key” component that’s disrupting the production of the line’s new screens, rumored to be larger than the iPhone 5’s current four inches, and possibly come in two sizes.
More specifically, Reuters’s supply chain sources say the problem is with the backlight configuration in the new phones. Apple wanted to reduce the material used for the backlight from two layers to one in hopes of thinning the phones, says Reuters. But without that second layer, the phones apparently weren’t bright enough, which forced the parts back to engineering and held up the assembly process earlier this summer. That’s now impacting the number of screens Apple’s been able to produce in the ramp up to the unveiling, according to Reuters’ sources.
How many phones amounts to a sufficient number at launch anyway? I have no idea, nor does Reuters, but the news site defangs the issue somewhat by pointing out that its sources indicated the “hiccup” may or may not make it harder for you to get one of the new phones at launch or delay the phones outright. Thus we’re left to mull the possibility that there could be a launch availability problem, but with absolutely no idea of its magnitude, on a scale that runs from “catastrophic” to “irrelevant.”

Short of actually delaying the debut, which seems unlikely at this point–rumors of a September 9 event bubbled up just a few weeks ago, well after the June/July timeframe referred to in the Reuters piece–it’s unlikely we’ll know whether this story impacted the phones’ arrival. Availability issues have been a major part of every new iPhone launch, and a certain amount of scarcity–so long as Apple’s able to ramp up production to meet or surpass its fiscal projections in the long run–isn’t the worst problem to have. Sony’s PlayStation 4, for instance, which Sony claims was plagued by supply issues from launch, has gone on to sell 10 million units worldwide, a record-breaking figure even Sony can’t explain.

Friday, August 22, 2014

Top 10 Qualities of Extremely Successful People - TIME

http://time.com/3153429/success-2/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+timeblogs%2Fcurious_capitalist+%28TIME%3A+Business%29

Aug. 21, 2014
    

If you really want to bringsuccess into your life, you should cultivate yourself just as you’d cultivate a garden for the best yield.
The attributes here are shared by successful people everywhere, but they didn’t happen by accident or luck. They originate in habits, built a day at a time.
Remember: If you live your life as most people do, you will get what most people get. If you settle, you will get a settled life. If you give yourself your best, every day, your best will give back to you.
Here are the traits that the highly successful cultivate. How many do you have?

1. Drive

You have the determination to work harder than most and make sure things get done. You pride yourself on seeing things getting completed and you can take charge when necessary. You drive yourself with purpose and align yourself with excellence.

2. Self-reliance

You can shoulder responsibilities and be accountable. You make hard decisions and stand by them. To think for yourself is to know yourself.

3. Willpower

You have the strength to see things through–rather than vacillate or procrastinate. When you want it, you make it happen. The world’s greatest achievers are those who have stayed focused on their goals and been consistent in their efforts.

4. Patience

You are willing to be patient, and you understand that, in everything, there are failures and frustrations. To take them personally would be a detriment.

5. Integrity

This should not have to be said, but it’s seriously one of the most important attributes you can cultivate. Honesty is the best policy for everything you do; integrity creates character and defines who you are.

6. Passion

If you want to succeed, if you want to live, it’s not politeness but rather passion that will get you there. Life is 10 percent what you experience and 90 percent how you respond to it.

7. Connection

You can relate with others, which in turns makes everything reach further and deepen in importance.

8. Optimism

You know there is much to achieve and much good in this world, and you know what’s worth fighting for. Optimism is a strategy for making a better future–unless you believe that the future can be better, you’re unlikely to step up and take responsibility for making it so.

9. Self-confidence

You trust yourself. It’s as simple as that. And when you have that unshakeable trust in yourself, you’re already one step closer to succeeding.

10. Communication

You work to communicate and pay attention to the communicators around you. Most important, you hear what isn’t being said. When communication is present, trust and respect follow.
No one plans on being mediocre; mediocrity happens when you don’t plan. If you want to succeed, learn the traits that will make you successful and plan on living them out every day.

Be humble and great. Courageous and determined. Faithful and fearless. That is who you are, and who you have always been.

Thursday, August 21, 2014

Europe’s Economic Woes Require a Japanese Solution - TIME

http://time.com/3147434/europe-japan-economy-recession-ecb-european-central-bank/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+timeblogs%2Fcurious_capitalist+%28TIME%3A+Business%29

Aug. 20, 2014
    
A pedestrian carries a plastic shopping bag as she passes a closed-down temporary outlet store in Rome, Italy, on Tuesday, Aug. 12, 2014. Italy's economy shrank 0.2 percent in the second quarter after contracting 0.1 percent in the previous three months.Bloomberg—Bloomberg via Getty Images

The region’s economy is starting to resemble Japan’s, and that threatens to condemn Europe to its own lost decades


No policymaker, anywhere in the world, wants his or her national economy to be compared to Japan’s. That’s because the Japanese economy, though still the world’s third-largest, has become a sad case-study in the long-term damage that can be inflicted by a financial crisis. It’s more than two decades since Japan’s financial sector melted down in a gargantuan property and stock market crash, but the economy has never fully recovered. Growth remains sluggish, the corporate sector struggles to compete, and the welfare of the average Japanese household has stagnated.

The stark reality facing Europe right now is that its post-crisis economy is looking more and more like Japan’s. And if I was Mario Draghi, Angela Merkel or Francois Hollande, that would have me very, very nervous that Europe is facing a Japanese future — a painful, multi-decade decline.

The anemic growth figures in post-crisis Europe suggest that the region is in the middle of a long-term slump much like post-crisis Japan. Euro zone GDP has contracted in three of the five years from 2009 and 2013, and the International Monetary Fund is forecasting growth of about 1.5% a year through 2019. Compare that to Japan. Between 1992 and 2002, Japan’s GDP grew more than 2% only twice, and contracted in two years. What Europe has to avoid is what happened next in Japan: There, the “lost decade” of slow growth turned into “lost decades.” A self-reinforcing cycle of low growth and meager demand became entrenched, leaving Japan almost entirely dependent on exports — in other words, on external demand — for even its modest rates of expansion.
It is easy to see Europe falling into the same trap. Low growth gives European consumers little incentive to spend, banks to lend, or companies to invest at home. Europe, in fact, has it worse than Japan in certain respects. High unemployment, never much of an issue in Japan, could suppress the spending power of the European middle class for years to come. Europe also can’t afford to rely on fiscal spending to pump up growth, as Japan has done. Pressure from bond markets and the euro zone’s leaders have forced European governments to scale back fiscal spending even as growth has stumbled. It is hard to see where Europe’s growth will come from – except for increasing exports, which, in a still-wobbly global economy, is far from a sure thing.
This slow-growth trap is showing up in Europe today as low inflation – something else that has plagued Japan for years on end. Deflation in Japan acted as a further brake on growth by constraining both consumption and investment. Now there are widespread worries that the euro zone is heading in a similar pattern. Inflation in the euro zone sunk to a mere 0.4% in July, the lowest since the depths of the Great Recession in October 2009.
Sadly, Europe and Japan also have something else in common. Their leaders have been far too complacent in tackling these problems. What really killed Japan was a diehard resistance to implementing the reforms that might spur new sources of growth. The economy has remained too tied up in the red tape and protection that stifles innovation and entrepreneurship. And aside from a burst of liberalization under Prime Minister Junichiro Koizumi in the early 2000s, Japan’s policymakers and politicians generally avoided the politically sensitive reforms that might have fixed the economy.
Europe, arguably, has been only slightly more active. Though some individual governments have made honorable efforts – such as Spain’s with its labor-law liberalization – for the most part reform has come slowly (as in Italy), or has barely begun (France). Nor have European leaders continued to pursue the euro zone-wide integration, such as removing remaining barriers to a common market, that could also help spur growth.
What all this adds up to is simple: If Europe wants to avoid becoming Japan, Europe’s leaders will have to avoid the mistakes Japan has made over the past 20 years. That requires a dramatic shift in the current direction of European economy policy.
First of all, the European Central Bank (ECB) has to take a page out of the Bank of Japan’s (BOJ) recent playbook and become much more aggressive in combating deflation. We can debate whether the BOJ’s massive and unorthodox stimulus policies are good or bad, but what is beyond argument at this point is that ECB president Draghi is not taking the threat of deflation seriously enough. Inflation is nowhere near the ECB’s preferred 2% and Draghi has run monetary policy much too tight. He should consider bringing down interest rates further, if necessary employing the “quantitative easing” used by the U.S. Federal Reserve.
But Japan’s case also shows that monetary policy alone can’t raise growth. The BOJ is currently injecting a torrent of cash into the Japanese economy, but still the economic recovery is weak. Prime Minister Shinzo Abe finally seems to have digested that fact and in recent months has announced some measures aimed at overhauling the structure of the Japanese economy, by, for instance, loosening labor markets, slicing through excessive regulation, and encouraging more women to join the workforce. Abe’s efforts may prove too little, too late, but European leaders must still follow in his footsteps by taking on unions, opening protected sectors and dropping barriers to trade and investment in order to enhance competitiveness and create jobs.

If Europe fails to act, it is not hard to foresee the region slipping hopelessly into a Japan-like downward spiral. This would prove disastrous for Europe’s young people — already suffering from incomprehensible levels of youth unemployment — and it would deny the world economy yet another pillar of growth.

Wednesday, August 20, 2014

10 Super Simple Ways to Be a Better Writer - TIME

http://time.com/3113141/become-a-better-writer/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+timeblogs%2Fcurious_capitalist+%28TIME%3A+Business%29

Aug. 18, 2014
    
TheMuse

The written word is king. Time to get more comfortable with it

Congratulations! Because if you work in an office or run your own business, you’re likely to spend about a quarter of your workdaydoing one thing:
Writing.
Oh, and that’s just the portion of your day that you’ll spend writing emails.
That figure doesn’t account for reports, proposals, best practice guidelines, blog posts, Facebook updates, tweets, texts, chapters of your forthcoming memoirs, that TED Talk script you’ve been tinkering with for the last 18 months, and the occasional hand-written “thank you” note.
We live in an era where the written word is King.
And if you’re going to write 40,000+ words this year—at minimum!—you might as well learn how to do your absolute best.
Here are 10 ways to become a better writer, right away.
(The kind of writer whose words get results.)

1. Get Clear

Before you sit down to write (anything), ask yourself: Why am I writing?
What’s the desired outcome that you want with this particular piece of writing?
Are you writing to brighten someone’s morning? Motivate your team to head back into the ring after a crushing defeat? Encourage folks to say “yes” to your new meeting time?
The best writing tends to have one clear, ringing intention. Choose it—and commit.

2. Get to the Point

In the business world, brevity is gold. (Related: Are Your Emails Too Long? Probably)
If you’re struggling to get to the point, take a moment to think about the person (or people) that you’re writing to, and create a roadmap for yourself by filling in the following statements:
The reason I am writing is:
What I want you to know is:
What I want you to do is:
Get those three points down pat. Then refer to them as you write to keep yourself on track.

3. Strip it Down

Albert Einstein once said, “If you can’t explain it to a six-year-old, you don’t understand it yourself.”
Imagine that you’re writing for an audience of little kids—impatient, easily distracted, with zero tolerance for jargon.
You can practice—out in the real world—by having actual conversations with kids. Try explaining to a toddler what you do for a living, for starters. You’ll see, very quickly, if your elevator pitch is clear and intriguing—or not. (If not? Here are my tips for how to tell people what you do—and be remembered.)

4. Write From Your Happy Place

Ever notice how when you’re stressed out and trying to “force” yourself to write something amazing, it almost never works?
Research shows that getting yourself into a happy, relaxed state—think: taking a shower—is the key to creativity-on-command. When your body is experiencing a rush of dopamine, that’s when those a-ha! moments (“Ooh! I’ve got the perfect title for my presentation!”) tend to happen.
Can’t take a shower at work? No worries. There are plenty of other ways to get into your happy place before you sit down to write. Play energizing music, light a scented candle, bounce on an exercise ball—whatever it takes to help you unclench and relax!

5. Give Yourself a Time Limit

For most people, the longer you fuss over a piece of writing, the worse it gets.
When you have a clear reason for writing and feel happy and relaxed (see tip #4), your first draft is usually best. There’s no need to endlessly chew it over.
Clearing out your inbox, for example? Give yourself a time limit—say, two minutes per email—to prevent yourself from slipping into analysis-paralysis.
(You can set up a “smart playlist” in iTunes comprised entirely of two-minute songs, to keep yourself rockin’ along. When the song changes—hit “send” and move on!)

6. Ask, “What Would My Hero Write?”

If you’re struggling with a sensitive piece of writing where hitting the right emotional tone is essential, try channeling one of your personal heroes.
“What would Mister Rogers write in this situation?” “What would the Dalai Lama say?” “How would Richard Branson handle this email chain?”

7. Close Strong

Lost in a sea of never-ending email threads? Questions building upon questions, never leading to decisive action?
Try taking a decisive stance, rather than wrapping up your writing with an open-ended prompt.
Think: “In my opinion, the following approach is the best choice. If you agree, write back to say ‘yes,’ and I’ll get started.”
Not: “So, what do you guys think? I’m open to everyone’s input!”

8. Use the 7 Magic Words

“All I need from you right now.”
Kick these words up to the top of your correspondence, as in:
“I’m so excited that you’re going to deliver a keynote at our annual conference.
All I need from you right now is the title of your talk, a headshot, and your bio.”
These seven magic words give your reader a clear assignment, and put them at ease. (“Ahhh—that’s all? No problem. Done.”)
You can always add more information down below, if necessary (“Here are a few other things to know—for later.”)

9. Say it Out Loud

Whenever possible, read your writing out loud.
Does it sound like it was written by a human being or a cyborg? Are you stumbling over excessively long sentences? Catch any typos or duplicate words? If so, tweak and read it out loud again.
If reading aloud isn’t possible—because you don’t want to disturb your colleagues—try lightly tapping a finger on your desk or thigh as you silently read each word in your head. (It’s bizarre, but it works almost as well as reading out loud.)

10. Be a Daymaker

David Wagner, CEO of Juut Salonspa, often speaks about being a “Daymaker”—not just going through the motions at work, but actively choosing to be a source of positivity and encouragement. Choosing to make someone’s day.
With everything you write—every email, every text, every tweet—you have an opportunity to make someone’s day. (Or not.)
Often, all it takes is a few words of kindness, a thoughtful compliment, or the kind of insightful reminder that leaves people thinking, “Yeah. I needed that.”
Set “Daymaker” as your barometer of success—for your writing, and for everything you do.

Whether your writing is “perfect” or not, your intent will shine through.

Tuesday, August 19, 2014

Behind Closed Doors, Obama Crafts Executive Actions - New York Times

http://www.nytimes.com/2014/08/19/us/politics/behind-closed-doors-obama-crafts-executive-actions.html?emc=edit_cn_20140818&nl=us&nlid=56381892&_r=0

By JULIE HIRSCHFELD DAVISAUG. 18, 2014
President Obama made a statement before signing an Executive Order to protect LGBT employees from workplace discrimination in July. CreditGabriella Demczuk/The New York Times

WASHINGTON — When President Obama announced in June that he planned to bypass congressional gridlock and overhaul the nation’s immigration system on his own, he did so in a most public way: a speech in the White House Rose Garden.
Since then, the process of drafting what will likely be the only significant immigration changes of his presidency — and his most consequential use of executive power — has been conducted almost entirely behind closed doors, where lobbyists and interest groups invited to the White House are making their case out of public view.

Mr. Obama’s increasingly expansive appetite for the use of unilateral action on issues including immigration, tax policy and gay rights has emboldened activists and businesses to flock to the administration with their policy wish lists. It also has opened the president, already facing charges of executive overreach, to criticism that he is presiding over opaque policy-making, with the potential to reward political backers at the expense of other interests, including some on the losing side who are threatening to sue.
Continue reading the main storyVideo

One Family Faces the Immigration Debate

With comprehensive immigration reform on hold in Congress, Nancy Paredo’s family is waiting on a promise from President Obama to take executive action. Here’s a look at some steps he might take.
 Video CreditBy Emily B. Hager and Natalia V. Osipova on Publish DateAugust 18, 2014. 
“We look at what they’ve been doing with executive action and are deeply concerned, and have focused a lot of our energies on how we can roll back these things,” said Geoff Burr, the vice president of federal affairs for Associated Builders and Contractors, whose member companies do 60 percent of federal construction jobs.
Mr. Burr said an executive order issued by Mr. Obama last month that would block companies with a history of workplace violations from receiving federal contracts had prompted his group to contemplate “the virtues of a litigation strategy.”
White House officials say Mr. Obama has been inclusive as he looks to wield his authority, reaching out to an array of lawmakers, experts and business leaders for a wide range of perspectives to inform his plans for executive actions. Since the president first announced his intention to use his “pen and phone” to advance his agenda during his State of the Union address in January, White House officials have held weekly meetings to compile ideas from inside and outside the administration.
In some cases, the public has gotten a glimpse of the process, such as during a summit meeting on working families in June. More often, though, the talks have occurred behind the scenes. Administration officials have convened more than 20 so-called listening sessions this summer alone on executive options for revising immigration policy, a White House official said, declining to discuss the sessions in detail because the conversations were private.
“The president has been clear that he will use all of the tools at his disposal, working with Congress where they are willing but also taking action on his own where they aren’t, to expand opportunity for all Americans and help more families share in our economy’s continued progress,” said Jennifer Friedman, a White House spokeswoman. “As part of this process, the administration has engaged a wide range of stakeholders and has solicited input from groups and individuals representing a diverse set of views.”
Activists and business groups that stand to gain from the moves are eagerly providing the White House with their side of the case.
“We’ve been talking to them about what we believe they can do while we wait for Congress to act,” said Scott Corley, a lobbyist for Compete America, a coalition of Silicon Valley companies seeking relief for foreign-born technology workers. “We’ve looked at where the legal authority exists, and we’ve found lots of ways in which the administration can move forward.”
On a host of issues, the list of requests is growing. Technology companies would like Mr. Obama to provide more visas for their workers, or at least more flexibility for them and their families as they await green cards for permanent residency. Consumer groups and organized labor want the Treasury Department to act on its own to limit financial incentives for companies that move overseas for tax breaks and stop so-called inversions. Democratic lawmakers are joining in as well, asking the president to act on his own on their pet issues.
“During your State of the Union address, you stated that you want to make 2014 a ‘year of action,'  ” Senator Dianne Feinstein, a California Democrat, wrote to Mr. Obama in March, in a letter requesting that he issue an executive order banning the import of assault or military weapons.
The go-it-alone approach has left the administration — which claims to be the most transparent in United States history — essentially making policy from the White House, replacing congressional hearings and floor debates with closed meetings for invited constituencies. ​
“The executive branch is not really set up to be a deliberative body like the Congress is,” said Andrew Rudalevige, a government professor at Bowdoin College who has studied the consequences of executive action. “The process is certainly stacked toward the policy preferences of the administration, and they’re going to listen to the people they think are right, which usually means the ones who agree with them.
“Those who are ‘in’ will engage the White House and the agencies to get their priorities met, and if you’re ‘out,’ you turn to the legal process” to challenge the executive action after it is taken, he said.
When the president vowed in the Rose Garden in June to “fix as much of our immigration system as I can on my own,” immigration activists were ready with their list of potential executive actions. They range from giving certain categories of undocumented immigrants temporary “parole in place” status to stay in the United States, to essentially legalizing millions more by expanding a 2012 directive issued by Mr. Obama that grants work permits and deportation deferments to young immigrants brought illegally to the United States as children.
The requests did not stop there. Cecilia Muñoz, Mr. Obama’s top immigration adviser and the domestic policy chief, has led meetings attended by White House political aides and lawyers to hear from interest groups, individual companies and business groups about what executive actions they believe the president should take on immigration.
Senator Jeff Sessions, an Alabama Republican and one of the staunchest opponents of the stalled immigration bill Mr. Obama advocated, criticized the process. “It is chilling to consider now that these groups, frustrated in their aims by our constitutional system of government, are plotting with the Obama administration to collect their spoils through executive fiat,” he said.


As recommendations pour in, the most frequent question Mr. Obama’s aides are asking, the people involved said, is whether the moves could withstand a legal challenge, which comes as House Republicans voted to sue Mr. Obama for unilateral action in changing elements of his signature health care law.
One group, Change to Win, a labor union-backed consumer advocacy organization that has pressed for congressional action to block corporate inversions, sought out a legal expert with Obama administration ties, Stephen E. Shay, to press its case.
Professor Shay, a top Treasury official during Obama’s first term who now teaches at Harvard Law School, was asked by the group to craft a legal justification for the administration to act without congressional approval. Professor Shay wrote an article in the trade journal Tax Notes in July, asserting that the president’s team had broad authority to do so.
“We asked his advice as to how to bring this forward to the administration,” said Nell Geiser, the associate director of retail initiatives at Change to Win, who said Professor Shay’s connections at the Treasury were vital. “He knew all the personalities and their dynamics.”
Within days, Treasury Secretary Jacob J. Lew had announced that he had a “very long list” of ways to remove the economic incentive for inversions that would not require congressional action.
On other issues, the president has been under pressure to act on his own for years. When Mr. Obama announced in June that he would soon sign executive orders to fulfill his 2008 campaign promise to bar discrimination by federal contractors on the basis of sexual orientation and gender identity, gay rights activists pressed for the broadest possible protection. In private White House meetings, they lobbied successfully against including a new exemption being sought by religious groups; the order was signed July 21.

While Mr. Obama has issued fewer executive orders than presidents before him — 183, according to the American Presidency Project at the University of California, Santa Barbara, compared with 291 by George W. Bush and 364 by Bill Clinton — experts say he has been at least as aggressive as his two immediate predecessors in taking unilateral action, often through memorandums or other administrative moves.
“He’s using just a vast array of different means to pursue his various goals,” John T. Woolley, a politics professor at the university who maintains the executive order database and studies presidential use of unilateral action.

Mr. Obama “has been quite aggressive and he’s been creative in looking for every possible avenue to take matters into his own hands,” Mr. Woolley said.

Monday, August 18, 2014

Chinese Officials Rush to Sell Luxury Homes Amid Corruption Crackdown - Wall Street Journal

http://online.wsj.com/articles/chinese-officials-fearing-scrutiny-amid-a-crackdown-on-graft-rush-to-sell-luxury-homes-1408316680?mod=e2fb

By 
ESTHER FUNG and 
ALYSSA ABKOWITZ 
Aug. 17, 2014 7:04 p.m. ET
Cai Bin, center, whom social-media users dubbed 'Uncle House,' was convicted on graft charges.Imaginechina/Associated Press
China's corruption crackdown has already taken a bite out of the hospitality sector in China with its ban on lavish banquets and is now starting to make waves in another corner of the economy, as officials afraid of government scrutiny are dumping apartments.
In one case late last year, an Inner Mongolia political leader named Wu Zhizhong was convicted of corruption, accepting bribes and embezzling public funds. Investigators said Mr. Wu owned 33 properties in China and one house in Canada. Xinhua, China's official news agency, said the keys to all of his homes could fill up an entire handbag.
Cai Bin, a former Guangzhou official dubbed "Uncle House" on social media, was also convicted last year for accepting bribes. Investigators said he and his family owned more than 20 homes.
Those cases, and others like them, have raised alarm bells among local government leaders.
According to roughly a dozen property agents interviewed by The Wall Street Journal, officials are now afraid to buy luxury pads, and several are trying to offload properties that might raise red flags.
"Officials are focused on selling their homes quickly, so they are willing to sell at 5% to 10% cheaper than the average prices of comparable homes," says Zhang Yan, a manager at Shanghai Centaline Property Consultants, who says he sells three to four homes to officials every quarter on average. Party members usually find a buyer within two weeks, he said, while most other sellers find buyers in about a month, waiting for a higher price.
The impact of the corruption crackdown on the overall market is difficult to measure, in part because there is no national property registration system in China. While there are limitations on how many homes a person can buy, some people have relatives or surrogates purchase homes for them.
The dumping of properties is the latest iteration of fear that has spread through the Chinese government at all levels as President Xi Jinping's anticorruption campaign rolls on. Already, government officials have toned down lavish banquets, gift-giving and travel.
And it comes at a bad time for China's property market, which is facing a slump that many economists say poses the greatest risk to the country's economy. Housing sales in the first seven months this year fell 10.5%, according to official data issued last week.
According to real-estate agents, government officials make up as much as 20% of owners in the luxury housing market, and the agents say they simply aren't buying much anymore.
"A major way to corrupt an official is to give him a house as a gift," says Yan Jirong, a professor at the Peking University School of Government. "The anticorruption campaign is sending a signal" that such tactics should be stopped, he said.
Housing corruption is rampant in China. In June, the authorities in Guangxi Autonomous Region issued a statement warning civil servants "in possession of excess homes" to turn them in, though it left vague where and how to surrender such property.
The Central Military Committee, which controls China's armed forces, says it wants military personnel to annually declare the property they own, and has threatened to punish officers who hide or falsify their declarations.
In June, one government official offered a two million yuan ($325,000) discount on his apartment in Beijing's downtown Chaoyang district, originally priced at 22.5 million yuan, according to the real-estate agent selling the home. An advertisement for the four-bedroom home was titled "Distressed sale!!!"
Mr. Zhang said he sold an apartment in Shanghai's high-end Gubei district for an official last year for around 11 million yuan. Comparable homes sold for at least 12 million yuan at that time, he said.
"It was a three-bedroom apartment in a good location, and the home he lived in was actually humbler," Mr. Zhang says. "He was exceedingly discreet."
According to a recent survey of investors and property developers in China conducted by the Urban Land Institute, a think tank, only 23% of the respondents expected to invest more in luxury residential real estate, one of the lowest percentages recorded in the survey. That compares with 44% who expect to increase their investment in the midmarket housing sector.
In Hangzhou, sales of high-end homes plunged 54% in the first half the year, according to data tracker China Real Estate Index System. Gao Yuansheng, research director of the firm's Hangzhou office, attributed the fall mainly to expectations for slower price appreciation, but said it could be partly due to the anticorruption measures.
Another drag on the real-estate market: Beijing is paving the way for a nationwide system to tax and register property, which would make it much easier to identify modestly paid government officials who buy multiple homes. However, draft rules on a property-registration system issued Friday indicated the public would have only limited access to such a registry.
In a study from the University of Pennsylvania, economists found that Chinese government officials buy larger and more lavish homes than nonbureaucrats, despite earning typically 14% less in monthly income. Some officials also receive a price discount of nearly 4%, according to the study, which said that the size of the discount appears related to the power the official wields among local developers.
Bureaucrats in the study accounted for 7.1% of buyers—a much higher percentage compared with the 0.86% proportion of bureaucrats in China's total population.
Many officials mask their homeownership by using the IDs of their chauffeurs, relatives or surrogate buyers, according to real-estate agents.
One agent in Beijing said a client was in the process of unloading a home when the client was arrested last year. "I didn't realize he was an official until I saw his picture online when he was arrested," the agent said.
—Lilian Lin contributed to this article.

Sunday, August 17, 2014

5 Often Quoted Tips for Powerful Presentations - TIME

http://www.inc.com/john-treace/5-often-quoted-tips-for-powerful-presentations.html?cid=readmore

BY JOHN TREACE

It is more important than ever for business leaders to bring their messages to audiences. Here are five timeless tips for better presentations.

 There's a plethora of books and articles out there on how to give a great presentation.
In today's business environment, how to persuade and entertain an audience seems to be a perennial concern, so let's take a look at five classic techniques and tips for powerful presentations.
Follow these and you'll be on your way.

1. Pick the right time.

Research shows that the best time of day for presentations is around 10:30 a.m. In the midmorning, both morning and afternoon types will be alert. If at all possible, avoid presenting right before or after lunch, or in the late afternoon, especially within the final hour of the workday. You don't want to fight the restlessness of a hungry stomach or the lethargy of a full one, nor do you want to struggle against the afternoon energy slump. Of course, the timing of your presentation isn't always up to you. If you get stuck with a bad time, the next four tips become all the more important.

2. Keep it short.

Never add content to lengthen a program when it isn't necessary. If you do, people will get bored fast. They can tell when you're feeding them fluff. You never want them leaving a presentation thinking, "Man, he could've said that in 15 minutes but instead he wasted an hour of my time." Keep it on point and your audience will be happy.

3. Involve the audience.

It's difficult to hold people's attention for over 20 minutes. One solution is to keep the audience involved. Try injecting humor to get a laugh, or asking a few questions. When I'm speaking to audiences about the importance of selecting a stable company for employment, I always say, "Let me see a show of hands if you ever knew someone who lost their job because their company was poorly managed and went bankrupt." Hands always shoot up in the audience. This technique gets people thinking about how the content I'm delivering relates to their own lives, and helps them get engaged with my talk.

4. Make an emotional connection.

Connect an emotion to your message and it will be remembered. When I speak to audiences about the importance of having the right job, I often try to motivate and engage them by rousing their emotions: "You should see your job as enjoyable. If you're not happy, find a job where you are. Life is not a dress rehearsal. We only get to go around once. Don't end up on your death bed feeling like you wasted your life." When you use emotions and mental pictures, people internalize the message, and it stays in their minds.

5. Use visuals.

Research shows that some of us favor auditory learning while others are visual or kinesthetic learners. That means that some portion of your audience is always going to learn better through seeing or doing. You'll help the kinesthetic learners somewhat by involving them in your presentation (see point 3), but you can also include the visual learners by enhancing your words with helpful graphics. These will also improve learning and attention for all kinds of learners. One caveat, though: Don't over-rely on your visual aids. PowerPoint and Keynote are great applications, but don't read the slides. Speak to what they show. You want your audience focused on your message, not just on the slides.
There they are: Five timeless tips for better presentations. I'll even throw in a bonus tip--an idea that's often repeated, but that I still find to be a helpful reminder. Start your presentations with a summary of your talk and then end with a short review of what has been covered. We can shorten this concept thusly: "Tell 'em what you're going to tell 'em; tell 'em; and then tell 'em what you told 'em." Repetition equals retention.
Now that you've had a refresher, get out there and start presenting.
JOHN TREACE has more than 30 years' experience as a sales executive in the medical products industry. He spent more than 10 years specializing in the restructuring of sales departments. His new book is Nuts & Bolts of Sales Management: How to Build a High-Velocity Sales Organization.

Saturday, August 16, 2014

7 Ways to Become Your Boss’ Dream Employee - TIME

http://time.com/3111069/friend-your-boss/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+timeblogs%2Fcurious_capitalist+%28TIME%3A+Business%29

Aug. 14, 2014
 Become a pet in just a few steps
By Lea McLeod, M.A.
When my client Angela needed help sorting out a number of career-related issues, her relationship with her manager was at the top of the list.
Frankly, it was in shambles. Their working relationship was terrible, they couldn’t get along, and Angela even admitted she thought her boss regretted hiring her.
While I’m sure Angela’s boss had his own faults, I began to realize that Angela had forgotten the fundamental rule of employment: You are there to make your manager successful. Angela was contentious and argumentative, and I could see how her boss might not consider her someone who made his life any easier. (Related: How to play nice with a boss you hate)
On the other hand, when I look back at the best staff I had as a manager, they were the ones doing whatever was needed—and with a great attitude—so that we could all be successful together. In short, they made my life easier.
The good news is, aiming to do the same doesn’t just help your boss out. When your goal is to make your manager more successful—rather than just yourself—you’ll grow as an individual performer, as a professional, and as a part of the team. You’ll learn a lot about what it takes to be a leader, expand your empathic skills, and develop your capacity for leadership. Plus, your boss will likely become your mentor and advocate—which will put many more opportunities within your reach.
It’s not complicated; it just requires a decision and commitment on your part to make it happen. Here are some starter tips for making your manager’s life—and job—easier on a daily basis.

1. Get to Know Your Manager

You can’t make your boss’ life easier if you don’t understand how he fundamentally operates. So, your first step is to figure out what he needs from you—and how you should deliver it.
Does he prefer updates delivered in written form or verbally? Spreadsheets or PowerPoint slides? Does he want information conveyed via email, during a team meeting, or on a voicemail?
Getting to know your manager and his preferences will help youdeliver the information he needs, the way he needs it. And who doesn’t appreciate that?

2. Know Your Boss’ Goals

As an employee, you may be so focused on your own goals that you forget that you’re actually there to support your manager achieving her goals. So, make it your job to understand the goals, numbers, projects, and other deliverables your boss is accountable for.
It’s as simple as asking your manager as part of your one-on-one meetings, “If I’m aware of your goals and priorities, I can better support you in achieving them. Can you share these with me, so that I can help you succeed?” Once you understand her goals, you’ll be able to produce deliverables that support her success.

3. Never Let Your Manager Be Blindsided

One rule I always asked my teams to abide by was to never let me be blindsided. In short: No surprises.
So, if you suspect that one of your customers is getting really ticked off and is about to escalate over you—and over your boss—to the VP of customer service, you need to let your manager know. Otherwise, she’ll be completely blindsided by the situation, unprepared to handle it, and likely, not too happy with you.
A blindside creates frustration and chaos that usually ends up in a major time-wasting fire drill. Avoid it, and believe me, your manager will thank you.

4. Don’t Expect Your Boss to Spoon-Feed You

It may sound harsh, but no manager wants to babysit an employee. So if you have questions about health insurance, where to find the pencils, or how to file an expense report, find a colleague who can help you get your answers.
Save one-on-one time with your boss for work-related matters that require collaboration; issues that allow you to flex your intellectual muscles and prove your worth as an employee.

5. Meet (or Beat!) Your Deadlines

When you get an assignment from your manager, enthusiastically commit to the deadline (this means “I’m on it!” not, “I’ll see what I can do”). Then, aim to deliver it at least a day early.
This gives your boss time to flex and adapt in case something comes up—and it always does—rather than sweating it out for you to deliver something at the very last minute.

6. Offer Solutions, Not Problems

Your job is not to constantly point out problems that arise, but rather, to proactively start thinking about what solutions could help address those challenges.
For example, you should never walk into your boss’ office to complain about how the shipping department can never get anything out on time. Instead, you should first go to the shipping department, have a conversation about what can be done to improve the situation, and see what you can do to help.
Then, when you do go to your boss about it, you’ll be able to let him or her know the action you’ve already taken to start solving the problem.

7. Do What You Say; Say What You Do

If you say you’ll finish a report by Friday for the team update, but you come in Friday morning unprepared because “other things came up,”people will probably complain to your manager.
And if that’s not enough, if your manager was counting on that report to take the next steps on a project or to present to the executive team, it will inconvenience (read: annoy) him or her even further.
People who are accountable for their actions and follow up on their commitments are dream employees—and their bosses know they can count on them, no matter what.

Employees who work to make their managers successful are golden. Your manager has a tough job—the stress and pressure of which may not be abundantly evident to you. So, help your manager out and develop your own skills at the same time, by doing everything you can to make your boss’ job easier. When you’re a manager, you’ll appreciate the same.

Friday, August 15, 2014

How the Pope Is Transforming the Vatican Now - Fortune Magazine

http://time.com/3111088/pope-francis/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+timeblogs%2Fcurious_capitalist+%28TIME%3A+Business%29

Aug. 14, 2014
    
Pope Francis

By Shawn Tully
The new pope wanted to talk about money. That was the message that went out to a group of seven prominent financiers—major Catholics all—from around the world in the summer of 2013. Barely five months after the shocking resignation of Pope Benedict XVI, Pope Francis had summoned them to assemble at the seat of holy power, the Vatican. They knew their general assignment: to create a plan to restructure the Vatican’s scandal-plagued finances. And like Catholics everywhere, they knew that Francis had already signaled that he was a new kind of pontiff, a “people’s pope” who championed charity and tolerance over dogma. Still, they didn’t know what to expect when they arrived at the Vatican for a meeting with the pope on the first Saturday in August. How interested was he in finance, really? And how serious was he about changing business as usual inside the Vatican?
A major hint came from a change in tradition upon their arrival: The visitors didn’t report to the Apostolic Palace, the Renaissance showplace where for centuries past popes had received visitors in high style. Instead they entered Vatican City on the other side of the colonnade of St. Peter’s Square and took a 150-yard stroll through the hilly enclave to the new pope’s place of business—Casa Santa Marta, a five-story limestone guesthouse that could be mistaken for a newish hotel. There they were ushered into a nondescript meeting room on the first floor with no paintings or religious ornaments and took their seats around a conference table. The members—including Jean-Baptiste de Franssu, ex-chief of asset-management giant Invesco in Europe; Jochen Messemer, a top executive at ERGO, a large German insurer; and George Yeo, former foreign minister of Singapore—chatted nervously as they waited.

After 15 minutes, Pope Francis entered the room—and got right down to business. Attired in a simple white cassock and plain metal cross, he took his place standing at the head of the table. With little preamble, he began outlining his strategic vision, in an approach described by one participant as “highly managerial.” Speaking in fluent Italian and taking frequent pauses while a translator repeated his words in English, the pope explained to the group that for his spiritual message to be credible, the Vatican’s finances must be credible as well. After centuries of secrecy and intrigue, it was time to open the books to the faithful. Strict rules and protocols must be adopted to end the cycle of scandals that had plagued the Vatican in recent years.