Advantages And Functions Of Clearing House

Advantages And Functions Of Clearing House In addition to the clearing of city and country checks, principally the former, and the settlement of balances, which may be called the primary clearing house functions, there are others not quite so much in general use but which nevertheless are of great importance. Many clearing house associations exercise a close supervision over their members, through the medium of the clearing house system of examination under the direct supervision of a clearing house examiner. The clearing house examiner supplements the work of Federal and State examiners. The National and State officers are limited in their powers of criticism to actual infringements on the law, and before they can take steps to correct such infringements capital has often become impaired and failure is threatened. Most bank failures are due to the gradual acquirement of undesirable assets over a period of years, and if some authority exists with power to make recommendations of a remedial character, with the further power to enforce such recommendations, if necessary, there is little doubt that many bank failures would be averted. The examinations include, besides a verification of the assets and liability of each bank, so far as is possible, an investigation into the workings of every department and are made as thorough as is practicable. After each examination the examiner prepares a detailed report in duplicate, describing the banks loans, bonds, investments, and other assets, mentioning specially all loans, either direct or indirect, to officers, directors, or employees, or to corporations in which they may be interested. The report also contains a description of conditions found in every department. One of these reports is filed in the vaults of the Clearing House, in the custody of the examiner, and the other is handed to the examined banks president for the use of its directors. The individual directors are then notified that the examination has been made and that a copy of the examiners report has been handed to the president for their use. In this way every director is given an opportunity to see the report, and the examiner, in every instance, insists upon receiving acknowledgment of the receipt of these notices. The detailed report retained by the examiner is not submitted to the Clearing House committee, under whose direct supervision he operates, unless the discovery of unusual conditions makes it necessary. A special report in brief form is prepared in every case and read to the Clearing House committee at meetings called for that purpose. The report is made in letter form, and describes in general terms the character of the examined banks assets, points out all loans, direct or indirect, to officers, directors, or employees, or to corporations in which they may have an interest. It further describes all excessive and important loans, calls attention to any unwarranted conditions, gross irregularities, or dangerous tendencies, should any such exist, and expresses, in a general way, the examiners opinion of each bank as he finds it. The examiners enter into an agreement not to enter the employ of any member or non-member of the association, or any other bank, banking institution, firm, or individual engaged in the business of banking, within a radius of miles, for a period of years after the expiration of services with the association. The Clearing House examiner is a very valuable man to the small bank or new institution. The officers of these banks very often do not have the facilities or experience necessary to pass upon paper which is submitted to them for sale or discount. They are apt to become loaded up with credits which have been rejected by their larger or better informed neighbors and must pay dearly for their lack of knowledge. The bank examiner is in a position to make valuable suggestions which often save failures and liquidations. Towns which are too small to be able to afford the services of a skilled examiner can combine with two or more other cities and thus secure a proper official. A great many associations have rules for the conduct of their members. These rules provide for uniform exchange charges on out-of-town checks, uniform maximum interest rates on balances, regulations regarding hours for business, advertising, etc. Most associations publish a weekly statement of condition of the members, and cooperate in every possible way for the general good of the members of the association and the community in which it is located. There are not enough clearing house associations in America today. Nearly every town and city having three or more banks could probably form one to advantage and the Clearing House Section of the American Bankers Association will be glad to furnish all information desired. Clearing House Services Benefits Some of the key drivers that result in the IATA Clearing House benefits are: 1. Netting Through multi-lateral, multi-currency netting of Members Associates receivables a netting ratio of more than 80% is achieved. This translates into an 80% reduction in the credit risk exposure of Members Associates, significant acceleration in collection of outstanding credit and reduction in the foreign exchange risk exposure. 2. Simplification one window operation Through a single net receipt from the Clearing House or payment to the Clearing House each month, Members Associates settle their accounts with all other participants. Cross-remittances, follow-up for credit collection and delays are eliminated. Members Associates receive full accounting and reconciliation statements. Clearing House provides the robust, cost-effective infrastructure for Members Associates to settle accounts with other airlines, travel partners and service providers to enable Members Associates to focus on providing integrated, quality services to their customers. 3. Clearance calendar The calendar of ICH clearances is notified to Members Associates up to one year in advance. Members Associates can plan their billing, receivables and cash management activities in advance. Clearing House notifies each Member Associate of its net accounts with all other participants and the net payable or receivable amount, in advance. Settlement is assured on the designated ICH dates. Members Associates are able to plan and optimize the usage of their financial resources. 4. Currency Exchange and Bank Transfers Multi-currency transactions are translated into the clearance currencies at the Clearing House Rates of Exchange. After netting, settlement of the net balance is effected by/to the Members Associates concerned through a single payment in the settlement. Members Associates avoid commissions/brokerage on multiple foreign exchange transactions, international bank transfer charges and float losses. 5. Protection on Devaluation of a Debtors Currency For miscellaneous transactions, use of the Clearing House ensures that in the event of a devaluation of a debtors currency the creditor is wholly protected, and any loss of exchange falls on the debtor. The debtors loss will be restricted, however, to the exchange loss on the balance after offset of miscellaneous charges. 6. Credit Control Although membership of the Clearing House implies no credit status whatsoever, Clearing House monitors the payment history of each participant. Where necessary, security deposits are taken to cover future transactions. In the event of a default in settlement by a member or associate of the Clearing House, all other members associates are notified concurrently and at an early date. To ensure continued wide interlining capabilities and efficient customer service, Members Associates tend to pay their Clearing House balance on priority over other bilateral arrangements. The enhanced security and efficiency of settling transactions through the Clearing House enables Members Associates to generate more credit than would otherwise be available to them thereby substantially improving their working capital management. 7. Exchange Controls A number of airlines are subject to stringent exchange control regulations and central bank approval requirements in their country of residence on remittance of hard currency funds. This leads to delays in settlement to interline and travel partners or service providers, resulting in business constraints. Membership of Clearing House greatly reduces the requirements and delays: by reducing the need to only one exchange control application to settle a net balance instead of numerous applications for greater individual sums and on account of the established reputation of the IATA Clearing House for settlement of interline dues. In certain instances, need for exchange control approval is entirely eliminated due to consistent net settlement balances in that Members favor. 8. Inter-clearance with ACH The IATA Clearing House has an inter-clearance agreement with the Airlines Clearing House (ACH) of the US, enabling Members Associates of both clearing houses to settle their respective claims by and against each other. For more than 300 Members Associates of the IATA Clearing House (ICH) and just under 100 members of the ACH, this means that each participant can settle with more than 400 other parties through these Services. http://riskinstitute.ch/135470.htm Institutional Differences Existing derivatives exchanges, SROs and governmental regulatory agencies all have rules intended to achieve the three basic regulatory goals. There are many similarities in the rules of different exchanges, regulatory organizations and agencies across different jurisdictions, but there are also many differences. These differences reflect, in part, differences in the way the markets are organized and operated. One such difference, for example, concerns the relationship between the exchange for equity derivatives and the equity exchange. In some instances, the two exchanges are part of the same organization. In others, the equity derivatives exchange and the equity exchange are entirely separate entities.. Another difference concerns the structure of the clearing house. In some cases, the clearing house is part of the exchange. In others, it is not. And some clearing houses clear for only one exchange while some provide clearing services for more than one exchange. Another fundamental institutional difference lies in the trading method itself. Most derivatives exchanges use open-outcry, but some use electronic trading systems. These differences appear to be so fundamental that there is a natural inclination to believe that a successful market or successful regulation of a market can only be achieved if the proper choice is made in each of these areas. In other words, the differences in organization and trading method appear to be so profound that some believe that a market or its regulators can only be successful if the best organization and trading method is used. Let us look at each of these issues more carefully. Exchange Structure This issue is of particular interest with respect to equity derivatives. There is widespread concern that the existence of a derivatives markets for which equities are the underlying product can lead to increased volatility in the equities market and that this volatility can be function of whether the derivatives exchange is a part of the equities exchange. In this regard , it should be remembered that the fundamental reason for the existence of a derivatives market is price volatility in the underlying market. In a well-functioning derivatives market, price volatility will be the result of changes in the demand for, or supply of, the underlying product. If both markets are working properly, prices in the two markets will move together and the futures and cash prices will converge as the futures contract expires. Large changes in supply or demand conditions, therefore, should cause volatility in both markets regardless of whether the derivatives exchange is part of the exchange on which the underlying instrument is traded. A poorly designed derivatives contract can cause volatility to be higher than it would otherwise be regardless of structural considerations. The key, therefore, to preventing derivatives from increasing volatility lies primarily in ensuring proper contract design and in having adequate protections against manipulati on rather than in separating or combining the derivatives and cash markets. Clearing House Structure There are two issues here. One is whether the clearing house should be a part of the exchange or a separate entity. This distinction itself is not very important. The critical issue is that the clearing house have the authority and commitment to impose and enforce prudential margining and collection standards for all market participants. Experience has shown that both types of structure can function very well. Moreover, it has not revealed that one type is more likely to function better than another. The other structural issue concerns whether a separate clearing house for each exchange (regardless of whether the clearing house is part of the exchange) or a common clearing house for the derivatives and equity exchanges is more likely to be efficient and to promote financial integrity. There are advantages to both arrangements. A common clearing house reduces costs to its members, makes more information about financial risk readily available, and makes it easier for regulators to monitor the entire portfolio of a member. A possible advantage of separate clearing houses (or disadvantage of common clearing) is that the consequences of inadequate margining or other mistakes would have more widespread consequences. There may also be operational disadvantages to common clearing. Margining arrangements for equity and derivatives markets are different as are requirements for marking to market. There is no generally accepted view as to which arrangement is better at ensuring financial int egrity, but there would seem to be little reason for regulators to require common clearing, although they certainly might permit it. The more critical issue is whether the appropriate rules for establishing financial integrity are in place and the proper procedures for monitoring and enforcing compliance with these rules are regularly carried out. Trading Method Most existing derivatives exchanges use the open outcry method in which a trade is executed only when the parties to the trade personally agree to its terms. A few use electronic or screen-based systems in which trades are executed by a computer based upon orders entered by the parties. This difference in trading methods raises the question of whether one system is superior with respect to achieving market and financial integrity and to providing fair treatment of customers. From a regulatory perspective, however, the difference between the two types of trading systems may not be as great as some believe. All modern exchanges, whether screen-based or open outcry, rely on electronics to a large and growing extent. An open outcry system can use electronic technology for such purposes as transmitting orders, recording trades, constructing audit trails, and monitoring compliance. This means that todays open outcry exchanges are able to construct and maintain much more accurate records than was the case previously. As a result, both SROs and governmental regulators can be more effective in monitoring trading activity and in detecting and deterring rule violations. The question of the type of trading system to use is fundamentally a business or economic issue rather than a regulatory issue. Both open outcry and electronic systems can achieve acceptable levels of integrity and fairness. Neither type of system is foolproof. No matter what type of trading method is used, problems can and will occur on occasion. Some people will violate the rules. Unforeseen circumstances will arise. When this happens SROs and other regulators must be prepared to discipline those who violate the rules and to modify systems and rules if necessary. From a regulatory perspective, the most important issue is not the type of trading system. It is to ensure that the exchange has rules which are appropriate for the trading technology used and systems for monitoring and enforcing compliance with the rules. In todays world these systems will necessarily rely heavily upon electronic technology even though the trading system itself may well rely upon open outcry.

Ethical Issues Essay

Researchers found that 10 percent of employees at all levels report feeling pressured to compromise ethical standards in the workplace (Managing Business Ethics by Trevino and Nelson 2007). Ethical issues are faced by every industry in the business world as well as communities, public and private organizations and individuals. Leadership, internal practices, and training may impact the proper implementation of business ethics. Halliburton is one of the many large corporations involved in unethical business practices. This paper examines ethical issues faced by public sector employees and employees of private sector firms that conduct business with and for government agencies. The paper discusses Halliburton, a U. S. defense contractor (former vice president Dick Cheney’s old firm), ethical issues and the impact on stakeholders involved. The goal is to highlight the ethical issues and make recommendations for how prospective employees and managers can handle similar situations. Background Since 2001, energy services company Halliburton and its former subsidiary Kellogg Brown & Root (KBR) have performed unspecified services to the United States military in Iraq, Kuwait, and several other countries under a no-bid, long-term global logistics contract, (LOGCAP). In February 2003, Halliburton received a five-year extension, $7 billion no-bid contract for services in Iraq. During the course of awarding and executing these contracts at least two people made the decision to become whistle blowers, a government employee, and a Halliburton/KBR procurement employee. The government employee disclosed that Halliburton/KBR was involved in closed-door meetings with the Army Corps of Engineers that resulted in the no-bid, multi-year, billion dollar contract awarded exclusively to Halliburton/KBR (Morning Edition October 29, 2004). The procurement employee disclosed the specific activities within Halliburton/KBR that resulted in overcharging the government and taxpayers for goods and services while simultaneously eliminating competition among potential vendors. Some allegations include soliciting higher priced products and services because the government pays a fee based on the total of goods/services procured and manipulating purchases orders to maintain a maximum of $2,500 to avoid the bidding process between prospective vendors. Specifically, Halliburton’s subsidiary Kellogg, Brown & Root hired a Kuwaiti company, Altanmia, to supply fuel at about twice the going rate, then added a markup, for an overcharge of at least $61 million, according to a December 2003 Pentagon audit. The only problem is that $61 million is taxpayer money. Perception of Unethical Practices of Dick Cheney From the beginning many American citizens raised an eyebrow towards the decision to have Halliburton as a U. S defense contractor. This public outrage stemmed from the former vice president’s former employment as the chief executive officer (CEO) of Halliburton from 1995 through August 2000. KBR, the company’s former subsidiary has been the main government contractor working to restore Iraq’s oil industry that was awarded without competitive bidding in 2001. According to Cheney’s 2001 financial disclosure report, the vice president’s Halliburton benefits included three batches of stock options comprising 433,333 shares. He also has a 401(k) retirement account valued at between $1,001 and $15,000 dollars. His deferred compensation account was valued at between $500,000 and $1 million, and generated income of $50,000 to $100,000. Halliburton has contracts worth more than $1. 7 billion for its work in Iraq, and it could make hundreds of millions more from a no-bid contract. During Cheney’s tenure as the defense secretary, the Pentagon chose Halliburton’s subsidiary KBR to study the cost effectiveness of outsourcing some military operations to private contractors. Based on the results of the study, the Pentagon hired KBR to implement an outsourcing plan (Washington Post Sep 26, 2003). Many companies like Bechtel, Exxon, Blackwater and Halliburton have profited from the Iraq war. It is no secret that war creates wealth for those companies canny enough to exploit it, and not be killed by it. Is Dick Cheney one of these? After his departure from office former vice president Cheney will be free to profit in whatever way he feels. The ethical question is, however, has he ever really left it? And by not leaving it, was he in ethical violation of his oath of office, at the very least? Stakeholders The stakeholders in this situation are the client, which is the U. S. government and American taxpayers who are the investors or funders of the government; the vendors, who through the bidding process maintain a competitive and profitable business environment; and employees who make sure that their employers receive the best value for the services and products they procure. Ethical dilemmas The first ethical dilemmas is if employees should bring wrongdoing to the surface and if so, how? Will the decision violate the privacy of vendors or other employees? Is it legal to disclose certain activities related to defense contracts? Secondary ethical issues relate directly to the stakeholders. Is the U. S. government unfairly awarding contracts? Is that awarding process facilitating a culture of overcharging, which is absorbed by U. S. taxpayers? Are vendors intentionally overcharging Halliburton/KBR? Are Halliburton/KBR’s procurement practices eliminating competition in the marketplace? Analysis The primary issue in this situation is whistle blowing. â€Å"Whistle blowing means calling attention to wrongdoing that is occurring within an organization. †(Nadler and Schulman 2006) Halliburton is still under investigation by the FBI. Perhaps the negative publicity and the case caused the contract to be divided with Halliburton winning one of the parts in a public bid. The underlying secondary issues include exposing potentially fraudulent business activities, financial irresponsibility, and illegally profiting from public funding. The government employee wrote and spoke to superiors about the activities. The government employee sought legal counsel upon deciding to go public with their disclosure. Finally, both made their testimonies to the proper investigating bodies including the FBI, the U. S. House of Representatives Committees on Government Reform and Energy and Commerce. For their troubles, the government employee and Halliburton/KBR procurement employee were forced into a whistle-blowers protection program. Conclusion In the public sector, whistle blowers are often faced with the dilemma that their choice to disclose can constitute a criminal act. In both cases these employees called attention to suspected activities within their organizations before going outside or public. Employees faced with this dilemma must identify the stakeholders and ethical issues that concern them, and then make calculated decision whether or not to disclose. The facts surrounding whether or not the U. S. government are unfairly awarding contracts will be an ongoing issue. Despite all the measures set forth to regulate the procurement of contracts, greed for money will play a critical factor for the people that have weak ethical character. Whether you are the employee or employer being the standard bearer in ethical situations will earn the respect of others as well as keeping you out of big trouble. References Analysis: FBI investigates whether Pentagon officials committed fraud in their handling of a no-bid contract to a subsidiary of Halliburton before the Iraq War. (10:00-11:00 AM)(Broadcast transcript). (Oct 29, 2004). Morning Edition, p. NA. Retrieved February 08, 2009, from General OneFile via Gale. Donahue, J. (Nov-Dec 2005). Treading on the taxpayer. Multinational Monitor, 26, 11-12.p. 7(2). Retrieved February 08, 2009, from General OneFile via Gale. Nadler, J. & Schulman, M. Whistle Blowing in the Public Sector. Santa Clara University Markkula Center for Applied Ethics. Retrieved February 9, 2008, from http://www. scu. edu/ethics/practicing/f ocusareas/government_ethics/introductio n/whistleblowing. html. Profile: US Army will allow bidding for contract work in Iraq initially given to Halliburton. (10:00-11:00 AM)(Broadcast transcript). (Sept 8, 2004). Morning Edition, p. NA. Retrieved February 08, 2009, from General OneFile via Gale.

If You Read Nothing Else Today, Read This Report on Cool Persuasive Essay Topics

If You Read Nothing Else Today, Read This Report on Cool Persuasive Essay Topics Immigration ought to be limited. Freedom of choice is fantastic. So you don't actually need to come across a topic! Still, you must make your topic more specific. The War Against Cool Persuasive Essay Topics On the opposite side, acquiring a list of good persuasive essay topics is insufficient. Still, figuring out the ideal topic for your essay isn't your only concern for a student. There are several persuasive essay topics to pick from to finish your high school or college assignment. There are a lot of intriguing topics that could be become a persuasive essay if you take the opportunity to consider about doing it. Application essays about challenges reveal how you respond to difficulty to individuals who are really interested in how you are going to deal with the subsequent four years all on your own. After you have topics to pick from, it is essential that you choose one which you can write about comfortably. A few of the topics also fall into other categories and we've posed the topics as questions in order that they are easily adapted into statements to fit your own viewpoint. Take notes concerning all prospective topics you may consider. The 5-Minute Rule for Cool Persuasive Essay Topics When you're permitted to write about whatever you want, never rely on a person's thoughts about this issue you like as a pivotal criterion for your choice. Finding the subject of your interest can help you work harder on your project and show your style in the simplest way possible. There are a couple of methods to choose a topic. The very first thing you must realize searching for an ideal topic is that your opinion is the thing that matters the most. Obviously, giving a fantastic persuasive speech requires more than simply selecting a great topic. The main aim of brainstorming is to generate an assortment of special ideas everybody can utilize. Each time you would like to make sure your persuasive speech success, you ought to go far past the topic and words you have prepared. Quite simply, you've got to persuade your strong idea is more legitimate than all other associated thoughts. The Lost Secret of Cool Persuasive Essay Topics School tests aren't effective. Students lead busy lives and frequently forget about a coming deadline. They should be allowed to pray in school. They are very similar to find a bit nicer. Cool Persuasive Essay Topics Help! Though people believe education is a correct and will make society, overall, a better place for everybody, others feel there's no authentic method to provide a free college education as colleges would still must be funded (likely through tax dollars). The school day ought to be shorter. If so, it means you have college on the specific point you didn't consider significant before. It isn't possible to college one of superior quality at no cost, and college an individual can promise you a writers for if you get it. Now you can purchase genuine college essay online, one that is going to fit your financial plan and get your work done also. You are likely to love our work. If for cannot produce an essay for quite a while and the paper should college done once possible, follow the trodden road and select the criminal law. You should have your reasons, and our primary concern is that you wind up getting an excellent grade. School should happen in the evenings. Colleges are not searching for perfect men and women. All students need to have a year studying abroad. Parents should speak to kids about drugs at a youthful age. Cool Persuasive Essay Topics at a Glance Persuasive you still essay to pick the very best custom hundreds of services, try to remember that Pro-Papers writers plenty of advantages. Expert can pick a number of free to speak to the object of wonderful resource. You should make sure you've picked among the best ideas for persuasive speech and that you've used the ideal words to demonstrate your opinion. Our topics are good since they won't leave listeners indifferent. While it could be hard to select from such a number of persuasive speech topics, think of which of the above you've got the most knowledge of and can argue your opinion on. Well, first, you are going to need to find good persuasive speech topics. Below you'll find a helpful text with valuable suggestions about how to compose a cool character analysis essay. When you must know how to begin an essay, you must always start out with an intriguing hook that suits the subject of your paper. Naturally, it's the topics you may have a tiny laugh about! There are lots of interesting persuasive speech topics that you are able to use in your next academic assignment, but you ought to make sure your essay is related to the subject you're studying. The New Angle On Cool Persuasive Essay Topics Just Released All persuasive essays are like argumentative essays. Regardless of what genre you would like Business Studies, Microeconomics, Business Management and Financial Accounting, we're here to serve your requirements. Writing is a present that comes naturally. Doing this, you'll certainly find your ideal essay title easily and faster.

The Battle Of Yorktown A Great Indication - 1664 Words

History is a great indication of how we can improve situations in the present for an even successful future. Learning from what has happened in the past can provide our current United States of America (US) Army with strategies that can enhance our ability to be successful during military mission battles. The Battle of Yorktown provides a great example of how working with other nations and being their allies can help us to overcome issues within our own units, batteries, and higher echelon. With further analysis of the Battle of Yorktown, it is also apparent that the strategic usage of artillery played a major role in its success and that its utilization was more than just about operating cannons and howitzers. The Battle of Yorktown†¦show more content†¦In addition, their strategy and usage of artillery played a major role in their ability to dominate in both their infantry and fleets throughout the battle. The Battle of Yorktown was one of the most important and was t he final battle for the American Revolutionary War (Greene, 2009). The relationship between the allies, French and the Americans, was the primary reason for their success in the Battle of Yorktown and ultimately in the American Revolutionary War. Under the command of General George Washington, the Americans provided initial force upon their attack against the British that eventually wiped them out. In addition, the French were able to provide reinforcement for their allies and respond to their actions accordingly for a successful battle. This strategy provided by the allies in addition to the poor response by the General Cornwallis of the British contributed to its successful outcome, as we understand it today. The ally between the Americans and the French was a strategy that proved to be successful during the Battle of Yorktown. However, because the French did not have conflict with either the Americans or the British, their involvement with this battle was contingent on two circumstances. First, the Americans must have the capability to defend and protect the French’s interest from their enemies. Second, the Americans would provide the allowance for the French