Wednesday, July 31, 2019

Online enrollment system Essay

An Online Enrollment System was proposed for the enhancement of the current enrollment system of Bulacan Polytechnic College (BPC). The study aimed at creating a system that would provide another option for enrolling and that would compensate for the school’s lack of manpower and time-consuming system. The system contains stores information such as class schedules, pre-requisites, subject and other data needed in the system. The proposed system caters to old, freshmen, transferees and shiftees with the following services: subject evaluation, add and update profile. The system lessens the enrollment time, speeds up file management, and minimizes inaccuracies and errors. Thesis Project Description The study aimed at creating a system that would provide another option for enrolling and that would compensate for the school’s lack of manpower and time – consuming system. The study sought to develop an Online Enrollment System that would enables the students, faculty, and administrators of the institution to gain access to the proposed system via client computer and to synthesize the different function and solutions needed for the current enrollment system with the proposed system by constantly evaluating and revising the prototype to meet the requirements of the institution. Background of the Project The Bulacan Polytechnic College (BPC) was originally known as the Bulacan Public Community College (BPCC). It was established upon the approval of the Secretary of the Education on June 8, 1971 and started operations in 1972. The approval came under the leadership of Governor Ignacio (Nacing) Santiago and the principal of Marcelo H. Del Pilar High School (MHPHS) Miss. Juana E. Ladia, who took the roles as the first school administrator. On September 29, 1997 by virtue of the Sangguniang Panlalawigan Resolution Number 97 – 550, the Provincial Government of Bulacan changed the name of BPCC to the Bulacan Polytechnic College (BPC) and the same time approved its Charter to provide vocational and technical instruction, and entrepreneurship education. Enrollment continued to increase. The quality of instruction improved dramatically, which can be attributed to the enhanced capabilities of the instructors, improved facilities and library holdings, and modified curriculum. For an institution that has the resolute desire to promote quality education, the never – ending search for excellence becomes the primary aim. The thrust of the institution is to edify and empower the learners with the vocational and technical skills to make them economically self – sufficient and creatively responsive to the needs in a true environment they live. Current system Old and new students need to fill up application forms like pre-enrollment Forms, and will input validated ID and registration forms to the department of enrollment officers. The current enrollment system needs that information to process the enrollment of the students. Then, the system will generate validated ID number and registration forms and will also generate the official enrollment form to the enrollees. On the administrator side, the current system will generate student master list of a specific schedule to the faculty assigned. Comparison of the Approach to other Approaches A Description of the Application or Software Component A Brief Description of the Technology Choices Work Plan Assumption Risk Glossary Bibliography

Tuesday, July 30, 2019

Technology and learning

The modernization of the times led to a startling reality that the world will be crippled without the aid of technology. Technology is becoming more and more of a necessity these days in all aspects of daily living and as such, educational institutions have incorporated this subject in their curriculum because the authorities acknowledged the fact that technology can help attain student objectives and in order to achieve the maximum impact, it must form part of the school's education curriculum (Neir Tech, 2002).English is a subject that would be greatly enhanced by technology. English is a diversified field in itself that requires self-expression, vocabulary, reading, creativity and innovativeness of the mind. Technology can greatly enhance the students' learning process when it comes to English because the information that they need is just a few clicks away. The world wide web provides a wide array of information and lectures about all English subjects. For example, a student havi ng difficulty in pronunciation and vocabulary can access the Internet to learn this kind of skill.Students who have been assigned difficult topics for assignment can search the net for all the information that he needs. The teachers can use the technology as aid in teaching not only English but other subjects as well by using highly-powered technology driven lectures that would work best in capturing students' attention. There are some schools that use technology to breach the barriers of communication. Video conferencing is another technological development that greatly helps educational institutions teach students not only English but other subjects as well.ReferencesNeir Tech. 2002.   Strategies for Improving Academic Achievement and Teacher Effectiveness. Retrieved July 3, 2009, from http://www.neirtec.org/products/techbriefs/1.htm

Monday, July 29, 2019

A Study On Television Studies Media Essay

A Study On Television Studies Media Essay Television is that fantastic media phenomenon that provides us with pursuit at the click of the remote after a long day at the office; the cultural artefact that we can all relate to in one way or another. A large majority of us have our ‘favourite’, ‘must-see’ programmes that we religiously tune into; others simply choose to flick through the channels in hope of finding something ‘worthy’ of viewing; while many consciously choose not to watch certain programmes as they dislike them- chances being that their friends and colleagues will be talking about that programme the next day, making it almost impossible to be excluded from the discourses of social ideologies and construction that television presents. Each individual produces diverse reactions to television footage; whilst considering the representation of society through television media and flow, only we can conclude what we make of said footage, providing our own encoding of the text, thus possibly coming to a different supposition than another viewer of the text. Meanings are appropriated to the audience in different ways- meanings which are actively produced by the text- and whether we choose to agree with proposed meanings directly affects our own identities and representations. Firstly I am going to consider how far television is aiming to re-produce human identity and to what extent output creates and reinforces ideologies of UK culture. I will discover how genres of programmes can have a diverse impact on the ways in which we see representation in the UK. Using Baudrillard I will revise how ‘reality’ television can persuade us to conform to a new identity and representation. I will uncover how representations are obtained, and how these might be understood by the audiences. I wish to discover how constructed ideologies have forced us to accept specific cultural norms and values, and how television might reinforce this theory. I will also exa mine how, through the use of language and signs, media representations are understood in UK culture enabling me to gain a broader perspective on how such issues are reflected and how they may influence UK identity today. Using the theories of Hall and Saussure, I will discover how the use of a common understanding of representations enables us to construct identities today. Finally, I will look at how social class and sexuality are portrayed in television; my reason for this is that not are these matters an extremely apparent dynamic within television output, but it will enable me to correspond to Marxist theory, which I believe hold valid views to the links of power, social class and representation, allowing me to summarise how television output reflects representation. . When considering how evocative television is in the representation of the UK, many points have to be measured. Firstly we have to deliberate what the term representation essentially means. Marsen (2006:12) stat es: ‘A representation is a constructed pattern or design that describes or stands for something else†¦A representation could have a likeness with its object or it could be abstract. Language is to a large extent representational because it creates the object that it describes through words.’

Human Resources- Relationships in the workplace Research Paper

Human Resources- Relationships in the workplace - Research Paper Example Companies have been attempting to establish clear, well-understood policies to minimize the potential for danger – both for the employees and the organization. However the role of the HR in an organization remains controversial as far as dealing with workplace dating and relationships is concerned. Gautier has explored the reasons for workplace romance and found that theories of attraction play a vital role. Social psychology also points out a strong link between proximity, familiarity and attraction. Because of close and frequent interpersonal interaction they are prone to develop relationships. People with similar beliefs, attitudes, education and background are also more likely to be attracted to each other. They have similar traits and goals; share each other’s excitement and frustrations, and celebrations (Loftus, 1995). At the same time, organizational attitude, culture and beliefs play a role in how the companies conceptualize, tolerate and manage workplace romance. The role of HR in workplace relationships is debatable. When Wal-Mart terminated the services of two of its workers who were dating, it was found that the supervisor used an out-of-date policy manual to justify their termination (Losey, 1993). A survey revealed that more than 70 percent organizations permit and accept workplace dating as most were of the opinion that the organization has no right to interfere in the dating between coworkers (Losey, 1993). However, when dating involves an employee dating a boss, or the upper management or the manager dating a subordinate, it has been found to be unacceptable (Gautier, 2007). Only if a supervisor dates a subordinate, can the organizations interfere and this has become important because of some well-known sexual harassment court battles (Jenner, 1993). There have been instances when an employee had voluntary--but not

Sunday, July 28, 2019

Groupism in Design Essay Example | Topics and Well Written Essays - 1000 words

Groupism in Design - Essay Example A group is needed to complement the weakness and bring out the best in every individual. In business, groupism serves as an audience to the prospected market of the product. However, controversies regarding groupism are discussed and debate everywhere. Some designers claimed that groupism would box their ideas into the norms of the group and hinders their creativity. Some studies also pointed out that groupism in universities creates misunderstandings and rivalry to the outside group of students. In family, groupism could result in degree of animosity with those who are outside the family. Designers are people who have extreme ideas. They are not afraid to take risks and be different. They are individuals with strong personality. Introducing them into a group will be of great challenge; for them, it seems like being enclosed into a cage or box. For them, their ideas will be controlled and will not be heard according to their wants and preferences. As stated earlier, the group is needed to minimize the weaknesses and brings out the best in every individual, but how come that even the strengths will be suppressed This risk could be reduced through organization's proper recruitment and management. Working in a group required lots of effort and team building. The management must evaluate the designer's skills to know the areas where they excel the most and the areas where development is needed. Working as a group is as simple as math. Everyone has their highest positive number and lowest negative number. These will be summed up and be divided according to the numbers of m ember. The average is the rate of the group's effectiveness. On the other hand, the highest positive number could be recognized with the help of proper management. Understanding uniqueness of every individual could give the management an insight on what hinders productivity, what can be changed and developed. Groupism in design is just like a basketball team playing. Everyone wants to excel, to give their best and help the team win. But even with the best players, playing without goal and cooperation will not help win the game. It will produce confusion and misunderstandings. The strengths of every player should be used and the weakness of each should be complemented by other players. The coach could help the team by proper allocation of players and setting of instructions. According to the survey made in Japanese schools, 61% of the 280 respondents believed that the main reason for a society to have preschool is to learn on how to be a member of group. The need to belong is part of the human instinct making groupism as a normal sight in schools and universities. As an urban word, groupism is defined as losing someone's identity after being part of the group. Stereotypes were created due to the fact that they are afraid to be different. They tend to ignore their own ideas and openness was not extended to every member because they are afraid to be rejected. Peers struggle to belong in a group and be accepted; consequently resulting in generation of low confidence. The leader of the group is followed and everyone goes with the flow. Motivation comes from outside sources. On the other ha

Saturday, July 27, 2019

Introduction to business Essay Example | Topics and Well Written Essays - 500 words

Introduction to business - Essay Example The US retail industry is about $4.13 trillion. Discussion Competition in the Home Improvement Market – both Lowe’s and Home Depot are in effect after the same segment of customers. These are the people who undertake renovations, repairs or major upgrades on their homes. Three likely sources of revenue growth for a retail chain are the following: opening new stores, increase sales revenue per store and expand item offerings. The current recession has ruled out implementing any of these three options and so it is quite understandable that the competition gets tougher with the same set and number of customers. The difficult financial conditions has likewise slowed the demand for items being offered at both stores although they price their products practically the same. More importantly, demand for D-I-Y (do it yourself) home products are waning due to the recession. People are concerned with the values of their home during difficult times and will naturally tend to postpo ne discretionary spending (Quinn, 2009, p. 1). Home renovations, repairs and expansion are generally optional expenses and can be postponed when necessary.

Friday, July 26, 2019

Politics and Human Rights Assignment Example | Topics and Well Written Essays - 1500 words

Politics and Human Rights - Assignment Example Such implications include factors disruption in the way of life of individuals and the societies from which such individuals come. For instance, the various kinds of drought, which are associated with this form of climate change, caused the disintegration of the civilization process in north Mesopotamia during the third millennium (National Research Council, 2002, p6). With the rate at which climate change is taking place, these is more need to worry about tomorrow if the society is to avoid further consequences of the problem (Cities Alliance, 2009, p 1). According to Paul Gilding (2011, p24), , the possibilities of the temperatures rising and falling in the coming centuries are inevitable. In his book â€Å"The great disruption: How the climate crisis will transform the global economy† Gilding indicates that in the midcentury, temperatures, at the global level, will temporarily rise above more than one degree centigrade. He additionally explains that, the temperature will further drop below plus one degree centigrade sometime, close to the end of this century. According to the author, the sea level will consequently rise by an approximate of half a meter and continues rising all through the years that follow the century. Noteworthy is the fact that, Significant climatic change will be noticed with every century that possess by. The need for security in the ever changing society is obvious and security in the form of water and food even more important. The rate at which the world population is increasing is however so alarming. This is due to the possible insecurities that such increase in populations comes with. The ever-changing climatic conditions and the global warming factor also makes no matter easy in the already insecure world. The interconnection between crises in the aspects of food, water, and energy and the climatic condition, in the quickly warming

Thursday, July 25, 2019

Managment Essay Example | Topics and Well Written Essays - 500 words - 2

Managment - Essay Example ow they can develop different strengths financially, continue to have their footprint in the economy, powerful CEO leadership that is innovative that continues to build a powerful market with consumers, shareholders, and their own employees. There are some organizational challenges that do come along with ensuring that Candlelight is competitive, builds employee morale, continues to grow, with effective leadership and marketing strategies, and other changes that can be will allow them to have an improved public image. In the past, talent acquisition, engagement, and retention has been implemented in a decentralized and unpredictable method from the divisions throughout their business, and it has been defined as frail and inadequately controlled. Management has come together to strategize the three talents they wish to carry down to each and every employee that works within the company by offering their first method they defined as â€Å"Develop Talent† as a requirement. The company’s CEO and associates have met more often to agree that applying an array of development activities to every person individually instead of to an entire team of workers, and supervisors feel that this approach will allow one on one interaction from the managers to their employees. Furthermore, the manager of that department will learn personal and professional needs and opinions of every person, and they both can discuss succession planning, involve other supervisor input if that manager feels he or she needs the assistance, and also ask the employee directly their own goals and what they want as a career at Candlelight. Engaging talent is the second strategy management has agreed upon because they feel that the success of the company starts within beginning with the actual workers, and that if the workers are not recognized, feel they cannot communicate and have open door policies, and address their concerns they will feel hopeless and like a number instead of somebody. Supervisors

Wednesday, July 24, 2019

Business Planning Essay Example | Topics and Well Written Essays - 1500 words

Business Planning - Essay Example The recommendations seek to prevent the encroachment of weaknesses in the business plans. Finally, the report will have a section for personal opinions and lessons learned from the business plans. Importance of a Business Plan Business plans are documentations that facilitate planning. An ideal business plan should cover three crucial business aspects, which are financial, marketplace and business concept. A business plan is important because it clarifies a company’s direction (DeThomas & Derammelaere, 2008). A business plan defines a business and its operations. Additionally, the plan outlines the business’s intention. This means that the plan clarifies the directions and purpose of the business. A business plan also outlines a business’s future direction because businesses adapt and evolve over time. The business plan factors the business’s direction and growth plan (Abrams, 2003). Additionally, the plan highlights strategies that the plan will use in ca se of market change and slow growth trends. A business plan attracts financing by showing the company’s potential to make profits. What a Business Plan Should Cover Differences in business environments provide challenges in the formulation of one business plan for all businesses. An ideal business plan should have a business concept, market and financial strategies (DeThomas & Derammelaere, 2008). Besides these three business sections, the business plan should have other sections that provide a comprehensive business description (Finch, 2013). These sections are business design and development, market strategy, financial information, competition analysis and operations and administration. Description of the Business Plans Bluespa Structure of the Company Bluespa is a family based company owned by Ray and Barbara Brunner. The two also double up as the founders of the company. Bluespa has an idea board that comprises of seven members. Mr. Ray Brunner is an additional member of the board. Additionally, the board will have three outside directors and two representatives chosen by Mr. Brunner and the firm’s major investors (Bplans, 2013). Mr. and Mrs. Brunner have a combined experience of 65 years in the retail industry. The two investors have senior management qualifications, and they held various management positions in their previous employment. The two founded the firm, which has its office in Portland, Oregon. From the first year to the fifth year of operations, the firm seeks to grow its head count from 10 to 65 (Bplans, 2013). The majority of this growth in head count is expected to come from store personnel. The rest of the staff will come from support staff. Products Provided Bluespa deals with body and skin care products that are developed by the company’s contact facilities based in California and France. The company also deals with apparel products produced through outsourcing with a sport-related apparel manufacturer. The productio n of accessories is managed by contract with the manufacturer of sports-related accessories such as totes, bags and socks. The company’s product line includes fitness and skin care apparel. Within the skin care line, the firm offers different products such as eye makeup removers, facial scrubs, cleansing creams, body lotions and masks (Bplans, 2013). Within the fitness apparel line, the firm offers Lycra products such as shorts and tights. New Look, Inc Company

Tuesday, July 23, 2019

Professional Resume and Cover Letter Essay Example | Topics and Well Written Essays - 500 words

Professional Resume and Cover Letter - Essay Example CH2M HLL is a global leader in consulting, design, design-build, operations, and program management where success of turnkey projects is critical part of organizational success. My skills and professional expertise in office management can be judiciously exploited to accelerate the progress of ongoing projects. I strongly believe that role of leaders, managers and the administrators of the organizations have increasingly become more challenging especially when new strategy and policy decisions are introduced in the organizations. As such, I have often undertaken leadership role to ensure effective feedback through participatory approach and helped solve the problems and workplace conflicts. My professional competencies, experience and my desire to acquire more knowledge would help me to become top performer in your company also. My work experience has involved extensive interaction with major clients and public, thereby equipping me with necessary traits of effective verbal communication techniques. I have attaches resume for your kind perusal. My key strength have been my ability to function under limited direction and worked independently using initiative and good judgment. I can assure you that my personal and professional competencies would add value to your organization. I would appreciate an opportunity to discuss the same with you in person and look forward to meeting you. Strong leadership initiatives in performing liaison work for CEO and proven record for excellent office management. Talent for organizing meetings and ensuring effective coordination with different stakeholders for resolving conflicts and promote communication. Highly efficient in managing confidential information and drafting agendas for important meeting and ensuring smooth conduct of the same. Exceptional organizational skills; Leadership initiative in prioritizing

Time and Happiness Essay Example for Free

Time and Happiness Essay Good morning everyone. The topic I have chosen is WHAT IS HAPPINESS. Nowadays, many people think money can buy happiness so that they will work over ten hours to earn more money. They think that if we are rich then, we can do anything such as buy a fat dog, a big house, a grand car or many luxurious things LV bag, DOIR shoe and so on. It cannot be denied that material life is happiness because you can buy the things you want but I think material life can only give me happiness for a short period of time which is external happiness. I think cultural life can give you a long term happiness and this is happiness from heart. There are three simple ways of gaining happiness that I would like to mention about. First of all, good relationship with friends and family are the main points to become happiness. The reason is I can get more love and sense of care from them . When I feel unhappy or I am in a problem, they are the ones who help me solve the problem and give me support all the time. Although they have never tried to make me happy by buying me some expensive things such as i-phone, i-pad, I can never doubt in their support and love for me†¦and that feeling is what makes me happy. Therefore, I love my family and friends and I am very proud to say that I have a very good relationship with them. The next point that I want to focus on is my dream because self-realization can let me gain pursuit of eternal value. I have some small goals as well as some big, I will never let go of these dreams that I have been dreaming of.. In spite of all the difficulties that I will have to face during this phase, I will try my best to enjoy them and tackle them because these steps can let me know and learn how to be mature and independent. Therefore, the pursuit of eternal value will be eternal happiness. The last thing that gives me happiness is helping the needy people. The reason is I can get more meaningful and wonderful time in my busy life. Undeniably, volunteer can not earn money or waste time but I do not think so. When I help the needy people, I will earn more naive and satisfaction in their possession. And I think, for me this is happiness†¦Getting to help others and doing some good deeds To conclude, good relationship of friendship and family, achieving my dream and helping others are the main three points that gives me the exact meaning of happiness. These things not only give me a long term happiness , but also gives me the satisfaction and the feeling of happiness from heart. You see, these are not the material things. I can say the simple cultural life is happiness in my heart because I know ‘Happy is he who is content’. I hope that you can find the right meaning of happiness in Your Life. Thank You!

Monday, July 22, 2019

Theory to practice Essay Example for Free

Theory to practice Essay Big Time Toymaker (BTT) develops, manufactures and distributes toys and board games. An inventor named Chou created a board game called Strat. Chous invention caught the attention of BTT and they sought out to negotiate with Chou. During the time of communication between both Chou and BTT an agreement was made. Both parties agreed to BTT having exclusive negotiating wrights for a 90-day period in exchange for $25,000.00. The agreement stated that no contract exist unless in writing. After a meeting when an oral agreement was made Chou was emailed a document subject Strat deal by a manager of BTT. This email can be considered the contract in writing and Chou assumed so, later to find that BTT was now run by new management who claimed they were uninterested in his invention. The point where parties entered a contract was when the BTT manager sent Chou an email subject â€Å"Strat Deal†. This was the point where a contract was mad because BTT had received an exclusive 90day negotiating period, and distribution agreement wasn’t going to be in effect until received in writing. This email also included terms discussed during the oral agreement and pricing. The agreement of a contract was that it had to be in writing in order to exist. Never did BTT stress the form of writing. An email consist of written words, therefore it was a written agreement. A contract is an agreement with specific terms between two or more people or entities in which there is a promise to do something in return for something else. When the email was sent that was the completion of the exchange and fulfilled contract requirements. The oral agreement that both parties had before the email was sent was establishing objective intent to contract. BTT also sent a fax to Chou a month after the 90day period passed requesting the draft to be sent. This action also showed intent to contract. What weighs in Chous favor in terms of parties objective to contract is the fact that BTT paid him. They exchanged money for exclusive negotiating rights. Chou could  always state an unilateral mistake was made and he misunderstood the terms of an agreement. The fact that both parties communicated by email has no impact on the decision of Chou rightfully still having a contract. Email is just as sufficient as a letter or hand written draft. With a subject email sent saying â€Å"Strat deal†. â€Å"The law governing which contracts must be in writing in order to be enforceable† is also known as the statue of frauds according to University of Phoenix The Legal Environment of Business (2011) . The contract was emailed to Chou before the 90day deadline right after an oral agreement. The statue of frauds supports Chou still having a valid contract. BTT could avoid this contract under mistake. Chou had mistaken the email as the contract agreement. BTT specified that the distribution deal would only be valid if contract was in writing. BTT could argue their meaning of a contract in writing is a contract on paper. This would be a mutual mistake. Both parties had a different understanding of what a contract consist of. Mutual mistake shows both parties at fault instead of only one. If the email does constitute an agreement, the thing that support this a greement is the fact that Chou was within the 90 day period when the email was sent. Although the email said nothing about a contract it was titled Strat Deal. During the verbal agreement Chou was lead to believe that both parties had finally agreed on the terms of the contract. Assuming that Chou did have a contract and BTT decided to breach the contract Chou could obtain remedies for his lost. The proper remedy would be compensatory damages. â€Å"Compensatory damages are an attempt to put the nonbreaching party in the same position she would have been in if the other party had performed as agreed (melvin, 2011, Chapter Chapter 7, Contract Performance:Conditions, Breach, and Remedies).† By the new management breaching the contract Chou misses out on potential profits that could have occurred if the contract had been followed through with. The remedy that would be less favorable would be consequential damages. Assuming from the theory that Chou had nothing in place directly depending on the completion of his contract, there is nothing that would be affected indirectly from the unfulfillment of the contract. Consequential damages compensate foreseeable indirect losses. Work cited Melvin, S. P. (2011). The Legal Environment of Business: A Managerial Approach: Theory to Practice. Retrieved from The University of Phoenix eBook Collection. Melvin, Sean P. (2011). The Legal Environment of Business: A Managerial Approach: Theory to Practice. Retrieved from The University of Phoenix eBook Collection.

Sunday, July 21, 2019

Nurses On A Palliative Care Unit Nursing Essay

Nurses On A Palliative Care Unit Nursing Essay According to Olade (2004), nursing practice using observed phenomena and evidences is an example of education which refers to formalized experiences designed to enlarge the knowledge or skills of nursing educators or practitioners. Through experiences and evidences, the ability to learn actual clinical practice and the orientation in health care protocols and policies in handling patients needs will be achieved. This method is also termed as Evidence-based practice. Evidence-based practice involves a combination of many disciplines, including aspects of multidisciplinary sciences to promote the restoration and maintenance of health in our clients (Davies, 2005). Much literature has been published on this topic in recent years, an evolving subject and concept for specific practices that promote more effective, safer and more efficient ways of caring (Drenkard Cohen, 2004). Maintaining and improving high satisfaction among nurses is an important area to discover (Ebell, 2008). To achieve this, we need a workforce to continually strive for excellence, specifically in caring for clients experiencing loss and bereavement be responsible and flexible enough, have the confidence to face the challenges, and inspire everyone with a shared vision. These are strengths needed by nursing staff to motivate others health care provider to fulfill their potential and achieve goals (Littlefield, 2005). Researches, studies and articles were utilized and analyzed in gathering the necessary information needed. Clinical education, skills and practices are the key concepts used in this paper. Possession of knowledge and competency in performing skills and interventions for clients experiencing grief and bereavement which can be acquired in hands on training are essential in practicing the profession especially in the palliative care unit of NHS hospital is important. As a nursing professional, tangible skills and knowledge in a hospital setting is very important in managing clients and supervising clients (Burns Foley, 2005). Evidences were identified through thorough assessment and research. The challenges discussed below were identified through gathering of recent information in the palliative care unit and data that focuses on this subject. Decisional Teachings and Interventions As a nurse, you need to ensure that the client is treated with dignity, that is, with honor and respect. Dying clients often feel they have lost control over their lives and over life itself. Helping patient die with dignity involves maintaining their humanity, consistent with their values, beliefs, and culture. By introducing available options to the client and significant others, you can restore and support feelings of control. Some choices that clientss family can make are location of care (home, hospital or hospice), time of appointments with health professionals, activity schedule, use of health resources, and times of visit (Matzo and Sherman, 2004). The family of dying patient wants `to be able to manage the events preceding death so she can die peacefully. You can help client to determine her own physical, psychological, and social priorities. Dying people often strive for self fulfillment more than for self preservation, and may need to find meaning in continuing to live whi le suffering. Part of the nurses challenge is to support the clients hope and will (Smeltzer, 2009). Nevertheless, the communication between clients families may not solve all decisional differences, her mother insist on interventions that health care professionals consider inadvisable. In case like this, the initial step is for all parties to focus on having clear goals of care. Hospice Support to facilitate proper bereavement The decision of clients family for home care with hospice support focuses on symptoms control and pain management. Hospice care is always provided by a team of both health professionals and nonprofessionals to ensure a full range of care services. In the case of many patients, palliative care will be the option. This care may be given to meet their physiological need (Matzo, 2005). Ventilatory support for patient can improve her respiratory functioning and relieve symptoms of respiratory distress using mechanical ventilation. While the decisions made by the family wanting their family member to be vented are often reached by consensus with the patient and her family, patient does have an opportunity to designate a family member as a healthcare proxy. Family Teachings and Interventions The reaction of any person to another persons impending death depends on all factors regarding loss and the development of the concept of death. In spite of the individual variations in persons view about the cause of death, spiritual beliefs, availability of support systems, or other factor, responses tend to cluster in the process. To help the family, spiritual support is of great importance in dealing with death. Although not all clients identify with specific religious faith or belief, most have a need for meaning in their lives, particularly as they experience a terminal illness. Establish a communication relationship that shows concern for and commitment to the family and client. There are also communication strategies that let client and her family knows that you are available to talk about death (Smeltzer, 2009). Caring for clients family members is an important intervention in caring for the terminally ill patient. Family-centered interventions and care is focused on the goal, needs and values of the family and patient including their understanding of the treatment options, illness, prognosis and their preferences and expectations for decision making and treatment (Matzo and Sherman, 2004). Specific interventions appropriate for clients family includes providing hope within parameters of individual situations without giving false reassurance. Listening to their expressions regarding their perceptions of the situation is also important to determine how they handle the situation (Zerwekh, 2006). Giving honest answers to their questions and giving correct information will assist the family in dealing with the situation. Encouraging strength, promoting support systems and referring to other resources such as pastoral care, counseling and organized support groups will promote wellness and facilitate long term action (Smeltzer, 2009). Communicating effectively at all levels is a common barrier in the implementation of change among health care in various settings (Kleinman, 2004). As a member of the hospital workforce, a nurse must have the capability to communicate effectively in a non-judgmental way and stimulate other colleagues to think critically. They must also arouse enthusiasm and develop quick thinking and imagination. Moreover, they must also demonstrate resourcefulness and professionalism with infinite patience, understanding, confidence and perseverance are also challenges (Bryar et al, 200). Emotional and Physical Support The skills most relevant to this situation of the family are attentive listening, silence, open and close questioning, clarifying and reflecting feeling. Less helpful to family members are responses that give advice and evaluation, those that interpret and analyze, and those that give unwarranted reassurance. To ensure effective communication, the nurse must make an accurate assessment of what is appropriate for the client. Communication with the family needs to be relevant to their feeling and situation. Whether the clients are angry or depressed affects how the client hears messages and how the nurse interprets the clients statement (Matzo, 2005). In facilitating nursing interventions, the nurse must explore and respect the familys ethnic, cultural, religious and personal values inn their expressions of feelings. Teach the family what to expect in the process, such as certain thought and feelings and that labile emotions, feeling of sadness, anger, guilt, loneliness and fear will lessen or stabilize over time. Knowing what to expect may lessen the intensity of some reactions. Encourage her family to express their thoughts and feelings, not to push the family to move on or enforce their own expectations of inappropriate reactions. Encourage the family to resume normal activities after death on schedule that promotes psychological and physical health. Some family member may also try to return to normal activities too quickly. However, a prolonged delay in return may indicate dysfunctional grieving (Matzo and Sherman, 2004). Physiological and other specific end-life care Support Nursing management of the client experiencing a loss is important. Physiological need must be addressed first including palliative care such as pain management and life support. Weakness and paresis are common symptoms that may affect muscle groups. With the loss of muscle innervations the muscles athrophy, paralysis and progressive fatigue result. Dysphagia, dysathria, fasciculations, hyperreflexia, immobility, respiratory failure and aspiration will likely occur. Emotional effects such as lability, loss of control and depression are also common. The goal of management in end-of-life care for every client is the prevention or alleviation of these symptoms. Hygiene and psychological support is also important factor to consider (Zerwekh, 2006). To gather a complete database that allows accurate analysis and identification of appropriate nursing diagnoses for dying client and their family, the nurse first needs to recognize the states of awareness manifested by the client and the famil y members (Smeltzer, 2009). In case of many patients, the state of awareness shared by the dying person and the family affects the nurse ability to communicate freely with clients and other health care team members and to assist in the grieving process. The nurse must also need to be knowledgeable about the clients death related rituals such as last rites, chanting at the bedside and other rituals. The nurse must also recognize the states of awareness manifested by the client and family members. As nurses, we also need to maintain physiologic and psychological comfort and achieving a peaceful and dignified death, which includes maintaining personal control and accepting declining health status (Matzo and Sherman, 2004). The roles of health care team in care management of dying patient are very important. This implies the vital responsibilities of nurse to do the best and competent care to achieve the peaceful death of the patient. The primary role is to ensure that the patient recei ved the highest possible intervention best suited for her. Nurses must include the family of the patient in the care management, emphasizing nurses role as essential factor to maintain dignity of dying client (Matzo, 2005). Conclusions Knowledge and competitiveness is a product of excellent nursing practice. In caring for patient experiencing grief and bereavement, experience and effective learning are essential processes in actual clinical practice of the nursing profession. To be an effective nurse, one should begin with the individual appraisal of ones self competency and enhanced education based on practices and trainings taken previously during undergraduate and graduate studies, workshops, trainings, continuing education, and preparation for teaching seminars or modules including the conceptual, academic and clinical orientation (Foster, 2007). Competitiveness is largely based on innate potentials and motivations afforded by the familiarity of a learning environment. Accordingly, the primary responsibility of the nurse to the patient is to give him/her the kind of care the patient condition needs regardless of race, creed, color, nationality or status (Salsberg, 2008). Advocate the rights and serve as facilit ator of patients well being (Foster, 2007). In doing so, the patients care shall be based on subjective and objective evidence, needs, the physicians order and the ailment; shall involve the patient and the family. It promotes understanding of the differing values held by people in other cultures (Henderson, 2009). For example, it helps client to understand why other people in one culture may regard with approval of their practices of exposing their elderly members to the harmful elements, while people in other cultures may abhor such practice. The strength this critical thinking and decision making is its recognition of the relationship between personal values and a choice of action and it equates personal values and wrong action, it also recognize limits of personal experience and perspective and it implies that a persons moral judgments are infallible. I believe the richness or intensity of the inculcation of knowledge, positive values and skills of a person is not simply based on the innate capacity of one to evaluate, think, reason and interact in a learning situation. It also equally depends on the quality of the nursing experiences which are either limited by the nurses ability and will to choose or by what is desirable to her which is readily accessible in the environment. Nursing education, concepts and programs for improving the knowledge in health facility should also be provided to maintain theoretical and clinical competence of health setting and facilities. From what I have learned in my own area of practice, the key to successful knowledge development is competent learning and effective communication during the practice to achieve the goal of competency. This will determine the path of being an effective and competent nursing professional. In general, the main role of nurses in palliative care unit is focused on providing effective, quality care. Hence, more advanced and competent means of preparing nurses to supervise and manage their patient is important (Briggs et al., 2004). These challenges must be addressed properly by the implementation of appropriate approach and programs to increase the knowledge and experience. Skill development for nursing educators must constantly be framed within the context of individualized patients. Nursing educators should make themselves aware of every situation happening in the field and make it a motivational means to improve the profession by proper preparation and education (Welk, 2007). Therefore, the need for implementing evidenced-based approach to nursing practice is essential in addressing these issues. As nursing profession enter a new era not knowing what to expect. Yes, patient care is the same everywhere, but they must be comfortable with the environment they are placed in. Adaptation is crucial in the clinical arena (Kleinman (2004). Evidenced-based practice and clinical experience may become a highly useful and effective strategy in clinical practice. The nurse becomes less apprehensive about the clinical environment and becomes more client-focused, therefore increasing the effectiveness of care. This also provides the nurse an opportunity for role modeling as the client and family maintains and develops standards of practice and competent care in a familiar environment (Foster, 2007).

Saturday, July 20, 2019

The Physics of Roller Coasters :: Physics

A roller coaster is a thrill ride found in amusement and theme parks. Their history dates back to the 16th century. It all started in Russia, with long, steep wooden slides covered in ice. The idea then traveled to France. Since the warmer climate melted the ice, waxed slides were created instead, eventually adding wheels to the system. The first roller coaster in which the train was attached to the track was in France in 1817, the Russess a Belleville. The first attempt at a loop-the loop was also made in France in the 1850s. It was called the Centrifuge Railway. However, government officials quickly diminished the idea when the first accident occurred. Inventors since then have continued to capitalize on people’s love of a great thrill, always trying to make them bigger, faster and scarier! â€Å"Even though roller coasters propel you through the air, shoot you through tunnels, and zip you down and around many hills and loops, they are quite safe and can prove to be a great way to get scared, feel that sinking feeling in your stomach, and still come out of it wanting to do it all over again (1).† Thanks to the manipulation of gravitational and centripetal forces humans have created one of the most exhilarating attractions. Even though new roller coasters are created continuously in the hope to create breathtaking and terrifying thrills, the fundamental principles of physics remain the same. A roller coaster consists of connected cars that move on tracks due to gravity and momentum. Believe it or not, an engine is not required for most of the ride. The only power source needed is used to get to the top first hill in order to obtain a powerful launch. Physics plays a huge part in the function of roller coasters. Gravity, potential and kinetic energy, centripetal forces, conservation of energy, friction, and acceleration are some of the concepts included. â€Å"A roller coaster is essentially a gravity-powered train (2).† Gravity is the weakest of the four physical forces, but when it comes to roller coasters, it is the dominant one. It is the driving force and what accelerates the train through all the turns and twists. Gravity is what applies a constant downward force on the cars. The deceleration or acceleration mostly depends on the inclination of the angle relative to the ground. The steeper the slope is, the greater the acceleration, and vice versa.

Ghosts in a Massachusetts Village :: Ghosts Spirits Hauntings Essays

Ghosts in a Massachusetts Village Sabine Heartwood passed through Moose River Junction years ago with her mother, an itinerant fortuneteller. Raised on the road as Ruby crisscrossed the country in her battered VW minibus, Sabine longed to settle down and was inexplicably drawn to this rural hamlet, where everyone knows everyone. Now that one of the town’s favorite sons has returned for his grandmother Beatrice’s funeral, at least there’s something to talk about. Danforth Smith is an up-and-coming assistant film director in New York, romantically linked with a bitchy, beautiful, ambitious actress. Shy Sabine is instantly attracted to him but she knows she can’t compete with the likes of Karen. And handsome Dan would never want to give up such a glamorous life to stay in Moose River Junction and care for his aging, mentally retarded uncle Nagy, per his mother Beatrice’s wish. Even though Beatrice, imperious and theatrical to a fault, insisted in her will that Nagy never be instit utionalized and instead be permitted to take tickets and sweep up at the Palace Theatre (her dead husband’s pet project and final legacy). Sabine intuitively senses Dan’s dark secret, but not its exact details. Yet Dan, given to solitary brooding, reveals all to the reader in interior monologues: he holds himself responsible for the accidental fire that killed his feuding parents when he was only six. He and Nagy were playing with a lighter, and his grandmother Beatrice always told Dan that the fire was his fault, not Nagy’s. Hmm†¦so that’s why Sabine seems to smell smoke in his presence but she doesn’t understand why. Gee, where does this strange knack for reading minds come from? The supposedly psychic young woman can’t figure it out, but mother Ruby is waiting in the wings with a grim secret of her own: Sabine is the child of an alcoholic gypsy, who raped Ruby when she was only fifteen. Ghosts in a Massachusetts Village :: Ghosts Spirits Hauntings Essays Ghosts in a Massachusetts Village Sabine Heartwood passed through Moose River Junction years ago with her mother, an itinerant fortuneteller. Raised on the road as Ruby crisscrossed the country in her battered VW minibus, Sabine longed to settle down and was inexplicably drawn to this rural hamlet, where everyone knows everyone. Now that one of the town’s favorite sons has returned for his grandmother Beatrice’s funeral, at least there’s something to talk about. Danforth Smith is an up-and-coming assistant film director in New York, romantically linked with a bitchy, beautiful, ambitious actress. Shy Sabine is instantly attracted to him but she knows she can’t compete with the likes of Karen. And handsome Dan would never want to give up such a glamorous life to stay in Moose River Junction and care for his aging, mentally retarded uncle Nagy, per his mother Beatrice’s wish. Even though Beatrice, imperious and theatrical to a fault, insisted in her will that Nagy never be instit utionalized and instead be permitted to take tickets and sweep up at the Palace Theatre (her dead husband’s pet project and final legacy). Sabine intuitively senses Dan’s dark secret, but not its exact details. Yet Dan, given to solitary brooding, reveals all to the reader in interior monologues: he holds himself responsible for the accidental fire that killed his feuding parents when he was only six. He and Nagy were playing with a lighter, and his grandmother Beatrice always told Dan that the fire was his fault, not Nagy’s. Hmm†¦so that’s why Sabine seems to smell smoke in his presence but she doesn’t understand why. Gee, where does this strange knack for reading minds come from? The supposedly psychic young woman can’t figure it out, but mother Ruby is waiting in the wings with a grim secret of her own: Sabine is the child of an alcoholic gypsy, who raped Ruby when she was only fifteen.

Friday, July 19, 2019

As I Lay Dying :: Essays Papers

As I Lay Dying In William Faulkner’s As I Lay Dying, references to â€Å"the right† by numerous characters serve to propel the reader on a quest for truth. Cora and Tull make allusions to what is right as defined by religion, while Cash evokes a more innate sense of right and wrong. Anse has a sense of right that is deceptive to both himself and others, yet it also conveys his view of the world which Faulkner shows to be just as accurate as anyone else’s. Faulkner’s blending of these versions of right make a unified idea of what is right, even if that idea is at once a confusing and complicated one. Cora and Vernon Tull believe completely in the absolute power of God and that His will is ultimately what will be done. Cora is Vernon’s source of strength and faith, and even when he waivers in what he believes to be right, he ultimately sides with his wife. Cora is constantly exclaiming both in speech and in song that â€Å"I trust in my God and my reward.† (70) This belief is a great comfort to Cora. Even when she makes cakes for a wealthy woman in town and the woman changes her mind, Cora only thinks â€Å"Riches is nothing in the face of the Lord, for He can see into the heart.† (7) Cora also believed it right for people to suffer; seeing it as their â€Å"mortal lot† (159). However, this deep faith is also blinding to Cora. Cora is blind to the fact that Addie has an understanding of sin and salvation and â€Å"right† beyond the mere words that she uses. Cora mistakes Addie’s lack of faith for vanity and pride, and gets down on her knees in hopes of rescuing her from the clutches of damnation (160). Addie’s response to this is that â€Å"people to whom sin is just a matter of words, to them salvation is just words too.† (168) Vernon Tull at times questions whether his wife is altogether right, but then catches himself and pulls himself back. Cora may have seen it as people’s mortal lot to suffer, but Vernon questioned this, especially in the case of Vardaman’s pain. Vernon says, â€Å"It aint right. I be durn if it is.

Thursday, July 18, 2019

Financial Analysis of Bank of America

Financial Statement Analysis of Bank of America Group 1 Chen, Yelin Dong, Xiaoxu Gransbach, Jennifer Shuai, Wang Weiss, Charles 1Financial Statements of Bank of America1 1. 1Balance sheet1 1. 2Income statement2 1. 3Regulatory capital ratios2 1. 4Investment portfolio2 1. 5Impact of the FSP FAS 115-2 and FAS 124-2 on OTTI3 1. 5. 1Bank of America3 1. 5. 2JP Morgan Chase3 1. 5. 3Citi Group3 1. 6Netting Financial Instruments3 1. 6. 1Bank of America4 1. 6. 2Comparable banks4 1. 6. 3Analysis of the impact4 2Fair Value Accounting for Financial Instruments4 2. Fair value accounting4 Table 6 Summary of the Fair Value Income5 2. 2Opinions about fair value accounting5 3Interest Rate Risk and Net Interest Earnings6 3. 1Net interest margin6 3. 2Interest rate risk7 4Credit Risk and Losses7 4. 1Main loss reserve adequacy ratios8 4. 2Policy to designate past due loans as non-performing8 4. 3Adequacy of the bank’s allowance for loan losses8 4. 4Disclosure policies relating to loans8 5Appendix9 * Part 1 Financial Statements of Bank of America . 1. 1 Balance sheetBank of America’s balance sheet has total assets of $2,129,046 million in 2011, which is less than last year’s $2,264,909 million, a fairly significant decline. There are a few primary assets on the balance sheet. The largest asset is loans and leases which makes up 41. 92% of the total assets. The next largest asset was Available-For-Sale securities making up 12. 97% of total assets. Total liabilities on the balance sheet were $1,898,945 million, with the primary liability being deposits in U. S. offices both interest bearing and noninterest bearing, at 50. 4% of total liabilities. The next largest liability was long-term debt at 19. % of total liabilities. In millions| 2011| % of total assets| 2010| % of total assets| % chg from 2010-2011| Total asset| 2,029,046 | 100. 00%| 2,264,909 | 100. 00%| -10. 41%| Loans and leases| 892,417 | 43. 98%| 898,555 | 39. 67%| -0. 68%| Available-for-sale| 276,151 | 13. 61%| 337,627 | 14. 91%| -18. 21%| Total liabilities| 1,898,945 | 93. 59%| 2,036,661 | 89. 92%| -6. 76%| Total deposits| 1,033,041 | 50. 91%| 1,010,430 | 44. 61%| 2. 24%| Deposits in U. S. offices| 957,042 | 47. 17%| 930,913 | 41. 10%| 2. 81%| Long-term debt| 372,265 | 18. 35%| 448,431 | 19. 80%| -16. 98%| Leverage ratio| 14. 0 | ? | 8. 92 | ? | 63. 58%| Table 1 Selected Financial Data from Balance Sheet of Bank of America Chase and Citi are fairly similar in size and distribution of their balance sheets. Chase and Citi have total assets of 2,265,792 and 1,873,878( ) respectively, both with slightly lower loans as a percentage of total assets at slightly over 30%, while AFS securities are around 16% of total assets for each. Liabilities are also very similar, with Chase having total liabilities of $2,082,219 million and Citi $1,694,305 million. The primary line items are also very similar once again with Chase’s total deposits 54. 6% and long-term debt 22. 77% of total lia bilities, while Citi has deposits 51. 11% and long-term debt of 19. 09%. According to the deposits in U. S. offices, BOA focus more in U. S market and Citi focus more on market outside U. S. In millions| Bank of America| % of total assets| JP Morgan Chase| % of total assets| Citi Group| % of total assets| Total asset| 2,129,046 | 100. 00%| 2,265,792 | 100. 00%| 1,873,878 | 100. 00%| Loans and leases| 892,417 | 41. 92%| 696,111 | 30. 72%| 617,127 | 32. 93%| Available-for-sale| 276,151 | 12. 97%| 364,793 | 16. 10%| 293,413 | 15. 66%| ? | ? | ? | ? | ? | ? | ? |In millions| Bank of America| % of total liabilities| JP Morgan Chase| % of total liabilities| Citi Group| % of total liabilities| Total liabilities| 1,898,945 | 100. 00%| 2,082,219 | 100. 00%| 1,694,305 | 100. 00%| Total deposits| 1,033,041 | 54. 40%| 1,127,806 | 54. 16%| 865,936 | 51. 11%| Long-term debt| 372,265 | 19. 60%| 256,775 | 22. 77%| 3,235,050 | 190. 94%| Leverage ratio| 8. 25 | ? | 11. 34 | ? | 9. 44 | ? | | | | | | | | In millions| Bank of America| % of total deposits| JP Morgan Chase| % of total deposits| Citi Group| % of total deposits| Deposits in U. S. offices| 957,042 | 92. 64%| 851,534 | 75. 0%| 343,288 | 39. 64%| Table 2 Selected Financial Data from Balance Sheets of Three Banks in 2011 In the event of a bank run, Bank of America will be in trouble due to its high leverage, similar to many banks. Bank of America has deposits of $1,033,041 million, among which liquid assets only have $314,425 million, including cash and cash equivalents of $120,102 million, time deposits and other short-term investments of $26,004 million and trading assets of $169,319 million. Even with the ability to liquidate those non-cash assets, it will still only be able to honor slightly more than 30% of its depositors.Income statement The primary line item on Bank of America’s income statement is net income of $1,446 million, which increased compared to a net loss of 2,238 in 2010. Interest income was $66 ,236 million, down from $75,497 million in 2010. Total interest expense was $21,620 million, which makes the net interest income become $44,616 million, down 13. 4% from the previous year. Lastly, total noninterest income was $48,838 million, decreased by 16. 8% from 2010. This is partly due to the big loss of mortgage banking income, decreasing from $2,734 million in 2010 to $(8,830) million in 2011.Chase and Citi had similar trends, both slightly increasing their bottom line while having net interest income decrease slightly. Regulatory capital ratios 2011| Bank of America| JP Morgan Chase| Citi Group| To be well capitalized| Leverage ratio| 7. 53%| 6. 80%| 7. 19%| 5%| Tier 1 risk-based capital ratio| 12. 40%| 12. 30%| 13. 55%| 6%| Total risk-based| 16. 75%| 15. 40%| 16. 99%| 10%| Table 3 Regulatory Capital Ratios of Three Banks in 2011 In 2011, Bank of America was considered well capitalized for all three regulatory ratios–Tier 1 capital, risk-based capital and leverage.Ba nk of America slightly increased all of its ratios from 2010 to 2011. Its tier 1 capital ratio was 12. 4% while 6% is considered well capitalized, its risk based capital ratio was 16. 75% while 10% is considered well capitalized, and its leverage ratio was 7. 53% while 5% is considered well capitalized. ( Table 4, Table 3) Chase and Citi had very similar ratios to Bank of America. Chase was slightly below Bank of America and Citi for all three ratios but still well above the floor to be well capitalized.Citi had a slightly lower leverage ratio and slightly higher tier 1 capital and risk based capital ratios. Regulatory ratios are fairly important; however there are some issues with them. The ratios are backwards looking, so there could be a large amount of change since in the numbers. There are also lots of adjustments made by the company to the different numbers that make up the ratio that might not even make sense such as ignoring AFS losses. The current risk weighting is also ve ry simplistic currently and might not reflect the actual risk of the assets.One important thing to note is that the newly released Basel III norms by Basel Committee on Banking Supervision (BCBS) would require a higher regulatory capital ratio on banks. It is recommended that Basel III be implemented by January 1, 2015. According to the new rules, the mandatory Tier 1 common capital ratio would be 7%. Banks should maintain conservation buffer of 2. 5% and reserves amounting to 8. 5% of assets. Therefore, in order for Bank of America to meet the future requirements and be well capitalized in face of potential financial meltdowns, it should hold more and better quality capital, carry more liquid ssets, and limit leverage. ( , ) Investment portfolio The net unrealized gains on HTM securities of $177 million = $181 million + ($4) million that have not been recognized in OCI as of the end of 2011 are attributable to HTM securities that have not been deemed other than temporarily (OTT) i mpaired, so that amortized cost is the carrying value. Amortized cost is a highly limited valuation basis for risky securities. There was very little mention of reclassification in Bank of America’s 10-K. There was a mention of a reclassification of $26. billion primarily due to noninterest earning equity securities being moved from trading account assets to other assets, but no mention of anything else. Impact of the FSP FAS 115-2 and FAS 124-2 on OTTI Bank of America According to FSP FAS 115-2 and FAS 124-2, banks are allowed to report non-credit related OTTI in Other Comprehensive Income (OCI). Only credit-related OTTI is recognized in net income. The Total OTTI losses (unrealized and realized) for 2011 is $360 million, and portion of other-than-temporary impairment losses recognized in other comprehensive income is about $61 millions.The net amount is $299 million which is recognized in earnings on AFS debt securities in 2011, compared to $970 million on AFS debt and mark etable equity securities in 2010. When we compute the regulatory Tier One Capital, the unrealized losses on AFS investments are (added back) excluded. Thus, the $61 million is added back to calculate the Tier One Capital. With adding back, Tier 1 risk-based capital ratio is 12. 40% as shown on 2011 Y9C. In absence of adding back, the ratio is (159,231,999-61,000)/ 1,284,466,933=12. 39%. JP Morgan Chase For JP Morgan Chase, the10K shows Total other-than-temporary impairment losses for are 27, 94, nd 946 million for year 2011, 2010 and 2009 respectively. ( ) However, it doesn’t divide these amounts into credit-related portion and non-credit related portion. Based on the other two banks examples, we can infer that the Tier One Capital for JP Morgan Chase will go up after adoption. Citi Group Citigroup also adopted the same rules above in first quarter of 2009. As a result of the FSP, Company’s Consolidated Statement of Income reflects the full impairment on debt securiti es that the Company intends to sell or would more-likely-than-not be required to sell before the expected recovery of the amortized cost basis.As a result of the adoption of the FSP, Citigroup’s income in the first quarter of 2009 was higher by $631 million on a pretax basis ($391 million on an after-tax basis) and AOCI was decreased by a corresponding amount. However, 2011 10K does not gives details about regarding the credit loss component of OTTI in 2011. When we compute the regulatory Tier One Capital for Citigroup, the unrealized losses from non-credit loss component on debt securities are (added back) excluded, which leads to an increase in Tier One Capital.Netting Financial Instruments | Â  | Bank of America| JP Morgan Chase| Citi Group| IFRS(Before netting)| Total assets| 2,130,796| 3,976,317| 2,749,470| | Total debt| 1,900,695| 3,792,742| 2,564,671| | Total equity| 230,101| 183,575| 184,799| | Leverage ratio| 8. 26| 20. 66| 13. 88| GAAP(After netting)| Total assets| 2,129,046| 2,265,792| 1,873,878| | Total debt| 1,898,945| 2,082,219| 1,694,305| | Total equity| 230,101| 183,573| 179,573| | Leverage ratio| 8. 25| 11. 34| 9. 44| Table 4 Netting Adjustments for Three Banks in 2011 Bank of AmericaAccording to Note 4—Derivatives, Bank of America had legally enforceable master netting agreement that would reduce both derivative assets and derivative liabilities by the same amount of 1,749. 9 million, respectively. Moreover, cash collateral was applied to net off derivative assets by 58. 9 million and derivative liabilities by 51. 9 million, respectively. However, the reduction caused by cash collateral wouldn’t affect total assets and total liabilities. If Band of America were to adopt IFRS, it would report higher gross derivative assets and liabilities by an increase of 1,749. million. However, the adjustment (1,749. 9 million) was insignificant compared to Bank of America’s total asset base (2,129,046 million, about 0. 08%). Th erefore, the leverage ratio would only increase slightly due to this change, from 8. 25 under GAAP to 8. 26 under IFRS. Comparable banks J. P. Morgan Chase’s gross derivative assets were offset by 1,710,525 million netting adjustments and gross derivative liabilities by 1,710,523. Such adjustments almost made up of 75% of Chase’s total asset base which is 2,265,792 million.Therefore, if to adopt IFRS, Chase would record a much higher assets and liabilities up to 3,976,317 million and 3,792,742 million, respectively. Leverage ratio, accordingly, would rise from 11. 34 to 20. 66, with an almost doubled increase. Citi Group’s netting adjustments of 875,592 million against derivative assets made up 46. 7% of total assets, and 870,366 million against derivative liabilities made up 33. 9% of total liabilities. When adopting IFRS, Citi would report a higher assets and liabilities, with its leveraging ratio growing from 9. 44 to 13. 88 due to the significant amount of t he netting adjustments. Analysis of the impactFrom the above table, we can see that Bank of America was merely affected by the presentation of netting financial instruments, while the other two banks were greatly affected in terms of leverage ratio. The main reason to such a distinguished difference is that Bank of America had the smallest investment in derivative instruments, compared to Chase and Citi. The gross approach would definitely give a more comprehensive picture of banks’ derivative instruments; however, it would overstate risk to some extent. Market risk of the derivative positions can be better evaluated using the gross presentation which is more detailed.Firstly, net figures are by far more relevant metrics than the gross amounts. Naturally, this comes about from looking to the way that derivatives are traded under an enforceable master netting agreement. The master netting agreement allows for the aggregation of all trades and the replacement by a single net am ount. Secondly, another metric to measure derivative portfolios is volatility which is driven by the risk of open market positions and the potential changes in net asset values and not the size of gross derivatives amounts.Therefore, gross balance sheet amounts are not particularly useful indicators of how much net derivative asset values would have to change before solvency is affected. Finally, as the third most important metric when evaluating the risks, collateral together with cash settlement procedures results in a liquidity profile that is more aligned with net presentation. Collateral amounts further reduce the risks and have to be taken into consideration for reporting derivatives Fair Value Accounting for Financial InstrumentsFair value accounting From table 5 and the three computation tables in Appendix, we can see that under Full Fair Value method, Bank of America’s net income would grow from 1,446 million to 2,750 million, an increase of 90. 2%. Similarly, Citi w ould experience an increase of 128. 2% in net income from 11,067 million to 25,257 million. However, full fair value method had insignificant impact on Chase, with a total adjustment of 1,773 million compared to its pre-adjustment net income of 18,976 million.In millions| Bank of America| JP Morgan Chase| Citi Group| Adjustments for assets and liabilities at HC on balance sheet| 6,127 | 1,140 | 12,000 | Adjustments for assets and liabilities at FV on balance sheet with gains and losses in OCI| -4,819 | 633 | 2,190 | Total adjustment| 1,308 | 1,773 | 14,190 | Net income as per financial statements| 1,446 | 18,976 | 11,215 | Full fair value income with information available| 2,754 | 20,749 | 25,405 | * Table 5 Summary of the Fair Value IncomeAnother thing to note is that BOA stands out as it had a significant unrealized loss of 4,819 million on AFS, while its comparable banks, Chase and Citi, had a positive gain of 633 million and 2,190 million, respectively. Based on our analysis, su ch difference was driven by the following factors. (1). According to its disclosure, Bank of America recognized $299 million of other-than-temporary impairment (OTTI) losses in earnings on AFS debt securities in 2011 compared to $970 million on AFS debt and marketable equity securities in 2010, which contributes greatly in such a large amount of unrealized loss on AFS.The recognition of OTTI losses on AFS debt and marketable equity securities is based on a variety of factors, including the length of time and extent to which the market value has been less than amortized cost, the financial condition of the issuer of the security including credit ratings and any specific events affecting the operations of the issuer, underlying assets that collateralize the debt security, other industry and macroeconomic conditions, and management’s intent and ability to hold the security to recovery. (2).According to its disclosure, Bank of America presents debt securities purchased for longer term investment purposes which are as part of asset and liability management (ALM) and other strategic activities, as available-for-sale (AFS) securities, and report these securities at fair value with net unrealized gains and losses included in accumulated OCI. In 2011, the fair value of net ALM contracts decreased $7. 9 billion to a gain of $4. 7 billion, compared to $12. 6 billion in 2010. The decrease was primarily attributable to changes in the value of U. S. dollar-denominated pay-fixed interest rate swaps of $9. billion, foreign exchange contracts of $1. 8 billion and foreign exchange basis swaps of $1. 4 billion. The decrease was partially offset by a gain from the changes in the value of U. S. dollar-denominated receive-fixed interest rate swaps of $6. 6 billion. Opinions about fair value accounting Fair Value Accounting has many advantages and disadvantages as listed below. FVA advantages include the following: FVA depicts a clearer picture of the company’s financi al situation, as it provides an accurate asset and liability valuation as the prices are reflected in the market price.Fair value accounting limits managers’ ability to manipulate the reported net income, as the gains and losses are reported in the period they occur, not when they are realized as the result of a transaction. For Level 1 & 2, the price for financial instruments, are available in a liquid market. While under amortized accounting method, firms can manage their income through the selective realization of cumulative unrealized gains and losses on positions, an activity referred to as gains trading.FVA provides investors with more accurate, timely, and comparable financial information versus other alternative accounting approaches, even during extreme market conditions. Gains & losses resulting from changes in fair value estimates indicate economic events that companies and investors may find worthy of additional disclosures. Under amortized accounting, income typi cally is persistent for as long as firms hold positions, but becomes transitory when positions mature or are disposed of and firms replace them with new positions at current market terms.Disadvantages of FVA include: The price for certain assets and liabilities may fluctuate often, resulting in higher volatility than other accounting methods. When the market is volatile, the price for financial instruments may change a lot, so companies may recognize gains/losses. This volatility of earnings would make it more difficult for users to predict future performance and make regulatory capital ratio vary dramatically across periods. A solution for this disadvantage is regulatory capital should be delinked from fair value and reported by using historic cost information.After the market stabilizes, the price may change back to the normal level. Not every asset or liability can be easily fair valued. For financial instruments in level 3, there is no fair value in the liquidity market. Manager s need model to estimate the value of financial instruments in level 3. Using fair value accounting may have adverse effect on a down market. Companies may sell some financial instruments whose value decreased because of the drop in the current market price. They may not realize the drop without the fair value accounting.The market may stabilize over time, and the price for the financial instruments will return to their normal level. Another issue with fair value accounting is that when the market for instruments freezes up and there’s no liquidity in the market, financial instruments would have to be valued by using mark-to-model which in many situations are not reliable and transparent to investors. A solution to this is that regulators provide more specific guidance on how to determine fair value for financial statements.Disclosure requirements would include disclosure of fair value of all financial instruments along with method adopted to determine fair values, any signif icant assumptions used in their estimation, some indications of the sensitivity of the estimated fair value to these assumptions, and discussion of risk exposure and issues associated with the estimation of fair value. In addition, fair value accounting has very significant feedback effects, especially during financial crisis.Fair value accounting would further contribute to the deterioration in the value of a company’s financial instruments or assets and make it more difficult for companies to recover from the crisis. Recommendation here is that in special situations, regulators would allow companies that face severe crisis to adopt other accounting methods temporarily and minimize the loss of these companies. In summary, fair value has both advantages and disadvantages under today’s economy. FVA provides better insight of the financial statements, in ddition to limiting the potential for manipulation. However, in my opinion, under today’s economy situation, it is hard to fully implement the fair value accounting. Every disadvantage has proposed solutions to resolve the issues identified. Overall, FVA is recommended for use. Interest Rate Risk and Net Interest Earnings Net interest margin The net interest yield on a FTE basis was 2. 48 percent for 2011 compared to 2. 78 percent for 2010. Net interest income on a FTE basis decreased $7. 1 billion in 2011 to $45. 6 billion. The decline was primarily due to: (1).There’s a noticeable decrease in the yield on consumer loans from 6. 04% in 2010 to 5. 37% in 2011, which reduces net interest income by about 4,244 million (633,507 million * 0. 57%). * Debt securities and residential mortgage mainly contributed to the decline. The yield rate for debt securities decreased from 3. 66% to 2. 85%, and the residential mortgage from 4. 78% to 4. 18%. (2). Noninterest income declined from the previous year due to lower mortgage banking income, reflecting$11. 6 billion in representations and warrant ies costs and decline of $3. billion income from trading account profits. Noninterest income being the major source of Bank of America's income drastically impacts the profitability of the company. (3). In 2011 Bank of America had a decreased investment security yields, including the acceleration of purchase premium amortization from an increase in modeled prepayment expectations, and increased hedge ineffectiveness. (4). Bank of America’s declining net interest margin was partially offset by ongoing reductions in its debt footprint and lower rates paid on deposits.The total U. S interest-bearing deposits had an average yield of 0. 36%, compared to 0. 55% in 2008. Such downward trend in net interest margin can be observed in other banks as well. The following table presents total interest-earning assets rate and total interest-bearing liabilities for all three banks over 2009 to 2011. As shown, all banks experienced a decline in interest-earning assets rate over three years: 1) BOA from 4. 31% in 2009 to 3. 65% in 2011, with an average decrease of 8% every year; 2) Chase from 4. 04% to 3. 1%, with an average decrease of 6. 8%; 3) Citi from 4. 78% to 4. 27%, with an average decrease of 5. 5%. The main reasons for the other two banks’ declining net interest margin were higher deposit balances with lower loan yields. | Bank of America| JP Morgan Chase| Citi Group| | 2011| 2010| 2009| 2011| 2010| 2009| 2011| 2010| 2009| Total interest-earning assets rate| 3. 65%| 4. 02%| 4. 31%| 3. 51%| 3. 83%| 4. 04%| 4. 27%| 4. 55%| 4. 78%| Total interest-bearing liabilities| 1. 39%| 1. 39%| 1. 77%| 0. 86%| 0. 84%| 1. 02%| 1. 63%| 1. 61%| 1. 3%| Table 6 Net Interest Margin of Three Banks Interest rate risk BOA’s net interest income decreased by $2,122 million in 2011 and $998 million in 2010 from a 1% downward parallel shift in interest rate. 1% downward change in interest rate results in a bigger decrease in net interest income in 2011 than in 2010. However , according Chase’s 10K, downward 100bps parallel shocks result in a Federal Funds target rate of zero and negative three- and six-month treasury rates. The earnings-at-risk results of such a low-probability scenario are not meaningful.For Citi, a 100 bps decrease in interest rates would imply negative rates for the yield curve, so not meaningful either. 1% downward shift| 2011| 2010| BOA| ($2,122)| ($998)| JP Morgan Chase| NM| NM| Citi Group| NM| NM| Table 7 The Impact of 1% downward shift on Net Interest Income BOA’s net interest income would increase by $1,505 million in 2011 and $601 million in 2010 from a 1% upward parallel shift in interest rate. The same as downward change, 1% upward change in interest rate also would result in a bigger increase in the net interest income in 2011 than in 2010.Compared with BOA, 1% upward shift in interest rate has a bigger impact for Chase and smaller impact for Citi. 1% upward shift| 2011| 2010| Bank of America| $1,505 | $601 | JP Morgan Chase| $2,326 | $1,483 | Citi Group| $97 | ($105)| Table 8 The Impact of 1% Upward Shift on Net Interest Income Credit Risk and Losses Main loss reserve adequacy ratios Policy to designate past due loans as non-performing Adequacy of the bank’s allowance for loan losses Disclosure policies relating to loans Appendix BOAIn $ millions| 2011| 2011| 2010| 2010| 2011| 2010| 2011| ? | Carrying Value| Fair Value| Carrying Value| Fair Value| CURG| CURG| URG| Adjustments for assets and liabilities at HC on balance sheet| Assets:| ? | ? | ? | ? | ? | ? | ? | Held-to maturity debt securities| 35,265 | 35,442 | 427 | 427 | 177 | – | 177 | Loans| 870,520 | 843,392 | 876,739 | 861,695 | (27,128)| (15,044)| (12,084)| Total assets| 905,785 | 878,834 | 877,166 | 862,122 | (26,951)| (15,044)| (11,907)| Liabilities:| ? ? | ? | ? | ? | ? | ? | Deposits| 1,033,041 | 1,033,248 | 1,010,430 | 1,010,460 | 207 | 30 | 177 | Long-term debt| 372,265 | 343,211 | 448,431 | 441,672 | (29,0 54)| (6,759)| (22,295)| Total liabilities| 1,405,306 | 1,376,459 | 1,458,861 | 1,452,132 | (28,847)| (6,729)| (22,118)| Pretax adjustments before AFS securities and CFH derivatives| ? | ? | ? | ? | 1,896 | (8,315)| 10,211 | Aftertax adjustments before AFS securities and CFH derivatives| ? | ? | ? | ? | ? ? | 6,127 | Adjustments for assets and liabilities at FV on balance sheet with gains and losses in OCI? | Aftertax adjustment for AFS securities| ? | ? | ? | ? | ? | ? | (4,270)| Aftertax adjustment for CFH derivatives| ? | ? | ? | ? | ? | ? | (549)| Total adjustment to net income| ? | ? | ? | ? | ? | ? | 1,308 | Net income as per financial statements| ? | ? | ? | ? | ? | ? | 1,446 | Full fair value income with information available| ? | ? | ? | ? | ? | ? | 2,754 | JP Morgan ChaseIn $ millions| 2011| 2011| 2010| 2010| 2011| 2010| 2011| ? | Carrying Value| Fair Value| Carrying Value| Fair Value| CURG| CURG| URG| Adjustments for assets and liabilities at HC on balance sheet| Assets:| ? | ? | ? | ? | ? | ? | ? | Loans| 696,100 | 695,800 | 660,700 | 663,500 | (300)| 2,800 | (3,100)| Other| 66,300 | 66,800 | 64,900 | 65,000 | 500 | 100 | 400 | Total assets| 762,400 | 762,600 | 725,600 | 728,500 | 200 | 2,900 | (2,700)| Liabilities:| ? | ? | ? | ? | ? | ? | ? |Deposits| 1,127,800 | 1,128,300 | 930,400 | 931,500 | 500 | 1,100 | (600)| Accounts payable and other liabilities| 167,000 | 166,900 | 138,200 | 138,200 | (100)| – | (100)| Beneficial interests issued by consolidated VIEs| 66,000 | 66,200 | 77,600 | 77,900 | 200 | 300 | (100)| Long-term debt and junior subordinated deferrable interest debentures| 256,800 | 254,200 | 270,700 | 271,900 | (2,600)| 1,200 | (3,800)| Total liabilities| 1,617,600 | 1,615,600 | 1,416,900 | 1,419,500 | (2,000)| 2,600 | (4,600)| Pretax adjustments before AFS securities and CFH derivatives| ? | ? ? | ? | 2,200 | 300 | 1,900 | Aftertax adjustments before AFS securities and CFH derivatives| ? | ? | ? | ? | ? | ? | 1,140 | Adjustment s for assets and liabilities at FV on balance sheet with gains and losses in OCI| Aftertax adjustment for AFS securities| ? | ? | ? | ? | ? | ? | 1,067 | Aftertax adjustment for CFH derivatives| ? | ? | ? | ? | ? | ? | (279)| Cash flow hedge| ? | ? | ? | ? | ? | ? | (155)| Total adjustment to net income| ? | ? | ? | ? | ? | ? | 1,773 | Net income as per financial statements| ? | ? | ? | ? | ? | ? | 18,976 | Full fair value income with information available| ? ? | ? | ? | ? | ? | 20,749 | Citi Group In $ millions| 2011| 2011| 2010| 2010| 2011| 2010| 2011| ? | Carrying Value| Fair Value| Carrying Value| Fair Value| CURG| CURG| URG| Adjustments for assets and liabilities at HC on balance sheet? | Assets:| ? | ? | ? | ? | ? | ? | ? | Investment| 293,400 | 292,400 | 318,200 | 319,000 | (1,000)| 800 | (1,800)| Loans| 614,600 | 603,900 | 605,500 | 584,300 | (10,700)| (21,200)| 10,500 | Total assets| 908,000 | 896,300 | 923,700 | 903,300 | (11,700)| (20,400)| 8,700 | Liabilities:| ? ? | ? | ? | ? | ? | ? | Deposits| 865,900 | 865,800 | 845,000 | 843,200 | (100)| (1,800)| 1,700 | Long-term debt| 323,500 | 313,800 | 381,200 | 384,500 | (9,700)| 3,300 | (13,000)| Total liabilities| 1,189,400 | 1,179,600 | 1,226,200 | 1,227,700 | (9,800)| 1,500 | (11,300)| Pretax adjustments before AFS securities and CFH derivatives| ? | ? | ? | ? | (1,900)| (21,900)| 20,000 | Aftertax adjustments before AFS securities and CFH derivatives| ? ? | ? | ? | ? | ? | 12,000 | Adjustments for assets and liabilities at FV on balance sheet with gains and losses in OCI| Aftertax adjustment for AFS securities| ? | ? | ? | ? | ? | ? | 2,360 | Cash flow hedge| ? | ? | ? | ? | ? | ? | (170)| Total adjustment to net income| ? | ? | ? | ? | ? | ? | 14,190 | Net income as per financial statements| ? | ? | ? | ? | ? | ? | 11,215 | Full fair value income with information available| ? | ? | ? | ? | ? | ? | 25,405 | Financial Analysis of Bank of America Financial Statement Analysis of Bank of America Group 1 Chen, Yelin Dong, Xiaoxu Gransbach, Jennifer Shuai, Wang Weiss, Charles 1Financial Statements of Bank of America1 1. 1Balance sheet1 1. 2Income statement2 1. 3Regulatory capital ratios2 1. 4Investment portfolio2 1. 5Impact of the FSP FAS 115-2 and FAS 124-2 on OTTI3 1. 5. 1Bank of America3 1. 5. 2JP Morgan Chase3 1. 5. 3Citi Group3 1. 6Netting Financial Instruments3 1. 6. 1Bank of America4 1. 6. 2Comparable banks4 1. 6. 3Analysis of the impact4 2Fair Value Accounting for Financial Instruments4 2. Fair value accounting4 Table 6 Summary of the Fair Value Income5 2. 2Opinions about fair value accounting5 3Interest Rate Risk and Net Interest Earnings6 3. 1Net interest margin6 3. 2Interest rate risk7 4Credit Risk and Losses7 4. 1Main loss reserve adequacy ratios8 4. 2Policy to designate past due loans as non-performing8 4. 3Adequacy of the bank’s allowance for loan losses8 4. 4Disclosure policies relating to loans8 5Appendix9 * Part 1 Financial Statements of Bank of America . 1. 1 Balance sheetBank of America’s balance sheet has total assets of $2,129,046 million in 2011, which is less than last year’s $2,264,909 million, a fairly significant decline. There are a few primary assets on the balance sheet. The largest asset is loans and leases which makes up 41. 92% of the total assets. The next largest asset was Available-For-Sale securities making up 12. 97% of total assets. Total liabilities on the balance sheet were $1,898,945 million, with the primary liability being deposits in U. S. offices both interest bearing and noninterest bearing, at 50. 4% of total liabilities. The next largest liability was long-term debt at 19. % of total liabilities. In millions| 2011| % of total assets| 2010| % of total assets| % chg from 2010-2011| Total asset| 2,029,046 | 100. 00%| 2,264,909 | 100. 00%| -10. 41%| Loans and leases| 892,417 | 43. 98%| 898,555 | 39. 67%| -0. 68%| Available-for-sale| 276,151 | 13. 61%| 337,627 | 14. 91%| -18. 21%| Total liabilities| 1,898,945 | 93. 59%| 2,036,661 | 89. 92%| -6. 76%| Total deposits| 1,033,041 | 50. 91%| 1,010,430 | 44. 61%| 2. 24%| Deposits in U. S. offices| 957,042 | 47. 17%| 930,913 | 41. 10%| 2. 81%| Long-term debt| 372,265 | 18. 35%| 448,431 | 19. 80%| -16. 98%| Leverage ratio| 14. 0 | ? | 8. 92 | ? | 63. 58%| Table 1 Selected Financial Data from Balance Sheet of Bank of America Chase and Citi are fairly similar in size and distribution of their balance sheets. Chase and Citi have total assets of 2,265,792 and 1,873,878( ) respectively, both with slightly lower loans as a percentage of total assets at slightly over 30%, while AFS securities are around 16% of total assets for each. Liabilities are also very similar, with Chase having total liabilities of $2,082,219 million and Citi $1,694,305 million. The primary line items are also very similar once again with Chase’s total deposits 54. 6% and long-term debt 22. 77% of total lia bilities, while Citi has deposits 51. 11% and long-term debt of 19. 09%. According to the deposits in U. S. offices, BOA focus more in U. S market and Citi focus more on market outside U. S. In millions| Bank of America| % of total assets| JP Morgan Chase| % of total assets| Citi Group| % of total assets| Total asset| 2,129,046 | 100. 00%| 2,265,792 | 100. 00%| 1,873,878 | 100. 00%| Loans and leases| 892,417 | 41. 92%| 696,111 | 30. 72%| 617,127 | 32. 93%| Available-for-sale| 276,151 | 12. 97%| 364,793 | 16. 10%| 293,413 | 15. 66%| ? | ? | ? | ? | ? | ? | ? |In millions| Bank of America| % of total liabilities| JP Morgan Chase| % of total liabilities| Citi Group| % of total liabilities| Total liabilities| 1,898,945 | 100. 00%| 2,082,219 | 100. 00%| 1,694,305 | 100. 00%| Total deposits| 1,033,041 | 54. 40%| 1,127,806 | 54. 16%| 865,936 | 51. 11%| Long-term debt| 372,265 | 19. 60%| 256,775 | 22. 77%| 3,235,050 | 190. 94%| Leverage ratio| 8. 25 | ? | 11. 34 | ? | 9. 44 | ? | | | | | | | | In millions| Bank of America| % of total deposits| JP Morgan Chase| % of total deposits| Citi Group| % of total deposits| Deposits in U. S. offices| 957,042 | 92. 64%| 851,534 | 75. 0%| 343,288 | 39. 64%| Table 2 Selected Financial Data from Balance Sheets of Three Banks in 2011 In the event of a bank run, Bank of America will be in trouble due to its high leverage, similar to many banks. Bank of America has deposits of $1,033,041 million, among which liquid assets only have $314,425 million, including cash and cash equivalents of $120,102 million, time deposits and other short-term investments of $26,004 million and trading assets of $169,319 million. Even with the ability to liquidate those non-cash assets, it will still only be able to honor slightly more than 30% of its depositors.Income statement The primary line item on Bank of America’s income statement is net income of $1,446 million, which increased compared to a net loss of 2,238 in 2010. Interest income was $66 ,236 million, down from $75,497 million in 2010. Total interest expense was $21,620 million, which makes the net interest income become $44,616 million, down 13. 4% from the previous year. Lastly, total noninterest income was $48,838 million, decreased by 16. 8% from 2010. This is partly due to the big loss of mortgage banking income, decreasing from $2,734 million in 2010 to $(8,830) million in 2011.Chase and Citi had similar trends, both slightly increasing their bottom line while having net interest income decrease slightly. Regulatory capital ratios 2011| Bank of America| JP Morgan Chase| Citi Group| To be well capitalized| Leverage ratio| 7. 53%| 6. 80%| 7. 19%| 5%| Tier 1 risk-based capital ratio| 12. 40%| 12. 30%| 13. 55%| 6%| Total risk-based| 16. 75%| 15. 40%| 16. 99%| 10%| Table 3 Regulatory Capital Ratios of Three Banks in 2011 In 2011, Bank of America was considered well capitalized for all three regulatory ratios–Tier 1 capital, risk-based capital and leverage.Ba nk of America slightly increased all of its ratios from 2010 to 2011. Its tier 1 capital ratio was 12. 4% while 6% is considered well capitalized, its risk based capital ratio was 16. 75% while 10% is considered well capitalized, and its leverage ratio was 7. 53% while 5% is considered well capitalized. ( Table 4, Table 3) Chase and Citi had very similar ratios to Bank of America. Chase was slightly below Bank of America and Citi for all three ratios but still well above the floor to be well capitalized.Citi had a slightly lower leverage ratio and slightly higher tier 1 capital and risk based capital ratios. Regulatory ratios are fairly important; however there are some issues with them. The ratios are backwards looking, so there could be a large amount of change since in the numbers. There are also lots of adjustments made by the company to the different numbers that make up the ratio that might not even make sense such as ignoring AFS losses. The current risk weighting is also ve ry simplistic currently and might not reflect the actual risk of the assets.One important thing to note is that the newly released Basel III norms by Basel Committee on Banking Supervision (BCBS) would require a higher regulatory capital ratio on banks. It is recommended that Basel III be implemented by January 1, 2015. According to the new rules, the mandatory Tier 1 common capital ratio would be 7%. Banks should maintain conservation buffer of 2. 5% and reserves amounting to 8. 5% of assets. Therefore, in order for Bank of America to meet the future requirements and be well capitalized in face of potential financial meltdowns, it should hold more and better quality capital, carry more liquid ssets, and limit leverage. ( , ) Investment portfolio The net unrealized gains on HTM securities of $177 million = $181 million + ($4) million that have not been recognized in OCI as of the end of 2011 are attributable to HTM securities that have not been deemed other than temporarily (OTT) i mpaired, so that amortized cost is the carrying value. Amortized cost is a highly limited valuation basis for risky securities. There was very little mention of reclassification in Bank of America’s 10-K. There was a mention of a reclassification of $26. billion primarily due to noninterest earning equity securities being moved from trading account assets to other assets, but no mention of anything else. Impact of the FSP FAS 115-2 and FAS 124-2 on OTTI Bank of America According to FSP FAS 115-2 and FAS 124-2, banks are allowed to report non-credit related OTTI in Other Comprehensive Income (OCI). Only credit-related OTTI is recognized in net income. The Total OTTI losses (unrealized and realized) for 2011 is $360 million, and portion of other-than-temporary impairment losses recognized in other comprehensive income is about $61 millions.The net amount is $299 million which is recognized in earnings on AFS debt securities in 2011, compared to $970 million on AFS debt and mark etable equity securities in 2010. When we compute the regulatory Tier One Capital, the unrealized losses on AFS investments are (added back) excluded. Thus, the $61 million is added back to calculate the Tier One Capital. With adding back, Tier 1 risk-based capital ratio is 12. 40% as shown on 2011 Y9C. In absence of adding back, the ratio is (159,231,999-61,000)/ 1,284,466,933=12. 39%. JP Morgan Chase For JP Morgan Chase, the10K shows Total other-than-temporary impairment losses for are 27, 94, nd 946 million for year 2011, 2010 and 2009 respectively. ( ) However, it doesn’t divide these amounts into credit-related portion and non-credit related portion. Based on the other two banks examples, we can infer that the Tier One Capital for JP Morgan Chase will go up after adoption. Citi Group Citigroup also adopted the same rules above in first quarter of 2009. As a result of the FSP, Company’s Consolidated Statement of Income reflects the full impairment on debt securiti es that the Company intends to sell or would more-likely-than-not be required to sell before the expected recovery of the amortized cost basis.As a result of the adoption of the FSP, Citigroup’s income in the first quarter of 2009 was higher by $631 million on a pretax basis ($391 million on an after-tax basis) and AOCI was decreased by a corresponding amount. However, 2011 10K does not gives details about regarding the credit loss component of OTTI in 2011. When we compute the regulatory Tier One Capital for Citigroup, the unrealized losses from non-credit loss component on debt securities are (added back) excluded, which leads to an increase in Tier One Capital.Netting Financial Instruments | Â  | Bank of America| JP Morgan Chase| Citi Group| IFRS(Before netting)| Total assets| 2,130,796| 3,976,317| 2,749,470| | Total debt| 1,900,695| 3,792,742| 2,564,671| | Total equity| 230,101| 183,575| 184,799| | Leverage ratio| 8. 26| 20. 66| 13. 88| GAAP(After netting)| Total assets| 2,129,046| 2,265,792| 1,873,878| | Total debt| 1,898,945| 2,082,219| 1,694,305| | Total equity| 230,101| 183,573| 179,573| | Leverage ratio| 8. 25| 11. 34| 9. 44| Table 4 Netting Adjustments for Three Banks in 2011 Bank of AmericaAccording to Note 4—Derivatives, Bank of America had legally enforceable master netting agreement that would reduce both derivative assets and derivative liabilities by the same amount of 1,749. 9 million, respectively. Moreover, cash collateral was applied to net off derivative assets by 58. 9 million and derivative liabilities by 51. 9 million, respectively. However, the reduction caused by cash collateral wouldn’t affect total assets and total liabilities. If Band of America were to adopt IFRS, it would report higher gross derivative assets and liabilities by an increase of 1,749. million. However, the adjustment (1,749. 9 million) was insignificant compared to Bank of America’s total asset base (2,129,046 million, about 0. 08%). Th erefore, the leverage ratio would only increase slightly due to this change, from 8. 25 under GAAP to 8. 26 under IFRS. Comparable banks J. P. Morgan Chase’s gross derivative assets were offset by 1,710,525 million netting adjustments and gross derivative liabilities by 1,710,523. Such adjustments almost made up of 75% of Chase’s total asset base which is 2,265,792 million.Therefore, if to adopt IFRS, Chase would record a much higher assets and liabilities up to 3,976,317 million and 3,792,742 million, respectively. Leverage ratio, accordingly, would rise from 11. 34 to 20. 66, with an almost doubled increase. Citi Group’s netting adjustments of 875,592 million against derivative assets made up 46. 7% of total assets, and 870,366 million against derivative liabilities made up 33. 9% of total liabilities. When adopting IFRS, Citi would report a higher assets and liabilities, with its leveraging ratio growing from 9. 44 to 13. 88 due to the significant amount of t he netting adjustments. Analysis of the impactFrom the above table, we can see that Bank of America was merely affected by the presentation of netting financial instruments, while the other two banks were greatly affected in terms of leverage ratio. The main reason to such a distinguished difference is that Bank of America had the smallest investment in derivative instruments, compared to Chase and Citi. The gross approach would definitely give a more comprehensive picture of banks’ derivative instruments; however, it would overstate risk to some extent. Market risk of the derivative positions can be better evaluated using the gross presentation which is more detailed.Firstly, net figures are by far more relevant metrics than the gross amounts. Naturally, this comes about from looking to the way that derivatives are traded under an enforceable master netting agreement. The master netting agreement allows for the aggregation of all trades and the replacement by a single net am ount. Secondly, another metric to measure derivative portfolios is volatility which is driven by the risk of open market positions and the potential changes in net asset values and not the size of gross derivatives amounts.Therefore, gross balance sheet amounts are not particularly useful indicators of how much net derivative asset values would have to change before solvency is affected. Finally, as the third most important metric when evaluating the risks, collateral together with cash settlement procedures results in a liquidity profile that is more aligned with net presentation. Collateral amounts further reduce the risks and have to be taken into consideration for reporting derivatives Fair Value Accounting for Financial InstrumentsFair value accounting From table 5 and the three computation tables in Appendix, we can see that under Full Fair Value method, Bank of America’s net income would grow from 1,446 million to 2,750 million, an increase of 90. 2%. Similarly, Citi w ould experience an increase of 128. 2% in net income from 11,067 million to 25,257 million. However, full fair value method had insignificant impact on Chase, with a total adjustment of 1,773 million compared to its pre-adjustment net income of 18,976 million.In millions| Bank of America| JP Morgan Chase| Citi Group| Adjustments for assets and liabilities at HC on balance sheet| 6,127 | 1,140 | 12,000 | Adjustments for assets and liabilities at FV on balance sheet with gains and losses in OCI| -4,819 | 633 | 2,190 | Total adjustment| 1,308 | 1,773 | 14,190 | Net income as per financial statements| 1,446 | 18,976 | 11,215 | Full fair value income with information available| 2,754 | 20,749 | 25,405 | * Table 5 Summary of the Fair Value IncomeAnother thing to note is that BOA stands out as it had a significant unrealized loss of 4,819 million on AFS, while its comparable banks, Chase and Citi, had a positive gain of 633 million and 2,190 million, respectively. Based on our analysis, su ch difference was driven by the following factors. (1). According to its disclosure, Bank of America recognized $299 million of other-than-temporary impairment (OTTI) losses in earnings on AFS debt securities in 2011 compared to $970 million on AFS debt and marketable equity securities in 2010, which contributes greatly in such a large amount of unrealized loss on AFS.The recognition of OTTI losses on AFS debt and marketable equity securities is based on a variety of factors, including the length of time and extent to which the market value has been less than amortized cost, the financial condition of the issuer of the security including credit ratings and any specific events affecting the operations of the issuer, underlying assets that collateralize the debt security, other industry and macroeconomic conditions, and management’s intent and ability to hold the security to recovery. (2).According to its disclosure, Bank of America presents debt securities purchased for longer term investment purposes which are as part of asset and liability management (ALM) and other strategic activities, as available-for-sale (AFS) securities, and report these securities at fair value with net unrealized gains and losses included in accumulated OCI. In 2011, the fair value of net ALM contracts decreased $7. 9 billion to a gain of $4. 7 billion, compared to $12. 6 billion in 2010. The decrease was primarily attributable to changes in the value of U. S. dollar-denominated pay-fixed interest rate swaps of $9. billion, foreign exchange contracts of $1. 8 billion and foreign exchange basis swaps of $1. 4 billion. The decrease was partially offset by a gain from the changes in the value of U. S. dollar-denominated receive-fixed interest rate swaps of $6. 6 billion. Opinions about fair value accounting Fair Value Accounting has many advantages and disadvantages as listed below. FVA advantages include the following: FVA depicts a clearer picture of the company’s financi al situation, as it provides an accurate asset and liability valuation as the prices are reflected in the market price.Fair value accounting limits managers’ ability to manipulate the reported net income, as the gains and losses are reported in the period they occur, not when they are realized as the result of a transaction. For Level 1 & 2, the price for financial instruments, are available in a liquid market. While under amortized accounting method, firms can manage their income through the selective realization of cumulative unrealized gains and losses on positions, an activity referred to as gains trading.FVA provides investors with more accurate, timely, and comparable financial information versus other alternative accounting approaches, even during extreme market conditions. Gains & losses resulting from changes in fair value estimates indicate economic events that companies and investors may find worthy of additional disclosures. Under amortized accounting, income typi cally is persistent for as long as firms hold positions, but becomes transitory when positions mature or are disposed of and firms replace them with new positions at current market terms.Disadvantages of FVA include: The price for certain assets and liabilities may fluctuate often, resulting in higher volatility than other accounting methods. When the market is volatile, the price for financial instruments may change a lot, so companies may recognize gains/losses. This volatility of earnings would make it more difficult for users to predict future performance and make regulatory capital ratio vary dramatically across periods. A solution for this disadvantage is regulatory capital should be delinked from fair value and reported by using historic cost information.After the market stabilizes, the price may change back to the normal level. Not every asset or liability can be easily fair valued. For financial instruments in level 3, there is no fair value in the liquidity market. Manager s need model to estimate the value of financial instruments in level 3. Using fair value accounting may have adverse effect on a down market. Companies may sell some financial instruments whose value decreased because of the drop in the current market price. They may not realize the drop without the fair value accounting.The market may stabilize over time, and the price for the financial instruments will return to their normal level. Another issue with fair value accounting is that when the market for instruments freezes up and there’s no liquidity in the market, financial instruments would have to be valued by using mark-to-model which in many situations are not reliable and transparent to investors. A solution to this is that regulators provide more specific guidance on how to determine fair value for financial statements.Disclosure requirements would include disclosure of fair value of all financial instruments along with method adopted to determine fair values, any signif icant assumptions used in their estimation, some indications of the sensitivity of the estimated fair value to these assumptions, and discussion of risk exposure and issues associated with the estimation of fair value. In addition, fair value accounting has very significant feedback effects, especially during financial crisis.Fair value accounting would further contribute to the deterioration in the value of a company’s financial instruments or assets and make it more difficult for companies to recover from the crisis. Recommendation here is that in special situations, regulators would allow companies that face severe crisis to adopt other accounting methods temporarily and minimize the loss of these companies. In summary, fair value has both advantages and disadvantages under today’s economy. FVA provides better insight of the financial statements, in ddition to limiting the potential for manipulation. However, in my opinion, under today’s economy situation, it is hard to fully implement the fair value accounting. Every disadvantage has proposed solutions to resolve the issues identified. Overall, FVA is recommended for use. Interest Rate Risk and Net Interest Earnings Net interest margin The net interest yield on a FTE basis was 2. 48 percent for 2011 compared to 2. 78 percent for 2010. Net interest income on a FTE basis decreased $7. 1 billion in 2011 to $45. 6 billion. The decline was primarily due to: (1).There’s a noticeable decrease in the yield on consumer loans from 6. 04% in 2010 to 5. 37% in 2011, which reduces net interest income by about 4,244 million (633,507 million * 0. 57%). * Debt securities and residential mortgage mainly contributed to the decline. The yield rate for debt securities decreased from 3. 66% to 2. 85%, and the residential mortgage from 4. 78% to 4. 18%. (2). Noninterest income declined from the previous year due to lower mortgage banking income, reflecting$11. 6 billion in representations and warrant ies costs and decline of $3. billion income from trading account profits. Noninterest income being the major source of Bank of America's income drastically impacts the profitability of the company. (3). In 2011 Bank of America had a decreased investment security yields, including the acceleration of purchase premium amortization from an increase in modeled prepayment expectations, and increased hedge ineffectiveness. (4). Bank of America’s declining net interest margin was partially offset by ongoing reductions in its debt footprint and lower rates paid on deposits.The total U. S interest-bearing deposits had an average yield of 0. 36%, compared to 0. 55% in 2008. Such downward trend in net interest margin can be observed in other banks as well. The following table presents total interest-earning assets rate and total interest-bearing liabilities for all three banks over 2009 to 2011. As shown, all banks experienced a decline in interest-earning assets rate over three years: 1) BOA from 4. 31% in 2009 to 3. 65% in 2011, with an average decrease of 8% every year; 2) Chase from 4. 04% to 3. 1%, with an average decrease of 6. 8%; 3) Citi from 4. 78% to 4. 27%, with an average decrease of 5. 5%. The main reasons for the other two banks’ declining net interest margin were higher deposit balances with lower loan yields. | Bank of America| JP Morgan Chase| Citi Group| | 2011| 2010| 2009| 2011| 2010| 2009| 2011| 2010| 2009| Total interest-earning assets rate| 3. 65%| 4. 02%| 4. 31%| 3. 51%| 3. 83%| 4. 04%| 4. 27%| 4. 55%| 4. 78%| Total interest-bearing liabilities| 1. 39%| 1. 39%| 1. 77%| 0. 86%| 0. 84%| 1. 02%| 1. 63%| 1. 61%| 1. 3%| Table 6 Net Interest Margin of Three Banks Interest rate risk BOA’s net interest income decreased by $2,122 million in 2011 and $998 million in 2010 from a 1% downward parallel shift in interest rate. 1% downward change in interest rate results in a bigger decrease in net interest income in 2011 than in 2010. However , according Chase’s 10K, downward 100bps parallel shocks result in a Federal Funds target rate of zero and negative three- and six-month treasury rates. The earnings-at-risk results of such a low-probability scenario are not meaningful.For Citi, a 100 bps decrease in interest rates would imply negative rates for the yield curve, so not meaningful either. 1% downward shift| 2011| 2010| BOA| ($2,122)| ($998)| JP Morgan Chase| NM| NM| Citi Group| NM| NM| Table 7 The Impact of 1% downward shift on Net Interest Income BOA’s net interest income would increase by $1,505 million in 2011 and $601 million in 2010 from a 1% upward parallel shift in interest rate. The same as downward change, 1% upward change in interest rate also would result in a bigger increase in the net interest income in 2011 than in 2010.Compared with BOA, 1% upward shift in interest rate has a bigger impact for Chase and smaller impact for Citi. 1% upward shift| 2011| 2010| Bank of America| $1,505 | $601 | JP Morgan Chase| $2,326 | $1,483 | Citi Group| $97 | ($105)| Table 8 The Impact of 1% Upward Shift on Net Interest Income Credit Risk and Losses Main loss reserve adequacy ratios Policy to designate past due loans as non-performing Adequacy of the bank’s allowance for loan losses Disclosure policies relating to loans Appendix BOAIn $ millions| 2011| 2011| 2010| 2010| 2011| 2010| 2011| ? | Carrying Value| Fair Value| Carrying Value| Fair Value| CURG| CURG| URG| Adjustments for assets and liabilities at HC on balance sheet| Assets:| ? | ? | ? | ? | ? | ? | ? | Held-to maturity debt securities| 35,265 | 35,442 | 427 | 427 | 177 | – | 177 | Loans| 870,520 | 843,392 | 876,739 | 861,695 | (27,128)| (15,044)| (12,084)| Total assets| 905,785 | 878,834 | 877,166 | 862,122 | (26,951)| (15,044)| (11,907)| Liabilities:| ? ? | ? | ? | ? | ? | ? | Deposits| 1,033,041 | 1,033,248 | 1,010,430 | 1,010,460 | 207 | 30 | 177 | Long-term debt| 372,265 | 343,211 | 448,431 | 441,672 | (29,0 54)| (6,759)| (22,295)| Total liabilities| 1,405,306 | 1,376,459 | 1,458,861 | 1,452,132 | (28,847)| (6,729)| (22,118)| Pretax adjustments before AFS securities and CFH derivatives| ? | ? | ? | ? | 1,896 | (8,315)| 10,211 | Aftertax adjustments before AFS securities and CFH derivatives| ? | ? | ? | ? | ? ? | 6,127 | Adjustments for assets and liabilities at FV on balance sheet with gains and losses in OCI? | Aftertax adjustment for AFS securities| ? | ? | ? | ? | ? | ? | (4,270)| Aftertax adjustment for CFH derivatives| ? | ? | ? | ? | ? | ? | (549)| Total adjustment to net income| ? | ? | ? | ? | ? | ? | 1,308 | Net income as per financial statements| ? | ? | ? | ? | ? | ? | 1,446 | Full fair value income with information available| ? | ? | ? | ? | ? | ? | 2,754 | JP Morgan ChaseIn $ millions| 2011| 2011| 2010| 2010| 2011| 2010| 2011| ? | Carrying Value| Fair Value| Carrying Value| Fair Value| CURG| CURG| URG| Adjustments for assets and liabilities at HC on balance sheet| Assets:| ? | ? | ? | ? | ? | ? | ? | Loans| 696,100 | 695,800 | 660,700 | 663,500 | (300)| 2,800 | (3,100)| Other| 66,300 | 66,800 | 64,900 | 65,000 | 500 | 100 | 400 | Total assets| 762,400 | 762,600 | 725,600 | 728,500 | 200 | 2,900 | (2,700)| Liabilities:| ? | ? | ? | ? | ? | ? | ? |Deposits| 1,127,800 | 1,128,300 | 930,400 | 931,500 | 500 | 1,100 | (600)| Accounts payable and other liabilities| 167,000 | 166,900 | 138,200 | 138,200 | (100)| – | (100)| Beneficial interests issued by consolidated VIEs| 66,000 | 66,200 | 77,600 | 77,900 | 200 | 300 | (100)| Long-term debt and junior subordinated deferrable interest debentures| 256,800 | 254,200 | 270,700 | 271,900 | (2,600)| 1,200 | (3,800)| Total liabilities| 1,617,600 | 1,615,600 | 1,416,900 | 1,419,500 | (2,000)| 2,600 | (4,600)| Pretax adjustments before AFS securities and CFH derivatives| ? | ? ? | ? | 2,200 | 300 | 1,900 | Aftertax adjustments before AFS securities and CFH derivatives| ? | ? | ? | ? | ? | ? | 1,140 | Adjustment s for assets and liabilities at FV on balance sheet with gains and losses in OCI| Aftertax adjustment for AFS securities| ? | ? | ? | ? | ? | ? | 1,067 | Aftertax adjustment for CFH derivatives| ? | ? | ? | ? | ? | ? | (279)| Cash flow hedge| ? | ? | ? | ? | ? | ? | (155)| Total adjustment to net income| ? | ? | ? | ? | ? | ? | 1,773 | Net income as per financial statements| ? | ? | ? | ? | ? | ? | 18,976 | Full fair value income with information available| ? ? | ? | ? | ? | ? | 20,749 | Citi Group In $ millions| 2011| 2011| 2010| 2010| 2011| 2010| 2011| ? | Carrying Value| Fair Value| Carrying Value| Fair Value| CURG| CURG| URG| Adjustments for assets and liabilities at HC on balance sheet? | Assets:| ? | ? | ? | ? | ? | ? | ? | Investment| 293,400 | 292,400 | 318,200 | 319,000 | (1,000)| 800 | (1,800)| Loans| 614,600 | 603,900 | 605,500 | 584,300 | (10,700)| (21,200)| 10,500 | Total assets| 908,000 | 896,300 | 923,700 | 903,300 | (11,700)| (20,400)| 8,700 | Liabilities:| ? ? | ? | ? | ? | ? | ? | Deposits| 865,900 | 865,800 | 845,000 | 843,200 | (100)| (1,800)| 1,700 | Long-term debt| 323,500 | 313,800 | 381,200 | 384,500 | (9,700)| 3,300 | (13,000)| Total liabilities| 1,189,400 | 1,179,600 | 1,226,200 | 1,227,700 | (9,800)| 1,500 | (11,300)| Pretax adjustments before AFS securities and CFH derivatives| ? | ? | ? | ? | (1,900)| (21,900)| 20,000 | Aftertax adjustments before AFS securities and CFH derivatives| ? ? | ? | ? | ? | ? | 12,000 | Adjustments for assets and liabilities at FV on balance sheet with gains and losses in OCI| Aftertax adjustment for AFS securities| ? | ? | ? | ? | ? | ? | 2,360 | Cash flow hedge| ? | ? | ? | ? | ? | ? | (170)| Total adjustment to net income| ? | ? | ? | ? | ? | ? | 14,190 | Net income as per financial statements| ? | ? | ? | ? | ? | ? | 11,215 | Full fair value income with information available| ? | ? | ? | ? | ? | ? | 25,405 |