The effects of achol on the health,mental power, and relations of Essay

The effects of achol on the health,mental power, and relations of users - Essay Example se among the teenagers, children, pregnant women and elderly people is considered to have enormous health effects on both genders in the modern community. Specificity, this study explores the health effects of alcohol abuse and alcoholism on the modern teenagers and how these health effects influences their lifestyle., It is significant to study the health effect of alcohol and alcoholism of teenagers because the modern society relates alcohol to current lifestyle and believes drinking alcohol is a way of relieving stress. Moreover, there has been a rapid increase in the number of teenagers drinking and abusing alcohol. The aim of the paper is also to discuss the health issues related to alcoholism and alcohol abuse (Healey and Justin pg.23). †¢ Effects of alcohol on the brain. Such brain functions as memory, coordination, and motor skills are disturbed. Besides, researchers’ show that alcohol may have long-lasting effects as the brain continues to develop by age 20.Thus, alcohol is particularly hazardous for young users (Smart and Lesley, pg.43). In conclusion, alcohol abuse is a serious social problem which requires particular attention. It may ruin a person’s life. Therefore, timely assistance from the specialist is needed to help them manage the situation and find the solution to their issues. Occasionally, moderate drinking is usually healthy. It may help a person relax, both mentally and physically (Healey and Justin, pg.6). Thus, moderate consumption of alcohol may be healthy or at least not harmful. Its effects depend on the

Longitudinal method compared with 5 other methods in text book Research Paper - 1

Longitudinal method compared with 5 other methods in text book - Research Paper Example In essence, longitudinal studies usually allow tracking of people; therefore, different longitudinal surveys given people are less likely to be the true reflection of cultural or behavior different over a given period (Jin and Rounds, 2012). Longitudinal research methods allow observation of changes in a more accurate way; therefore, it can be applied in different fields particularly business field among other fields (Bryman, 2012). Notably, longitudinal studies often allow accurate observation of changes that occur during the study in numerous fields. In nursing and medicine fields, the study is often designed to reveal the predictors of certain diseases. In marketing, the same study is often applied to identify the needed changes to advertisements due to attitude and behavior changes within the targeted audience. Longitudinal studies are classified among the observational studies; thus, it its application cannot allow the manipulation of variables of the study (Lee and Xia, 2011). In some instances, it has been noted that the longitudinal studies are less powerful to detect any causal relationship between variables than other experimental research methods (Wagner, 2010). However, due to their repeated observations at individual levels, longitudinal studies are more powerful than other cross-sectional observational studies. Additionally, longitudinal studies are capable of excluding time invariants within the unobservable individual difference, and they allow temporal observation of order of events (Morrow, 2011). Nonetheless, the longitudinal studies are every expensive since they take a longer period to be accomplished; thus, making it less convenient research method. Additionally, longitudinal studies may lack accuracy since sometimes they experience changes in variables especially in case of death of a particular data set. These underlying differences and similarities between longitudinal research studies allows to compared with

Characteristics Of A Good Leader

Characteristics Of A Good Leader There are many things we can be determine a leader whether it is good or bad. The most important thing is the characteristics of the leader. Some of the characteristics of a good and efficient leader are through experience, development and leadership training while the others are born to. Those leaders who have in born characteristics of a good and efficient leadership are usually the ones who become a successful leader. This is true because not everyone can lead. Some people are obedient and dormant by nature, and regularly require someone to overlook their schedule or activities and remind them about the extraordinary goal, so that they will not cut out of leadership. The best leaders are those who are naturally born with good qualities of a leader. The characteristics for a good and efficient leader are self leadership, vision, wise, passionate, compassion, charismatic, great communicator, persistent, integrity and disciplined. No matter it is corporate leadership, team leadership or global leadership, the basic characteristics for a good leader remain the same. Additional positive characteristics may be needed, depending on their field of work. The first characteristics is self leadership, this may be the most important characteristics among the rest because it asserts that only when a leader leads him towards a successful achievement whereas he will have the capabilities to motivate his followers to reach their goals or objectives as well. Besides that, good leaders must have a great vision. This kind of leaders, they know what their objective is and which path they want to go. A good leader will know how to motivate their followers to believe in the same vision that they have for their own country, community and their lives. They will have the different way of viewing of what they could be and not what they are. In addition, to become a good leader, usually they will have to make a critical decision at s ome points in their community or organization. To make the community or organization to become successful, the leader must have the knowledge to make the right decision in order to make the organization to be success. Normally, good leaders must be wise, strategic and perceptive. Furthermore, to become a successful leader, usually, the person is very passionate. They will strongly obsess in whatever they are doing. It could be a hobby, sports or business. They will operate with such a very high level of excitement until they will get addicted in it. Other than that, a good leader will have the compassion for their followers or employees. They have great development and coaching skills. While these leaders have the objectives to accomplish, they will regularly care for the individual that supports them. They are not selfish people but only thinking of their own wants and needs. Most of them have a heart for the individuals that follow them. Besides that, most of the good leaders are usually fascinating. They are very friendly as well because they need to tend to draw other people in with their own personalities. They are distinguished building relationships and they have a great patience of performance from their peers. Moreover, basically, a good leader is usually a great communicator and persuaders. They are very comfortable with communicating with other people and are very inspiring people as well. It is not surprising if they can build a good following with this kind of communication ability. Other than communication, good leaders will also need to determine in achieving their objectives. They know that reaching their destination can be filled with a lot of problems or barriers. So, they find that the advantages of achieving the mission are larger than the problems that they are facing with. This situation makes them strongly persistent person. Besides, they mean what they say. They have integrity. They are the peoples who keep their promises or guarantees and they will not play the old political games that plenty of others people do. People find them trustable and as such are dedicated to them. They also need to be bold sometimes coz they have to be brave to chase after their goals or dream. Al though the fears are real, a daring leader continue to chase after it no matter what regardless fears that exits. Last but not least, to become a good and efficient leader you must have discipline so that you can continue your journey to success. But most of other individuals will simply dispirit or distracted if you will not have the level of discipline. A good leader will discipline their mind to be calm and focused on whatever situation they are facing. In conclusion, not all good leaders can follow the entire step. Also, you may be strong at some points and weak at others. But remember, this world no one will be perfect but the person who finds out or understand his weakness and will make an effort to build up these characteristics of good leadership, this person will achieve or succeed for whatever their objectives or mission is. Question 2 (Describe the qualities you will feel justified in calling an individual a successful person) Success has a very extensive definition. You can be triumphant in terms of career, business, power, health, relationship, and discoveries among the others. We know that life will is full with bumpy and rocky highways and confusing side roads. However, it doesnt mean that you should give up easily and lay the rest all your dreams. Despite the uncertainties, here are the ways that guide you to become a successful person. First of all, a successful person, they know what their objective or mission is. They will not stop until they get what they are aiming for. They keep moving forward and will not turn back. They are more educated and know whats right and whats wrong. They must also have their own vision because vision has the ability to be imaginatively and see our life plans in a clear way and comprehensively understood in our mind. One of the greatest masters of vision is Muhammad Ali because his vision of victory will help him to improve his skills and he will analyze every match that he fights. Besides that, to be a successful person, you must have a very high of focus level. If you ever watch a professional sports player during their matches then you will know what focused people looks like. For example, the world class player Roger Federer, he will only focus on the tennis ball when the opponent strikes back to him. He will not think about others stuff such as, where he will go for his next vac ation, what is he going to eat for dinner or what his children are doing now, he will only focus on the tennis ball and which direction to hit. Other than that, a successful person normally is well educated and will keep on learning new skills to improve their knowledge. Education is also one of the main elements for peoples life and it is the root of success. Therefore, give a full attention or priority to education as there is no substitute of it. Furthermore, a successful person will know how to differentiate what is correct and what is now. We have thousands of decision to make every day. We sometimes will run out of the track because of the number of things that we are thinking about every day. Generally, when we want to start to work on something, and then your friend will call you to go out for lunch n others. You know you need to finish your job or work before you do other things but you will find yourself saying, well, I can take a break awhile and go out for lunch with my friends and end up spending more time at lunch with your friends than you wanted. So now you need to stay back at the office for over time and miss your childs game at home. When you know how to differentiate what is important and what is not, you will find yourself achieving your goals or mission a lot faster, and find yourself doing things that you want to do rather than things you have to do. Besides that, the other method to become a successful pe rson is to associate with people whore successful and positive. In the matter of fact, birds of the same feather flock together. You could `learn a lot with these successful people by communicating and associate with them. They will become your basis of what a successful person is. Other than mixing around with successful people, to be successful in life, you also need to be brave to take the risk to solve whatever problems youre facing in the future. You must always remember the word Never Give Up and dont be afraid to take any challenges. When comes to solving problems, be confident and never surrender in finding the solution to solve the problems that youre facing in otherwise you will never succeed in the future. Moreover, a successful person must have the ability to chase after your dreams in the face of difficulty when others will give up. Example, the man who had an extraordinary persistence was Thomas Edison. He conducted over hundreds of experiments to get electricity to produce light. He kept going with his experiments when others told him to stop saying that with every failure he was one step closer to successes. In addition, to be a successful person in life, you need to be committed in whatever youre doing. When a goal or mission needs to take at least more than six month to achieve it, people who are committed will stay on the track until to the very end. Most people want to achieve their goals or mission in a week or in the other word fast, yes, they can but those are short term goals but Im talking about long term goals or mission. When you come to a long term goal, for sure you will get a little staggering when things is not going the right way as you predict it would be. However , taking the time to see the bigger picture will help you to be motivated and will keep you focused. In conclusion, if you want to be a successful people, you need to be hard working and never stop achieving what you aim for whereas being a successful person means looking inside yourself and ask yourself that you are somebody and you have something to offer. When you are trying to decide whether you are a successful person or not, the first person who must believe that you are a successful person is yourself.

Free Glass Menagerie Essays: You Can Run, but You Can’t Hide :: Glass Menagerie essays

You Can Run, but You Can’t Hide in The Glass Menagerie The Glass Menagerie, a play written by Tennessee Williams, takes place in a dingy apartment in St. Louis. The theme of the play could be summarized as â€Å"waiting for better times†. Across the street from the dingy apartment is a club called Paradise Dance Hall. The family’s apartment could be considered the the exact opposite of Paradise. The family who occupies the apartment is not wealthy, and the members of the family all want to be somewhere else. The main characters in the play are the elderly woman Amanda, and her grown-up children Tom and Laura. Amanda's husband, Mr. Wingfield, left his family many years ago. The family still got a picture of him hanging on the wall. Tom is working at a warehouse. He hates his job, but has to earn money to support his mother and sister. He's not happy with his life, and would rather do something completely different. Tom doesn't like to stay at home. He goes out every night, drinking, and going to the movies. Tom doesn't like the way Amanda always tells him what to do. All he wants is for his mother to leave him alone.He'd like to run away and leave his family behind, just like his father did, but he's not sure how to do it. Laura is a very shy young woman. She hardly ever talks to anyone besides her family. She's disabled, and because of that, she has no self- confidence. She can't see how any decent man would like to marry her. The most important things in Laura's life are some old records that belonged to her father, and her collection of glass figures. Amanda is not happy about the way her life turned out to be. When she was young, she had gentleman callers coming over every day. She loves to tell stories from her youth. Then she was a prosperous young woman who believed she'd live happily for the rest of her life. But fate wanted it different. The man she chose, left her, and she had to take care of the children all by herself. Now the only thing she wants, is for her daughter to get married. Amanda wants Laura to get married. But no gentleman caller seem to arrive. Amanda therefore talks Tom into inviting one of his colleagues home for dinner.

Nature Swaps in Latin America

Latin America is currently in a debt crisis. Poor management, over lending by banks, and a bad turn in the world economy has produced severe debt that is forcing these countries to exploit their natural resources in an attempt to ease their economic problems. However, many individuals and organizations have seen a silver lining to this cloud and are now buying debts (at a discounted rate) and giving them back to the debtor countries in return for environmental protection. Although increasingly difficult to achieve, these debt for nature swaps are beneficial to the debtor country and the world. So why do we go to all this trouble for a few countries that are not even big players in the world market? I discovered that we loose about 40 million acres of forest each year and 27 million of that is tropical rain forrest. (White house fact sheet on the President†s Proposal for a Global Forest Convention). Considering that the world†s forest act as respiration, filtration, and cooling system, we must make a concerted effort to conserve and start repairing the damage we have already done. A large part of the worlds forest rest in the debt ridden counrties of Latin America. In an attempt to repay these huge debts, countries are utilizing their natural resourses and straining them to the point where their situation could have global ecological ramifications. There is an undenyable link between the deforestation in Latin America and its enoumous debt. Debt for-nature swaps take advantage of an otherwise bad situation, turn it around, and use it to promote forest conservation in Latin America. The first debt-for-nature swap was with the government of Bolivia and the non government organization Conservation International. Since then, the international community and the United Nations have picked up the idea and now incorperate it in many of their initatives and policies directed toward forest conservation in Latin America. In a debt for nature swap an organization buys a debtor nations foreign debt at a discount ( since most of the worlds financial organizations are eager to unload them) and then forgive it in exchange for a commitment by the country to invest the face value of the debt in environmental conservation. The debt is converted for US dollars to local currency, which is used to fund the programs. This alleviates the debt, and proves a bargain to the organization that initiated the swap. They also receive higher visibility and these types of transactions get them involved in the local government allowing them to pursue future programs. Commercial banks also see a potential in debt for nature swaps. Instead of holding on to a debt that will more than likely never be paid, they donate it to a non government organization and write it off as a charitable donation. More recently, due to a change in international policy, they can not only sell the debt at a discount (recouping some of their loss) , but write it off at face value and gain prestige for their involvement in environmental protection. The role of the debtor nation is a bit more difficult. The debtor nation must agree to essentially buy back the debt by financing the eviromental conservation programs with the converted money and pay any other cost involved in the transaction. Not a bad deal for the debtor nation considering they would have had to pay the initial cost many times over just in interest payments. The USDA forest service says, † The debtor nation consents to the swap terms; bear the cost of: 1 the buy back of the debt from the charitable organization and 2 additional project financing commiserates with the differential between the discount price on the secondary market and the exchange rate for debt converted into local currency. In addition, the project may entail future recurrent expenditures for the host country†s public sector. † Almost all debt-for-nature swaps have some US involvement. Usually we act as the sugar daddy, financing non government organizations and setting up regulations that the debtor nation must meet. In 1990 the US established these regulations under Title VI of the 1990 fact act. The debtor country must be making progress toward the establishment of certain world bank reform programs and be making reforms in the foreign and domestic investment area. The debt swap between the non government organization and the debtor country is negotiated by the US. In exchange for forgiveness of the debt the debtor country must make interest payments into the project, which is governed by a local government body. The body which negotiates the swap is composed of relative US government organizations and some non government relative organizations. Their job is to provide guidance and help carry out the administrative maneuvers needed for such a swap. This type of debt for nature swap is very complicated and has lead conservation groups to look for ways around the jungle of red tape that surrounds these swaps. One type of swap that seems to bypass a lot of these difficulties is an interest swap. The same basic principle applies, but with a twist. The foreign debt is converted into long term bonds by the non government organization and swaps interest payments in return for environmental funding. The debtor nation gets to retire a debt using its own currency, which is diverted to the conservation program. Conservation organizations get some security from inflation and avoid the threat that the debtor nation will renege on its obligations. If the debtor nation stops funding environmental programs, then interest payments resume. Because of the protection and relative ease of this type of swap, it has grown increasingly popular among international conservation organizations. Sometimes a corporation may donate or discount assets it holds in Latin America because they are unable to profit from them. The corporation writes them off as a charitable donation and the non government organization diverts funds for environmental protection. This is a good deal for both since the cooperation gets to write the whole thing off and the conservation organization gets more bang for their buck. This also effectively cuts out the US, the board of overseers, and for the most part, the local government. Once inaccessible financial resources are being tapped, a debt is being retired, and government supported environmental initiatives are being started. All this seems terribly involved and difficult and that is because it is terribly involved and difficult. These swaps are small compared to the overall national deficit of these countries and that is because they have to be. If they were done on a large scale, in the current state of these countries economies, the influx of domestic currency would haave a bad inflationary effect on the economy, and that is the last thing these countries need. The receiptant countries they will loose economic sovergnity in these debt-for-nature swaps. The donor organization and the US negotiators tack on all kinds of stipulations and conditions to these swaps. Less than appealing conditions for countries that are already under the screws of the IMF and the World Bank. The IMF knows they are the last hope for these countries and do not hesitate to impose mountains of economic conditions with their loans. Granted, they are in the interest of neo-liberal economic reform but, any changes made in their fragile economy can have a rippling effect that can affect the political stability of an administration. In such a political climate it is easy to understand why many Latin American countries are reluctant to participate in these swaps when there is a potiential further loss of their economic sovergnty. The intention and idea behind debt-for-nature swaps are noble but, the question comes up, † Are we really helping Latin American countries by interfering in their affairs? â€Å". Is this just more bad breath diplomacy? These debt for nature swaps are likely to only temporarly aleviate some of Latin Americas economic troubles. With these debts retired, they have access to new funds and the cycle of borrowing will continue along with the deforestation. Besides saving the rain forest, what other plans do US and other international cooperations have in mind for Debt-for-nature swaps? It seems to me that this would be a perfect way to take controll of valuable natural resources and save them for later use. After all, most debt-for-nature swaps are essentially a lease that last until the face value of the debt has been spent on conservation and then the government takes back control of the land. Why not take advantage of Latin Americas bad situation and use it to hold on to valuable land until they are out of crisis and the land is safe? Wait for better economic and ecological conditions. Its cheaper than buying the land and paying taxes on it so just write off a bad loan Latin America is currently in a debt crisis. Poor management, over lending by banks, and a bad turn in the world economy has produced severe debt that is forcing these countries to exploit their natural resources in an attempt to ease their economic problems. However, many individuals and organizations have seen a silver lining to this cloud and are now buying debts (at a discounted rate) and giving them back to the debtor countries in return for environmental protection. Although increasingly difficult to achieve, these debt for nature swaps are beneficial to the debtor country and the world. So why do we go to all this trouble for a few countries that are not even big players in the world market? I discovered that we loose about 40 million acres of forest each year and 27 million of that is tropical rain forrest. (White house fact sheet on the President†s Proposal for a Global Forest Convention). Considering that the world†s forest act as respiration, filtration, and cooling system, we must make a concerted effort to conserve and start repairing the damage we have already done. A large part of the worlds forest rest in the debt ridden counrties of Latin America. In an attempt to repay these huge debts, countries are utilizing their natural resourses and straining them to the point where their situation could have global ecological ramifications. There is an undenyable link between the deforestation in Latin America and its enoumous debt. Debt for-nature swaps take advantage of an otherwise bad situation, turn it around, and use it to promote forest conservation in Latin America. The first debt-for-nature swap was with the government of Bolivia and the non government organization Conservation International. Since then, the international community and the United Nations have picked up the idea and now incorperate it in many of their initatives and policies directed toward forest conservation in Latin America. In a debt for nature swap an organization buys a debtor nations foreign debt at a discount ( since most of the worlds financial organizations are eager to unload them) and then forgive it in exchange for a commitment by the country to invest the face value of the debt in environmental conservation. The debt is converted for US dollars to local currency, which is used to fund the programs. This alleviates the debt, and proves a bargain to the organization that initiated the swap. They also receive higher visibility and these types of transactions get them involved in the local government allowing them to pursue future programs. Commercial banks also see a potential in debt for nature swaps. Instead of holding on to a debt that will more than likely never be paid, they donate it to a non government organization and write it off as a charitable donation. More recently, due to a change in international policy, they can not only sell the debt at a discount (recouping some of their loss) , but write it off at face value and gain prestige for their involvement in environmental protection. The role of the debtor nation is a bit more difficult. The debtor nation must agree to essentially buy back the debt by financing the eviromental conservation programs with the converted money and pay any other cost involved in the transaction. Not a bad deal for the debtor nation considering they would have had to pay the initial cost many times over just in interest payments. The USDA forest service says, † The debtor nation consents to the swap terms; bear the cost of: 1 the buy back of the debt from the charitable organization and 2 additional project financing commiserates with the differential between the discount price on the secondary market and the exchange rate for debt converted into local currency. In addition, the project may entail future recurrent expenditures for the host country†s public sector. † Almost all debt-for-nature swaps have some US involvement. Usually we act as the sugar daddy, financing non government organizations and setting up regulations that the debtor nation must meet. In 1990 the US established these regulations under Title VI of the 1990 fact act. The debtor country must be making progress toward the establishment of certain world bank reform programs and be making reforms in the foreign and domestic investment area. The debt swap between the non government organization and the debtor country is negotiated by the US. In exchange for forgiveness of the debt the debtor country must make interest payments into the project, which is governed by a local government body. The body which negotiates the swap is composed of relative US government organizations and some non government relative organizations. Their job is to provide guidance and help carry out the administrative maneuvers needed for such a swap. This type of debt for nature swap is very complicated and has lead conservation groups to look for ways around the jungle of red tape that surrounds these swaps. One type of swap that seems to bypass a lot of these difficulties is an interest swap. The same basic principle applies, but with a twist. The foreign debt is converted into long term bonds by the non government organization and swaps interest payments in return for environmental funding. The debtor nation gets to retire a debt using its own currency, which is diverted to the conservation program. Conservation organizations get some security from inflation and avoid the threat that the debtor nation will renege on its obligations. If the debtor nation stops funding environmental programs, then interest payments resume. Because of the protection and relative ease of this type of swap, it has grown increasingly popular among international conservation organizations. Sometimes a corporation may donate or discount assets it holds in Latin America because they are unable to profit from them. The corporation writes them off as a charitable donation and the non government organization diverts funds for environmental protection. This is a good deal for both since the cooperation gets to write the whole thing off and the conservation organization gets more bang for their buck. This also effectively cuts out the US, the board of overseers, and for the most part, the local government. Once inaccessible financial resources are being tapped, a debt is being retired, and government supported environmental initiatives are being started. All this seems terribly involved and difficult and that is because it is terribly involved and difficult. These swaps are small compared to the overall national deficit of these countries and that is because they have to be. If they were done on a large scale, in the current state of these countries economies, the influx of domestic currency would haave a bad inflationary effect on the economy, and that is the last thing these countries need. The receiptant countries they will loose economic sovergnity in these debt-for-nature swaps. The donor organization and the US negotiators tack on all kinds of stipulations and conditions to these swaps. Less than appealing conditions for countries that are already under the screws of the IMF and the World Bank. The IMF knows they are the last hope for these countries and do not hesitate to impose mountains of economic conditions with their loans. Granted, they are in the interest of neo-liberal economic reform but, any changes made in their fragile economy can have a rippling effect that can affect the political stability of an administration. In such a political climate it is easy to understand why many Latin American countries are reluctant to participate in these swaps when there is a potiential further loss of their economic sovergnty. The intention and idea behind debt-for-nature swaps are noble but, the question comes up, † Are we really helping Latin American countries by interfering in their affairs? â€Å". Is this just more bad breath diplomacy? These debt for nature swaps are likely to only temporarly aleviate some of Latin Americas economic troubles. With these debts retired, they have access to new funds and the cycle of borrowing will continue along with the deforestation. Besides saving the rain forest, what other plans do US and other international cooperations have in mind for Debt-for-nature swaps? It seems to me that this would be a perfect way to take controll of valuable natural resources and save them for later use. After all, most debt-for-nature swaps are essentially a lease that last until the face value of the debt has been spent on conservation and then the government takes back control of the land. Why not take advantage of Latin Americas bad situation and use it to hold on to valuable land until they are out of crisis and the land is safe? Wait for better economic and ecological conditions. Its cheaper than buying the land and paying taxes on it so just write off a bad loan Latin America is currently in a debt crisis. Poor management, over lending by banks, and a bad turn in the world economy has produced severe debt that is forcing these countries to exploit their natural resources in an attempt to ease their economic problems. However, many individuals and organizations have seen a silver lining to this cloud and are now buying debts (at a discounted rate) and giving them back to the debtor countries in return for environmental protection. Although increasingly difficult to achieve, these debt for nature swaps are beneficial to the debtor country and the world. So why do we go to all this trouble for a few countries that are not even big players in the world market? I discovered that we loose about 40 million acres of forest each year and 27 million of that is tropical rain forrest. (White house fact sheet on the President†s Proposal for a Global Forest Convention). Considering that the world†s forest act as respiration, filtration, and cooling system, we must make a concerted effort to conserve and start repairing the damage we have already done. A large part of the worlds forest rest in the debt ridden counrties of Latin America. In an attempt to repay these huge debts, countries are utilizing their natural resourses and straining them to the point where their situation could have global ecological ramifications. There is an undenyable link between the deforestation in Latin America and its enoumous debt. Debt for-nature swaps take advantage of an otherwise bad situation, turn it around, and use it to promote forest conservation in Latin America. The first debt-for-nature swap was with the government of Bolivia and the non government organization Conservation International. Since then, the international community and the United Nations have picked up the idea and now incorperate it in many of their initatives and policies directed toward forest conservation in Latin America. In a debt for nature swap an organization buys a debtor nations foreign debt at a discount ( since most of the worlds financial organizations are eager to unload them) and then forgive it in exchange for a commitment by the country to invest the face value of the debt in environmental conservation. The debt is converted for US dollars to local currency, which is used to fund the programs. This alleviates the debt, and proves a bargain to the organization that initiated the swap. They also receive higher visibility and these types of transactions get them involved in the local government allowing them to pursue future programs. Commercial banks also see a potential in debt for nature swaps. Instead of holding on to a debt that will more than likely never be paid, they donate it to a non government organization and write it off as a charitable donation. More recently, due to a change in international policy, they can not only sell the debt at a discount (recouping some of their loss) , but write it off at face value and gain prestige for their involvement in environmental protection. The role of the debtor nation is a bit more difficult. The debtor nation must agree to essentially buy back the debt by financing the eviromental conservation programs with the converted money and pay any other cost involved in the transaction. Not a bad deal for the debtor nation considering they would have had to pay the initial cost many times over just in interest payments. The USDA forest service says, † The debtor nation consents to the swap terms; bear the cost of: 1 the buy back of the debt from the charitable organization and 2 additional project financing commiserates with the differential between the discount price on the secondary market and the exchange rate for debt converted into local currency. In addition, the project may entail future recurrent expenditures for the host country†s public sector. † Almost all debt-for-nature swaps have some US involvement. Usually we act as the sugar daddy, financing non government organizations and setting up regulations that the debtor nation must meet. In 1990 the US established these regulations under Title VI of the 1990 fact act. The debtor country must be making progress toward the establishment of certain world bank reform programs and be making reforms in the foreign and domestic investment area. The debt swap between the non government organization and the debtor country is negotiated by the US. In exchange for forgiveness of the debt the debtor country must make interest payments into the project, which is governed by a local government body. The body which negotiates the swap is composed of relative US government organizations and some non government relative organizations. Their job is to provide guidance and help carry out the administrative maneuvers needed for such a swap. This type of debt for nature swap is very complicated and has lead conservation groups to look for ways around the jungle of red tape that surrounds these swaps. One type of swap that seems to bypass a lot of these difficulties is an interest swap. The same basic principle applies, but with a twist. The foreign debt is converted into long term bonds by the non government organization and swaps interest payments in return for environmental funding. The debtor nation gets to retire a debt using its own currency, which is diverted to the conservation program. Conservation organizations get some security from inflation and avoid the threat that the debtor nation will renege on its obligations. If the debtor nation stops funding environmental programs, then interest payments resume. Because of the protection and relative ease of this type of swap, it has grown increasingly popular among international conservation organizations. Sometimes a corporation may donate or discount assets it holds in Latin America because they are unable to profit from them. The corporation writes them off as a charitable donation and the non government organization diverts funds for environmental protection. This is a good deal for both since the cooperation gets to write the whole thing off and the conservation organization gets more bang for their buck. This also effectively cuts out the US, the board of overseers, and for the most part, the local government. Once inaccessible financial resources are being tapped, a debt is being retired, and government supported environmental initiatives are being started. All this seems terribly involved and difficult and that is because it is terribly involved and difficult. These swaps are small compared to the overall national deficit of these countries and that is because they have to be. If they were done on a large scale, in the current state of these countries economies, the influx of domestic currency would haave a bad inflationary effect on the economy, and that is the last thing these countries need. The receiptant countries they will loose economic sovergnity in these debt-for-nature swaps. The donor organization and the US negotiators tack on all kinds of stipulations and conditions to these swaps. Less than appealing conditions for countries that are already under the screws of the IMF and the World Bank. The IMF knows they are the last hope for these countries and do not hesitate to impose mountains of economic conditions with their loans. Granted, they are in the interest of neo-liberal economic reform but, any changes made in their fragile economy can have a rippling effect that can affect the political stability of an administration. In such a political climate it is easy to understand why many Latin American countries are reluctant to participate in these swaps when there is a potiential further loss of their economic sovergnty. The intention and idea behind debt-for-nature swaps are noble but, the question comes up, † Are we really helping Latin American countries by interfering in their affairs? â€Å". Is this just more bad breath diplomacy? These debt for nature swaps are likely to only temporarly aleviate some of Latin Americas economic troubles. With these debts retired, they have access to new funds and the cycle of borrowing will continue along with the deforestation.

Jp Morgan& Chase Annual Report

JPMorgan and Chase 2011 Financial Analysis Abbiton Mumba , Bomboma Douti, Thuy Doan, Tracy Nguyen [Type the company address] General Information: JPMorgan Chase (NYSE: JPM) is one of the oldest financial institutions in the United States with a history dating back over 200 years. JPMorgan and Chase is basically included Chase- the U. S. consumer and commercial banking businesses serve customers under the Chase brand. The consumer businesses include: Branch, ATM, telephone and  online banking, Credit cards, Small business, Home finance and  home equity loans, Auto finance, Education finance, Retirement & Investing, Retail Checking.The commercial banking businesses include: Middle Market, Corporate Client Banking, Commercial Real Estate, Business Credit, Equipment Finance, Commercial Term Lending, Community Development. – and JPMorgan which is J. P. Morgan clients include the world's most prominent corporations, governments, wealthy individuals and institutional investors. T hese businesses use the  J. P. Morgan brand: Investment Bank, Asset Management, Treasury Services, Worldwide Securities Services, Private Banking, Private Client Services, One Equity Partners.The corporate headquarters are in  270 Park Avenue,  Midtown,  Manhattan, New York City, New York, and the  retail  and  commercial bank  is headquartered in  Chase Tower,  Chicago Loop,  Chicago, Illinois, United States. The biggest event recently that JPMorgan anticipating in is acquisition of Washington Mutual in 2008. JPMorgan Chase raised $10  billion in a stock sale to cover write-downs and losses after taking on deposits and branches of Washington Mutual  Through the acquisition, JPMorgan now owns the former accounts of  Providian Financial, a credit card issuer Washington Mutual acquired in 2005.The company announced plans to complete the rebranding of Washington Mutual branches to Chase by late 2009. JPMorgan and Chase has the fiscal year end Dec 31. Interne t Information: The internet address of the corporation is www. jpmorgan. com. The website provides broad information. The most important section is the â€Å"Investor relation† section. We can find Financial Information including annual report/ proxy statements, SEC filing, earning release, credit releases, Investor presentations , shareholder information including stock price history.The purpose of website is describe the corporation, provide customer service information, promote the industry the corporate in, provide employment information, publicize corporate citizenship. The annual reports and other different reports can be found in the government website www. sec. gov. The primary Standard Classification (SIC) is 6021 6029 6712 and the Central Index Key (CIK) number assigned to corporations that file with the SEC is 19617. The latest form 10-K is dated February, 29th, 2012. Basically, JPMorgan and Chase have a moderate change in the price of the common stock over the las t two years.The biggest downward slope is between September 2011 to December 2011 and then it continues to be upward sloping. This fall price considers a narrow price range. Income Statement Compared to last year, Revenue growth decreased by -5. 3168%. A decreased of $5,460,000,000. The decline in net revenue from 2010 was driven by lower net interest income, securities gains, mortgage fees related income, and principal transactions revenue, partially offset by higher asset management, administration and commission revenue and higher other income.The increase in noninterest expense was driven largely by higher compensation expense, reflecting increased headcount. Despite the fact that the revenue lost than last year, over the last 5 year the company experienced the increased revenue due to net inflows to products with higher margins, higher deposit and loan balances, and the effect of higher average market levels. Growth in Revenue decreases than last year but Growth in profit incre ases by 9. 2458%. Although the Net Revenue of the current year is less than last year but Pre-provision profit on 2010 decreases from $16,639,000,000 to $7,574,000,000.That reason makes Growth in profit during the current year increased by 9. 2458%. Common-size Analysis: | Current Year| Previous Year| Revenue| 100%| 100%| Non-interest Expense| 64. 70%| 59. 59%| Interest Expense| 13. 99%| 12. 45%| Income Tax Expense| 7. 99%| 7. 29%| Income from continuing operations| 27. 51%| 24. 21%| Net Income| 19. 52%| 16. 91%| In general chase’s total non-interest expenses in 2011 rose 5. 11% higher than the total non-interest expense in 2010. The net income in 2010 seems lower than 2011 due to less operating and investment activities in 2010.Apart the item labeled other expenses and amortization of intangibles; all the other expenses were slightly higher. The increase in non-interest expense was driven largely by higher compensation expense reflecting headcount. The operating cost as part of the non-interest expense was definitely higher compared to 2010. The higher headcount visibly explains this increase. The provision for credit lost was 8. 41% lower than the 2010 provision. This was due to the amelioration of collection from customers. Consumer business modestly improved and mortgage net charge-offs and delinquencies improved.It is probably included in the item â€Å"other expenses† which were lower than 2010 but 6. 38% higher than 2009. Tax Burden: The total revenue in 2011 was 5. 62% lower than the revenue in 2011 but the bottom line was a lot higher than the previous year (2. 61%). The tax burden became consequently higher than the previous year; actually about 0. 7%. The increase in the tax burden due to the higher income in 2011 was definitely the result of the lower provision in credit loss in 2011. The provision in 2010 was about twice the provision in 2011, because of the lower interest revenue.Profitability in 2011 was better than the one in 2010 . As a percentage of total revenue, net income was 2. 61% higher than the one in 2010. Net income in 2011 was by itself 9. 2 % higher than the one in 2010. This was again the result of the lower provision for credit losses. The consumer portfolio also improved. The decline in 2010 was driven by lower net interest income, security gains, mortgage fees and related income. The other-than-temporary impairment losses are included in securities gains for the periods presented was $27million in 2011 and $94 million in 2010. Balance sheet JPMorgan Chase ; Co. s one of the oldest, largest and best-known financial institutions in the world. The firm's legacy dates back to 1799 and operates in more than 50 countries. JPMorgan and Chase is proved to be a mature firm with higher capital and liquidity. The Total Assets on the balance sheet grew $148,187 million, year ending Dec 31, 2011 from previous year ending Dec 31 2010 representing a percentage of 0. 07. The change in Assets were partly due to the acquisition of RBS Sempra on July 1, 2010 and the transaction in 2011 of RBS Sempra which is a commodities’ global oil, global metals and European power and gas businesses.This acquisition almost doubled the number of clients the firm’s commodities’ business can serve and has enabled the firm to offer clients more products in more regions of the world. J. P Morgan Chase completed purchase of the remaining interest in High bridge, which resulted in $228 million Capital surplus. Missing Common size analysis Cash Flow Statement: The cash flows resulting from operation activities in 2010 and 2011 were -$3752 million and $95,932 million. The cash flow resulting from investing activities in 2010 and 2011 was $54,002 million and -$170,752.The cash flow resulting from financing activities in 2010 and 2011was -$49,217 million and $107,706 million. There was a significant increasing in cash $ 32,035 in 2011 and a little $1,361 million in 2010. The beginning in cash balance was $27,567 million and $26,206 million respectively in 2011 and 2010. The ending cash balance in 2011 and 2010 were $59,602 million and $27,567 million. There were three significant sources of cash which were from a hug number of net change in deposit, proceeds from long-term borrowings and trust preferred capital debt securities and from net earnings and sell securities.The three most significant uses of cash were taken from acquisition of businesses or dispositions, purchase securities and loans out and proceed from sales, securitizations and pay downs of loans held-for-sale and net change in trading assets. Based on a comparison of the income statement to the statement of the cash flows, depreciation and amortization in intangible was add back to statement of cash flow and other-than-temporary impairment losses are included in securities gains for the periods presented, caused the greatest differences net income ( loss) and the cash flow from operation. Statement of cha nges in Stockholders’ Equity:The number of common shares outstanding has decreased over 3 years. On March 18, 2011, the Board of Directors approved a $15. 0 billion common equity (i. e. , common stock and warrants) repurchase program, of which $8. 95 billion was authorized for repurchase in 2011. The $15. 0 billion repurchase program superseded a $10. 0 billion repurchase program approved in 2007. During 2011 and 2010, the Firm repurchased (on a trade-date basis) an aggregate of 240 million and 78 million shares of common stock and warrants, for $8. 95 billion and $3. 0 billion, at an average price per unit of $37. 35 and $38. 9, respectively. The Firm did not repurchase any of the warrants during 2010, and did not repurchase any shares of its common stock or warrants during 2009. As of December  31, 2011, approximately 408 million unissued shares of common stock were reserved for issuance under various employee incentive, compensation, option and stock purchase plans, dire ctor compensation plans, and the warrants sold by the U. S. Treasury. Retained Earnings: fixed Dec 31 2011 Dec 31 2010 Beginning Retained earnings (2008) $54,013,000,000 Net Income $944. 00, 000 $1,001,000,000 Ending Retained Earnings $88,315,000,000 $73,998,000,000 From the number above we can conclude that Retained earnings increased in 2008 to $88,315,000,000 from $73,998,000,000 in 2010. Notes and supporting schedules to the financial statements. Cash and cash equivalents: the corporation define their cash equivalents by fund invested in US, T-bills, money market account, demand deposits or small-denomination time deposit and other investment with a maturity of 3 months or less when purchase.Account receivable: The corporation has the gross Account Receivable of $89,087 million current year and $102,413 million in 2010 reflects to 30. 9% and 31. 5% percentage of uncollectible. The lower the ratio the better, JPMorgan and Chase’s percentage uncollectible for 2011 is slight ly better than 2010. The results of the receivable turnover in 2011 and 2010 were 1. 48 times and 2. 69 times respectively. The higher the turnover is the better. However, the current year 2011 is lower than the previous year 2010.This is the result of the higher revenue in 2010. Inventories: N/A Property and Depreciation: The Corporation classified its property, plant and equipment into five categories: land, buildings, leasehold improvements, furniture and fixtures, hardware and software. JPMorgan Chase computes depreciation using the straight-line method over the estimated useful life of an asset. For leasehold improvements, the Firm uses the straight-line method computed over the lesser of the remaining term of the leased facility or the estimated useful life of the leased asset.None of the assets were recognized as impaired during the current year. The Accumulated Depreciation increased from $13,355,000,000 of last year to $14,041,000,000 of current year. Despite the land or co nstruction in progress, percentage of Fixed Asset Depreciation was approximately 23. 17% last year and 23. 26 % this year. For the percentage of fixed asset depreciation do not included land and construction in progress, there is slightly increased from last year to this year. The increase in premise and equipment was predominantly due to renovation of J.P Morgan Chase’s headquarters in New York City, the purchase of a building in London, retail branch expansion in the US, and investment in technology hardware and software, as well as other equipment. The increase was particularly offset by depreciation and amortization. This implies that in the future the company will spend more money on replacing the old equipment and that means it impacts on the capital expenditure on their financial statement. However, the company applies on the fixed asset turnover to generate revenue. The ratios are 7. 50 times last year and 7. 0 this year Operating and Capitalized leases: JP Morgan Cha se hasn’t declared any capitalized leases in the 2011 10K. We do have a section devoted to operating leases. Obligation associated with operating leases in 2011was $2,228 million, and expense associated with operating leases in the current year is $1,825 million. Payment for operating leases next year is $1,753 million. Long term debt: JPMorgan Chase issues long-term debt denominated in various currencies, although predominantly U. S. dollars, with both fixed and variable interest rates.Included in senior and subordinated debt below are various equity-linked or other indexed instruments, which the Firm has elected to measure at fair value. Changes in fair value are recorded in principal transactions revenue in the Consolidated Statements of Income. The following table is a summary of long-term debt carrying values (including unamortized original issue discount, valuation adjustments and fair value adjustments, where applicable) by remaining contractual maturity as of December 31, 2011. Most debts were JPMorgan Chase Capital.The five largest debt were JPMorgan Chase Capital X $1,016 million in amount with the rate of 7%, JPMorgan Chase Capital XXV $2,292 million in amount with the rate of 6. 8% rate, JPMorgan Chase Capitals XXVI $1,815 million in amount with the rate of 8. 0% , JPMorgan Chase Capitals XXVIII $1,500 million in amount with the rate of 7. 2%, JPMorgan Chase Capitals XXIX $1,500 million in amount with the rate of 6. 7%. Those debts aren’t due until next 30 years. JPMorgan and Chase don’t have any significant debt payment outstanding.Pension Plans: JPMorgan and Chase recognize in its statement of financial position the funded status of a benefit plan; measure defined benefit plan assets and obligations as of the end of the employer’s fiscal year (with limited exceptions) and recognize as a component of other comprehensive income, net of tax, the gains or losses and prior service costs or credits that arise but are not rec ognized as components of net periodic benefit costs pursuant to prior existing guidance. JPMorgan and Chase don’t have Defined Contribution Pension expense but Defined Benefit Pension with the expense of 11,808 billion.Defined benefit obligation in the current year: $13461 millions for U. S and Non U. S plans. Fair value of the retirement plan assets at the end of the current year: At December 31, 2011 defined benefit pension plan amounts not measured at fair value included $50 million. At the end of December 2011, the accumulated defined benefit pension obligation had a balance of ($9,008) million, but in my opinion, the plan is well funded. At December 2011, the plan was said to have 2. 6 billion balance overfunded. It is clearly stated in the notes that by December 31st 2011, the U. K plan was $33 million unfunded.Amount recognized on the balance sheet related to pension: $ 1,429 million funded in the U. S, and a non-U. S balance of 160 million. The amount contributed to t he defined benefit pension plan in 2011 was 37 million for the U. S and 169 million for the Non-US. $540 million were paid to retirees in the U. S whereas 93million were paid to non U. S in 2011. Investments in the defined benefit pension fund are the Firm’s U. S. defined benefit pension plan assets are held in trust and are invested in a well-diversified portfolio of equity and fixed income securities, real estate, cash and cash equivalents, and alternative investments (e. . , hedge funds, private equity, real estate and real assets). Non-U. S. defined benefit pension plan assets are held in various trusts and are also invested in well-diversified portfolios of equity, fixed income and other securities. Assets of the Firm’s COLI policies, which are used to partially fund the U. S. OPEB plan, are held in separate accounts with an insurance company and are invested in equity and fixed income index funds. The investment policy for the Firm’s U. S. efined benefit p ension plan assets is to optimize the risk-return relationship as appropriate to the needs and goals using a global portfolio of various asset classes diversified by market segment, economic sector, and issuer. Assets are managed by a combination of internal and external investment managers. Periodically the Firm performs a comprehensive analysis on the U. S. defined benefit pension plan asset allocations, incorporating projected asset and liability data, which focuses on the short-and long-term impact of the asset allocation on cumulative pension expense, economic cost, present value of contributions and funded status.Postretirement Benefits other than Pensions: there is no expense associated with non-pension post-retirement benefit. Benefits obligation for the non-pension post-retirement benefit plan was $999 million in 2011. Fair market value of assets held for non-pension post-retirement benefits plan was 1,435 million in 2011. The plan is adequately funded. The fair market valu e of the post-retirement benefit plan has enough resources to operate. Amount recognized on the balance sheet related to the non-pension post-retirement plan was $436 million.Amount contributed to non-pension post retirement benefits during the current year is $2 million, and amount of non-pension post retirement benefits paid to retirees during the current year is $26 million. Income Taxes: The income tax expense for the current year in the income statement is $7,773 million and $1,693 million of the current year’s income tax expense has been deferred to future periods. The effective tax rate for current year is 29. 1%. There are two types of Income taxes disclosed on the notes: Gross deferred tax asset is $27,632 million and Gross deferred tax liability is $12,856 million.As the results, the Net deferred tax amount is $14,776 million. The significant activities resulted in recognition of deferred tax liabilities that are not yet due to a tax authority are depreciation and a mortization, leasing transactions, non-US transaction and others. On other hand, the significant activities led to the recognition of deferred tax assets will be utilized in the future are allowance for loan losses, employee benefits, accrued expenses and others, non-US operations, tax attribute carry forwards. Stock-Based Compensation: MISSING Segmental and Geographic Information: JPMorgan Chase & Co. JPMorgan Chase) is a financial holding company. The Company is a global financial services firm and a banking institution in the United States, with global operations. The Company is engaged in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing, asset management and private equity. JPMorgan Chase’s principal bank subsidiaries are JPMorgan Chase Bank, National Association, a national bank with the United States branches in 23 states, and Chase Bank USA, National Association, a national bank that is the Company’s credit card-issuing bank.The bank and non-bank subsidiaries of JPMorgan Chase operate nationally, as well as through overseas branches and subsidiaries, representative offices and subsidiary foreign banks. One of the Company’s principal operating subsidiaries in the United Kingdom is J. P. Morgan Securities Ltd. , a subsidiary of JPMorgan Chase Bank; N. A. JPMorgan Chase’s activities are organized into six business segments, as well as Corporate/Private Equity. JPMorgan Chase’s activities are organized into six business segments, as well as Corporate/Private Equity.The Company’s wholesale businesses comprise the Investment Bank (IB), Commercial Banking (CB), Treasury & Securities Services (TSS) and Asset Management (AM) segments. The Company’s consumer businesses comprise the Retail Financial Services (RFS) and Card Services & Auto (Card) segments. Contingencies: NEED TO FIX Probable Litigation: The Firm has established reserves fo r several hundred of its currently outstanding legal proceedings. The Firm accrues for potential liability arising from such proceedings when it is probable that such liability has been incurred and the amount of the loss can be reasonably estimated.The Firm evaluates its outstanding legal proceedings each quarter to assess its litigation reserves, and makes adjustments in such reserves, upwards or downwards, as appropriate, based on management’s best judgment after consultation with counsel. During the years ended December 31, 2011, 2010 and 2009, the Firm incurred $4. 9 billion, $7. 4 billion and $161 million, respectively, of litigation expense. There is no assurance that the Firm’s litigation reserves will not need to be adjusted in the future.Mortgage Foreclosure Investigations and litigation: JPMorgan Chase and four other firms have agreed to a settlement in principle (the â€Å"global settlement†) with a number of federal and state government agencies, in cluding the U. S. Department of Justice, the U. S. Department of Housing and Urban Development, the Consumer Financial Protection Bureau and the State Attorneys General, relating to the servicing and origination of mortgages. The global settlement, which is subject to the execution of a definitive agreement and court approval, calls for the Firm to, among other things: (i) make cash payments of approximately $1. billion (a portion of which will be set aside for payments to borrowers); (ii) provide approximately $500 million of refinancing relief to certain â€Å"underwater† borrowers whose loans are owned by the Firm; and (iii) provide approximately $3. 7 billion of additional relief for certain borrowers, including reductions of principal on first and second liens, payments to assist with short sales, deficiency balance waivers on past foreclosures and short sales, and forbearance assistance for unemployed homeowners. If the Firm does not meet certain targets for provision o f the refinancing or other borrower relief within certain prescribed time periods, the Firm will instead make cash payments. ) In addition, under the global settlement the Firm will be required to adhere to certain enhanced mortgage servicing standards. Overdraft Fee/Debit Posting Order Litigation: JPMorgan Chase Bank, N. A. has been named as a defendant in several purported class actions relating to its practices in posting debit card transactions to customers’ deposit accounts.Plaintiffs allege that the Firm improperly re-ordered debit card transactions from the highest amount to the lowest amount before processing these transactions in order to generate unwarranted overdraft fees. Plaintiffs contend that the Firm should have processed such transactions in the chronological order they were authorized. Plaintiffs seek the disgorgement of all overdraft fees paid to the Firm by plaintiffs since approximately 2003 as a result of the re-ordering of debit card transactions.The cl aims against the Firm have been consolidated with numerous complaints against other national banks in multi-District litigation pending in the United States District Court for the Southern District of Florida. The Firm’s motion to compel arbitration of certain plaintiffs’ claims was initially denied by the District Court. On appeal, the United States Court of Appeals for the Eleventh Circuit vacated the District Court’s order and remanded the case for reconsideration in light of a recent ruling by the United States Supreme Court in an unrelated case addressing the enforcement of an arbitration provision in a consumer product agreement.The Firm has reached an agreement in principle to settle this matter in exchange for the Firm paying $110 million and agreeing to change certain overdraft fee practices. The settlement is subject to documentation and court approval. Service Members Civil Relief Act and Housing and Economic recovery Act Investigations and litigation : multiple government officials have conducted inquiries into the Firm’s procedures related to the Service Members Civil Relief Act (â€Å"SCRA†) and the Housing and Economic Recovery Act of 2008 (â€Å"HERA†).These inquiries were prompted by the Firm’s public statements about its SCRA and HERA compliance and actions to remedy certain instances in which the Firm mistakenly charged active or recently-active military personnel mortgage interest and fees in excess of that permitted by SCRA and HERA, and in a number of instances, foreclosed on borrowers protected by SCRA and HERA. The Firm has implemented a number of procedural enhancements and controls to strengthen its SCRA and HERA compliance.In addition, an individual borrower filed a nationwide class action in United States District Court for South Carolina against the Firm alleging violations of the SCRA related to home loans. The Firm agreed to pay $27 million plus attorneys’ fees, in addition t o reimbursements previously paid by the Firm, to settle the class action. Additional borrowers were subsequently added to the class, and the Firm agreed to pay an additional $8 million into the settlement fund. The court entered a final order approving the settlement in January 2012. Reasonable Possible:The Firm believes the estimate of the aggregate range of reasonably possible losses, in excess of reserves established, for its legal proceedings is from $0 to approximately $5. 1 billion at December 31, 2011. This estimated aggregate range of reasonably possible losses is based upon currently available information for those proceedings in which the Firm is involved, taking into account the Firm’s best estimate of such losses for those cases for which such estimate can be made. For certain cases, the Firm does not believe that an estimate can currently be made.The Firm’s estimate involves significant judgment, given the varying stages of the proceedings (including the f act that many are currently in preliminary stages), the existence in many such proceedings of multiple defendants (including the Firm) whose share of liability has yet to be determined, the numerous yet-unresolved issues in many of the proceedings (including issues regarding class certification and the scope of many of the claims) and the attendant uncertainty of the various potential outcomes of such proceedings.Accordingly, the Firm’s estimate will change from time to time, and actual losses may be more than the current estimate. Auction Rate Securities Investigations and Litigation: Beginning in March 2008, several regulatory authorities initiated investigations of a number of industry participants, including the Firm, concerning possible state and federal securities law violations in connection with the sale of auction-rate securities.The market for many such securities had frozen and a significant number of auctions for those securities began to fail in February 2008. Th e Firm also faces a number of civil actions relating to the Firm’s sales of auction-rate securities, including a putative securities class action in the United States District Court for the Southern District of New York that seeks unspecified damages, and individual arbitrations and lawsuits in various forums brought by institutional and individual investors that, together, seek damages totaling approximately $50 million.The actions generally allege that the Firm and other firms manipulated the market for auction-rate securities by placing bids at auctions that affected these securities’ clearing rates or otherwise supported the auctions without properly disclosing these activities. Some actions also allege that the Firm misrepresented that auction-rate securities were short-term instruments. The lawsuits are being coordinated before the federal District Court in New York.Additionally, the Firm was named in two putative antitrust class actions. The actions allege that the Firm, along with numerous other financial institution defendants, colluded to maintain and stabilize the auction-rate securities market and then to withdraw their support for the auction-rate securities market. In January 2010, the District Court dismissed both actions. An appeal is pending in the United States Court of Appeals for the Second Circuit.Interim (Quarterly Reporting: During the current year 2011, the company’s revenue for 1st quarter is $25,221 million, 2nd quarter is $26,779 million, 3rd quarter is $23,763 million and 4th quarter is $21,471 million. There is a significant fluctuation in quarterly data because It experienced a decrease in revenues during the current year from 1st quarter to 4th quarter. Report of independent Auditors: Auditor is PricewaterhouseCoopers LLP located at 300 Madison Avenue New York, NY 10017. The auditor believes that the financial statements were presented fairly.Their opinion is stated as follow: In our opinion, the accompanying consolidated balance sheets and the related consolidated statements of income, changes in stockholders' equity and comprehensive income and cash flows present fairly, in all material respects, the financial position of JPMorgan Chase ; Co. and its subsidiaries (the â€Å"Firm†) at December 31, 2011 and 2010, and the results of their operations and their cash flows for each of the three years in the period ended December 31, 2011, in conformity with accounting principles generally accepted in the United States of America.Also in our opinion, the Firm maintained, in all material respects, effective internal control over financial reporting as of December 31, 2011, based on criteria established in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Report of Internal control: Management of JPMorgan Chase ; Co. (â€Å"JPMorgan Chase â€Å"or the â€Å"Firm†) is responsible for establishing and maintaining adequate internal control over financial reporting. The same authority, Management of JPMorgan Chase ; Co. â€Å"JPMorgan Chase â€Å"or the â€Å"Firm†) is responsible for maintaining adequate internal control over financial reporting. The auditor does believe that the corporation maintained adequate internal control over financial reporting. Here is their opinion: â€Å"in our opinion, the Firm maintained, in all material respects, effective internal control over financial reporting as of December 31, 2011, based on criteria established in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Ratio Analysis Analysis of profitability: The profit margins were 16. 1% and 19. 52 % to the following 2010 and 2011 year end. The increase in profit margin due to the advantage of the allowance for losses, noninterest revenue and interest expense. Interest income and interest expense is recorded in the Consolidated Statements of Income and classified based on the nature of the underlying asset or liability. Interest income and interest expense includes the current-period interest accruals for financial instruments measured at fair value, except for financial instruments containing embedded derivatives that would be separately accounted for in accordance with U.S. GAAP absent the fair value option election; for those instruments, all changes in fair value including any interest elements, are reported in principal transactions revenue. For financial instruments that are not measured at fair value, the related interest is included within interest income or interest expense, as applicable. The corporation has the return on assets of 0. 86% in 2011 and 0. 79% in 2010. The returns on assets were significant low compare to return on stockholder’s equity of 10. 5% in 2011 and 9. 66% in 2010. In general, JPMorgan and Chase is a big corporation, but they had a tight controlled and managed very well. Therefore, their earning is improved and very stable in recent year although the economy looks doom. Earnings per share (â€Å"EPS†) is calculated under the two-class method under which all earnings (distributed and undistributed) are allocated to each class of common stock and participating securities based on their respective rights to receive dividends.JPMorgan Chase grants restricted stock and RSUs to certain employees under its stock-based compensation programs, which entitle recipients to receive non-forfeitable dividends during the vesting period on a basis equivalent to the dividends paid to holders of common stock; these unvested awards meet the definition of participating securities. Options issued under employee benefit plans that have an anti-dilutive effect are excluded from the computation of diluted EPS. EPS in 2011 was $4. 50 compare to 2010 of $ 3. 98. This increase is the result of increasing in net income in 2011 due to bet ter management.The corporation does disclose the diluted EPS with $4. 48 in 2011 and $3. 96 in 2010. Cash dividend per share in 2011 was $ 0. 94 dollar per share and $0. 36 dollar per share in 2010. Dividend payout ratio for 2010 was 16% and 35% in 2011. Price/ Earning ratio also improves between 2010 with 9. 26 times and 2011 with 9. 62 times. In the past decade, the average P/E ratio for Major Corporation has ranged from 14 to 25. JPMorgan and Chase’s P/E was below the range about 5 points. However, we can’t say that JPMorgan and Chase is no t growing.JPMorgan Corporation is huge plus with the gloomy economy right now, but this corporation still generates profitability while other corporation in the same industry is struggling. This tell us that JPMorgan is a stable for a long run. Analysis of Liquidity: JPMorgan and Chase had the current (working capital) ratio in 2011 of 1. 55:1 and 1. 71:1 in 2010. Net working capital was $964,168 million in 2011 and $932,220 in 2 010. Quick (Acid –Test) ratios were 0. 28:1 in 2011 and 0. 31:1 in 2010. The liquidity position of the corporation weakened a little in 2011.Although there was an increase in cash and receivables in 2011, there was less account receivable compared to 2010. There was also a large increase in current liabilities in 2011, because of the increase in deposit. Based on this, JP Morgan Chase should be able to meet its current obligation even though the ratio was a little down compare to the previous year of 2010. Since it is a big and sustainable corporation in the financial industry, there is rarely a change for them to have a problem with the working capital. Analysis of Solvency: Debt to total Assets in 2011 was 91. 8% and 91. 6% in 2010.There is not much difference between the debt to assets ratio showing the amount of leverage JP Morgan Chase used to finance its operations between the year 2011 and the year 2010.. The rule of thumb is to make sure that the bottom which is the a ssets is larger than the top which is the liabilities. The ratio of 91. 8% percent for the year 2011 and 91. 6% for the year 2010 at first glance would give an impression of a company which is over leveraged. This is not the case, JPMorgan Chase Debt to Assets ratio is very consistent with the banking industry standards especially banks of JPMorgan Chase size.Banks make money by lending other peoples money. It never hurts however, to bring the ratio a little lower as it would give the bank more space to maneuver should there be a financial melting in the general economy like the one experienced in 2008. Potential lenders would prefer the ratio to be as lower as much as possible because that would show that the company has more Assets than Liabilities which can help the company pay its debt when it’s due or assets that can be liquidated to pay its lenders should the company end up in liquidation. Missing Time Interest Earned Ratio Industry Competitor Comparison:A close competi tor of JPMorgan Chase is Bank of America Corporation. The difference between these large banks is that Bank of America is primarily a bank operating in other financial services while J. P. Morgan is an investment firm also operating as a bank. It has offices in more than 60 countries of the world. Both companies have relatively similar gross profit percentages; but percentages changed if we go down to income from continuing operations of both companies. As we see on the table 3, we know that the Net income from continuing operations of JP Morgan Chase is greater than Bank of America Corporation.This shows that Chase is good at managing costs on other income and expenses besides selling general and administrative and others. On the balance sheets, we both see the similar common-size on total assets of both companies. Another difference between two of them is the profitability. As we see on Table 3, profit margin of Chase bank is higher due to net income (gain) while Bank of America e xperiences a net loss. Return on asset for both companies are pretty low on last year. Return on equity for Chase bank is higher that means the shareholders earn a sufficient return on their equity investment.The major different on Profitability ratio between two companies is the dividend payout ratio which is the Bank of America is way too high. It indicates the company pays high dividends whose stock price is temporary not good. Moreover, a high dividend payout ratio can also point to a mature company with few growth opportunities. On other hand, Chase bank has low dividend payout ratio that we know Chase is a fast-growing company whose shareholders willingly forego cash dividends, because the company uses the extra money to generate higher returns and, in turn, a high stock price.As a conclusion, JP Morgan Chase is more profitable than Bank of America Corporation. Compared on the liquidity ratios, both companies meet their requirements on pay their liabilities on time. If we take down to Acid test, we easily understand Bank of America has more liquid assets available to pay its current debts. On the debt ratio, both companies’ ratios are over 0. 5 which means both companies’ assets are finances through debts. On the Time interest earned ratio, JP Morgan Chase is little bit higher which is better since Bank of America Corporation Company has more debts.Last but not least, Operational ratios are very similar and they both efficiently know how to use the assets on sales. As the whole comparison between too biggest bank firms, I think they are overall doing very well on managing their companies. Taking on to the details, JP Morgan Chase has more probability on sales. Bank of America is still doing fine but if I prefer invest on JP Morgan Chase’ stock. |   JP Morgan ;Chase |   | Bank of America Corp. |   | Income Statement Common-Size Data|   |   |   |   | Gross Profit/Sales| 92. 0%|   | 95. 6%|   | Income from Continuing O perations/Sales| 19. 5%|   | 7. %|   | Balance Sheet Common-Size Data|   |   |   |   | Current Assets/Total Assets| 19. 5%|   | 42. 5%|   | Current Liabilities/Total Assets| 71. 4%|   | 74. 1%|   | Liabilities/Total Assets| 91. 9%|   | 89. 2%|   | Equity/Total Assets| 8. 1%|   | 10. 8%|   | Profitabilty Ratios|   |   |   |   | Profit Margin| 19. 5%|   | 1. 3%|   | Return on Assets| 0. 9%|   | 0. 1%|   | Return on Equity| 10. 6%|   | 0. 7%|   | Dividend Payout Ratio| 18. 0%|   | 400. 0%|   | Liquidity Ratios|   |   |   |   | Current Ratio| 0. 62 :1|   | 0. 64:1|   | Quick Ratio| 0. 27 :1|   | 0. 2:1|   | Solvency Ratios|   |   |   |   | Debt/Total Assets| 0. 92|   | 0. 89|   | Times Interest Earned (Accrual)| 3. 00|   | 1. 12|   | Operational Ratios|   |   |   |   | Receivable Turnover| 1. 5|   | 1. 5|   | Inventory Turnover| N/A|   | N/A|   |  © 2008 William R. Pasewark|   |   |   |   | | | | | | Making Decision based on annual report Total net revenue for 2011 was $97. 2 billion, a decrease of $5. 5 billion, or 5%, from 2010. Results for 2011 were driven by lower net interest income in several businesses, lower securities gains in Corporate/Private Equity, ower mortgage fees and related income in RFS, and lower principal transactions revenue in Corporate/Private Equity. These declines were partially offset by higher asset management fees, largely in AM. Investment banking fees decreased from 2010, predominantly due to declines in equity and debt underwriting fees. The impact from lower industry-wide volumes in the second half of 2011 more than offset the Firm's record level of debt underwriting fees in the first six months of the year. Advisory fees increased for the year, reflecting higher industry-wide completed M&A volumes relative to the 2010 level. Management discussion and analysis) Revenues increased from 2009 to 2010 by 2. 25 %. The increase c ame in part from noninterest income, securities and principal transactions. The economy will be the most important factor on the banking industry in the next year. The mortgage industry is still hurting even if it shows some signs of improvement. JP Morgan showed a net profit of at 5 billion this first quarter of the year, but it is hard to predict if the total revenue at the end of the year would match the previous year’s revenues.Next year’s revenue is probably going to be in the 100-103 billion range. JP Morgan Chase’s income comes from diverse business units. The total revenues increased 2. 25% from 2009 to 2010. The increase came from asset management, the noninterest revenue, the security gains and the item marked other income. Also the reduction in the allowances for credit losses for mortgages and credit cards as a result of improved delinquency trends and lower estimated losses reflected the net revenue increase. Principal transactions revenue increased compared with 2009.This was driven by the Private Equity business, which had significant private equity gains in 2010, compared with a small loss in 2009, reflecting improvements in market conditions. Net income next year could be in the 19 to 20 billion range. In my opinion, JP Morgan chase’s assets will have a stable growth in the next few years. Despite the visible improvement in the economy, the banking industry is not likely to record rapid growth in the next few years. The recovery is still weak; investments are still lagging and so directly affecting the books of the banks. I expect the total Assets to increase a little more next year based on the mprovement in the broad United States and World economy. My belief is based on the fact that JPMorgan performed better than the average bank in 2010 and 2010 arguably the west years for any business in recent history due to the subprime mortgage melt down of the financial markets. The last few years so a high number of unemp loyment hitting 10% before starting drop later part of 2011 and the highest number of mortgage foreclosure. The mortgage industry as bottomed and the market is already healing and banks like Wellfargo are already posting stronger than expected results due to their mortgage based assets performing better than expected.JPMorgan Chase’s balance sheet looks relatively strong and do not show that it will need additional financing next few years. It has deposits in excess of $85,279,000,000 and it is sitting on cash of $59,602,000,000. JPMorgan Chase should not have a problem raising funds from the Capital market should they need additional financing based on the strength and growth of its balance sheet. The strength that JPMorgan chase has is the relative ability and strength of deposits which Chase can use to fund its business.This is one advantage banks like Lehman brothers that went under during the financial crisis may not have had. The three areas we see as the strongest aspe ct of JPMorgan Chase is high balance of deposits with the bank in the amount of 85,279,000,000 which shows the relative confidence the market in JPMorgan. Cash deposits are particularly important to banks because they use this morning to lend out for interest and other related fees. The 2011 balance show retained earnings in the amount $88,315,000,000 and retained earning $73,998,000,000 on the 2010 balance sheets respectively.This is important because it shows that JPMorgan Chase have enough resources to fund it operations and enough left over to reinvest into the business for future growth. The Debt to Total Asset ratio was 91. 8% 2011 and 91. 6% 2010 respectively showing that JPMorgan Chase has more Assets than Liabilities which should help the firm raise financing from the markets . should there be a need. This always a good indication to the investors that there investment is covered should the company goes into liquidation.One of the biggest weaknesses we identified was the re lative number of law suits and the amount funds that is being spent on settling law suits. Though the Debt income ratio is way better than most of the banks in its industry, we believe it would be helpful to bring the amount of leverage down to somewhere around . 075 % to better absorb economic shocks in the larger economy. We are very optimistic for the future of JPMorgan Chase especially as the mortgage industry bottom out and American economy continues creating jobs;we will see banks start do declare above average profits. The firm’s Stock price at 43. 4 is performing relatively better than it competitors like Bank of America at 8. 8 and Citi group at 34 indicating that investors still have confidence in the company. We would not invest in the stock of JPMorgan Chase stock at the moment even if we had money available to invest because we strongly feel that JPM Morgan already a very mature company and does not offer much potential for growth. We would instead invest in comp etitors such Capital One Corp. which is a relatively small and growing company with enough potential for growth. There stock price also now at 53 has performed better than JPMorgan Chase over the past year.