Charles and Bill Essays

International Terrorism Essay Example | Topics and Well Written Essays - 1000 words

Global Terrorism - Essay Example Likewise, U.S. insight reports state that Hezbollah cells work in Europe, Africa, South America, and North America. Regardless of Israel's 2000 withdrawal from Lebanon, Hezbollah proceeds to occasionally shell Israeli powers in the contested Shebaa Farms fringe zone. Jihad is a profound war battled for the reason for safeguarding religion. It has an extraordinary hugeness in the lives of Muslims. Like any language, Arabic has remarkable words which have a specific importance which can't be deciphered exactly. The best interpretation known for such a word is the accompanying: a true and recognizable exertion (for good); an all evident and unselfish taking a stab at otherworldly great. Jihad as introduced in theQuranand any ofthe different sacred texts suggests the endeavoring of profound great. Accordingly Jihad can not be called as a psychological militant movement it is just a device for defending the strict rights. This Jihad especially includes change in one's self and mindset. It might concern the penance of material property, social class and even passionate solace exclusively for the salvation and love of 'God alone'. Subsequently, one who rehearses Jihad will pick up immensely in the Hereafter. Question 3 (Osama container Laden and ascent of Al-Qaeda) Osama container Laden is key job player in this world. He is the pioneer of a little association working at a gigantic scope. He is viewed as the most perilous psychological oppressor on the planet. Receptacle Laden joined the Afghan opposition in 1979 and turned into an officer in the guerilla wars against the Soviet Union during the 1980s. After that war finished, receptacle Laden established a free association of expert Islamic psychological militants known as al-Qaeda. Container loaded has been the principle wellspring of fear in the US. After the Soviet... The scientist mentiones that Hamas is that it is an aggressor antipeace process association, twisted on Israel's absolute devastation and the foundation of a Palestinian State - an Islamic religious government - in Israel’s place. Hamas has been effectively associated with penetrating harmony for the Palestinians how ever its drive are against Israel and they show themselves as the worldwide adversary of Israel in this way taking steps to expel the territory of Israel from the guide. Hezbollah is a Lebanese umbrella association of radical ‘Islamic Shiite’ gatherings and associations. It contradicts the West, looks to make a Muslim fundamentalist state displayed on Iran, and is a harsh adversary of Israel. Hezbollah, whose name implies â€Å"party of God,† is a psychological oppressor bunch accepted liable for almost 200 assaults since 1982 that have slaughtered in excess of 800 individuals, as indicated by the Terrorism Knowledge Base. Osama container Laden is key job player in this world. He is the pioneer of a little association working at an enormous scope. He is viewed as the most perilous fear monger on the planet. Receptacle Laden joined the Afghan opposition in 1979. The analyst then concluds that it is difficult to haggle with so much associations as they are unequivocally strict and nobody can cause a fanatic to see effectively as the radical will do anything so as to demonstrate his privilege and worth. Undoubtedly, he is from an inborn family which again makes him an inflexible man, a man of standards, which he will never forego who stressed his longing to make sure about the withdrawal of U.S.

Analytical Essay Introduction

Analytical Essay IntroductionAnalytical essays generally revolve around an idea or topic. It is a good idea to work out what the topic or idea is before you write the analytical essay introduction.A thesis statement or abstract idea can be used in the introduction to compliment the essay. This will establish what your essay is about and allow the reader to start reading.To help your readers remember what you want them to remember, make sure that your sentences are long and flowing well. The introduction should introduce your topic without sounding boring or too wordy. It should also provide clear evidence of your main point so that it doesn't seem as if you are trying to sell a product instead of letting the reader understand it.Before you write the analytical essay introduction, make sure that you have read the assigned text. To help you better understand what it is about, there are some sample analytical essays online. These essays can give you a good idea of how to present your id eas in a way that will interest the reader.When you are writing the introduction, always look for ways to expand on the theme that you have established. Include your idea or topic in other essays you have written. Make sure that you include new ideas that are going to get your readers involved in your story.You want to make sure that you are making your main points obvious, but not so obvious that they seem like they are coming out of thin air. Take the time to really get into the subject so that you are engaging the reader. You can do this by introducing new aspects of your topic that the reader might not know about yet.Once you have had your main point explained, introduce a more interesting person or topic. These people are generally referred to as characters in the story. Also, make sure that you use language that makes sense to the reader so that they can relate to your main points.One of the most important parts of writing an analytical essay is the analysis. It is important t o remember that the analysis is just one part of the whole essay. To ensure that the reader does not lose interest, make sure that you follow up with a conclusion that provides a good summary of the analysis.

Sociology - 1334 Words

INEQUALITIES IN EDUCATION GENDER CLASS ETHNICITY CLASS †¢ WHY ARE THERE INEQUALITIES BASED ON CLASS? †¢ INTELLIGENCE? †¢ VALUES? †¢ CULTURAL OR MATERIAL FACTORS? INTELLIGENCE †¢ Some social scientists argue that some people are simply more intelligent than others. †¢ This assumption results from IQ tests. †¢ However, IQ tests are a questionable tool to measure intelligence. †¢ Because: standards used in such tests are †¢ middle class standards, †¢ Western cultural context Therefore: difficult to measure the Western standard IQ of a nonWestern culture †¢ And: difficult to measure the IQ of subcultures within the same society. †¢ THEREFORE: case of intelligence is largely discredited as a credible explanation to†¦show more content†¦Marriage was attributed to females and careers to males. Gender and Subject choice †¢ There is also a difference in subject choice and gender. †¢ This can be explained by the socialisation process. †¢ Schools can contribute to guiding pupils into stereotypes, for instance if children had to choose subjects, girls are more likely to choose traditionally female subjects, (as noted by Sue Sharpe). †¢ SCIENCE GENDER: ALISON KELLY: †¢ Explains why science tends to be considered a masculine subject: †¢ A) because science subjects are presented in a way that attracts boys more than girls e.g. the way the subject is presented does not give examples which can be understood by both boys and girls, instead, they gave examples derived from e.g. football or car racing, which forms part of boys’ experience more than girls’. Girls’ Achievement: Becky Francis (2000) †¢ Francis states that at school, overall, girls get less attention than boys. †¢ Schools remain generally male-dominated, yet, there is little evidence to suggest that boys and girls are treated differently. †¢ Francis notes that some things seem to have changed since the 1970s: †¢ 1. Pupils no longer assume that girls are less academically able than boys. †¢ 2. Boys too face some disadvantages. †¢ 3. Education does note explicitly disadvantage one sex against another but sees education as being a gendered institution in which both sexes face problems toShow MoreRelatedSocial, Sociology, And Sociology857 Words   |  4 Pagesindividuals who need that extra support. Social work as a subject area includes elements of psychology, law and sociology. Social policy is the study of various areas of policy, within political or governmental setting, and is concerned with everything from the welfare state, to social services. Social policy is an academic study of theory, rather than current policies and draws from psychology, sociology, philosophy, and economics. What A Levels do I need? Each university will ask for varying grades and tariffRead MoreSociology : The Function Of Sociology951 Words   |  4 PagesSociology Observation Essay Sociology is the study of development and functioning of humans in society, in other words how a person reacts in a certain situation. Although hard to understand, sociology has many important points that add into the development of someones personality, values, religion, education, etc. As Pierre Bourdieu once said â€Å"The function of sociology, as of every science, is to reveal that which is hidden.† In this case, the social group that I had studied for 24 hours had manyRead MoreThe Basic Tools Of Sociology And Sociology1034 Words   |  5 PagesArgument: In this piece, Weber outlines the basic tools of sociology and distinguishes sociology as a social science. Weber’s main message in this piece is that that social sciences should be equivalent to natural sciences, and in order to do so, laws should be made within the field. Secondly, he wanted to bring history and sociology together with causal relationships, in doing so he would also analyze the individual’s social action. He mentions that action is only social when it is oriented to theRead MoreSociology1259 Words   |  6 PagesThe concept of sociology had been recognized by independent philosophers since the dawn of organized civilization. Philosophers such as Confucius and Xenophanes in their works had hinted at the clash of cultures and social hierarchy. Later, in the 14th century, Arab scholars such as Al Jahiz and Ibn Khalduns compliled books on the history of society itself. These works are known to be forerunners of sociology. In fact, books written by Ibn K haldun on social cohesion and conflict were translatedRead MoreSociology1447 Words   |  6 Pagescome to be called the labour process approach. †¢ Context for Braverman: ⠝‘ Braverman associated with Monthly Review journal – founded in 1949 by Paul Sweezy and Leo Huberman. An influential journal but little impact on American sociology. Best known product of this school is Baran and Sweezy’s Monopoly Capital (1966). Indeed, Braverman’s analysis of work is predicated theoretically upon Baran and Sweezy’s analysis of ‘Monopoly Capital’ [ie oligopolistic, ‘organized’ capitalism. Read MoreSociology1681 Words   |  7 Pagesfunctionalism) of social class .Following this, it will look at the changes of social class. Finally, it will discuss weather the class of Britain will be dead. Theories of social class There are three basic theories which can explain social class in the sociology history. Marxism was established by Karl Marx(1813-1883).Marx explained that a social class is a group of people who have common relationship to the means of production. For Marx (2008:26), society was characterizes by two social groups: bourgeoisieRead MoreSociology1711 Words   |  7 Pagestake away from this is that you don’t shape reality, culture shapes you and how you view reality. For people who don’t know what sociology is or had no idea what it was before entering the class as I did myself, it can be simply described as a study of social life, social change, and the social causes and consequences of human behavior. A way of understanding sociology can be done through your own sociological imagination. It would be a tool that provides many important perspectives on the worldRead MoreSociology : Sociology And Sociological Thinking978 Words   |  4 PagesSociology and sociological thinking are a vital part of society, and through examining both society and individuals, sociology is able to make changes to areas such as policies, and attitudes that may have usually negatively affected them, and instead gained a positive result through the careful research, and applied knowledge. Sociology is the study of groups and individuals and the cause and effects of each, to each other, and overall society. ‘Sociology is a technical and difficult subject andRead MoreSociology And The Theoretical Perspectives Of Sociology1710 Words   |  7 PagesSociology is seen every day in our lives as humans, it is the scientific study of human behavior and society. The idea of sociology has not been around forever. The term sociology comes from a man named Auguste Comte who takes credit for this study. Not only did Comte come up with this idea but there were several things that influenced the study of Sociology and how we view it today. These influences are called the origins of sociology and they include; new idea or discipline, Industrial RevolutionRead MoreSociology : Social Science And Sociology1386 Words   |  6 Pagesto the history of sociology, it was the nineteenth century that sociology emerged, with the word ‘ sociology ’ appeared in the Cours de ph ilosophie Positive Book 4[ Auguste Comte,1838 Cours de philosophie Positive] by Comte in 1838. The social forces, however, were complicated actually, which included both social, economical, cultural and even a little bit of political or religious elements. This essay explains these factors in the following part. 2.1 Social Science and Sociology The philosophes

Pythagoras Is A Bit Of A Mysterious Figure - 741 Words

Pythagoras of Samos is a bit of a mysterious figure. There are many different accounts of his early and midlife, some of which contradict each other. One thing that is common among all the records is his mathematical achievements. When it comes to math, he played an extremely large part in the development of mathematics. Pythagoras was born in 570 BC in Samos. Most of the information that can be found today about Pythagoras was written a few centuries after he died in 495 BC. His mother was a native of the island Pythagoras was born on. His father was a merchant from Tyre. During his early childhood Pythagoras stayed in Samos, but as he grew older he would accompany his dad on his trading trips. Due to travelling with his dad he studied†¦show more content†¦Odd numbers were thought of as female and even numbers as male.† Out of all the numbers Pythagoras believed that the number ten was the holiest number. He believed this because it was made up of the first 4 digits, and when arranged in 4 rows of points it made a triangle. Pythagoras also discovered prime numbers and composite numbers. He also did some research relating to perfect numbers (the sum of the divisors is equal to the number). The number 6 is an example of a perfect number. (3+2+1=6) He discovered that 28 was also a perfe ct number, and his students later found 496 and 8128 to be perfect numbers as well. Pythagoras’ biggest mathematical work was the Pythagorean Theorem. This theorem had already been discovered by the Babylonians, but Pythagoras was the first to prove that it was correct. This theorem relates to the three sides of a right triangle. It states that the square of a hypotenuse is equal to the sum of the squares of the other sides. The formula for this is â€Å"a^2+b^2=c^2.† In this formula a and b = the two shorter sides of the right triangle. C is equal to the side that is opposite of the right angle, or the hypotenuse. Pythagoras was also responsible for introducing more rigorousShow MoreRelatedQuestions On The Origins Of Philosophy1760 Words   |  8 Pagesalso change into earth and rock. The rise of Milesian inheritors began with a young philosopher from an island near Miletus named Pythagoras. Pythagoras did not seek fulfillment in some material element as most Milesians did. Instead, he held the curious view that all things are numbers. This theory is often misunderstood because it is taken literally. Surely, Pythagoras meant among other things, a correct description of reality must be expressed in terms of mathematical formulas. The law of gravitationRead MoreThe Origins Of The Origin Of Philosophy1752 Words   |  8 Pagesalso change into earth and rock. The rise of Milesian inheritors began with a young philosopher from an island near Miletus named Pythagoras. Pythagoras did not seek fulfillment in some material element as most Milesians did. Instead, he held the curious view that all things are numbers. This theory is often misunderstood because it is taken literally. Surely, Pythagoras meant among other things, a correct description of reality must be expressed in terms of mathematical formulas. The law of gravitationRead MoreDeveloping Management Skills404131 Words   |  1617 PagesData 226 SKILL PRACTICE Applying Conceptual Blockbusting 227 Observer’s Feedback Form 227 Answer to Matchstick Problem in Figure 3.4 229 Answer to Shakespeare Riddle in Figure 3.5 229 Some Common Themes Applying to Water and Finance 229 Answer to Name That Ship Problem in Figure 3.6 230 Answer to Nine-Dot Problem in Figure 3.7 230 Answer to Embedded Pattern Problem in Figure 3.8 231 PART II 4 INTERPERSONAL SKILLS 232 233 BUILDING RELATIONSHIPS BY COMMUNICATING SUPPORTIVELY 234 SKILL

Policy and Politics in Nursing

Question: Explain Policy and politics in nursing. Answer: Introduction Dementia is a neurodegenerative disease characterized by impairment of cognitive skills. It is known to be caused by various disease conditions affecting several Americans and millions of people worldwide (Beerens et al., 2013). There is no cure for dementia presently. The most common form of dementia includes Alzheimer's disease which is observed in 80% cases and other includes mixed dementia, Frontotemperal dementia, Parkinson Dementia or Creutzfeldt - Jakob disease. There are several experimental treatments, which are under animal and human trials and seem to be promising. However, a permanent cure or a specific approach to stop the disease progression will requires several more years of research. Earlier researchers found that there are several issues faced by nurses while taking care of patients with dementia. The major issue is the problematic patient behavior, which not only affects nurses but also families and hospital roommates. Therefore, along with patients, their relatives also require nursing care. Consequently, the problems worsen with the repetition of such problematic behavior and unsuccessful parents assistance. Literature review There are unique challenges presented in therapeutic process by the dementia patients in rehabilitation. It is mostly because of cognitive changes and associated memory loss with the disease (Brooker Latham, 2015). Therefore, nurses actually have to work with these patients in a burdensome cycle. In addition, lack of nursing experience, inadequate training, and lack of cooperation among health professionals exacerbate this cycle (Beerens et al., 2013). Nurses take effort to adapt to this cycle by taking precautions. Therefore, healthcare must come up with protection plans to implement and decrease liability issues. In this section, the identified nursing issues related to dementia are outlined and policies and politics relating to the subject are discussed. Patients with these mental disorders have difficulty in complying with the norms of medical treatment and the environment of the hospital. It is due to the unfamiliar atmosphere that patients suffer anxiety. Being surrounded with strangers, receiving painful treatment and physical restrictions gives rise to problematic behaviors. However, they calm down and feel secured when their families and friends spend time with them (Kenner, 2002). During medical treatment, these patients show dangerous conduct, uncontrolled and unhygienic behavior. They find difficult to abstain themselves from food. Nurses alone cannot control this kind of behavior. Therefore, it requires efforts and cooperation from families of the patients as well (George et al., 2013). Research by (Newcomer Harrington, 2001) showed that irrational behavior of such patients relates to their trouble in perceiving circumstances. Nurses take responsibility in such situations but are unsuccessful in preventing such dangerous behavior. As the major problem in US currently is the shortage of nurses, it has become difficult and hindered the care provided to the patients without dementia. Even if sufficient nurses were available, due to multiple other demands on their time, they could not provide sufficient care. According to the survey of (Downs Bowers, 2014) nurses usually find it difficult to extract out cooperation from the relatives of the patients. Sometimes the problem is that the nurses cannot access informed consent in regards to patients treatment and care when they do not have family or if the patient is older. The other issue includes frustration and abusive behavior of parents or family members of dementia patients causing problem in the hospital. The major hindrance to the medical treatment of such patients is the lack of understanding (Prince et al., 2013). In addition, lack of nursing is the major factor-playing role in adding to the above issues (Cahill et al., 2012). Nurses tend to identify the early signs of problematic behavior as early as they can. It includes observing the regular behavior, any changes in performing daily activities and comprehensive analysis of examination results. Due to difficulty in understanding the symptoms of dementia patients, the detection and prevention of incidents of problematic behavior happens to lag behind (Le Couteur et al., 2013). Nurses tend to seek knowledge from their seniors in terms of handling dementia patients. Other than this, they are left with no option to seek knowledge and advice regarding this disease. Issues could not be settled inspite of attending conferences, discussing critical cases. Sometimes even this discussion was not possible due to the time barrier. Hence, it leaves the nurses all alone to tackle dementia care themselves. Therefore, they deal with it as they occur. It is indicative of the organizational problems including insufficient cooperation among health professionals (nurses, psychiatrists and hospital security staff) and lack of infrastructure (Downs Bowers, 2014). (Prince et al., 2013) stated that Because the nurse call button is not connected to a personal walkie-talkie system, it cannot be heard when nurses are administering care to a patient in a room far from the nurses station. Doctors understanding of patients with dementia is limited. Therefore, even if a nurse asks for a psychiatric consultation, the doctor might say that a consultation is not necessary for that level of dementia and refuse to conduct one. Every hospitals must take the protection plans to eliminate the liability issues. According to () patients are admitted who can go somewhere after discharge or have a family to take care. These measures help maintain the nursing positions. (George et al., 2013) believes that the nurses feel a gap between the ideal situation and the reality of a negative atmosphere. He says that nurses have extra pressure on their mind especially those working on acute care hospital. Due to lack of time the communication with patients is insufficient which was infact necessary for their cognitive improvement. Thus, doctors blame them when patients fall, even if they take precautions to prevent the same. Advancement in technology has bought great changes in the healthcare. Studies by (Le Couteur et al., 2013) show that there is a positive impact of consumer interaction and education. Increase in social media, television commercials helped patients in educating about several health issues and consequences. Increased use of technology has become a nursing trend since several years. Presently there is more focus on telemedicine, with more reliance on portable and mobile technology (Newcomer et al., 2001). Implementing Electronic health records tool has made easy sharing of patients data and improved outcomes. However, it increases the theft of patients private data. Recently there is increase in online nursing education to help nurses further their careers without any compromise. In order to become well equipped with latest technology, softwares for using effectively, nurses will highly collaborate with colleagues and others. Hence, collaborative nursing and care (social worlers, dentis ts, psychiatrists etc.) is expected in near future. According to (Cahill et al., 2012) UK and US has strong political lead in increasing the diagnosis of dementia and treating more number of patients. (Prince et al., 2013) believes that increasing the rate of diagnosis will generate mass awareness in the community. According to Affordable Care Act, health insurances are now accessible by millions of Americans. Hence, it will address healthcare challenges of patients without insurances earlier. To overcome nurse shortage problem the retirement age for nurses have been increased. It helps in new nurses to be trained from experienced ones. Healthcare is becoming more facility-focused and community based nursing is slowly coming back again (Downs Bowers, 2014). Conclusion The study has detailed about dementia, the current issues in nursing in care for dementia and various trends emerging in nursing with an insight into different policies and changes in the health services. A thorough literature search gave a clear concept on this subject and was a thrilling experience. References Beerens, H. C., Zwakhalen, S. M., Verbeek, H., Ruwaard, D., Hamers, J. P. (2013). Factors associated with quality of life of people with dementia in long-term care facilities: a systematic review.International journal of nursing studies,50(9), 1259-1270. Brooker, D., Latham, I. (2015).Person-Centred Dementia Care: Making Services Better with the VIPS Framework. Jessica Kingsley Publishers. Cahill, S., O'Shea, E., Pierce, M. (2012). Creating excellence in dementia care: a research review for Ireland's national dementia strategy. Downs, M., Bowers, B. (2014).Excellence in dementia care: research into practice. McGraw-Hill Education (UK). George, J., Long, S., Vincent, C. (2013). How can we keep patients with dementia safe in our acute hospitals? A review of challenges and solutions.Journal of the Royal Society of Medicine,106(9), 355-361. Innes, A. (2002). The social and political context of formal dementia care provision.Ageing and Society,22(04), 483-499. Kenner, A. M. (2002). Securing the Elderly Body: Dementia, Surveillance, and the Politics of" Aging in Place".Surveillance Society,5(3). Le Couteur, D., Doust, J. A., Creasey, H., Brayne, C. (2013). Political drive to screen for pre-dementia: not evidence based and ignores the harms of diagnosis.BMJ Online. Newcomer, R. J., Fox, P. J., Harrington, C. A. (2001). Health and long-term care for people with Alzheimer's disease and related dementias: policy research issues.Aging mental health,5(S1), 124-137. Prince, M., Bryce, R., Albanese, E., Wimo, A., Ribeiro, W., Ferri, C. P. (2013). The global prevalence of dementia: a systematic review and metaanalysis.Alzheimer's Dementia,9(1), 63-75.

Young Housewife By William Williams Essays - Housewife, Marriage

Young Housewife By William Williams The Idea of Male Power vs. Female Powerlessness in ?The Young Housewife? ?The Young Housewife? is a poem by William Carlos Williams that deals with many issues. One of the main issues that this poem deals with is the conflict between male power and female powerlessness. Although at first glance the poem may not seem to be have this theme in it but Williams's work is filled with multi meanings. It all determines how one would interpret the poem, from the literal meanings to the underlying meanings and symbolism. In the first stanza Williams describes the woman as moving behind the wooden walls of her husband's house?(2-3). This can be taken in a couple of different ways. First of all you could look at it literally and picture the girl in the house moving about do various things. You could also look at it in the way that the woman is being controlled by her husband. Williams refers to her moving about behind her husband's walls. This signifies that the male is the person with all the power and money. He owns the house and the woman is being let to live in it. In the second stanza Williams says, ?Then again she comes to the curb?(5). Hear again Williams is not really clear whether he wants this line to be taken for its literal meaning, which would mean that she woman is simply going to the curb, to get items that were dropped off. He could also be symbolizing to woman that stands on the curb, which is a prostitute. This meaning goes along with the theme of power control because prostitutes are under the control of the person that ?hires' them. It is degrading and gives the woman a bad reputation, and demoralizes them in a way. Going along with the idea of a more sexual theme Williams refers to the woman as a fallen leaf?(9). This can be taken as the woman looks dead, and has no direction in life anymore. The woman may depend upon her husband for things. Like a falling leaf, which when leaf falls from a tree it is essentially dead, and its life is over. In the final stanza Williams writes ?The noiseless wheels of my car rush with a crackling sound over the dried leaves(10-12). I took this as meaning that he used the girl and didn't care what she felt and what happened to her. People drive over leaves all the time without thinking twice. It appears that the man in the story stopped to ?inquire' the woman, without really having any feelings towards her. After using the woman for a sexual purpose, the man in the story just drives away without feeling any guilt. All of these references make me feel that that the woman in the story was really powerless and had no control in her life. I felt that she was not only being controlled by her husband, but because she was made out to be a prostitute she was in the control of every man that she was with.

The Chinese National Anthem

The Chinese National Anthem The official national anthem of China is titled, March of the Volunteers (ä ¹â€°Ã¥â€¹â€¡Ã¥â€ â€ºÃ¨ ¿â€ºÃ¨ ¡Å'æ› ², yà ¬yÇ’ngjÃ… «n jà ¬nxà ­ngqÇ”). It was written in 1935 by the poet and playwright, Tian Han, and the composer, Nie Er. Origins The song  honors soldiers and revolutionaries who fought the Japanese in northeast China in the 1930s. It was originally written as a theme song to a popular propaganda play and movie that encouraged the Chinese people to resist the Japanese invasion. Both Tian Han and Nie Er were active in the resistance. Nie Er was influenced by popular revolutionary songs at the time, including The Internationale. He drowned in 1935. Becoming the Chinese National Anthem Following the Chinese Communist Partys victory in the civil war in 1949, a committee was set up to decide on a national anthem. There were nearly 7,000 entries, but an early favorite was March of the Volunteers. It was adopted as the provisional national anthem on September 27, 1949. Anthem Banned Years later during the political turmoil of the Cultural Revolution, Tian Han was jailed and subsequently died in 1968. As a result, March of the Volunteers became a banned song. In its place, many used The East is Red, which was a popular Communist song at the time. Restoration March of the Volunteers was eventually restored as the Chinese national anthem in 1978, but with different lyrics that specifically praised the Communist Party and Mao Zedong. After the death of Mao and the liberalization of the Chinese economy, Tian Hans original version was restored by the National Peoples Congress in 1982. The Chinese anthem was played in Hong Kong for the first time in the 1997 handover of British control of Hong Kong to China, and in the 1999 handover of Portuguese control of Macao to China. They were subsequently adopted as the national anthems in Hong Kong and Macao. For many years until the 1990s, the song was banned in Taiwan. In 2004, the Chinese constitution was officially amended to include March of the Volunteers as its official anthem. Lyrics of the Chinese National Anthem è µ ·Ã¦  ¥Ã¤ ¸ Ã¦â€ž ¿Ã¥ Å¡Ã¥ ¥ ´Ã©Å¡ ¶Ã§Å¡â€žÃ¤ º ºÃ¤ » ¬ Stand up! Those who are unwilling to become slaves! 把我ä » ¬Ã§Å¡â€žÃ¨ ¡â‚¬Ã¨â€šâ€°Ã§ ­â€˜Ã¦Ë† Ã¦Ë†â€˜Ã¤ » ¬Ã¦â€" °Ã§Å¡â€žÃ©â€¢ ¿Ã¥Å¸Å½! Take our flesh, and build it to become a new Great Wall! ä ¸ ­Ã¥ Å½Ã¦ °â€˜Ã¦â€" Ã¥Ë† °Ã¤ ºâ€ Ã¦Å"ی  ±Ã©â„¢ ©Ã§Å¡â€žÃ¦â€" ¶Ã¥â‚¬â„¢ The Chinese people have reached a most dangerous time, æ ¯ Ã¤ ¸ ªÃ¤ º ºÃ¨ ¢ «Ã¨ ¿ «Ã§ â‚¬Ã¥ â€˜Ã¥â€¡ ºÃ¦Å"ی Å½Ã§Å¡â€žÃ¥  ¼Ã¥ £ °Ã£â‚¬â€š Every person is being compelled to send issue a final roar. è µ ·Ã¦  ¥Ã¨ µ ·Ã¦  ¥Ã¨ µ ·Ã¦  ¥ Arise! Arise! Arise! 我ä » ¬Ã¤ ¸â€¡Ã¤ ¼â€"ä ¸â‚¬Ã¥ ¿Æ' We are millions with one heart, 冒ç â‚¬Ã¦â€¢Å'ä º ºÃ§Å¡â€žÃ§â€š ®Ã§  «Ã¥â€° Ã¨ ¿â€º Braving our enemy’s gunfire, march on! 冒ç â‚¬Ã¦â€¢Å'ä º ºÃ§Å¡â€žÃ§â€š ®Ã§  «Ã¥â€° Ã¨ ¿â€º! Braving our enemy’s gunfire, march on! å‰ Ã¨ ¿â€ºÃ¥â€° Ã¨ ¿â€ºÃ¨ ¿â€º! March on! March on! Charge!

Megapiranha - Facts and Figures

Megapiranha - Facts and Figures Name: Megapiranha; pronounced MEG-ah-pir-ah-na Habitat: Rivers of South America Historical Epoch: Late Miocene (10 million years ago) Size and Weight: About five feet long and 20-25 pounds Diet: Fish Distinguishing Characteristics: Large size; powerful bite About Megapiranha Just how mega was Megapiranha? Well, you may be disappointed to learn that this 10-million-year old prehistoric fish only weighed about 20 to 25 pounds, but you have to bear in mind that modern piranhas tip the scale at two or three pounds, max (and are only truly dangerous when they attack prey in large schools). Not only was Megapiranha at least ten times as big as modern piranhas, but it wielded its dangerous jaws with an additional order of magnitude of force, according to a recently published study by an international research team. The largest variety of modern piranha, the black piranha, chows down on prey with a biting force of 70 to 75 pounds per square inch, or about 30 times its own body weight. By contrast, this new study shows that Megapiranha chomped with a force of up to 1,000 pounds per square inch, or about 50 times its own body weight. (To put these numbers into perspective, one of the most fearsome predators that ever lived, Tyrannosaurus Rex, possessed a biting force of about 3,000 pounds per square inch, compared to a total body weight of about 15,000 pounds, or seven to eight tons.) The only logical conclusion is that Megapiranha was an all-purpose predator of the Miocene epoch, chowing down not only on fish (and any mammals or reptiles foolish enough to venture into its river habitat) but also large turtles, crustaceans, and other shelled creatures. However, theres one nagging problem with this conclusion: to date, the only fossils of Megapiranha consist of bits of jawbone and a row of teeth from a single individual, so a lot more remains to be discovered about this Miocene menace. In any event, you can bet that somewhere right now, in Hollywood, an eager young screenwriter is actively pitching Megapiranha: The Movie!

Prokaryotuc and eukarytotic cell & endocrine and exocine glands Essay

Prokaryotuc and eukarytotic cell & endocrine and exocine glands - Essay Example Prokaryotic organisms like bacteria have cell walls that have peptidoglycan. Bacteria are unique organisms that have this material inside their cell walls and no any other organism has this material. Some of the eukaryotic cells have cell walls for example eukaryotic animal cells do not have cell walls while eukaryotic plant cells as well as fungi have cell walls that consist of cellulose and chitin (Black 93). Prokaryotic cells lack a nucleus but there is a central nuclear region. In addition, prokaryotes also have a single molecule of DNA that is circular in shape. Nucleus is the most important and unique part of eukaryotic cells and maximum DNA of the cell is present in the nucleus and multiple molecules are present (Campbell and Farrell 16). In prokaryotes, DNA is located in the nuclear region that does not have any membrane while in eukaryotes DNA is enclosed in Nucleus covered by nuclear envelope (Black 80). Eukaryotic organisms are bigger in size as compared to prokaryotic org anisms for example eukaryotic organisms consist of size from1 micrometer to 1 millimeter while prokaryotic organism consists of size from 1 to 10 micrometers. Eukaryotic animals have centrioles and centrosome while eukaryotic plants, fungi, algae and prokaryotic organisms do not have centrioles and centrosome. ... example, all eukaryotic cells have mitochondria except oddball parasites and all eukaryotic plants have chloroplasts that help in the food making process with the help of photosynthesis (Campbell and Farrell 19). Binary fission is the cell division process in prokaryotes while in eukaryotes, cells divide through mitosis and meiosis. Prokaryotic cells divide by asexual reproduction but eukaryotes divide by asexual as well as sexual reproduction (Black 80). Prokaryotes as well as eukaryotes can be autotrophic (generating food themselves) as well as heterotrophic (getting food from other sources). Examples of prokaryotes are bacteria while plants and animals can be taken as examples of eukaryotes. Autotrophic prokaryotes are photosynthetic (who make organic food using energy from sunlight) as well as chemosynthetic (who make organic food using energy from inorganic chemicals) while eukaryotes are photosynthetic but not chemosynthetic (Black 81). Difference between Endocrine and Exocrine Glands Human body consists of two types of glands that are endocrine and exocrine. Endocrine system contains glands that are responsible for discharging their secretions. Endocrine glands are responsible for discharging their secretions within the body while exocrine glands secrete on the body surface. The secretions that are secreted by the glands are the hormones (Clark 229). There are number of hormones that move from here to there in the body in the flow of blood. Level of hormones is influenced due to minerals in the blood, stress, infection in the body and misbalance in the fluid. Both exocrine glands and endocrine glands are formed from epithelial tissue (Clark 229). Exocrine glands secrete with the support of ducts while in endocrine glands, no distinct ducts are present for

Transformational and Shared Instructional Leadership Assignment

Transformational and Shared Instructional Leadership - Assignment Example A total of 24 schools have been nationally chosen to participate in the research. Of these 24 schools, 8 schools offer elementary education, 8 offer middle school education and another 8 offer the high school education. In an attempt to keep accordance with the data that is largely structured in a multilevel fashion, the researchers have resorted to use the Hierarchical Linear Modeling (HLM) as the primary technique for analysis. As a result of the study, the researchers have concluded that the transformational leadership is a compulsory element for the instructional leadership, though it is insufficient. In order to improve the quality of teaching and education of a school and make the students show good performance and achieve higher grades, it is imperative that the two leadership conceptions, i.e. the shared instructional and the transformational leadership exist simultaneously and mutually integrate into the leadership. Their coexistence has a substantial impact of the overall p erformance of the school, the personnel associated with it and the students. â€Å"A Review of Transformational School Leadership Research 1996-2005† (Leithwood and Jantzi, 2005). Theoretical Synthesis: Transformational leadership has conventionally remained a subject of universal debate particularly with reference to its application in schools. Various studies have been done in the past to study the impact of transformational leadership on the environment of studies. However, the number of studies that have conventionally attempted to investigate the moderators and antecedents of the transformational style of leadership ion schools is very low. This particular research conducted an in-depth analysis of 32 such researches and empirical studies that have been conducted in the past from 1996 to 2005 in order to understand the nature of transformational leadership in schools, the different variables which regulate the effects of the transformational leadership on the students in an educational setup as well as the antecedents of this type of leadership. As a result of the study, researchers have reached the conclusion that the transformational leadership has obvious effects on the achievement of students in their studies and their involvement in the various activities of school, though the effect is largely indirect in nature. There is a whole range of variables that influence the impact of the transformational leadership on the performance of students which include but are not limited to the culture of the school, the commitment of mentors with their job as well as the level of satisfaction they maintain with the job of teaching. â€Å"Transformational Leadership: Industrial, Military, and Educational Impact† (Bass, 1998). Theoretical Synthesis: Leadership theory has long been focusing on the transactional exchange between the followers and a leader until the transformational-transactional form of leadership surfaced to reflect good leadership prac tices. In this research, a total of 11 questions which affect the application of the new paradigm of transformational-transactional leadership have been put forth. The 11 questions are discussed in separate chapters. Various aspects of the transformational-transactional leadership have been comprehensively discussed in this research which include its contribution to the commitment of followers, its role in relieving the stress of followers, effect of

The Battle of the Somme Essay -- Papers

The Battle of the Somme The Battle of the Somme involved the main allied attack on the Western Front in the 1st World War. It is mainly famous due to the loss of 58,000 British troops on the first day of battle (1st July 1916). The attack ran from 1st July until 18th November and was located upon a 30-kilometre front, from North of the Somme River between Arras and Albert. The offensive was planned earlier in 1915 and was intended to be a joint Franco-Anglo attack. The French Commander in Chief, Joffre, said that the aim was to drain the German forces of reserves, however territorial gain also had some input. Sir Douglas Haig was the Commander in Chief of the BEF who would be conducting the major offensive in 1916. Originally, although the British forces made up the bulk of the offensive forces, the attack was to be predominantly French. However the German siege on Verdun at the beginning of 1916 resulted in the diversion of almost all-French manpower and efforts as Falkenhayn had promised to bleed France white. This changed the intent of the Somme attack and the French ordered the planned date (1st August 1916) to be bought forward to 1st July, the aim now to divert the Germans from Verdun to the defence of the Somme. Haig now had no choice but to take charge of the attack in Joffre's absence. He used both the ideas of himself and those of General Rawlinson. On Saturday 24th June the attack proceeded by an eight-day preliminary bombardment on the German lines. The expectation being that all forward German defences would be destroyed leaving the at... ...Battle of the Ancre where the field fortress of Beaumont Hamel was captured. The British were finally progressing, but even this was bought to a halt when extremely bad weather caused the Somme offensive to end. The result had been an estimated 420,000 British casualties, a further 200,000 for the French and around 500,000 for the Germans and all for only 12 kilometres of land in Britain and Frances favour. Over 1 million lives were lost in this battle alone and all the Somme offensive was designed for was to divert German attention from the French at Verdun. Some believe this battle acted as a learning curve in the employment of artillery, which contributed to the victory in 1918. In my opinion it shows the severity and pointlessness of war. Hardly anything was achieved apart from the loss of thousands of lives.

Banana Cake Essay

Greetings, my fellow visitors, today, I would like to recommend a few local dishes which you might want to indulge yourself while you are here. Firstly, I would like to recommend you an intercontinental dish known as†¦ Chilli Crab Chilli Crab, also known as Singapore’s unofficial â€Å"national dish† is cooked in various ways. The most common style is done with chilli and sweet-sour sauce ribboned with beaten egg. My favourite way and probably the most common, is to eat it with French bread or Chinese buns called Mantou to help you soak every last drop of delicious sauce. I strongly recommend all of you to try this dish as it is by far the best seafood dish in Singapore. Secondly, I would like to recommend to you the famous Chinese dish†¦ Fried Hokkien Mee You can easily imagine, from this description, how good this dish tastes! Egg noodles and rice vermicelli otherwise known locally as bee hoon, stir-fried with pork, prawn, squid, bean sprouts and loads of garlic, and then braised in a rich pork and prawn stock. The dish is served steaming hot and garnished with fresh lime and a dollop of spicy chilli sambal. Alive with the pungencies of both China and Southeast Asia, Fried Hokkien Mee is one of the favourite Singapore dishes. Now, I would like to recommend a unique dish eaten by all races. This dish is none other than†¦ Mee Rebus Translated into English, this dish means simply ‘boiled noodles’ — but the dish is anything but simple. It is yellow egg noodles in thick, spicy, slightly sweet gravy, garnished with boiled eggs, sliced green chilies, fried cubes of beancurd, and fresh lime. Some people add a dash of dark soy sauce as a finishing touch†¦. Just like our multiracial society, Mee rebus is a fine example of a fusion cuisine. The egg noodles, beancurd and dark soy sauce are Chinese touches, while the gravy speaks of combined influences from Indian and Malay cuisine, with its curry-like flavour and use of dried shrimp and tamarind. Last but not least, I would like to recommend the traditional Indian dish†¦ ? Roti Prata A dough-based flat pancake that is cooked by heating over a flat grill plate. Roti prata is commonly served with either vegetable or fish curries, but it is not unusual to see it being eaten plain with white large-grain sugar. Prata-making has been refined to such an art that if you’re lucky, you’ll sometimes see cooks get theatrical with the flipping and turning of the prata as it’s being cooked over the plate.

The Declaration Of The United States - 990 Words

complete 16. The UN passed the Resolution 2065 which notified members of the organization to end any form of colonialism 16. However after constant negotiations, nothing was ever done. If anything, only confrontations began to surface. On March 26th, General Galtieri of Argentina made the decision to invade the Falklands 4. On April 2nd, Argentina invaded the islands breaking off all relations with Britain. First, Argentine troops occupied the islands capital, Stanley, and imprisoned the islanders for weeks until the arrival of the British troops4. With these attacks happening, Britain’s allies came in hand and showed support by announcing opposition towards Argentina. On April 10th, the European Economic Community approved trade sanctions against Argentina. Britain received support from America when President Ronald Reagan abandoned the shuttle diplomacy that was once proposed between Britain and Argentina 4. After several actions of resistance, the Argentines were defeated b y the British and surrendered on June 14th 1982. As a result of the war, nearly 1,000 lives were lost 4. US vs. Latin America After the war, the main priority for Britain was the reconstruction where it turned out to be quicker than expected. As we saw the history of the dispute, US interests were in favor of Britain when both Presidents Andrew Jackson and Ronald Reagan declared Argentina’s actions as unlawful. However according to the public, it seems that the Obama Administration have changedShow MoreRelatedThe Declaration Of The United States Essay1113 Words   |  5 Pagesadopted the Declaration of Independence on July 4, 1776. Thomas Jefferson drafted the declaration, with a preamble by John Adams and editing by Benjamin Franklin and other members of Congress, it outlines the offenses of King George III to justify the vote for independence that had taken place two days earlier. The Declaration closed the door on reconciliation with Great Britain, with the colonies already one year into war. The declaration paved the way for the creation of the United States of AmericaRead MoreDeclaration Of The United States1530 Words   |  7 PagesDeclaration of War It is very well known within the American public that Congress is the only one who has the power to declare war. Interestingly enough, ever since World War II congress has yet to formally declare war on anyone. For this reason, it is fair to say that the power to declare war has shifted away from congress and towards the President as congress merely agrees to seek resolutions involving military efforts but, again, without actually formally declaring war (Official DeclarationsRead MoreThe Declaration Of The United States1150 Words   |  5 Pages 1852 the South Carolina State, justified its intentions to secede from the United States due to the increased violations of the Constitution by the Federal Government as well as its limitation on the reservation rights within the States. In 1860 after Abraham Lincoln election the South thought that the government was becoming too powerful, which led South Carolina to secede as the first state from the United States Union. However, remaining as part of the United States would be the best resolutionRead MoreThe Declaration Of The United States Essay1831 Words   |  8 PagesToday, it is safe to say that many of United Sates citizens are unsure about the future of our country. In Our Declaration, Danielle Allen claims that the future of our country is secured by citizens who play their part in the system. She writes, â€Å"Politics is an activity where people, thanks to their wakefulness, can organize themselves and set up institutions so that they can all collectively protect themselves without having to fight with each other† (Allen 176). She has confidence that citizensRead MoreThe Declaration Of The United States1346 Words   |  6 Pageseventually resulted in a Revolutionary War between England and the Colonies; The Thirteen Colonies won the war. It was the Treaty of Paris (1783) that finally ended all ties with Britain; America would claim its identity as its own. The Declaration of Independence (1776), written by only educated white men – Thomas Jefferson (Southern Colony), Benjamin Franklin (Middle Colony), and John Adams (Northern Colony) - established the basic rights that citizens were entitled to in a free countryRead MoreThe Declaration Of Independence And The United States895 Words   |  4 Pageswere originally drafted. The U.S. Constitution, the Declaration of Independence, and Thomas Jefferson’s Letter to the Danbury Baptist Church are three documents that are still hold relevance in today’s societal discussions. These three documents hold truths, principals and ideologies that were and are crucial to the continuation and the development of the United States. The very ideas and tribulations that led to the development of the United States are expressed loudly in these three documents. WhileRead MoreThe Declaration Of Independence By The United States1106 Words   |  5 PagesThe setting of the Declarat ion of Independence was the United States. It was declared on July 4, 1776. After the Boston tea party rebellion the United states wanted their independence. One will describe why the declaration of independence was written. What lead to the cause for writing such a document. The leaders who wrote the declaration. And what the colony was going through for it to lead to the circumstances. One will look at how England was treating the colonies that made them want to be theirRead MoreThe United States Of The Declaration Of Independance1483 Words   |  6 Pages Calvin Coolidge spoke on July 5th 1926 in Philadelphia to celebrate the 150th anniversary of the signing of our Declaration of Independance. Coolidge’s assertion was that over the 150 years we had remained true to the ideals in the Declaration. The basis of the document being all men were equal with unalienable rights is the backbone for our country and we had maintained it as our backbone. It may have been a bit of a r ough road on the way but it had been done. He not only claimed we had remainedRead MoreThe Declaration Of Independence And The United States897 Words   |  4 Pages The Declaration of Independence stated the United States should be established as a country, free from British control, the U.S. Constitution is a set of rules for that nation to follow, and Mark Twain’s As Regards Patriotism examines how these two documents affect the mindset of this country. Groupthink, not a word use in 1900, when Twain penned his essay, but it is a good analogy of what he was discussing. Psychology Today says, â€Å"Groupthink occurs when a group values harmony and coherenceRead MoreThe United States Of The Declaration Of Independence1404 Words   |  6 PagesOn July 4th, 1776 the American Colonists ratified The Declaration of Independence. This Declaration severed their final ties to England and idealized the formation of an equal society, independent of a corrupted centralized gov ernment like that of Britain. In order to accomplish this perfect nation, the Americans followed the Declaration with the creation of The Articles of Confederation. The Confederation s purpose was to guide the young republic to a decentralized government that upheld the

The Relevance and Authority of Scripture Essay - 952 Words

The relevance and authority of scripture from three different viewpoints first evangelical with its strong emphasis on the Word of God it left little room to advance with the ever changing culture. Second the Liberal movement was all about cultural relevance and used only as a record of history. Each holds a valid argument Neo-Orthodox however is a good blend of both cultural relevance and scriptural foundation. The Issues Evangelical Evangelicalism carried a strong emphasis on the Word of God. Which is in its own right a positive to the movement. Bible is used as the center of the Christian faith, however where they went wrong was saying that God is not moving anymore and what we have in this book is all that there is. There is no need†¦show more content†¦They degraded the authority and importance of the Holy Scriptures keeping Christianity relevant to a changing society, even at the expense of its traditional practices this was the premise of the liberal movement. Friedrich Schleiermacher believed that a person’s private revelations of God took precedence over their revelations from Scripture. Neo-Orthodox Neo-Orthodox was established immediately after World War 1 by Karl Barth and Emil Brunner, it directly opposed the liberal movement. It said that experience is not everything, you must have the foundation of the Bible. The main focus was on the gospel message which the Bible relayed, not on the book itself (Lane 271) Neo-Orthodox stands on the fact that sin is imamate and only God can free one from sin. Karl Barth, the forerunner of Neo-Orthodox thought, viewed the Bible not as a history book or instructional for doctrine (2 Tim 2:15), but as a constantly changing event that spoke to the heart of humanity (Lane 274) The Implications Liberalism was under the influence of cultural relevance and made every attempt to show that that experience and not necessarily the factual part of religion is what made it real. Schleiermacher separated the thinking of revelatory personal experience from that of rational due to the supposed lack of rational thinking. By doing this he also protected theShow MoreRelatedSeized By Truth: Reading The Bible As Scripture Is Written1048 Words   |  5 PagesSeized by Truth: Reading the Bible as Scripture is written by Joel Green, a New Testament scholar, and Professor of New Testament Interpretation at Fuller Theological Seminary in Pasadena, California. Prof. Green, has participated and contributed greatly on a wide range of topics related to both New Testament scholarship and theology. In Green’s book, he states Reading the Bible as you would read any other book does not support a reading of the Bible as Scripture (2). â€Å"This way of engaging the BibleRead MoreThe Doctrine Of Biblical Inerrancy1076 Words   |  5 Pageshistory, poetry, and written letters. Some would argue that the contents of Scripture are inaccurate, however would still agree that it carries significant value as a piece of literature. Conversely, those who ascribe to the teachings of the Bible are dealt with questions about the authority and inerrancy of Scripture. It is becoming increasingly important that Christians understand and embrace the full inerrancy of Scripture. The theological implications dictate the contemporary church’s view of GodRead MoreEssay on Authority in Lisa Cahill’s â€Å"Homosexuality1169 Words   |  5 PagesAuthority in Lisa Cahill’s â€Å"Homosexuality The most difficult part of any modern theological debate is choosing the authority. With the variety of Christian denominations, individual thinkers, and outside influences, and it is often difficult to reach a general agreement. In her essay, â€Å"Homosexuality: A Case Study in Moral Argument,† Catholic theologian Lisa Cahill examines four major authorities and different ways to determine how they work together to produce a cohesive Christian ethic.Read MoreComplementarian Interpretation. Edward Donnelly Begins953 Words   |  4 Pagespursuit of cultural relevance and pragmatism over biblical faithfulness. For over nineteen hundred years, Donnelly points out that Christians have understood this passage to mean that Paul prohibits women from teaching publicly or holding ruling office. Donnelly recognizes that there are those who have developed biblical arguments to deny Pauls’ prohibition of women preaching and holding ruling offices within the church. The first of the arguments is that though it is in the scripture, the passage isRead MoreEssay about Womens Roles1700 Words   |  7 Pagesthe position of women in Hinduism, we must recognize the Hindu scriptures guidelines to a woman’s position in Hindu society, but fail to address some roles of a Hindu woman specifically. This vague generalization of a woman’s role in the religious spectrum leaves open interpretation for the woman. Conflict arises when women are criticized by men, for the way they interpret the guidelines. Critically, we begin with the Hindu scriptures, because it is the heart and source of thei r cultural norms whichRead MoreWaiting For Godot And Dr Strangelove Essay1481 Words   |  6 Pagesenduring relevance.† Following the dropping of the atomic bombs at the end of World War Two, global consciousness began to slowly change due to the realisation that civilisation could be destroyed at the press of a button. Texts that are able to grasp these changes, depicting their immediate context while also reflecting on universal questions, possess enduring value. Waiting for Godot, the 1952 stage play by Samuel Beckett, challenged the idea of human purpose and also questioned the relevance of scriptureRead MoreBiblical Archaeological Of Biblical Archaeology1319 Words   |  6 PagesBiblical archaeology is to prove the authority of scripture through providing concrete evidence that the Bible lines up with accepted geography and history. The Jerusalem Siege Tower shows the accuracy of what was described as historical events in the Bible. The Pool of Siloam is found in John 9, and proves that the places that Jesus spoke of while performing miracles really existed, and still do. Finally, the Dead Sea S crolls validate the authenticity of the scripture that we read today. Through theRead MoreBasis Of Faith Reflection Paper1370 Words   |  6 Pagesanyone because belief doesn’t need to be justified if it’s true belief. Personally, I think that the scripture should have a 100 percent authority as a basis of belief because the scriptures goes hand in hand with belief. There is a common saying that â€Å"the Bible is the only rule for our faith† This quote is based upon the content of the scripture as seen in 2nd Timothy 3:16 which says, â€Å"All Scripture is inspired by God and is useful for education, rebuking errors, correcting and training in righteousnessRead MoreThe Great Awakening Of The 1730s1630 Words   |  7 Pagessubjectivity and passional experiences were validated in regards to religious sentiments. This novel type of engagement of the laity is significant, as previously voiceless social and racial classes were given the authority to proclaim and propagate their interpretations of biblical scripture. The New Lights’ emphasis on the transformative power of the Holy Spirit severed social norms and exalted and justified the personal experiences of commoners against that of the old order. Moreover, the revivalsRead MoreGender As A Person s Identity1111 Words   |  5 Pagesto the social institutions he or she includes himself in. These social institutions have influence over the lives of individuals in various aspects. One social institution an individual imparts oneself in is religion. Religious institutions use scriptures as the primary basis for life such as the Holy Bible for the Catholics and the Quran for the Muslims. Of the data given, some Christians and Muslim non-heterosexuals experience social exclusion because of some spiritual texts (Yip, 2005). According

Theu.s. Is A Unique And Special Country - 1507 Words

The fact that some Mexicans send money back to Mexico to their families causes Americans to speculate and, as a result, believe that they are too unattached to the pride that they should have while living in this country because of their close ties still with Mexico. In contrast to that, eighty percent said in the survey that, if they had to go through the process of immigration all over again, they would because â€Å"the U.S. is a unique and special country† (Farkas). Based on that high percentage alone, there can be no real debate on the intentions of Mexicans moving here other than those that are encouraging. Donald Trump, of course, attempted to challenge that statistic. During his campaign, he claimed, â€Å"The worst elements in Mexico are being pushed into the United States by the Mexican government†¦ They’re sending people that have lots of problems, and they’re bringing those problems to us. They’re bringing drugs. They’re bringing crime. They’re rapists† (Walker). It seems that Donald may have a slightly narrow view of the number of people who actually fit into these categories versus the total number of people attempting to enter the country. Based on previously stated evidence, their intentions for moving to the United States were to gain a higher quality of life by getting a job, not solely to sell drugs and act as rapists. Now that he has been elected as our president, many Mexicans are currently living in fear of what the next step in his plan of action is. They now

Financial Analysis of Bank of America Free Essays

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. We will write a custom essay sample on Financial Analysis of Bank of America or any similar topic only for you Order Now 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 sheet Bank 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 | 9 3. 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 liabilities, 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 de posits 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. Bank 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 very 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) impaired, so that amortized cost is the carrying value. Amortized cost is a hi ghly 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 marketable 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 fir st quarter of 2009. As a result of the FSP, Company’s Consolidated Statement of Income reflects the full impairment on debt securities 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 America According 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%). Therefore, 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 ad justments 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 the netting adjustments. Analysis of the impact From 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 amount. 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 Instruments Fair 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 would 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 Income Another 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, such 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 advant ages include the following: FVA depicts a clearer picture of the company’s financial 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 typically 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. Managers 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 significant 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 2 010. 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 warranties 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 d eclining 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 BOA 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:| ? | ? | ? | ? | ? | ? | ? | 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 | (29,054)| (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 Chase 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:| ? | ? | ? | ? | ? | ? | ? | 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 | Adjustments 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 adju stments 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 | How to cite Financial Analysis of Bank of America, Papers Financial Analysis of Bank of America Free Essays 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. We will write a custom essay sample on Financial Analysis of Bank of America or any similar topic only for you Order Now 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 sheet Bank 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 | 9 3. 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 liabilities, 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 de posits 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. Bank 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 very 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) impaired, so that amortized cost is the carrying value. Amortized cost is a hi ghly 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 marketable 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 fir st quarter of 2009. As a result of the FSP, Company’s Consolidated Statement of Income reflects the full impairment on debt securities 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 America According 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%). Therefore, 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 ad justments 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 the netting adjustments. Analysis of the impact From 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 amount. 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 Instruments Fair 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 would 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 Income Another 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, such 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 advant ages include the following: FVA depicts a clearer picture of the company’s financial 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 typically 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. Managers 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 significant 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 2 010. 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 warranties 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 d eclining 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 BOA 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:| ? | ? | ? | ? | ? | ? | ? | 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 | (29,054)| (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 Chase 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:| ? | ? | ? | ? | ? | ? | ? | 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 | Adjustments 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 adju stments 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 | How to cite Financial Analysis of Bank of America, Essay examples