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Wiki Wiki Summary
Financial law Financial law is the law and regulation of the insurance, derivatives, commercial banking, capital markets and investment management sectors. Understanding Financial law is crucial to appreciating the creation and formation of banking and financial regulation, as well as the legal framework for finance generally.
Arithmetic Arithmetic (from Ancient Greek ἀριθμός (arithmós) 'number', and τική [τέχνη] (tikḗ [tékhnē]) 'art, craft') is an elementary part of mathematics that consists of the study of the properties of the traditional operations on numbers—addition, subtraction, multiplication, division, exponentiation, and extraction of roots. In the 19th century, Italian mathematician Giuseppe Peano formalized arithmetic with his Peano axioms, which are highly important to the field of mathematical logic today.
Operation Mincemeat Operation Mincemeat was a successful British deception operation of the Second World War to disguise the 1943 Allied invasion of Sicily. Two members of British intelligence obtained the body of Glyndwr Michael, a tramp who died from eating rat poison, dressed him as an officer of the Royal Marines and placed personal items on him identifying him as the fictitious Captain (Acting Major) William Martin.
Operations research Operations research (British English: operational research), often shortened to the initialism OR, is a discipline that deals with the development and application of advanced analytical methods to improve decision-making. It is sometimes considered to be a subfield of mathematical sciences.
Emergency operations center An emergency operations center (EOC) is a central command and control facility responsible for carrying out the principles of emergency preparedness and emergency management, or disaster management functions at a strategic level during an emergency, and ensuring the continuity of operation of a company, political subdivision or other organization.\nAn EOC is responsible for strategic direction and operational decisions and does not normally directly control field assets, instead leaving tactical decisions to lower commands.
Surgery Surgery is a medical or dental specialty that uses operative manual and instrumental techniques on a person to investigate or treat a pathological condition such as a disease or injury, to help improve bodily function, appearance, or to repair unwanted ruptured areas.\nThe act of performing surgery may be called a surgical procedure, operation, or simply "surgery".
Risk management Risk management is the identification, evaluation, and prioritization of risks (defined in ISO 31000 as the effect of uncertainty on objectives) followed by coordinated and economical application of resources to minimize, monitor, and control the probability or impact of unfortunate events or to maximize the realization of opportunities.\nRisks can come from various sources including uncertainty in international markets, threats from project failures (at any phase in design, development, production, or sustaining of life-cycles), legal liabilities, credit risk, accidents, natural causes and disasters, deliberate attack from an adversary, or events of uncertain or unpredictable root-cause.
Savings and loan crisis The savings and loan crisis of the 1980s and 1990s (commonly dubbed the S&L crisis) was the failure of 1,043 out of the 3,234 savings and loan associations (S&Ls) in the United States from 1986 to 1995. An S&L or "thrift" is a financial institution that accepts savings deposits and makes mortgage, car and other personal loans to individual members (a cooperative venture known in the United Kingdom as a building society).
Financial analysis Financial analysis (also referred to as financial statement analysis or accounting analysis or Analysis of finance) refers to an assessment of the viability, stability, and profitability of a business, sub-business or project. \nIt is performed by professionals who prepare reports using ratios and other techniques, that make use of information taken from financial statements and other reports.
Capital gains tax A capital gains tax (CGT) is a tax on the profit realized on the sale of a non-inventory asset. The most common capital gains are realized from the sale of stocks, bonds, precious metals, real estate, and property.
List of countries by proven oil reserves This is a list of countries by proven oil reserves. Proven reserves are those quantities of petroleum which, by analysis of geological and engineering data, can be estimated, with a high degree of confidence, to be commercially recoverable from a given date forward from known reservoirs and under current economic conditions.
Economic regions of Russia Russia is divided into twelve economic regions (Russian: экономи́ческие райо́ны, ekonomicheskiye rayony, sing. ekonomichesky rayon)—groups of federal subjects sharing the following characteristics:\n\nCommon economic and social goals and participation in development programs;\nRelatively similar economic conditions and potential;\nSimilar climatic, ecological, and geological conditions;\nSimilar methods of technical inspection of new construction;\nSimilar methods of conducting customs oversight;\nOverall similar living conditions of the population.No federal subject can belong to more than one economic region.
Recession In economics, a recession is a business cycle contraction when there is a general decline in economic activity. Recessions generally occur when there is a widespread drop in spending (an adverse demand shock).
New Economic Policy The New Economic Policy (NEP) (Russian: новая экономическая политика (НЭП), tr. novaya ekonomicheskaya politika) was an economic policy of the Soviet Union proposed by Vladimir Lenin in 1921 as a temporary expedient.
Indirect tax Although the actual definitions vary between jurisdictions, in general, a direct tax or income tax is a tax imposed upon a person or property as distinct from a tax imposed upon a transaction, which is described as an indirect tax. There is a distinction between direct and indirect tax depending on whether the tax payer is the actual taxpayer or if the amount of tax is supported by a third party, usually a client.
S&P Global Ratings S&P Global Ratings (previously Standard & Poor's and informally known as S&P) is an American credit rating agency (CRA) and a division of S&P Global that publishes financial research and analysis on stocks, bonds, and commodities. S&P is considered the largest of the Big Three credit-rating agencies, which also include Moody's Investors Service and Fitch Ratings.
Allowance for Loan and Lease Losses In banking, the Allowance for Loan and Lease Losses (ALLL), formerly known as the reserve for bad debts, is a calculated reserve that financial institutions establish in relation to the estimated credit risk within the institution's assets. This credit risk represents the charge-offs that will most likely be realized against an institution's operating income as of the financial statement end date.
Current Expected Credit Losses Current Expected Credit Losses (CECL) is a credit loss accounting standard (model) that was issued by the Financial Accounting Standards Board (FASB) on June 16, 2016. CECL replaces the current Allowance for Loan and Lease Losses (ALLL) accounting standard.
Student loan A student loan is a type of loan designed to help students pay for post-secondary education and the associated fees, such as tuition, books and supplies, and living expenses. It may differ from other types of loans in the fact that the interest rate may be substantially lower and the repayment schedule may be deferred while the student is still in school.
December December is the twelfth and the final month of the year in the Julian and Gregorian calendars. It is also the last of seven months to have a length of 31 days.
December 17 December 17 is the 351st day of the year (352nd in leap years) in the Gregorian calendar; 14 days remain until the end of the year.\n\n\n== Events ==\n\n\n=== Pre-1600 ===\n497 BC – The first Saturnalia festival was celebrated in ancient Rome.
December 1 December is the twelfth and the final month of the year in the Julian and Gregorian calendars. It is also the last of seven months to have a length of 31 days.
December 1924 German federal election Federal elections were held in Germany on 7 December 1924, the second that year after the Reichstag had been dissolved on 20 October. The Social Democratic Party remained the largest party in the Reichstag, receiving an increased share of the vote and winning 131 of the 493 seats.
December 26 December 15 is the 349th day of the year (350th in leap years) in the Gregorian calendar; 16 days remain until the end of the year.\n\n\n== Events ==\n\n\n=== Pre-1600 ===\n533 – Vandalic War: Byzantine general Belisarius defeats the Vandals, commanded by King Gelimer, at the Battle of Tricamarum.
December 18 December 11 is the 345th day of the year (346th in leap years) in the Gregorian calendar; 20 days remain until the end of the year.\n\n\n== Events ==\n\n\n=== Pre-1600 ===\n220 – Emperor Xian of Han is forced to abdicate the throne by Cao Cao's son Cao Pi, ending the Han dynasty.
2016 in aviation This is a list of aviation-related events from 2016.\n\n\n== Events ==\n\n\n=== January ===\nThe Government of Italy permitted United States unmanned aerial vehicles (UAVs or drones) to fly strike missions from Naval Air Station Sigonella in Sicily where the US has operated unarmed surveillance UAVs since 2001 against Islamic State targets in Libya, but only if they are "defensive," protecting U.S. forces or rescuers retrieving downed pilots.
December 31 December 3 is the 337th day of the year (338th in leap years) in the Gregorian calendar; 28 days remain until the end of the year.\n\n\n== Events ==\n\n\n=== Pre-1600 ===\n915 – Pope John X crowns Berengar I of Italy as Holy Roman Emperor (probable date).
Citibank Citibank is the consumer division of financial services multinational Citigroup. Citibank was founded in 1812 as the City Bank of New York, and later became First National City Bank of New York.
Participation loan Participation loans are loans made by multiple lenders to a single borrower. \nSeveral banks, for example, might chip in to fund one extremely large loan, with one of the banks taking the role of the "lead bank".
Credit Bank of Moscow Credit Bank of Moscow (Russian: Московский кредитный банк) is a Russian bank founded in 1992 and operating in Moscow and Moscow Oblast. \nIn 2008-2015 the Moscow Credit Bank raised from 66 to 12 place by assets in Russian bank rating.
Southern California Southern California (commonly shortened to SoCal) is a geographic and cultural region that generally comprises the southern portion of the U.S. state of California. It includes the Los Angeles metropolitan area, the second most populous urban agglomeration in the United States.
University of California The University of California (UC) is a public land-grant research university system in the U.S. state of California. The system is composed of the campuses at Berkeley, Davis, Irvine, Los Angeles, Merced, Riverside, San Diego, San Francisco, Santa Barbara, and Santa Cruz, along with numerous research centers and academic abroad centers.
The Californias The Californias (Spanish: Las Californias), occasionally known as The Three Californias or Two Californias, are a region of North America spanning the United States and Mexico, consisting of the U.S. state of California and the Mexican states of Baja California and Baja California Sur. Historically, the term Californias was used to define the vast northwestern region of Spanish America, as the Province of the Californias (Spanish: Provincia de las Californias), and later as a collective term for Alta California and the Baja California Peninsula.Originally a single, vast entity within the Spanish Empire, as the Californias became defined in their geographical limits, their administration was split various times into Baja California (Lower California) and Alta California (Upper California), especially during the Mexican control of the region, following the Mexican War of Independence.
California Gold Rush The California Gold Rush (1848–1855) was a gold rush that began on January 24, 1848, when gold was found by James W. Marshall at Sutter's Mill in Coloma, California. The news of gold brought approximately 300,000 people to California from the rest of the United States and abroad.
Competition Competition is a rivalry where two or more parties strive for a common goal which cannot be shared: where one's gain is the other's loss (an example of which is a zero-sum game). Competition can arise between entities such as organisms, individuals, economic and social groups, etc.
Risk Factors
BEVERLY HILLS BANCORP INC ITEM 1A Risk Factors The Company is subject to a number of business risks that may adversely impact its financial position or results of operations
These risks could make the Company’s common stock a speculative investment
The Company believes that the following factors represent the most significant risks to its future financial performance
We face risk from changes in interest rates
The success of our business depends, to a large extent, on our net interest income
Changes in market interest rates can affect our net interest income by affecting the spread between our interest-earning assets and interest-bearing liabilities
This may be due to the different maturities of our interest-earning assets and interest-bearing liabilities, as well as an increase in the general level of interest rates
Changes in market interest rates also affect, among other things: • Our ability to originate loans; • The ability of our borrowers to make payments on their loans; • The value of our interest-earning assets and our ability to realize gains from the sale of these assets; • The average life of our interest-earning assets; • Our ability to generate deposits instead of other available funding alternatives; and • Our ability to access the wholesale funding market
Interest rates are highly sensitive to many factors, including governmental monetary policies, domestic and international economic and political conditions and other factors beyond our control
We face risk from possible declines in the quality of our assets
Our financial condition depends significantly on the quality of our assets
While we have developed and implemented underwriting policies and procedures to guide us in the making of loans, compliance with these policies and procedures in making loans does not guarantee repayment of the loans
If the level of our non-performing assets rises, our results of operations and financial condition will be affected
A borrower’s ability to pay its loan in accordance with its terms can be adversely affected by a number of factors, such as a decrease in the borrower’s revenues and cash flows due to adverse changes in economic conditions or a decline in the demand for the borrower’s products and/or services
Our allowances for loan losses may be inadequate
We establish allowances for loan losses against each segment of our loan portfolio
At December 31, 2005, our allowance for loan losses equaled 0dtta7prca of loans
Although we believe that we have established adequate allowances for loan losses as of December 31, 2005, the credit quality of our assets is affected by many factors beyond our control, including local and national economic conditions, and the possible existence of facts which are not known to us which adversely affect the likelihood of repayment of various loans in our loan portfolio and realization of the collateral upon a default
Accordingly, we can give no assurance that we will not sustain loan losses materially in excess of the allowance for loan losses
In addition, the FDIC and DFI, as an integral part of their examination process, periodically review our allowance for loan losses and could require additional provisions for loan losses
Material future additions to the allowance for loan losses may also be necessary due to increases in the size and changes in the composition of our loan portfolio
Increases in our provisions for loan losses would adversely affect our results of operations
Economic conditions may decline
Our business is strongly influenced by economic conditions in our market area (principally Southern California) as well as regional and national economic conditions
Should the economic condition in these areas 22 ______________________________________________________________________ [47]Table of Contents deteriorate, the financial condition of our borrowers could weaken, which could lead to higher levels of loan defaults or a decline in the value of collateral for our loans
In addition, an unfavorable economy could reduce the demand for our loans and other products and services
We have a significant concentration of loans in California
At December 31, 2005, approximately 52prca unpaid principal balance of our loans were collateralized by real estate located in California, and no more than 10prca of our loans were collateralized in any other state
Because of this concentration, our financial position and results of operations have been and are expected to continue to be influenced by general trends in the California economy and its real estate market
Real estate market declines may adversely affect the values of the properties collateralizing loans
If the principal balances of our loans, together with any primary financing on the mortgaged properties, equal or exceed the value of the mortgaged properties, we could incur higher losses on sales of properties collateralizing foreclosed loans
In addition, California historically has been vulnerable to certain natural disaster risks, such as earthquakes and erosion-caused mudslides, which are not typically covered by the standard hazard insurance policies maintained by borrowers
Our business is highly competitive
There is intense competition in Southern California and elsewhere in the United States for banking customers
We compete for loans primarily with other commercial banks, mortgage companies, commercial finance companies and savings institutions
In recent years, out-of-state financial institutions have entered the California market, which has also increased competition
Many of our competitors have greater financial strength, marketing capability and name recognition than we do, and operate on a statewide or nationwide basis
In addition, recent developments in technology and mass marketing have permitted larger companies to market loans more aggressively to our small business customers
Such advantages may give our competitors opportunities to realize greater efficiencies and economies of scale than we can
We can provide no assurance that we will be able to compete effectively against our competition
Our business is heavily regulated
Both BHBC, as a bank holding company, and the Bank, as a California-chartered FDIC-insured bank, are subject to significant governmental supervision, regulation and legislation, which is intended primarily to maintain a safe and sound banking system, to protect depositors and the FDIC insurance fund, and to facilitate the conduct of sound monetary policy, and are not intended to protect bank and bank holding company shareholders
Statutes, regulations and regulatory policies affecting us may be changed at any time, and the interpretation of these statutes and regulations by examining authorities also may change
We cannot provide assurance that future changes in applicable statutes, regulations, legislation and policies or in their interpretation will not materially adversely affect our business
We may not be able to fully utilize our deferred tax assets
At December 31, 2005, we had net deferred tax assets totaling dlra30dtta7 million
This amount includes dlra29dtta8 million in anticipated tax savings that would result from the future usage of dlra87dtta5 million in available federal net operating loss (NOL) carryforwards
However, the maximum amount of NOL carryforward we may utilize in any year is limited to dlra6dtta0 million, as a result of our “ownership change” within the meaning of Section 382 of the Internal Revenue Code in 2002
Therefore, to fully utilize this NOL, we need to earn an average of at least dlra6dtta0 million in taxable income per year through the year ended December 31, 2020, at which date the NOL carryforward will expire
There can be no assurance that we will generate sufficient taxable income in the next 15 years to enable us to utilize all of our available NOL If at any time it appears more likely than not that we will not be able to realize this deferred tax asset, we would be required to establish a valuation allowance against the asset and record a corresponding charge to current earnings
This would have an adverse impact on our financial condition, results of operations and cash flows
23 ______________________________________________________________________ [48]Table of Contents The sale of the Beverly Hills branch may not achieve the desired results
We are considering selling the Bank’s Beverly Hills branch during 2006
Management believes that this sale would enable us to (i) reduce overhead, (ii) increase efficiency by consolidating all of the Bank’s operations into our Calabasas facility and (iii) operate primarily as a wholesale bank
However, there can be no assurance that we will successfully complete the sale of the Beverly Hills branch
In addition, there can be no assurance that, if completed, this sale will cause the reduction in overhead or the increase in operating efficiencies to the extent anticipated by management