Sinners and Saints

Which Banks Can The American People Trust?

egarfield — Sun, 29 Aug 2010 02:03:12 +0000

Major Banks Who Helped Enemies of America

American regulators levied fines in the stated amounts:
Barclays (United Kingdom) $298 million
ABN AMRO (Netherlands) $500 million
Credit Suisse Group (Switzerland) $536 million
Loyds Banking Group (United Kingdom) $350 million
Wachovia (United States) $160 million

Barclays hid hundreds of millions of dollars in payments flowing into the U.S. from Cuba, Libya, Iran and other sanctioned countries.

ABN AMRO helped Iran, Libya, Sudan and Cuba evade U.S. sanctions by “stripping” the identities of transactions to conceal the countries from which they originated. ABM AMRO was founded in the Netherlands in 1720. The Royal Bank of Scotland took ownership in 2008.

Credit Suisse involved transactions with Iran. July 5, 1856 was the date on which the Credit Suisse was born.

Lloyds masked the origin of payments from Iran and Sudan. Lloyds Bank was founded in Birmingham, England in June 1765.

http://online.wsj.com/article/NA_WSJ_PUB:SB10001424052748703908704575433781894978828.html

Wachovia, now a subdivision of Wells Fargo, had a relationship with a Mexican “casa de cambio,” or currency exchange house, which it structured so badly that $420 billion flowed out of Mexico unmonitored. Drug cartels used the bank to launder money through Mexican exchange houses. Wachovia was founded in 1879.

The fine of $160 million against Wachovia is 0.004 of the $420 billion that was “unmonitored”. The cost of being dishonest seems to add a small part to the overhead of doing business.

http://www.dailyfinance.com/story/legal-briefing-drug-cartels-used-wachovia-to-launder-money/19404808/

Community Banks/Regional Banks

egarfield — Mon, 28 Jun 2010 12:42:48 +0000

The American financial system is global. It is the main engine that drives the world’s economy. As large players are remaking the financial world, small local banks are once again proving their resilience.

Large investment banks were global and have deservedly bitten the dust because of greed and dishonesty encouraged by inadequate regulation. The large commercial banks that played fast and loose with regulations also deservedly bit the dust. The people badly hurt were every-day folks like employees, taxpayers, stockholders, businesses that relied on lines of credit and the retired populace.

Recent turmoil on Wall Street has positioned Main Street community banks to prosper greater than ever before in history. Small business owners and consumers can clearly differentiate between investment banks, super-sized commercial banks and small community banks.

We now have small community banks from across the country surfacing with their side of what really is happening. See the links below to articles that have surfaced this month.

The five small Arizona community banks I helped start during the past three years are local, play by the rules and are generally very safe! They hire outside audit firms annually and outside firms on a quarterly basis to make sure management follow the strategic business plan authorized by regulators and mandated by the board. The June 6, 2010 Arizona Republic listed 22 Arizona-based banks subject to enforcement actions. None of my 5 client banks are on the list.

Every single solitary FDIC insured bank is required to file a quarterly financial statement with the FDIC. Check records of any bank in the U.S. on the Federal Deposit Insurance Corporation Web site, www.fdic.gov. It is an open book.

The banks I helped start are Pinnacle Bank, Sonoran Bank, N.A., West Valley National Bank, RepublicBankAZ, N.A. I am currently helping form 5 more banks in Arizona. That is how much confidence I have in the economic future of Arizona. That is how much confidence directors of the banks have. They are people of financial means who make a habit of carefully analyzing the businesses they start including banks.

Our banks know better! Careful selection and training of board and staff pays off. As you can see, Sonoran and West Valley are looking to acquire other banks. Check out the Web sites of all 5 at www.pinnaclebankaz.com; www.sonoranbank.com; www.wvnb.net; www.republicaz.com; www.gcbaz.com.

What an amazing time to start a bank. Check my site www.independentbankdevelopers.com and click on to some of the links below for current news about small banks across the country. Tell your friends and associates since all they have to go by is media sensationalism and the frightening political lies they hear.

As of June 30, the FDIC had 117 insured banks and S&Ls on its problem list. That represented about 1 percent of the nearly 8,500 institutions insured as of June 30.

Based on its analysis of the June 30 numbers, Bauer Financial, Inc. concluded that 426 federally insured institutions are grappling with major problems — about 5 percent of all banks and S&Ls. About 13% of banks on the FDIC trouble list will usually fold.

“It’s scary right now, but it’s not as scary as a lot of people are making it out to be,” said James Barth, now a senior fellow at the Milken Institute, a think tank. Barth was chief economist of the regulatory agency that oversaw the S&L industry in the 1980s.

Economic tumult is creating expansion opportunities for healthy banks.

Ernie Garfield, Chairman

Interstate Bank Developers, Inc.

Panel: County banks solid financially
Mount Vernon News – Mount Vernon,OH,USA
At this stage, I am not at all worried about the continued success of community banks.” It is the investment banks, however, which seem to be giving …
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Local banks benefit from crisis
RoxReview.com – Philadelphia,PA,USA
Small, community banks have gained business.”People are looking for peace of mind,” said Christopher McGill, president and CEO of East River Bank. …
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Hometown banks see increase
Jackson Sun – Jackson,TN,USA
Recent bank failures and instability in the stock market have driven some Madison County residents to smaller community banks. Deposits at the Bank of …
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Community-based banks still loaning money for many purposes
nwitimes.com – Munster,IN,USA
BY LU ANN FRANKLIN Unlike their big national and international cousins mired in a global credit crisis, community banks in the have money to lend, …
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Small US Banks Rise Above Financial Turmoil
NewsBlaze – Folsom,CA,USA
While their big-bank cousins have faced near-catastrophe in the recent market fluctuations, community banks report that they are healthier than ever. …
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Upside of Market Turbulence Is Opportunity for Community Banks
San Diego Business Journal – CA,USA
By MIKE ALLEN The turmoil that’s beset the financial services industry is generally having limited impact on most San Diego community banks, which didn’t …
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Local banks remain steady in unsteady times
New Richmond News – New Richmond,WI,USA
First National Community Bank President Denny Nybakken agreed that no one needs to worry about the financial health of the local, community banks. …
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Statement of condition
Purcell Register – Purcell,OK,USA
“We want to keep our customers happy and safe,” First American Bank Executive Vice-President Mike Murphy said. “We will be here for the long haul. …

Minnesota’s small and mid-sized banks still doing well
Finance and Commerce – Minneapolis,MN,USA
But their much smaller siblings among Minnesota’s community banks are generally doing just fine, keeping capital flowing into a surprisingly busy local …

‘We have cash to lend,’ many small banks proclaim
Nashua Telegraph – Nashua,NH,USA
Executives of three local community banks and credit unions say they avoided the disastrous path of subprime loans and are connecting qualified borrowers to …

Bank execs: Community banks afloat, on course in turbulent …
Russellville Courier – Russellville,AR,USA
I don’t know one community bank in the area that’s not making loans. “The public is inundated with national news that you can’t get a loan,” Ron Jackson, …

Banking savvy that will help you sleep
Boston Herald – United States
Despite the failure of several large banks, more than 65 percent of banks still receive four- or five-star ratings from BauerFinancial, which also rates …

NH banks‘ loan care pays off
The Union Leader – Manchester,NH,USA
By DENIS PAISTE MANCHESTER – New Hampshire community banks that passed on sub-prime lending during the housing boom are finding they have retained low …

Commercial banks stand to profit from Black Monday, economist says
Daily Commercial News – Toronto,Ontario,Canada
“The commercial banks are reaping a bonanza in cash deposits,” says Carrick. “In fact, there may be a double benefit to the bank from the stock-market …

Amid crisis, local banks see opportunity
Burlington Times News – Burlington,NC,USA
While no one truly knows what’s ahead, some folks say that North Carolina and its community banks could be a good place to weather the storm. …

Nothing’s the Matter With Kansas
Wall Street Journal – USA
Community banks like mine are still making loans and serving the needs of customers. I used to worry about competing in the world of mega “too-big-to-fail” …
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Local banks weather market
Evening Observer – Dunkirk,NY,USA
Daniel Drozdiel, district manager at Community Bank, said although people are being more cautious and restrictive with their investing, local banks which …

Amid financial crisis, healthy community banks see opportunity to …
New York Daily News – New York,NY,USA
That doesn’t mean, though, that community banks are immune to all the troubles plaguing the financial system. “There’s been an overall lack of confidence,” …

Business as usual for local banks
Marshall News Messenger – Marshall,TX,USA
By Charles Iyoho, News Messenger East Texas banks have remained sound, local bankers said Friday, despite Congress having to approve an unprecedented $700 …

Small banks may not see big bailout boost
San Diego Union Tribune – United States
By Mike Freeman San Diego County’s small banks conceivably could benefit from the controversial $700 billion bailout package by selling troubled mortgages …

Bailout raises FDIC coverage to $250K
Andalusia Star-News – Andalusia,AL,USA
CCB’s Allen Mims said community banks really aren’t involved in the kinds of problems Congress is trying to help solve. “Our deposits are here, …

Local Commentary — Independent community bank in strong, safe …
Morris Sun Tribune – Morris,MN,USA
They were investment banks, not a community bank! We have been asked by more of our customers in the past month or so “is my money safe in your bank? …

Bank branch now open
Times-Mail (subscription) – Bedford,IN,USA
The local community banks with us, and in turn, we can invest back into the local community. We can add a lot to this community from the standpoint that …

Mass. banks stand to make gains
Boston Globe – United States
“We could see some benefit to the commercial banks,” said Gerard Cassidy, managing director of equity research at RBC Capital Markets in Portland, Maine. …

Are NDs Banks/CUs safe? | KXNet.com North Dakota News
KXMC – Minot,ND,USA
Terry Zeltinger, President – United Community Bank: “We’re kind of insulated from this, because our economy is robust and things are going very well. …

The truth is, Graham’s banks are thriving
Graham Leader – Graham,TX,USA
“Community banks across this country, and especially in Texas, remain in good financial condition and have been doing business as usual,” Gober says. …

Bankers: Local money secure
Bluefield Daily Telegraph – Bluefield,WV,USA
“All of the national news is talking about the very large banks in the country. Most of the local banks, like First Community Bank, are community banks. …

Community banks eye ex-Wachovia depositors
Birmingham Business Journal – Birmingham,AL,USA
“There’s no question we are already receiving comments that customers are walking in the door wanting to bring their money back home to the community banks. …

Cape Region banks are weathering the financial storm
Cape Gazette – Lewes,DE,USA
Depositing more money with local banks also means community banks can continue to provide car and home loans – at least for now. …

Small US banks see deposits surge
United Press International – USA
WASHINGTON, Oct. 12 (UPI) — Bankers say there has been a surge of new deposits in small community banks across the United States since the Wall Street …

After 20 years, bank president still enjoys job
Times Daily (subscription) – Florence,AL,USA
“There hasn’t been a community bank that’s failed in the state in excess of 20 years.” It’s not just banks that are experiencing the most problems today, …

Big Country banks are safe, secure and stable
Abilene Reporter-News – Abilene,TX,USA
With regard to these events and despite all the commentary, we would like to advise people that community banks are safe, secure and open for business. …

As Larger Banks Crumble, Local Firms See Rush
Washington Post – United States
The draw of community banks, Cole said, is the relationship. “At times like this, people may feel it’s time to shift to a bank that’s nearby, …
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What credit crunch?
Minneapolis Star Tribune – Minneapolis,MN,USA
Indeed, a spot check with commercial banks across the state echoed Ruiter’s observation. “Our loan growth is up on the business side,” said Steve Meads, …
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Solution to SB 1070

egarfield — Mon, 28 Jun 2010 07:00:04 +0000

Solution to SB 1070 and the Economic Disaster in Arizona

SB 1070 is a shock that will force reform. We can counterbalance anger by offering financial incentives to move to Arizona. Make our state attractive financially! Businesses will migrate here to increase profitability. Newcomers will create jobs and improve our standard of living.

There have been dramatic movements of bank headquarters to states that offer incentives. States like Delaware, Nevada and South Dakota have taken billions of dollars of bank assets and thousands of jobs from Arizona.

On December 31, 2004 Arizona had $58.6 billion in bank assets with 7,228 bank jobs; Nevada had $54.4 billion with 6,662 jobs. By March 2010, Arizona lost $44 billion and 3,389 jobs while Nevada grew bank assets by $1.2 trillion and 164,335 bank jobs.

See the following information about bank assets and bank employees from the Federal Deposit Insurance Corporation quarterly report of March 31, 2010.

Assets-billions $* Bank Employees* Population – millions

Arizona

$14.6

3,839

6.5

Nevada

$1,255.3

170,997

2.6

South Dakota

$1,245.4

220,600

0.8

Delaware

$971.5

126,499

0.9

Arizona would be sharing in more of the world’s wealth if some of our legislators were not attached at the hip to lobbyists. Correct the problem and Arizona could soon increase total per capita personal income annually by $19 billion to $38 billion, approximately $3,000 to $6,000 per capita.

Economic relief for Arizona would begin before ink dries from the Governor’s signature on legislation correcting this shameful problem.

(Portions of this article by Ernest Garfield were published in “Valley Leaders Give Advice on How to Bolster Arizona’s Image” in The Phoenix Business Journal, June 25, 2010.)

Go to www.arizonaoutreach.info for a more detailed study on how devastating our economic circumstances are and how you can personally help overcome them.

Community Banks

egarfield — Mon, 28 Jun 2010 03:16:52 +0000

Large global investment banks have deservedly bitten the dust because of greed and dishonesty encouraged by inadequate regulation. The large commercial banks that played fast and loose with regulations also deservedly bit the dust. The people badly hurt were every-day folks like employees, taxpayers, stockholders, businesses that relied on lines of credit and the retired populace.

Turmoil on Wall Street has positioned Main Street community banks to prosper greater than ever before in history. Small business owners and consumers can clearly differentiate between investment banks, super-sized commercial banks and small community banks.

We now have small community banks from across the country surfacing with their side of what really is happening. See the links below to articles that have surfaced recently.

The 5 small Arizona community banks I helped start during the past 4 years are local, play by the rules and are generally very safe! They hire outside audit firms annually and outside firms on a quarterly basis to make sure management follow the strategic business plan authorized by regulators and mandated by the board.

The banks I helped start are Pinnacle Bank, Sonoran Bank, N.A., West Valley National Bank, RepublicBankAZ, N.A. and Gateway Commercial Bank. I am currently helping form 5 more banks in Arizona. That is how much confidence I have in the economic future of Arizona. That is how much confidence directors of the banks have. They are people of financial means who make a habit of carefully analyzing the businesses they start including banks.

None have conducted the type of business that has gotten their larger brethren in trouble. Our banks know better! Careful selection and training of board and staff pays off. Sonoran and West Valley are looking to acquire other banks. Check out the Web sites of all 5 at www.pinnaclebankaz.com; www.sonoranbank.com; www.wvnb.net; www.republicaz.com; www.gcbaz.com.

What an amazing time to start a bank. Check my site www.independentbankdevelopers.com then open some of the links below for current news about small banks across the country. Tell your friends and associates since all they have to go by is media sensationalism and the frightening political lies they hear.

As of June 30, the FDIC had 117 insured banks and S&Ls on its problem list. That represented about 1 percent of the nearly 8,500 institutions insured as of June 30.

Economic tumult is creating expansion opportunities for healthy banks.

Ernie Garfield, Chairman

Interstate Bank Developers, Inc.

Healthcare Without Geographic Boundaries!

egarfield — Sat, 15 May 2010 15:03:18 +0000

Health Care Without Geographic Boundaries!

By Ernest Garfield

One of the great American myths is that we have the best health care system in the world! In reality, treatment is dictated by health insurance and pharmaceutical companies, potential for law suits, the U. S. Food and Drug Administration, and a shortage of medical workers.

Some health insurance companies are beginning to recognize the value of reduced cost and improved service of overseas treatment to their insured. Blue Cross Blue Shield of South Carolina has a subsidiary that provides its members help with arranging travel and care in foreign locations. According to Getahn Ward of The Tennessean, Aetna, United Health care and Blue Cross Blue Shield of Tennessee are exploring or offering a medical tourism product.

Some insurance companies in California embrace medical tourism to Mexico as a way to provide cost-effective treatment. According to Michelle Matlock, Insure.com, the cost of a cross-border insurance program to insure a family of four in the U.S. by California-based Health Net is $631 a month; but if a family uses a physician in Mexico, the rate drops by more than 50% to $306 a month.

To reduce our rapidly escalating cost of health insurance, overcome our shortage of health care personnel and improve health care service, insurance companies licensed in every state should provide coverage for medical treatment anywhere in the world.

Participating in globalized access to health care is the only immediate solution that will allow a patient to receive the best and least expensive care, alleviate the shortage of U.S. medical workers and guarantee that employers save money for employee benefits.

Universal health care approved by Congress and our President Barack Obama is noble, but will clog our system badly. Increased needs of aging baby boomers will create further strains! Delays in treatment and inferior care will become standard unless we prepare our medical infrastructure.

Health care has globalized. The international competitive marketplace is rising to the occasion and introducing features and benefits to consumers and employers. Comparable or superior medical outcome at lower costs than with our American system can be more readily available for middle to lower income citizens.

The World Health Organization ranks hospitals around the world. The WHO report is a reflection of their assessment of health systems of 191 member states. The performance assessment is based on a number of country-specific variables such as socio-economic, political and technological. While WHO’s method of evaluation may raise questions, the U.S. nonetheless came in as number 37. See Chart II to learn whose medical services are considered superior to ours. In line with this, Americans trail 30 nations in life expectancy and the U.S. is 29^th in infant mortality. These two dismal facts cannot be denied.

One of the major problems confronting our health care systems is that of the uninsured. Congress offered its version of a solution. There are around 45 million uninsured in the U.S. While many are uninsured as a matter of choice, for most it is a matter of circumstance. Many of the uninsured are foreign nationals who are here legally. When they are admitted to a hospital, the hospital usually has to write off the care to bad debt and shift the cost to the insured paying for covered care. The availability to an individual of low cost government guaranteed loans with strict underwriting standards, funded by financial institutions – not government funds, would allow and encourage immigrants to return to their country of origin for medical treatment.

Reuters reported that one out of six New Yorkers lacks health insurance, even though almost two thirds of these individuals are employed. Many employers are dropping coverage or shifting costs to employees. Few uninsured seek medical treatment until they are overwhelmed with a serious illness. Dr. Thomas R. Frieden, New York City Health Commissioner, stated, “All of this adds up to people landing in emergency rooms with costly, devastating health problems that could have been prevented or treated.”

According to Dr. Michael Horowitz of Medical Insights International, “Some 750,000 Americans sought offshore medical care in 2007, a number that is projected to rise to as many as 6 million in 2010.” The Deloite Center for Health expects nearly 16 million to seek offshore medical care in 2015.

By comparison, according to the Deloitte Center for Health, 417,000 foreign residents traveled to the U.S. for treatment in 2007. That number is expected to increase by fewer than 40,000 patients by 2010. Cost is not the only reason for change in the direction of the flow of care seekers. Often it is quality of care.

Medical tourism is gaining quick recognition in the United States. Although it is still quite new to Americans, the practice of traveling abroad to receive medical procedures is decades old in Europe, and has been practiced for hundreds of years in Asia. And yet, few Europeans and Asians seek medical care in the U.S.

In addition, Dr. Horowitz says, “It has been estimated that the global medical travel industry currently generates annual revenues up to $60 billion, with 20% annual growth. McKinsey & Company and the Confederation of India estimate $100 billion annual revenue by 2012. Often, this includes partnerships with large U.S. based medical institutions. As examples, Duke Global Health Institute has medical services and educational partnerships in China, Singapore, Tanzania and Uganda; while Johns Hopkins and St. Jude’s operate facilities in Singapore.

This medical globalization trend will continue to increase as our population ages and the cost of health care continues to rise in America. Dr. Horowitz correctly points out that medical, economic, political and social forces are shaping the emergence of medical tourism. In any event, globalized medical care is huge business and will continue to grow with or without our approval or our voluntary participation. All Americans need to hop a ride on this train!

We need to understand why the public looks for medical treatment outside of the U.S. Most often it is the availability of quality care at a lower cost elsewhere. Price advantage is, of course, a major selling point. The cost differential across the board is huge: only a tenth and sometimes even a sixteenth of the cost in the U.S. Open-heart surgery could cost up to $150,000 in the US; in India’s best hospitals it could cost between $3,000 and $10,000. See Chart I.

However, at times the reason is as simple as an immigrant living here who wants to be near family in time of need or is comfortable returning to his or her country of origin for treatment. Many immigrants do not see any difference between traveling out side of U.S. borders for medical care than do our own citizens that travel across state borders to receive better care or care from doctors “back home”. Immigrants of all nations understand the medical care available in their country of origin and often prefer it. We have approximately 8 million Green card holders in the U.S.

Many of our neighbors from the South would happily return to their country of origin for medical treatment if we facilitate travel between our country and theirs; and if we support insurance companies, as some are now doing, to pay for treatment outside of our borders. Many Canadians living in the U.S. return to their country of origin for medical treatment. Numerous self insured domestic corporations pay for care of employees in foreign locations; and most certainly, multi-national corporations generally have local employees, Americans or otherwise, treated in countries where their factories and businesses are located. Dr. Horowitz’s figures do not include the multitude of Americans treated in other countries by virtue of location of employment. It is estimated that there are 6.6 million Americans that live abroad. They don’t run back to the U.S. for most treatments.

Hispanic Americans now account for 15% of our country’s total population. It is notable that there are nearly fifty thousand Hispanic physicians and surgeons in the U.S. This constitutes a base of bilingual medical professionals who can readily communicate with Latin American counterparts to coordinate care. Many Hispanics are among the uninsured and underinsured.

Dallas based Christus Health, a not-for-profit Catholic system, established six hospitals in Mexico to serve Mexican residents who live in communities along the Mexico-U.S. border. A move by all Americans to facilitate and promote cross border medical treatment would show concern for their well-being and simultaneously reduce our health care cost.

According to Dr. Luis R. Leon Jr., assistant professor of clinical surgery in The University of Arizona College of Medicine and chief of vascular surgery at the Southern Arizona Veterans Affairs Health Care System, foreign-trained doctors account for one quarter of all active U.S. physicians. The American Association of Physicians of Indian Origin states that 60,000 are from India.

Many foreign hospitals have been told that American health insurance carriers plan to approve global medical care. Large masses of Americans will go outside of the U.S. for health care when that happens.

Dr. Robert M. Wachter, Associate Chairman of the Department of Medicine at the University of California at San Francisco, said in the February 2006 New England Journal of Medicine, “Four things seem certain: the outsourcing of health care will grow; it will challenge traditional arrangements between patients and both physicians and institutions; it will require rapid and thoughtful development of new ethical, legal and quality standards; and it will be controversial.”

I have been unable to find any elected official or political candidate in anywhere in the U.S. that is considering this obvious alternative of insuring Americans. It is up to us to help them open their eyes!

One solution to the health care problem is to return to the underlying American principle of free choice. Where Do We Start?

1. Require insurance companies to expand to global health care coverage.

2. Develop an appropriate liability level for medical malpractice for health care outside of the U.S.

3. Encourage and assist insurance companies to extend liability insurance coverage to patients who experience a medical malpractice overseas similar to the $1 million coverage provided by Barbados based AOS Assurance Company.

4. Pass State and Federal legislation to allow Health Savings Accounts, Flexible Spending Accounts, Health Reimbursement Arrangements and other self-insured funds to be used on a global basis.

5. Resolve the Hispanic issue by working with the Mexican Government, insurance companies and medical entities to encourage patients return to their country of origin for medical treatment should they want to do so.

6. Pass State and Federal legislation to encourage banks to extend loans with a government guarantee, subject to strict underwriting rules and creditworthiness, to all seeking medical care outside of the U.S.

7. Email the White House and Congress with your opinion. http://www.whitehouse.gov/contact

https://writerep.house.gov/writerep/welcome.shtml; http://www.senate.gov/general/contact_information/senators_cfm.cfm

Chart I

Comparable Costs

Procedure	United States*	India*	Malaysia*
Heart Bypass	$130,000	$11,750	$18,500
Heart Valve Replacement	$160,000	$11,000	$12,500
Angioplasty	$57,000	$11,000	$13,000
Hip Replacement	$43,000	$10,000	$12,000
Hysterectomy	$20,000	$5,000	$6,000
Knee Replacement	$40,000	$9,500	$13,000
Spinal Fusion	$62,000	$7,500	$9,000

* Approximate costs

Chart II

WHO Rankings


1	France	65	Uruguay	129	Peru
2	Italy	66	Hungary	130	Russia
3	San Marino	67	Trinidad and Tobago	131	Honduras
4	Andorra	68	Saint Lucia	132	Burkina Faso
5	Malta	69	Belize	133	Sao Tome and Principe
6	Singapore	70	Turkey	134	Sudan
7	Spain	71	Nicaragua	135	Ghana
8	Oman	72	Belarus	136	Tuvalu
9	Austria	73	Lithuania	137	Ivory Coast
10	Japan	74	Saint Vincent and the Grenadines	138	Haiti
11	Norway	75	Argentina	139	Gabon
12	Portugal	76	Sri Lanka	140	Kenya
13	Monaco	77	Estonia	141	Marshall Islands
14	Greece	78	Guatemala	142	Kiribati
15	Iceland	79	Ukraine	143	Burundi
16	Luxembourg	80	Solomon Islands	144	China
17	Netherlands	81	Algeria	145	Mongolia
18	United Kingdom	82	Palau	146	Gambia
19	Ireland	83	Jordan	147	Maldives
20	Switzerland	84	Mauritius	148	Papua New Guinea
21	Belgium	85	Grenada	149	Uganda
22	Colombia	86	Antigua and Barbuda	150	Nepal
23	Sweden	87	Libya	151	Kyrgystan
24	Cyprus	88	Bangladesh	152	Togo
25	Germany	89	Macedonia	153	Turkmenistan
26	Saudi Arabia	90	Bosnia-Herzegovina	154	Tajikistan
27	United Arab Emirates	91	Lebanon	155	Zimbabwe
28	Israel	92	Indonesia	156	Tanzania
29	Morocco	93	Iran	157	Djibouti
30	Canada	94	Bahamas	158	Eritrea
31	Finland	95	Panama	159	Madagascar
32	Australia	96	Fiji	160	Vietnam
33	Chile	97	Benin	161	Guinea
34	Denmark	98	Nauru	162	Mauritania
35	Dominica	99	Romania	163	Mali
36	Costa Rica	100	Saint Kitts and Nevis	164	Cameroon
37	United States of America	101	Moldova	165	Laos
38	Slovenia	102	Bulgaria	166	Congo
39	Cuba	103	Iraq	167	North Korea
40	Brunei	104	Armenia	168	Namibia
41	New Zealand	105	Latvia	169	Botswana
42	Bahrain	106	Yugoslavia	170	Niger
43	Croatia	107	Cook Islands	171	Equatorial Guinea
44	Qatar	108	Syria	172	Rwanda
45	Kuwait	109	Azerbaijan	173	Afghanistan
46	Barbados	110	Suriname	174	Cambodia
47	Thailand	111	Ecuador	175	South Africa
48	Czech Republic	112	India	176	Guinea-Bissau
49	Malaysia	113	Cape Verde	177	Swaziland
50	Poland	114	Georgia	178	Chad
51	Dominican Republic	115	El Salvador	179	Somalia
52	Tunisia	116	Tonga	180	Ethiopia
53	Jamaica	117	Uzbekistan	181	Angola
54	Venezuela	118	Comoros	182	Zambia
55	Albania	119	Samoa	183	Lesotho
56	Seychelles	120	Yemen	184	Mozambique
57	Paraguay	121	Niue	185	Malawi
58	South Korea	122	Pakistan	186	Liberia
59	Senegal	123	Micronesia	187	Nigeria
60	Philippines	124	Bhutan	188	Democratic Republic of the Congo
61	Mexico	125	Brazil	189	Central African Republic
62	Slovakia	126	Bolivia	190	Myanmar
63	Egypt	127	Vanuatu
64	Kazakhstan	128	Guyana

Abolish Arizona Income Tax

egarfield — Sun, 09 May 2010 17:42:34 +0000

Abolish State Corporate Income Tax on Financial Institutions

Abolishing state corporate income tax on financial institutions would be viewed wrongly! Opponents would label it as Arizona’s version of a bank bailout.

Yet, the cost would be negligible and every Arizonan would benefit financially! Each of us would get an annual pay raise ranging from $4,000 to $6,000 or more – an increase in total per capita personal income annually of $19 to $38 billion. State personal income tax revenue would increase by $248 million to $525 million.

Changing out-dated laws that determine the flow of bank deposits in and out of Arizona will help balance our state budget and transfer wealth to our citizens! Our neglect to recognize today’s financial realities because of political fear has reduced tax revenues, stunted per capita income growth, eliminated job opportunities, halted economic potential and stifled capital availability for small businesses in Arizona.

States that recognize the effect of corporate income tax on financial institutions and make provisions have outstripped economic growth in Arizona. We live in a competitive world!

Wyoming is 6^th in the U.S. in per capita income at $45,705; Washington is 12^th at $41,751; Delaware is 17^th at $39,817; Nevada is 20^th at $38,578; South Dakota is 25^th with $36,935; and Arizona is 40^th with $32,935.

Wyoming beats us by $12,770 per person; Washington by $8,816; Delaware by $6,882; Nevada by $5,543; and South Dakota by $4,000. These are real dollar differences that affect Arizonans’ standard of living and purchasing power. We can give an annual pay raise to every Arizonan if we eliminate all corporate income tax on financial institutions.

Financial institutions, as an example, will flock here if we put banks on a level playing field with credit unions. Credit unions do not pay Arizona income tax. Arizona chartered banks do. But believe it or not, because none of the big banks are headquartered here, our local banks paid a scanty $20 million in state income tax in 2008 and very little if at all is due for 2009 towards our $9.6 budget.

Compare the differences in the amounts of bank assets housed in Arizona, Nevada and South Dakota to see the effect if we abolish the tax! Banks in Arizona held a combined $61.8 billion in deposits as of June 30, 2004. Five years later, June 2009, the growth reached only $82.3 billion, a 25% increase, in spite of one of the greatest economic booms ever experienced by Arizona. During this same period of time Nevada banks grew from $40.7 billion in deposits to $195 billion, a growth of more than 479%.

Nevada, population 2,495,529, a much smaller state than Arizona, altered its corporate income tax so financial institutions raced to set up subsidiaries and headquarters in a tax haven. They took their wealth and high paying jobs with them to Nevada.

As of June 2009 Arizona had only 2 locally chartered banks (both owned by out-of-state interests) with branches out of state. The 2 banks had 21 out-of-state branches that controlled $741 million out-of-state deposits.

Nevada by comparison had 4 banks with 1,040 out-of-state branches that controlled more than $180 billion out-of-state deposits.

South Dakota, with a population of 781,919 enticed a Citibank subsidiary to move there. Subsequently, South Dakota went from $15.7 billion in deposits in 2003 to $86.8 billion in 2009, a 553% increase. Their deposits increased by $12 billion from 2008 to 2009. A much, much smaller state than Arizona now has more in deposits than does Arizona. An added bonus is that South Dakota has 6 banks with 3,495 branches that control $304.7 billion out-of-state deposits.

Both South Dakota and Nevada have developed extensive information about the value financial institutions bring to their respective states in the way of economic dynamics, including added taxable wages from job creation. These states have benefited from favorable tax treatment that is an attraction to major financial institutions. Even tiny Delaware, with a population of 853,904, has $170.6 billion in deposits and 5 banks with 1,045 out-of-state branches that control another $77.3 billion out-of-state deposits.

The wealth controlled in the states of Nevada, South Dakota and Delaware is a phenomenal amount on a per capita basis.

Yes, we can blame some of our per capita lag on our immigration issue! But, our problem stems more from legislative neglect of the power of receptive finance laws. This forces our citizens to earn such a small income. Further, our local control of bank assets has gone from 95% at the time I was Arizona State Treasurer down to about 4% to 5%.

We need to keep Arizona money in Arizona! Here our money will generate greater sales tax revenues. Our deposit growth is currently limited and Arizona deposits are sucked out of state. We no longer control our own economic destiny in Arizona. Decisions are made for us by out-of-state money centers. We can reverse this trend by providing a statutory environment that will encourage businesses and banks to headquarter here or to move subsidiaries to our state.

We formed the Arizona Financial Institutions Task Force in 2006 to help State Senate Majority Leader Chuck Gray address bank related economic solutions for Arizona. Senator Jim Waring has been a regular attendee. I am chairman of the Task Force. Candace Wiest, President & CEO of West Valley National Bank, a former member of the San Francisco Federal Reserve is our Vice-chair. Our members are highly successful local business people and community bank presidents. Our mission: To provide an independent assessment of opportunities for financial institutions to improve the business climate in Arizona.

Our Task Force believes we will act as a magnet to major global financial firms that want to locate to the U.S. as well as to out-of-state banks and their subsidiaries if we eliminate state income tax as an obligation for locally headquartered businesses. Financial institutions with sizable state corporate income tax expenses would trip over themselves to move their headquarters to Arizona because this change would increase the value of their charters and therefore the value of their stock.

Can you imagine the money multiplier effect we are losing by not retaining control over our own deposits? Each dollar reproduces itself by 4 to 10 times when loaned locally. It is like giving Arizona our own printing press. Our state is losing out on the maximum multiplier effect that bank dollars can create while other states benefit from what should be ours.

In addition, without charging state corporate income tax, we may encourage some of the big guys that Congress is bailing out of their holes with billions of our dollars to move here. I believe we can capture some of that money for Arizona.

Per Capita Personal Income

2009

State

2008

State

2007

State

2006

State

2005

State

Rank

Rank

Rank

Rank

Rank

Arizona

32,935

43

34,339

41

34,365

36

33,423

36

31,491

36

Delaware

39,817

17

40,375

18

39,932

18

39,046

15

37,001

14

Nevada

38,578

20

40,936

17

40,930

15

39,231

14

38,117

11

South Dakota

36,935

25

38,644

25

36,428

27

33,718

31

33,117

26

Washington

41,751

12

42,747

13

41,919

11

39,550

13

36,734

16

Wyoming

45,705

6

48,580

5

46,726

6

44,677

5

39,446

6

Source: U.S. Dept. of Commerce, Bureau of Economic Analysis. Released March 2010.

CREATE A BETTER WORLD

egarfield — Wed, 28 Apr 2010 06:06:14 +0000

Our mission is to make the world a better place by creating a safer environment and helping charities raise money for their missions.

Our program will not require any additional staff. We do it all with a revolutionary out-sourcing affiliate program! I created this method of providing a new source of contributions to not-for-profit organizations by making services available through my company that creates revenue for them by providing everyday transactions to business supporters.

Gone will be the reliance on time-consuming fundraising dinners, golf tournaments, marathons and sale of used clothing and merchandise!

Charities can increase their fundraising by becoming affiliates to link supporting businesses to do their criminal background searches through www.usrecords.us. This is a service used by millions of corporations, professionals, apartment owners and managers, auto dealers, housing authorities and many other businesses.

I designed this program so the 1.8 million non-profit companies can effortlessly raise money. The nearest thing to this is the affinity credit card programs that contribute a percentage of charges to non-profits.

Each time a company or business of a supporter of a charity uses our criminal background search service the charity of choice will receive 20% of the fee. That is $2.40 per $12.00 search! Promote this service through your network of supporters.

However, a great number of searches on our site are free as a public service. We list sex offenders and link with INTERPOL for terrorist’s searches. You can insert a zip code and find all the outstanding warrants anywhere in America. To my knowledge we are the only ones sending out wanted posters for law enforcement. See our www.criminaltrackeralert.com.

You can see how popular our service is by doing a Google or Bing search for criminal tracker alert. We or our affiliates take up the first three or so pages. Our link to INTERPOL is even listed ahead of INTERPOL!

You may be interested in helping your favorite charities with another fundraising program I will soon be launching. Again, this will not cost you a dime. This program will “marry” the fundraising of charities with the business development of FDIC insured community banks. I help people start community banks. Move any of your bank accounts, checking, savings, CD’s or other depository service to one of the participating banks and they will pay a monthly fee to the charities of your choice. My patent attorney could not find any program anywhere in the world that works this way.

Let me know if you want me to let you know when this program is available. Email me directly at egarfield8442@gmail.com. I will provide you access to bank rating services so you can decide for yourself on the financial health of the bank.

Political Corner – Grand Jury Abuses Again and Again

egarfield — Mon, 26 Apr 2010 03:50:48 +0000

To be posted

Billions of dollars have been lost and more are at risk!

egarfield — Mon, 26 Apr 2010 02:58:28 +0000

Some of our Arizona Legislators continue to turn a blind eye to victims who have lost millions of dollars to dishonest Facilitators acting as Qualified Intermediaries for Internal Revenue Code 1031 Property Exchanges. (A taxpayer may completely defer payment of taxes by structuring a sale as an exchange in accordance with IRS Code 1031)

Some of our Legislators continue to turn a blind eye to the huge economic benefit for Arizona if Senate Bill 1333 were to be passed! Bank deposits in Arizona as of June 30, 2009 (last figures available) were in excess of $82 billion. I believe this legislation alone, could bring $12 billion to $15 billion more to Arizona in deposits to help create jobs at the very time we are facing a devastating revenue shortfall.

I’ll tell you a story about what happened to the bill that you couldn’t possibly believe until I show you proof right from the Arizona State Senate files.

Without as much as a hearing SB1333 became a bill to “regulate canneries, fertilizer plants, refineries, commercial feed lots, meat packing plants, tallow works, energy parks and other like businesses.” See this sick “Strike everything after the enacting clause” joke for yourself at http://www.azleg.gov/FormatDocument.asp?inDoc=%2Flegtext%2F49leg%2F2r%2Fproposed%2Fs%2E1333tv1%2Edoc%2Ehtm.

Roughly $185 billion was processed by Exchange Facilitators in 2008 in the U. S. Although, Federal Law mandates that each exchange must be executed with the services of a Qualified Intermediary, the QIs are not audited or otherwise monitored by any federal regulatory body.

The risk of loss is great, but unnecessary if some of our legislators would wake up. This is the second Legislative session that I have asked for this bill to be introduced hoping to be the first state to act. Since then four states have provided the leadership to regulate this process; Nevada, California. Washington State and Colorado.

The defense of the QI that lost their clients $120 million dollars in Nevada by comingling personal and company monies with clients’ funds was, “There was no regulation of what could be done with the funds.” The Nevada legislature did not act to protect its citizens until after this loss.

We should move without delay to become the fifth state to establish standards for QIs.

Losses in Arizona have happened and more are inevitable! I personally know of a bank president who was approached with an offer to use client money as collateral for personal loans for the owners of a QI. Absolute power over money corrupts. We don’t need to wait until after the fact to regulate.

In December 2008 the QI of LandAmerica filed bankruptcy with over $400 million of consumer funds. The monies are now in limbo and may never be seen again due to commingling and improper investment under LandAmerica’s control.

Arizona consumers, inundated with a flood of downward economic trends, should not have to risk money entrusted to Qualified Intermediaries that due to a lack of both federal and state legislation are riddled with intentional and unintentional fraud. QIs are not required to be bonded, insured, or even licensed. This regulatory void has left unscrupulous and incompetent QIs with doors wide open for malpractice or outright fraud. Your money becomes their money to do with as they wish!

Arizona must move quickly to become one of only four other states in the nation to bring regulation to this important business function. Our state could be seen as a safe haven and a home to billions of dollars of 1031 exchanges bringing relocations, assets, tax revenues and jobs to Arizona. Funding will be needed for the Arizona Department of Financial Institutions to oversee this industry.

Legislative Healthcare Sell-Out

egarfield — Sun, 25 Apr 2010 22:36:58 +0000

2010 is the second Legislative session that I have asked for the introduction of a bill to modify Arizona law for health insurance companies licensed here. Senate Bill 1331 was written to improve healthcare, cut costs, attract businesses to Arizona, create new jobs and alleviate shortage of medical personnel!

A few insurance companies are beginning to recognize the value of sending Americans outside of the U.S. to receive major medical treatment.

Follow the link http://www.azleg.gov/legtext/49leg/2r/bills/sb1331o.asp to see how this bill, after it was killed at the request of Arizona Blue Cross, became a state holiday for Girl Scouts. Otherwise you may not believe it! And, you thought Legislators were there for your benefit!

From State Senate records – TITLE: health insurance; coverage; geographic location (NOW: state holiday; girl scouts)

This bill would not have cost the state a dime, and would have created a unique economic environment to act as a magnet for businesses to move to Arizona to help contain their healthcare costs.

The huge savings can favorably impact our state and national debt and the budget of local businesses; and help solve the shortage of 150,000 doctors expected during the next 15 years!

An Arizona Ad Hoc Committee needs to be formed to study healthcare! Insist on it! This alternative plan needs to be put on the table for discussion here and across America.

A Blue Cross of South Carolina subsidiary provides coverage for healthcare in foreign locations. Another example is California where some health insurance companies embrace medical tourism to Mexico as a way to provide cost-effective treatment.

According to Michelle Matlock, Insure.com, the cost of a cross-border insurance program to insure a family of four in the U.S. by California-based Health Net is $631 a month; but if a family uses a physician in Mexico, the rate drops by more than 50% to $306 a month.

Some Latinos feel more comfortable visiting a physician in Mexico. Many do not see any difference between traveling outside of U.S. borders for medical care than do our own citizens that travel across state borders to receive care from doctors “back home” and to be near family.

In addition, it is estimated that there are 6.6 million Americans that live abroad. They don’t run back to the U.S. for most treatments.

The Deloite Center for Health expects nearly 16 million to seek offshore medical care in 2015. I expect this figure to climb monumentally beyond that number as employers learn that this is a way to cut costs and as they force insurance companies to provide expanded coverage.

One of the great American myths is that we have the best healthcare system in the world!

U.S. hospitals were recently ranked 37^th by the World Health Organization. Additionally, Americans trail 30 nations in life expectancy and the U.S. is 29^th in infant mortality. These last two dismal facts cannot be denied.

In reality, your healthcare treatment is dictated by state and federal government, health insurance and pharmaceutical companies, the U. S. Food and Drug Administration, a shortage of medical workers, and the potential for law suits.

I have been unable to find any elected official or political candidate in Arizona or anywhere in the U.S. that is considering this obvious alternative of insuring Americans. It is up to us to help them open their eyes!

Ernest Garfield, Chairman

Interstate Bank Developers, Inc.

www.ibdevelopers.com

Former Arizona State Senator, Arizona State Treasurer, Arizona Corporation Commissioner

Master of International Management – Thunderbird School of Global Management

Bachelor of International Management – Thunderbird School of Global Management

Bachelor of Business Administration – University of Arizona

Arizona	$14.6	3,839	6.5
Nevada	$1,255.3	170,997	2.6
South Dakota	$1,245.4	220,600	0.8
Delaware	$971.5	126,499	0.9

	2009	State	2008	State	2007	State	2006	State	2005	State
		Rank		Rank		Rank		Rank		Rank
Arizona	32,935	43	34,339	41	34,365	36	33,423	36	31,491	36
Delaware	39,817	17	40,375	18	39,932	18	39,046	15	37,001	14
Nevada	38,578	20	40,936	17	40,930	15	39,231	14	38,117	11
South Dakota	36,935	25	38,644	25	36,428	27	33,718	31	33,117	26
Washington	41,751	12	42,747	13	41,919	11	39,550	13	36,734	16
Wyoming	45,705	6	48,580	5	46,726	6	44,677	5	39,446	6
Source: U.S. Dept. of Commerce, Bureau of Economic Analysis. Released March 2010.