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Tuesday, February 25, 2014
Bananas Foster
Corporations Received 22,000% Return on Investment from Lobbying
The Rumor Mill News Reading Room
Corporations Received 22,000% Return on Investment from Lobbying
Posted By: Susoni [Send E-Mail]
Date: Tuesday, 25-Feb-2014 10:03:48
Date: Tuesday, 25-Feb-2014 10:03:48
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New 0 0 0 0
Ukraine Riot Police Get On Their Knees To Beg Forgiveness For Taking Part In Crackdown -pic
The Rumor Mill News Reading Room
Ukraine Riot Police Get On Their Knees To Beg Forgiveness For Taking Part In Crackdown -pic
Posted By: Jordon [Send E-Mail]
Date: Tuesday, 25-Feb-2014 10:08:28
Date: Tuesday, 25-Feb-2014 10:08:28
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What Is A Bank Sweep Account?
What Is A Bank Sweep Account?
02/25/2014
Post From http://s3alpha.net/ Post By Exogen
WHAT IS A BANK SWEEP ACCOUNT?
Posted by EXOGEN on February 23, 2014 A sweep account is an account set up at a bank or other financial institution where the funds are automatically managed between a primary cash account and secondary investment accounts.
Overview
A sweep account is a combination of two or more accounts at a bank or a financial institution. It is useful in managing a steady cash flow between a cash account used to make scheduled payments, and an investment account where the cash is able to accrue a higher return.
Many banks and financial institutions offer a sweep account service for personal customers and small business owners. It has also become part of the arsenal of services offered by credit card companies.
...
Read More Link On Right
WHAT IS A BANK SWEEP ACCOUNT?
Posted by EXOGEN on February 23, 2014 A sweep account is an account set up at a bank or other financial institution where the funds are automatically managed between a primary cash account and secondary investment accounts.
Overview
A sweep account is a combination of two or more accounts at a bank or a financial institution. It is useful in managing a steady cash flow between a cash account used to make scheduled payments, and an investment account where the cash is able to accrue a higher return.
Many banks and financial institutions offer a sweep account service for personal customers and small business owners. It has also become part of the arsenal of services offered by credit card companies.
...
Read More Link On Right
Mechanics
In banking, sweep accounts are primarily used as a legal workaround to the prohibition on paying interest on business checking accounts. In this system, the funds are described as being "swept overnight" into an investment vehicle of some kind. The choices for sweep investments are often the following: money funds, and what are known as "Eurodollar Sweeps" or "Repo Sweeps".
Eurodollar sweeps are legal transfers of funds to the bank's offshore entities, although essentially they are just an accounting technique to allow the banks to have full lending of the funds without the reserve requirements normally required and without having to pay for FDIC insurance (as the sweep is uninsured).
Essentially, the funds are just unsecured obligations of the bank, and therefore are paid the highest interest rate offered by the bank to overnight deposit borrowings.
"Repo Sweeps" ("repo" meaning "repurchase agreement") are for companies that are concerned about the safety of the bank (usually by mandate of the companies/institutions charter and not due to the opinions of the employees or financial staff).
In this arrangement, the swept funds on deposit with the bank are secured by some of the bond holdings of the bank. If the bank were to fail, the depositor would just be given the bond holdings and then could sell the bonds to get their money back (unless something happens to the bond prices in the interim).
Larger corporate bank accounts are charged numerous fees for each of the services the bank offers (such as a charge per every check deposited), however the bank rebates these fees based on the companies account balances in a process known as account analysis.
How it actually works
In a sweep account
A cash account is set up first and a lump sum of money is deposited into that account.
A financial advisor and the client will discuss and determine an average balance that should be kept in this account. Depending on the institutions service, this amount may be pre-determined.
Most of the extra cash above the average balance will be invested into a money market, CD, or some other form of investment that can be easily liquidated.
When the balance in the cash account falls below the pre-determined average balance, some of the investment is liquidated and the proceeds get deposited into the cash account, thus maintaining the average balance.
If the initial calculations are done correctly, the interest on the cash and returns on the investments should yield a large enough return that will increase the total value of the sweep account.
During a bad economic cycle, the funds in the investment accounts may fall low enough that substantial gains will not be possible to maintain the average balance in the cash account. In these cases, the financial institutions would ask either for more funds to be put into the investment account, or recommend other forms of investments and liquidation.
The financial innovation of sweep accounts is particularly interesting because it was stimulated not only by the desire to avoid costly regulation, but also by a change in supply conditions- in this case technology.
Company policy issues
Some companies choose to have all of their funds swept into a sweep account if they believe that the increased earnings will more than offset the fees they would have been rebated, should they have left the funds in the account.
Other companies calculate the approximate amount needed to rebate the fees and then only sweep funds in excess of that amount.
Companies pay extra for more complex investment strategies, and for more detailed communication from their bank. For example, knowing when the checks they issue will probably clear, enables them to more precisely determine how to invest and for how long. This service is known as controlled disbursement.
http://www.dinarrecaps.com/1/
In banking, sweep accounts are primarily used as a legal workaround to the prohibition on paying interest on business checking accounts. In this system, the funds are described as being "swept overnight" into an investment vehicle of some kind. The choices for sweep investments are often the following: money funds, and what are known as "Eurodollar Sweeps" or "Repo Sweeps".
Eurodollar sweeps are legal transfers of funds to the bank's offshore entities, although essentially they are just an accounting technique to allow the banks to have full lending of the funds without the reserve requirements normally required and without having to pay for FDIC insurance (as the sweep is uninsured).
Essentially, the funds are just unsecured obligations of the bank, and therefore are paid the highest interest rate offered by the bank to overnight deposit borrowings.
"Repo Sweeps" ("repo" meaning "repurchase agreement") are for companies that are concerned about the safety of the bank (usually by mandate of the companies/institutions charter and not due to the opinions of the employees or financial staff).
In this arrangement, the swept funds on deposit with the bank are secured by some of the bond holdings of the bank. If the bank were to fail, the depositor would just be given the bond holdings and then could sell the bonds to get their money back (unless something happens to the bond prices in the interim).
Larger corporate bank accounts are charged numerous fees for each of the services the bank offers (such as a charge per every check deposited), however the bank rebates these fees based on the companies account balances in a process known as account analysis.
How it actually works
In a sweep account
A cash account is set up first and a lump sum of money is deposited into that account.
A financial advisor and the client will discuss and determine an average balance that should be kept in this account. Depending on the institutions service, this amount may be pre-determined.
Most of the extra cash above the average balance will be invested into a money market, CD, or some other form of investment that can be easily liquidated.
When the balance in the cash account falls below the pre-determined average balance, some of the investment is liquidated and the proceeds get deposited into the cash account, thus maintaining the average balance.
If the initial calculations are done correctly, the interest on the cash and returns on the investments should yield a large enough return that will increase the total value of the sweep account.
During a bad economic cycle, the funds in the investment accounts may fall low enough that substantial gains will not be possible to maintain the average balance in the cash account. In these cases, the financial institutions would ask either for more funds to be put into the investment account, or recommend other forms of investments and liquidation.
The financial innovation of sweep accounts is particularly interesting because it was stimulated not only by the desire to avoid costly regulation, but also by a change in supply conditions- in this case technology.
Company policy issues
Some companies choose to have all of their funds swept into a sweep account if they believe that the increased earnings will more than offset the fees they would have been rebated, should they have left the funds in the account.
Other companies calculate the approximate amount needed to rebate the fees and then only sweep funds in excess of that amount.
Companies pay extra for more complex investment strategies, and for more detailed communication from their bank. For example, knowing when the checks they issue will probably clear, enables them to more precisely determine how to invest and for how long. This service is known as controlled disbursement.
http://www.dinarrecaps.com/1/
BEHIND THE UKRAINE RIOTS
“The Ukraine riots started by the US embassy have openly pissed off
the entire world. The initial rioters had American baseball caps and
brown shoes with laces. There are no brown shoe laces in Kiev and only I
wear a baseball cap. Directly after the Olympics the entire Eastern
bloc will be ready to move.”
The Olympics just ended and it is a good bet that the blue part of
the Ukraine seen in the maps at this link will become part of Russia
when the dust settles:
http://www.washingtonpost.com/
the entire world. The initial rioters had American baseball caps and
brown shoes with laces. There are no brown shoe laces in Kiev and only I
wear a baseball cap. Directly after the Olympics the entire Eastern
bloc will be ready to move.”
The Olympics just ended and it is a good bet that the blue part of
the Ukraine seen in the maps at this link will become part of Russia
when the dust settles:
http://www.washingtonpost.com/
UPDATE ON IRAQ MONETARY POLICY & CURRENCY REFORM IN CONDENSED VERSION
UPDATE ON IRAQ MONETARY POLICY & CURRENCY REFORM IN CONDENSED VERSION
Posted by EXOGEN on February 25, 2014 at 9:19am
1. THE CBI HAS TAKEN IN TRILLIONS IN DINARS FROM ALL OF THE BANKS
2. THE 2 LARGEST BANKS REFUSED TO TURN THEIR DINARS IN
3. THIS IS ALL TIED TO IMF ARTICLE 8 COMPLIANCE
4. UNDERSTAND DE-DOLLARIZATION AND RE-DENOMINATION IN MONETARY POLICY
5. THE EXCHANGE RATE HAS TO ADJUST NOW
6. THIS IS TIED DIRECTLY TO IN COUNTRY MONEY SUPPLY & FIGURES
7. THE LOWER DENOMS MUST BE RELEASED SOON
Posted by EXOGEN on February 25, 2014 at 9:19am
1. THE CBI HAS TAKEN IN TRILLIONS IN DINARS FROM ALL OF THE BANKS
2. THE 2 LARGEST BANKS REFUSED TO TURN THEIR DINARS IN
3. THIS IS ALL TIED TO IMF ARTICLE 8 COMPLIANCE
4. UNDERSTAND DE-DOLLARIZATION AND RE-DENOMINATION IN MONETARY POLICY
5. THE EXCHANGE RATE HAS TO ADJUST NOW
6. THIS IS TIED DIRECTLY TO IN COUNTRY MONEY SUPPLY & FIGURES
7. THE LOWER DENOMS MUST BE RELEASED SOON
8. THE CBI IS OPERATING LIKE THE FEDERAL RESERVE BANK
9. THIS IS TIED DIRECTLY TO THE NEW OPEN MARKET POLICY TO BE IMPLEMENTED
10. FOREIGN OBLIGATIONS CAN NO LONGER BE PAID IN USD AS OF YESTERDAY IN IRAQ
11. THERE WILL BE A 1:1 RATIO REQUIRED AT A MINIMUM
12. BANKS IN IRAQ HAVE NO LIQUIDITY
13. IRAQ IS UP FOR ARTICLE IV REVIEW WITH THE IMF IN DAYS
9. THIS IS TIED DIRECTLY TO THE NEW OPEN MARKET POLICY TO BE IMPLEMENTED
10. FOREIGN OBLIGATIONS CAN NO LONGER BE PAID IN USD AS OF YESTERDAY IN IRAQ
11. THERE WILL BE A 1:1 RATIO REQUIRED AT A MINIMUM
12. BANKS IN IRAQ HAVE NO LIQUIDITY
13. IRAQ IS UP FOR ARTICLE IV REVIEW WITH THE IMF IN DAYS
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