A river called Meekong- truly Asian, different, but the same

So I have been livingin Singapore, trying to adapt to another market people etc. One of the things that has definetly changed is how my interest in things is changing. I now enjoy watching CCTV, which is the english bradcasting wing of China. In the last one year I have travelled more that my entire life. I am truly growing comfortable being around Thai, Indonesian and Chinese people. I dont understand what they say in their languge, but a sense of belonging is creeping in. I love Asia, the diversity is tremendous, but what amazes me is how similar people are. Now I am not talking about work, but generally in life. I know people are similar, yet some how very different.

I actually am falling in love with teh Japenese with each passing day. their culture food and politeness. I never thought I could eat raw fish, but Shashimi makes you realize what you were missing in life.

I love the fact that Singapore a tiny half a city state is the center of economic power in SE Asia. YEs it can be a mixed bag some days, but you have to salute the spirit of these people, to become what they are. Proud SIngaporeans, truly they deserve that. I just wished they learnt better english skills. But then agian lah, What is Singapore without Singlish. Singlish is the human side of Singapore.
I also love Thai, Malay, Pinoy and Indonesian people. I love Indonesians the best, they are a happy buch, super hospitable and when they laugh, their sould can seen. Its clean and good.

I was watching a program on TV in my office reception, it was about the Meekong river, Asia's longest river. Its starts in Indochina ( Tibet and flows out at Meekong river delta). Meekong is the best example of Asia, its the same thing flowing, but its called different things in different courtries. But what I have realized is this- Asia-Its the same but different

Hard work

So I moved from India to Singapore for a 'better' life. Yes I do have a better life, I live across the office, walk to work have the gym in the same building as my office. All nice. But the last couple of weeks though have been terrible. I have been working my ass off, getting up early sleeping late. What I am saddest about is missing my workouts. Hmmm! work life balance, somehow its always work work balance man. Anyways, wats the point, make a change or shut up.

Weekend In Melaka

Sped off to Melaka this weekend. Lovely place full of history and all. Just relaxed, will go there again. Its a quant little town full of history. Stayed at the Baba house hotel, Hereen street. Highly recomended. Its an old PEranaken house converted to a hotel. But the first night stayed at hotel 906. Horrible place small rooms, the rooms face a building and an drian, cant tell you how distressing it was. Anyways the move to Baba was great. HAd the best breakfast at Hereen street at this new dutch place, excellent food must try.

Dell hell in India, Hello airtel.

A friend of mine karthik, an avid blogger is struggling with Airtel, a leading mobile phone company. They seem to be screwing up with one customer now they are india's largest cellphone company, obviously the numbers means more problems and KArthik rightfully says, this is Airtel HEll, like Dell Hell!. Dell smartened up, unfortunatley Airtel is dumb and is not doing anything its actually a wonder they are the biggest, I guess country folk where they get thier numbers dont ask for relistic things unlike city subcribers. IF your reading this, help make things right, compnies cannot take their customers for a ride, spread the word Airtel YOU HAVE TO ACT and listen to the customers

,

HEre is karthik's post:

Airtel HELL…the new Dell Hell!
Posted on April 2, 2009, 7:50 pm, by Karthik S, under opinion.
Or should it be, AirtHELL? (BTW, this is Dell Hell)
My problem that I first complained and blogged about is still unresolved. Here’s the mail I sent to 121@airtel.in yesterday.
“Subject: Simple problem not rectified since March 11th - What is wrong with Airtel?
My number is 9845XXXXXX and I’ve logged in a complaint on March 11th over the fact that I’m not able to dial into a particular number - 0008004401625. This is the India bridge number of an international conference call and works with EVERY single service provider in India. I’ve personally tried this number through Aircell, Tata Indicom, Spice, Idea and Vodafone. It works.
In Airtel…landline and mobile, the message I get is, ‘this number does not exist’.
I’ve made several, several calls since March 11 to solve this issue, but it has still not been resolved. I was supposed to get on to this conference call today at 7 pm and its 7:45 pm now. Still, no help. I’m on a call with a customer service right now as I type and he gives me a number supposedly belonging to a nodal officer. I place him on hold and call that number, only to be greeted with a time announcement that that particular number is valid only from 9:30 to 6 on weekdays.
I’ve been making calls almost every other day, each lasting more than 45 minutes. No body has even been remotely helpful.
A technical person called me last week to say that the number I gave does not exist and that they’ve closed my problem entry. I asked him a simple question, ‘Did you try calling from a non-Airtel phone?’. He actually said, ‘No, we do not have non-Airtel phones in our floor’.
Don’t you think this is extraordinarily silly? That is precisely my problem and I had raised exactly that in my first complaint.
So, how long should a customer be harassed before a seemingly simple and harmless problem is rectified?
I’ve been an extremely satisfied customer of Airtel’s services and have 2 of each - mobile connection, landline connection and broadband. This is the first time I’m facing this problem and it has been a harrowing time trying to explain the same problem along with verifying everything from my phone number, billing address, waist size, passport number…and what not.
What is wrong with Airtel? Let me remind you that as I type this, my problem is still unresolved.”
I got this response.
“Dear Mr. Karthik,
Thank you for contacting Airtel.
You have expressed concern over the inability to call the particular number 0008004401625 from your Airtel mobile number 9845XXXXXX.
We completely comprehend your viewpoint and sincerely apologize for any difficulty caused to you.
Please be informed that your concern has already been registered. Kindly refer to the Service Request number 27112609 in any future communication about this concern.
We would revert to you by 24 working hours.
You could view the status of your Service Request by dialing *121# (Toll Free) and press the call button, details will immediately appear on the screen and you could also dial 12115 (Toll Free) for the same.
For further assistance, mail us at 121@airtelindia.com
We value your association with Airtel.
Warm Regards,
ArunCustomer Care ExecutiveBharti Airtel Limited”
And, I mailed this today evening after making that grave mistake of not being able to take the call from 9845012345 thrice. Why? I was attending the call of the nature - I realize now that it was a miserable error in judgment - I should not have stepped inside that darn loo.
“As I type this, its 7:10 pm. I got many calls from Airtel today - none were even remotely helpful. A customer service manager I spoke to last night (Phani Kumar), as promised, called me and said my problem is being looked into. Someone named Mamta from Gurgaon called in the noon and said the problem is being looked into. On last count, there are at least 7 people and 3 departments that are ‘looking into’ my complaint.
You mean to say that all these folks are either extraordinarily incompetent or just do not care for a customer?
I get 3 missed calls from 9845012345 at 6:45 pm today evening and unfortunately I was forced to attend to a personal emergency, pertaining to my bathroom - in other words, I was taking a shit. I try calling the number back and try to get the update meant for me - a customer service person says that ‘they’ will call me in 24 hours.
Is that the price of going to shit in the evening at 6:45 pm? What sort of demented customer service is it that doesn’t allow me to get in touch with the person who was supposed to update me and tried to reach me so desperately to give me 3 missed calls?
Do you even understand the magnitude of this problem? My complaint was placed on March 11th. Today is April 2nd.
I still don’t even know what the problem is, could be or will be. One of the many people I spoke to suggested that the number I tried calling/ or its owner may not have an agreement with Airtel. Is that a joke? When every other service provider in India has an agreement to connect to that number, why not India’s largest Telco?
I have about 10 service request numbers on SMS, have spent almost an hour trying to explain my problem every alternate day in the evenings and sometime during office hours.
That number I’m supposed to call (0008004401625) is a bridge number for a client conference call. Can I tell my office that due to Airtel’s incompetence I’m not able to dial into that number and join the conference? How is that every other service provider in India supports that number, except India’s largest telco which reverts a ‘number does not exist’ message?
How is it that I’m able to call another number with the same 6 digit prefix, through Airtel? That number is 0008006501314. If that number works through Airtel, why not the number I’m trying?
What exactly is wrong is Airtel? This is the first time I’m facing such undue nonsense from Airtel, a brand that I used to admire for its prompt customer service.
This is the most disgusting chapter in my entire life - I can say it with confidence because I’ve logged in so many valuable hours speaking/ shouting/ abusing/ pleading/ begging/ explaining/ praying my problem to so MANY people at Airtel customer care.
The only outcome? From March 11, when I placed the complaint first, I still have my issue unresolved.
I’ve blogged about this earlier - on March 11. Also recently. I’m blogging this entire mail (the one below too) now, so that my blog’s readers can know how India’s largest Telco treats its customers.”
What more can I do? All I want is to have my issue resolved and get onto that conference call.

Highest paid politicians in the world

Dont see these guys taking a salary cut yeah:)

There is nothing like a scandal involving porn films claimed on Commons expenses to focus attention on the pay and perks enjoyed, sorry earned, by our public servants.
Even before Jacqui Smith, the Home Secretary, was forced to apologise for her husband's blue movies there had been calls for the whole system to be overturned. The committee on standards in public life which has promised to report on MP pay and expenses by the end of the year is under pressure to do something radical.
Whenever MPs come under attack over pay they are quick to argue that compared to executives in the private and public sector they are not particularly well paid.
With the G20 leaders in the country we thought it was worth getting a snapshot of how much the highest paid presidents and prime ministers around the world earn. For comparison's sake all earnings have been converted into dollars. It also shows basic annual salary only, not the expenses claimed on top.
So, where does our own Gordon Brown stand?
1. Lee Hsien Loong - Singapore
Salary in dollars - $2.47 million
Salary in local currency - S$3.76 million
2. Donald Tsang Yum-Kuen - Hong Kong
Salary in dollars - $516,000
Salary in local currency - HK$4 million
3. Barack Obama - United States
Salary in dollars - $400,000
4. Brian Cowen - Ireland
Salary in dollars - $341,000
Salary in local currency - €257,000
5. Nicolas Sarkozy - FranceSalary in dollars - $318,000
Salary in local currency - €240,000
6. Angela Merkel - Germany
Salary in dollars - $303,000
Salary in local currency - €228,000
7. Gordon Brown - UK
Salary in dollars - $279,000
Salary in local currency - £194,250
8. Stephen Harper - Canada
Salary in dollars - $246,000
Salary in local currency - C$311,000
9. Taro Aso - Japan
Salary in dollars - $243,000
Salary in local currency - Y24 million
10. Kevin Rudd - Australia
Salary in dollars - $229,000
Salary in local currency - A$330,000

Source: http://timesbusiness.typepad.com/money_weblog/2009/04/the-10-highest-paid-politicians-in-the-world.html

Google trying to take over your brain...

IS google trying to take over your brain?

Introducing Google Brain Search for mobile
Tuesday, March 31, 2009 11:34 PM
Ever had a word on the tip of your tongue but just couldn't remember it? Or perhaps blanked on a person's name in a socially awkward situation? Or even suffered memory deterioration due to ordinary aging or questionable life choices? If so, Brain Search for mobile may be for you. Using our new CADIE technology, we can now index the content of your brain to make it searchable, thus bringing you aided retrieval of memories. Check out this video to see how it works:Your phone already has an antenna, which can pick up wireless signals. CADIE technology modifies the input wavelengths so it can read brain waves. Go to the Brain Search App (here on a computer or here on a phone.) If you bring your phone to your forehead, your phone can index your brain, making it searchable. Since your phone is now modified to read brainwaves, you don't even have to type your search. Put your phone to your forehead and think your query, then click on "Search me". This is helpful in situations where you don't want onlookers to know what you're searching for, so you can feel comfortable asking personal things such as "What did I eat that's making me so gassy?" or "Did I ever go out with that girl? She looks vaguely familiar." And, since CADIE's artificial neural networks run faster than those of a human being, it is faster for her to search through your thoughts and memories than for you to do it yourself.Brain Search is available for the US, UK, France, Germany, and Italy, and on a number of different devices.
On Android and iPhone devices, Brain Search runs in the browser, taking advantage of HTML5 and Gears technologies.
On Windows Mobile devices, make sure you download and install the latest version of Google Mobile App. Click the Panda icon (CADIE's choice, don't ask us) to get to Brain Search.
On Blackberry devices (US and UK only), make sure you download and install the latest version of Google Mobile App. Type "Brain Search" in the search box. You'll get a link to Brain Search in the search suggestions below. To get started on any of these, go to google.com on your mobile device, and click the Brain Search link.Don't forget. Brain Search.

Tech spending to fall

Research firm Gartner expects worldwide technology spending to drop 3.9 percent
By BARBARA ORTUTAY Associated Press Mar 31, 09 3:25 PM CDT in Technology
Dragged down by the weak economy, global spending on technology products and services will likely decline nearly 4 percent this year, research firm Gartner Inc. said Tuesday.
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Gartner expects a broad-based slowdown, leading to a 3.8 percent decline from 2008, to $3.2 trillion. Hardware will see the sharpest drop, nearly 15 percent compared with a 2.8 percent increase last year. Spending on software, which can help companies save money, is expected to stay nearly flat, rising less than half of 1 percent.
The latest forecast would be worse than the 2.1 percent decline in spending that the tech industry saw in 2001, after the dot-com bust.
Worldwide, companies are trimming their budgets, waiting longer to upgrade to newer computers, for example. And consumers squeezed by the recession are slashing their discretionary spending.
Gartner called its forecast bleak, and said government stimulus packages won't be enough to offset things soon. The research firm expects a "slow, prolonged recovery during 2010," said Richard Gordon, research vice president, and head of global forecasting at Gartner.
Also on Tuesday, Forrester Research Inc. lowered its forecast for U.S. tech spending because of the worsening economy. The research firm now expects U.S. business and government spending on technology products and services to fall by 3.1 percent this year, compared with its earlier forecast of 1.6 percent growth.
Forrester Analyst Andrew Bartels said that in some ways the credit crunch has hurt technology spending more than the recession.
"Companies are so afraid they won't be able to borrow if they need to (that) they are going through extreme lengths to preserve cash," he said.
Forrester expects growth in tech spending to resume in the fourth quarter of this year, and "gather strength" in 2010. Bartels said there is pent-up demand from companies that need to spend money on new technologies.
"Once the recession bottoms out, once the financial markets start to function more normally, that pent-up demand will start to resurface," he said.

Source: http://www.newser.com/article/d9797ocg1/research-firm-gartner-expects-worldwide-technology-spending-to-drop-39-percent.html

Ongoing Recession and Survival With Help From Outsourcing

Economies the world over are nose diving and situation has been getting bleaker by each passing day. Facing the worst recession in the recent times, most of the big corporate houses have gone for massive revamping, including down-sizing staff strength, cutting down on fringe benefits to employees, cutting down on other expenses, freezing on any capital outlay etc.
In such gloom, how does one survive? Is there no solution to this recession? When will this gloom end?
The answers to all the above questions lie in the fundamentals of Economics. The entire economy floats on the balance of demand and supply. Any fluctuation in one is bound to impact the other. However, for the entire economy to function smoothly, the factors of demand and supply cannot be left alone to function. For some products, the demand-supply theory works independent of any interference. But, for some products, the theory behaves erratically and it becomes critical for inducements to smoothen the erratic behavior. These erratic behaviors & inducements become necessary in difficult times like recession.
Let's take the example of two diverse products: Motor Cars and Wheat. While wheat is a food item and is a commodity that will never lose any slump in demand. The only impact the demand-supply theory has on Wheat is in the pricing of the product. If the demand is higher than the supply, prices will do up and vice-versa. The product however will continue to be produced and consumed no matter what is the condition of the economy.
At the other end of the spectrum is Motor cars. This is a product which is mostly touted as a luxury, rather than a necessity. Therefore, the impact of economic conditions have far-reaching effects on this product, far higher in magnitude than they have on products like Wheat. Of course when the economy does not have any spikes, the demand-supply theory has an impact on the pricing of the motor cars, but when the economy is facing recessionary pressure, the survival of the very product can become questionable.
Today's economy has become far too complex than it was during the times of Keynes or Adam Smith when most of the basic tenets of Economics were issued. Today, each product is inter wined with other products in an economy and the economy of one nation is inter wined to the economy of the world. So, any impact on one product in any part of the world can have repercussions on the world economy. That is precisely the reason why today the entire world is facing its worst ever economic debacle.
The chain started when the housing mortgage bubble burst and banks & financial institutions lost millions of dollars. this resulted in contraction in funds availability. This in turn had a negative impact on businesses and general people. While some businesses found it difficult to get additional funds for expansion or new ventures, many others found it difficult to meet working capital requirements. This in turn propelled businesses to take stringent actions like saving every penny and cutting down on costs, including reducing staff strength. This in turn had a highly negative impact on general people. Because of the spreading gloom and imminent unemployment, people blocked their expenditures. This had a dual effect on the economy. While the products in the "necessity" brand did not face grave danger, the products in "luxury" brand took a real hit. This in turn had more businesses shutting down and more people getting unemployed.
In such a scenario, economy can be revived by increasing any one of the three spending components: Consumption, Investment or Government expenditures.
Governments the world over have been taking the third component seriously with the hope that it would create employments and induce positive sentiments in people to loosen their strings. But the desired effect is yet to be seen. It is predicted that the Government spending would have the desired effects but would take time, maybe a year or so.
If the sagging economy has to be restored faster than that, recourse has to be taken with the other two factors as well.
It is here that small businesses and outsourcing come into play. During these gloomy times, a small business has to survive first to see the positive effects of Government spending. And this is where outsourcing helps. With the technology having advanced to a level where distance does not matter, one has to look at options of cutting down costs and surviving, and then generating surplus funds to spend, which combined with others' spending would have positive impact on the economy.
A small business shall look at the various options available today to cut down cost. If until yesterday overheads were higher because of in-house operations, it would make sense to outsource them and reduce them further to reduce the pressure on revenue. For a hotel/restaurant or for a garage, accounting is an overhead that can be easily outsourced and costs saved, for an accounting firm, data entry can be outsourced.
While taking the decision for outsourcing, the businesses have to strategically devise their policies so as to take the best advantage of resources available the world over. Abundant availability of certain resource at one place needs to be evaluated with the rules & regulations governing that place as well as with the political stability of that place in order to ensure that outsourcing does not fail because of external factors. Other factors that need to be taken care has already been discussed, including data security, communication compatibility etc.
Thus, instead of looking at outsourcing as a problem, it would be in the interest of businesses and countries to look at it as a tool to beat recession!
Steve is a qualified accountant (Indian CPA) and co-founder of APT Services, the fastest growing outsourced accounting service provider in India. Steve has over 10 years of expertise in audits, accounting (both US & Indian GAAP), payroll and tax preparation services. For details on services provided by APT Services, log onto http://www.aptservicesonline.com
Article Source: http://EzineArticles.com/?expert=Steve_S_Walker

Best brands in Asia

Check out the latest digital media usage survey at tns hk officiial site

Working out, python mount faber singapore

So eating rabit food is frustating, but loosing weight is good. I wish there a a simpler way of doing this, alas no magic pill. I am going to start kick boxing soon. Saw apythin killed in my building gate this morning when I was getting to work. SUch a huge python, bang in the middle of the city. Then again, I live next to mount faber.

I will prevail

Good morning people, atleast in my part of the world its good morning. Today I bagged my first contract in Singapore. Its my first win, cant tell you how happy I am. Despite all the challenges that one is faced with. I have decided is I am here to stay, like it or not I will be around. I have come through a lot to be where I am, nobody or nothing is going to stop, so help me GOD. The last six months have been a roller coaster, often i wondered if i made the right move coming to Singapore. Slowly I am realizing, its not going to be an easy ride, but once I am trhough it, I will look back at this and say, I MADE it! its a very small win, but the confidence it gives me is phenomenal. Here's to winning guys, go after your dreams, it may seem bad sometimes but its worth it, One day it is:)

The new me-healthier and all

Well, about two weeks ago I went to my doctor, I had some cold or something. Anyways, so here I am waiting to go in at the clinic and you know how it is, the nice people at the doctors just checked my blood pressure (routine I suppose). Well it was 140 over something, mildly higher than the accepted 120/80.
Well its not to bad, maybe it was the coffee I had or just the trek to the dispensary. Anyways, the following week I went in again, this time I got an eye infection due to my contact lens. So I go in and since my BP was high last time, thought I just check it for kicks. Well, I checked it and guess wat it had gone up to 160 over 100. Gees, the doctor sat me down and said, “Sayed, look you are a young guy like me, but if you keep pushing your pressure up like that, then we need to get you on medication. I want you to eat celery and start hitting the gym, NOW!” Good advice doc. BTW this doctor is really nice after the quack at Shenton medical in HArbour Front. I found this cool doctor who seems to know what he is doing, and not a witch doctor.
Suddenly I could feel the stress in my head and heart, maybe I am imagining it but yes, I can feel the pressure. Well the good thing is I decided to cut back on the cancer sticks pronto. Reduce all salt intake and stay of the processed and canned food (I know they are high in Sodium).
Hello to the new me. My sisters rightly insisted that I go to the yoga class. So here is what I did, I started relaxing more and made it a point to go buy a bicycle. This I guess is my turning point again where I go healthy.
I eat the Amazonian rainforest for lunch and dinner with healthy snacks like fruits and all. Honestly, I love eating like that, and hell it makes you feel great.
Now the challenge is that the results take forever, and me being the veteran of losing and gaining weight, I should know., its going to be slow, but hell I am going to get there.
On a different not, this healthy regime is also pushing me to eat and sleep at the right time, would you believe it, I have dinner by 830 pm and in my jammies for bed by 930. Funny thing is I am off to bed at 10-30/11. Sometimes I think how boring, but if I want to run on the Keppel bay Island I found near my house in the morning, early to bed and early to rise is the mantra.

Don’t know why I am rambling about my heath regime, but felt like writing about it on my blog. Going forward, hopefully I will put up one new dish I have made and a new exercise I have learnt. Here is to a happier me and may be some friends who will join me in this thing called living for health.

Interesting banking news

This Financial crisis has really created a gloomy outlook. The interesting thing is obviously it presents an opportunity, lets see how we can help compnies comethrough this. I thought this press release was quite informative

As they say nothing lasts this to shall pass.

The Financial Crisis Has Slashed the Banking Industry's Market Value by $5.5 Trillion -- Equivalent to 10 Percent of Global GDP -- Says The Boston Consulting Group
A New Financial World Order Will See a Return to Traditional Banking, the Rise of Multilocals, and the Decline of Global Titans
Last update: 12:01 a.m. EST Feb. 18, 2009
BOSTON, MA, Feb 18, 2009 (MARKET WIRE via COMTEX) -- The world's banks have seen their overall market value plummet by $5.5 trillion since the start of the financial crisis, according to a report published today by The Boston Consulting Group (BCG).
The losses, equivalent to 10 percent of global GDP, have precipitated a radical restructuring of the world financial order and the rapid decline of the global titans. Only four banks had market values greater than $100 billion at the end of 2008 -- ICBC, China Construction Bank, JPMorgan Chase, and HSBC -- compared to 11 at the end of 2007.
In the report, "Living with New Realities," the seventh in the annual Creating Value in Banking series, BCG found that the banking industry's market value fell from $8.8 trillion in the third quarter of 2007 to $4.0 trillion by the end of 2008. It fell by a further $700 billion in the first three weeks of this year.
The market value of the 30 largest banks, measured by market capitalization, dropped from $3.2 trillion in 2007 to $1.7 trillion in 2008 -- a decline of about 47 percent. ICBC remains the largest bank in the world, measured by market capitalization -- although its value fell by nearly half, from about $339 billion in 2007 to about $174 billion in 2008.
Several large banks gained ground in the rankings. JPMorgan Chase rose from seventh to third, forcing HSBC, previously the biggest non-Chinese bank, into fourth position in the world rankings. Two banks leapt into the top 10: Wells Fargo, at 6 (up from 11 last year), and BBVA, at 10 (up from 15).
The major losses, together with the transformation in the world financial order, will force companies to rethink how they do business -- but that is not uniformly bad news. "There is going to be a 'new normal' -- a more difficult, challenging environment for financial institutions, which will persist for a considerable time," said Lars-Uwe Luther, a BCG partner and one of the report's authors. "But the crisis will prove to be as transformative as it is destructive."
In the report, BCG identifies several new realities that will redefine what banks must do to compete and to win:
-- The new era will see the renaissance of the much-maligned universal bank, which will offer a mixture of services to retail and corporate customers. The fundamentals of the model remain sound -- these banks are built on strong customer relationships, and they are funded predominantly from their own deposit base.
-- "Focus" will be the watchword for bankers. Large banks will still prosper, but not in the form of overly complex global banking titans, which sought to do just about everything everywhere. In the postcrisis world, banks will have to do fewer things -- and do them very well. In the future, large banks will be "multilocal," concentrating on a smaller set of activities in a more limited number of markets. Around the world, governments and regulators will resist the creation of institutions that are too big to save.
-- Traditional "old-fashioned" banking will reemerge as the preferred business model, reflecting a more cautious, highly regulated, risk-oriented environment. Customer relationships will take the place of innovative and risk-taking activities as the centerpiece of banking strategy.
-- Deposits will be of paramount importance -- not innovative products. Although securitization will not vanish, banks will concentrate on basic products as they focus on generating new deposits -- the lifeblood of their business. They have learned the lesson that their modern financial wizards were no more able to turn lead into gold than the alchemists of old.
The crisis is not the end of opportunity. "The new realities will force many banks to fall back on core businesses and markets, as well as leaner cost structures," said John Garabedian, a BCG senior partner and coauthor. "These actions -- coupled with better risk management -- should help position a bank to gain substantial ground at the expense of competitors that do not act quickly and with purpose."
The Impact of the Crisis Varies by Business
The financial crisis has different strategic implications for different businesses:
-- Retail Banking. The battle for deposits may determine the fate of entire financial institutions. Quality assets and strong branch networks are also essential.
-- Corporate Banking. A steep increase in corporate loan losses will force corporate banks to refocus on fundamentals such as pricing and productivity.
-- Investment Banking. Investment banks are radically altering their business portfolios. Many will move from being risk takers to trade facilitators.
-- Asset Management. Asset managers are facing a massive withdrawal of funds. They need to focus on cutting costs and rebuilding trust.
-- Wealth Management. Wealth managers avoided the most severe effects of the crisis but face challenges that are the result of slumping economies and damage to brands and trust.
Banking Performance Was Dismal in 2008
The crisis, by more than halving the industry's market value in 2008, effectively wiped out all of the gains made since 2003.
The crisis took a heavy toll in the second half of 2008. The banking industry's market value fell by a staggering $2.5 trillion in the space of six months. In September, it became clear that the crisis was going to be extraordinary. The month began with the government bailout of Fannie Mae and Freddie Mac and ended with the collapse of Washington Mutual -- the largest bank failure in U.S. history.
Other measures of value creation underscore the depth of the crisis:
-- The industry's total shareholder return (TSR), which includes capital gains and free-cash-flow yields, fell to -53.6 percent in 2008 -- nearly 80 percentage points lower than it had been in 2006.
-- Average banking TSRs were steeply negative in all markets. In North America, the average banking TSR was -50.7 percent. In Western Europe, it fell by nearly 58 percentage points, to -60.5 percent. Among the BRIC countries -- Brazil, Russia, India, and China -- the average banking TSR plunged by more than 100 percentage points, to -54.4 percent.
To receive a copy of the report or to arrange an interview with one of the authors, please contact Eric Gregoire at +1 617 850 3783 or gregoire.eric@bcg.com.
About The Boston Consulting Group
The Boston Consulting Group (BCG) is a global management consulting firm and the world's leading advisor on business strategy. We partner with clients in all sectors and regions to identify their highest-value opportunities, address their most critical challenges, and transform their businesses. Our customized approach combines deep insight into the dynamics of companies and markets with close collaboration at all levels of the client organization. This ensures that our clients achieve sustainable competitive advantage, build more capable organizations, and secure lasting results. Founded in 1963, BCG is a private company with 66 offices in 38 countries. For more information, please visit http://www.bcg.com/.
SOURCE: The Boston Consulting Group Copyright 2009 Market Wire, All rights reserved.

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