Becoming a National Bank Examiner: Preventing Economic Crisis

 

The Recession Affected Everyone

The economy is much like a wild animal, untamable and prone to unexpected changes in emotion and course. This was demonstrated around three years ago when the United States of America went from a relatively strong period of economic growth to one of the worst recessions in the country’s history. The Dow Jones, a stock index of the thirty strongest companies in the nation, fell more than 50 percent from its high of more than 14,000 points in October 2007 to less than 6,500 points in March of 2009. This was probably the peak of the recession as financial companies were failing along with the automobile industry of the United States. Corporations, white-collar employees and blue-collar employees were all affected by the decline of the American economy as profits fell and companies laid off millions of employees to maintain semblance as organizations.

Checks are Necessary in the Economy

The reasons for the recession are numerous but there is a consensus about the initial shocks that started it. Banks packaged huge amounts of loans that they made to consumers into billion dollar securities known as residential mortgage backed securities (RMBS). These securities included sub-prime loans made to borrowers with high default risks and when a significant portion of loans were in default, the securities lost value. There was a crisis in the market as companies were unable to estimate the degree of losses in the securities and refused to purchase them. This caused banks to be stuck with these terrible assets on their books that decreased profitability immensely. Had there been better oversight on these banks and the securities, the recession may have been avoided, but there is no way to tell for sure.

The Federal Reserve and the OCC: Maintaining Order

The main organizations in charge of monitoring banks and ensuring that they have sustainable business practices are the Federal Reserve and the Office of the Comptroller of the Currency (OCC). The Federal Reserve serves as the national bank of the United States and provides capital to banks as well as oversight over them. The OCC was established in 1863 to charter, regulate and supervise banks in the United States.

National Bank Examiner Duties

A national bank examiner spends about half of his or her time travelling to various banks and speaking with his or her management teams to assess the standing. Bank examiners are responsible for analyzing a bank’s ability to function properly. This includes their default risks, geographic placement, interest rate premiums and other factors. Banks are rated on a scale using data such as their financial statements, management discussions, growth potential and other components.

Becoming a National Bank Examiner

One cannot become a national bank examiner as an entry-level position. A person must apply to the position of assistant national bank examiner at either the Federal Reserve or OCC. In order to be considered for this position, either one must have a bachelor’s degree in finance, accounting, economics, or other related fields, or three years of work experience related to the position, or a combination of education and experience such as a CFA certificate. Working as an assistant national bank examiner for several years leads to the Uniform Commissioned Examination (UCE) and successful completion of the UCE leads to a commission as a national bank examiner and the ability to oversee bank examinations.

Most Nobel Prize Laureates by College

 

Success of a College Measured by Student Achievement

The mission of a college or university is to educate its students and prepare them to achieve success in their personal and professional endeavors. The mark of a university’s prowess is the success that its students enjoy and a college or university that produces students who achieve the pinnacle of success in their field is certainly worthy of distinction. The most prestigious distinction in many fields is considered the Nobel Prize.

Nobel Prize History

The Nobel Prizes are international awards given annually to people in recognition of their achievements in a field. The Prizes were established by Alfred Nobel, the inventor of dynamite, through his will in 1895. The prizes were first awarded in 1901. The first prizes were awarded in the fields of Physics, Chemistry, Physiology or Medicine, Literature, and Peace. In 1968, Sveriges Riksbank (the Swedish National Bank) instituted a sixth prize for economics. Recipients of Nobel Prizes are known as laureates and they receive a gold medal, diploma and a sum of money depending on the Nobel Foundation’s income for that year. In 2011, the prize was worth $1.45 million.

Colleges with the Most Nobel Prize Laureates

This article will provide a list of colleges with the most total laureates (graduates, attendees, researchers, and academic staff) as well as a list of colleges with the most graduates receiving Nobel Prizes.

Most Total Laureates

1. Columbia University (96 laureates) – Founded in 1754 in Manhattan, New York City, Columbia University is the oldest institution of higher learning in the state of New York and the fifth oldest in the United States. Not only is it responsible for the most Nobel laureates in the world, the university also administers the Pulitzer Prize, an award for achievements in journalism, literature and musical composition.

2. University of Cambridge (88 laureates) – The University of Cambridge was founded in 1209 in Cambridge, United Kingdom. It is the seventh oldest university in the world and the second oldest in the English-speaking world. The University of Cambridge started after scholars of Oxford University left after a dispute with townsfolk to start their own university.

3. University of Chicago (86 laureates) – This private research university was established in 1890 in Chicago, Illinois with a donation from oil tycoon John D. Rockefeller. The school is responsible for numerous movements that changed the course of knowledge in various fields. The University of Chicago played a significant role in the development of the Chicago School of economics, sociology, and the law and economics movement in legal analysis.

Most Graduates Receiving Nobel Prizes

1. University of Cambridge (65 laureates)

2. Harvard University (52 laureates) – Founded in 1636 in Cambridge, Massachusetts, Harvard University is the oldest institution of higher learning in the country and the first corporation as well. Seventy-five laureates have been affiliated with the university in total. Harvard has the largest financial endowment in the world at $32 billion. It also produced eight United States’ Presidents.

3. Columbia University (38 laureates)

Taking Winter Courses

 

College is a Time of Responsibility

The day that a student enters the college or university in which he or she enrolled is the day he or she copes with increased responsibilities. The transition from high school to college can be difficult for some students because the experience from one to the next is quite different. Many students in high school are reminded of their responsibilities, due dates, and assignments by their teachers or parents. This is the usual experience in high school and large amounts of students rely on these reminders to function in school. Parents consistently motivate students to excel in their classes in high school. Things are different in college, however, as professors do not coddle students with reminders and parents are not around to chide them into doing work. It is the student’s responsibility to achieve high marks in their classes and to keep up with their work.

Why Take Winter Courses?

The pressures of college may arise from a large amount of work or a hectic schedule among many other factors. Winter courses can serve as a solution to some of these problems. Here are a few reasons for taking winter courses.

1.    Avoid Taking a Heavy Course Load – Some students are burdened with more courses than the average student at their college or university. This may be because they are double majoring, they are trying to graduate early, or they are taking remedial classes. Whatever the reason is, taking winter courses can alleviate this problem. Students can take one or two classes in the winter instead of taking six or seven in the fall or spring semester to regain a normal schedule.

2.    Postpone a Difficult Class – Some classes teach concepts that are harder to understand than others are. A student may wish to take a difficult course during the winter session so they can concentrate solely on that course instead of juggling it with other classes. The professor teaching the course may be better in the winter than other semesters as well.

3.    Graduate Early – Quite a few students try to graduate a semester or a year early. This may be to save money or to enter the workforce earlier than their peers. Taking winter courses allows students to complete their credit requirements in a shorter timeframe as winter courses supplement their other ones.

Typical Winter Course Structure

The usual winter session lasts three weeks and allows students to take one course in this timeframe. Some colleges and universities allow students to take more than one course, but it is quite rare due to the short amount of time in the winter session. Students generally pay for the courses at a per-credit rate rather than a set tuition. Registration is open in the fall semester and the deadline is usually about a month before the start of the winter session.

Why Not to Take Winter Courses

Students who are on track to graduate on time and do not want to graduate early probably should not take winter classes. They do not really stand to gain anything from taking winter courses and may be better served relaxing during the break.

Lucrative Degrees for the Future

Degrees Affect Your Employment

The economy is an independent entity that functions outside of our knowledge and analysis. Put ten economists in a room and they can give you ten different opinions regarding the direction of our economy. While predicting the course of the economy is still not an exact science, people understand the workings of it and how it affects other factors in the United States of America. The economy significantly affects the labor markets in the United States and dictates which jobs are more in demand. The demand for jobs in their field changes depending on the demand for the services and goods of various companies and industries. In order to gain employment in many of these fields, one must hold a college degree. Based on economic cycles, the college degree a student possesses can be either very valuable or virtually worthless depending on the demand for their educational qualifications.

Technology, Economic Cycles, and Other Factors Dictate Job Growth

The degree you have sets you up for the job you will earn after graduation. Several factors contribute to the demand for your degree. Consider the recent recession, which resulted or spurred from the demise of many prominent banking institutions. These stumbles in the finance industry may temporarily limit the supply of new finance positions. On the other hand, the demand for students studying technology-related majors is increasing due to the increase in technology use by corporations and individuals.

Areas of Growth and Majors Associated With Them

The United States of America’s Bureau of Labor Statistics conducts many different surveys and analyses regarding the United States’ labor market. It projects job growth based on factors like the economy, research opportunities and population trends. Some of the fastest growing occupations according to the Bureau of Labor Statistics include:

• Biomedical engineer – A biomedical engineer employs his or her knowledge of engineering, biology, and biomechanical concepts to the creation of biological and health products. Some of these products include artificial organs, prosthetics, health management systems and nanomachines. This field is expanding quickly (projected to grow 72 percent between 2008-2018) due to the huge influx of new research and the rise of advancement in technology allowing for innovation in the area. Students majoring in engineering, biomedicine, biology and biomedical engineering are in a prime position to find employment in this area.
• Network systems and data communications analysts – This profession generally works for corporations and large organizations, setting up and maintaining their network infrastructure. More organizations are taking advantage of technology and require trained professionals who can manage it. This profession is projected to grow 53 percent between 2008-2018. Computer science and information technology majors are best equipped to enter this field.
• Financial examiners – Financial examiners work to ensure that their clients comply with laws and regulations governing financial transactions and institutions. Given the recent collapse of many banks and financial corporations, the demand for competent individuals who can recognize proper administrative techniques and inform a company of their ability to perform them is quite strong. Accounting scandals like Enron increase the need for financial examiners. The demand for financial examiners is projected to grow by 41 percent between 2008-2018. Students majoring in finance and accounting can enter this profession.

Grading Curves: Why Do They Exist?

College is Quite Diverse

The United States of America is one of the most diverse nations in the world. The country recognizes approximately 337 languages that are spoken or written by the population of the United States. There is a reason that many people refer to the United States as the melting pot. Hundreds of cultures from different areas are amalgamated into one country here and it leads to a beautiful mix of diversity. Colleges and universities generally reflect this trend and you can find students from various backgrounds walking college campuses across the nation. Not only are there diverse students from America on college campuses; there are also exchange students from other countries who add to the culture of diversity and acceptance in colleges and universities.

Some People Learn and Test in Different Ways

The diversity in colleges and universities is not only limited to race, sexual orientation, or gender. The wide variety of students that attend different colleges and universities all have different personality traits which cause them to act in different ways and like many different things. This fact applies to their college experience and the way in which they interpret the information that professors present. Certain people are pictorial learners, meaning they retain information better from seeing graphs and pictures, while others are auditory learners and need to hear information to remember it well. Extending from their learning methods, some people can demonstrate their knowledge better in different ways. While multiple choice examinations may be the optimal way for some people to show their knowledge, others may prefer other methods that are not provided at colleges and universities.

Grading Curves in Colleges and Universities

Some courses at colleges and universities apply grading curves to the tests they administer. This means that professors adjust the grades of everyone taking exams to make the class average a certain score. Some reasons for this include:

• Maintaining a bell curve – The term ‘curving’ grades originates from the concept of a bell curve. This is the name for the graphical display of a normal distribution. A normal distribution is one commonly seen in nature, where a certain percentage of results (~68%) are within one standard deviation of the data and a certain percentage (95%) are within two standard deviations etc. Professors may curve tests in order to achieve a normal distribution where a certain percentage of students achieve an A, B, and the other grades.
• Compensating for testing error – The instructor may create an examination that is too easy or too difficult for his or her students. By curving the exam the professor can adjust for his or her error in creating the test. This is commonly seen in science courses where class averages are often in the D or F range and the professor simply curves the exam to account for this.

Are Grading Curves Fair?

There have been many debates regarding the fairness behind grading curves and their effectiveness. Many people state that simply creating exams that achieve an average grade of a C or above eliminates the need for curves and that they are just ‘covers’ for poor professors. Others state that it is difficult to create a perfect exam and curves allow professors to compensate for this. It is still an opinion-based argument which cannot have definitive conclusions.

The Chemistry Degree: Is it Losing Substance?

What is Chemistry?

Air, water, notebooks and computers. What do all of these things have in common? They are all considered to be that which is known as matter. What is matter? It is a term which describes the substance that all objects consist of. There are four states of matter: solid, liquid, gas and plasma. At the atomic level, the states of matter range from a smaller distance between particles to a larger expanse between atoms from solid to plasma. Chemistry is the study of these four states of matter, specifically concerning its behavior, composition, interactions, properties, structures and reactions. Chemistry is often referred to as the central science because it branches the physical sciences with the natural sciences.

What Can You Do With a Chemistry Degree?

A chemistry degree opens the door to a wide variety of possibilities, but it depends on the education level achieved in the degree. Jobs for chemistry degree holders are becoming increasingly selective and searching for candidates with higher levels of education. An Associate’s degree in chemistry is generally not enough to land a serious position in the field and a Bachelor’s degree may only be enough for a bench job (one in which you run equipment and prepare chemicals for experiments, essentially an assistant chemist). A Master’s degree or a terminal degree in chemistry (doctor of philosophy or medical doctor in chemistry) opens the door to many more possibilities. Some of the career options available to chemistry majors include:

• Chemist
• Technical Writer
• Ceramics
• Plastics
• Chemical Engineering
• Geochemist
• Agrochemist
• Materials Scientist
• Military Systems

What is the Job Outlook for Chemists?

The United States of America has an organization which tracks employment growth and long term prospects for a variety of careers in the country. This organization is called the Bureau of Labor Statistics and it provides research on the outlook for chemists and materials scientists. The Bureau of Labor Statistics projects that job growth will be slower than the average of all occupations. The employment of chemists and materials scientists is expected to grow by 3 percent between 2008-2018. This growth projection is affected by the growth of chemist and materials scientist job openings, and these are expected to grow at a rate of two and twelve percent respectively.

What are the Returns for a Chemistry Degree?

While job prospects for chemistry degree holders are decreasing, those who find employment will find considerable rewards in their profession. The median annual wages of chemists in May 2008 were $66,230 according t the Bureau of Labor Statistics. The middle 50 percent earned between $48,630 and $89,660. The lowest 10 percent earned less than $37,840, and the highest 10 percent earned more than $113,080.

Should You Become a Chemistry Major?

Job prospects may be declining somewhat, but growth still exists for chemistry jobs. If you are interested in the field and feel it is your passion, do not hesitate to pursue the degree. The most important thing in life is to be happy with what you do, and if chemistry is your passion you should certainly pursue it.

Passing the Bar Exam

Lawyers are in Constant Demand

The United States of America prides itself as a lawful society where people accused of crimes are allowed to defend themselves. Contrary to some other countries, in the United States, a defendant is considered innocent until they can be proven guilty. The fact that the country takes such a strict approach to defending the rights of its citizens is a benefit to the career of a lawyer. Lawyers are people who have proven themselves, through education and licensing examinations, to have a mastery of the law. They are charged with the task of defending or prosecuting the accused in court or aiding corporations and individuals in aligning their processes with the law.

Becoming a Lawyer is a Long and Difficult Process

Because the American legal system has so many elements to it, the process of becoming a lawyer can be quite difficult and lengthy. In order to become a lawyer, one must complete law school and pass the bar exam in the state in which they intend to practice law. Before entering law school, a student must complete their undergraduate education and gain acceptance to a law school. In order to be accepted to a law school, they must take the Law School Admissions Test (LSAT) and achieve successful marks on the exam as well as their undergraduate grade point average.

Once they are in law school, the student must complete three years of study where they learn various areas of the United States’ legal code. Law school includes classroom instruction, examination of court cases, and the writing of legal briefs. After graduating law school successfully, students must pass the bar examination. This examination administered by states determines a person’s qualifications to practice law in the state.

Bar Examination Structure

The bar examination in most United States’ territories is usually two days long (some states have three-day exams) and consists of:

• Essay questions – Nearly all jurisdictions in the United States administer examinations with essay questions. These questions test the student’s knowledge of general legal affairs as well as the state’s own law. Some jurisdictions use the Multistate Essay Examination, which is a standardized exam prepared by the National Conference of Bar Examiners since 1988, while others create their own questions.
• Multistate standardized examinations – The other portion of the bar examination is a multiple-choice section. Most jurisdictions (48 states and the District of Columbia, Guam, the Northern Mariana Islands, the U.S. Virgin Islands, and the Republic of Palau) use the Multistate Bar Examination. This consists of 200 questions that test six subjects related to common law and the Uniform Commercial Code.

Preparing for the Exam

The Bar Examination is a comprehensive and difficult examination, but can be completed successfully with proper preparation. You should give yourself at least three months before taking the exam to start preparing. Regularly study for the exam by attempting and reviewing 40-60 practice questions a day. On every weekend, try writing one or two practice essays and have your peers review them. The best way to study is with other law students so you can combine ideas and exchange knowledge amongst each other.

Hedging and Risk Management: Where the Money is at Now

The Business World is Always Changing

The environment of the business world consistently changes in accordance with many different factors. New technologies can dictate these changes and this phenomenon has recently happened. The internet allows businesses to expand into international locations with greater ease as they can communicate seamlessly through e-mail. Economic factors also affect the business climate as a lack of purchasing power for consumers can make it more difficult to sell products. New techniques are constantly entering into existence that present opportunities for advancement in business. Due to these changes, certain positions gain importance over time as they become more important to a company’s operations.

The Recession Changed Opinions

The recent recession significantly affected the financial course for many companies. Thousands of corporations declared bankruptcy or saw diminished returns due to the economic crash. The recession itself was a byproduct of poor risk management as companies took on investments and were unprepared for a situation where these investments did not pay off. The mortgage crisis was the result of a combination of factors. Banks rated the collateralized loan products they purchased too highly and did not take the proper steps to mitigate their risk through hedging and options.

What is the Process of Hedging and Risk Management?

The process of hedging is one that is taken to ‘hedge’ a company against some sort of risk. Risk management is the process of hedging, making the words effectively interchangeable. There are a huge amount of financial instruments and techniques available to corporations that allow them to manage their exposure to risk.

Concern over Risk Management

With the recent recession fresh on the minds of all companies, there is a concerted effort to control risk and limit losses. Companies see that they cannot afford to take on too much risk even if the potential for profit is high. They must think of long-term viability and plan for the future through strategic risk management. This is where new graduates with a college education geared towards this line of thinking can really help.

What Can You Do as a Student to Prepare?

Students who are interested in pursuing the growing field of risk management have some choices at their disposal. As far as the major that they should choose, there are a few options:

• Finance – This is the standard track to a career in risk management as a finance degree specifically deals with money. A finance degree will teach students the methods available to mitigate a company’s exposure to risk.
• Mathematics – While a mathematics degree may not cover swaps, options and other financial instruments, it teaches the concepts required to be successful in risk management. Much of the field is leaning towards quantitative analysis and the education received in a mathematics program is comparable to this approach.

Besides the major a student chooses, there are other things he or she can do to prepare for a career in risk management. The student should try to find an internship in the field during their time in school. The experience gained through this can be invaluable and the difference between gaining a career in what you want and sitting at home jobless.

Volunteering: Making a Difference

Not Everyone Has the Same Chances

The way the United States of America is currently aligned as far as politics and the economy creates a false sense of unlimited opportunity for many residents. There is a false ideal of uniform opportunities and potential for all citizens of the United States. The American ideal is one of picking yourself up by your bootstraps and making something of yourself, but this is not as easy as many make it out to be. The environment in which people are raised plays a huge role in their upbringing and future career or lack thereof. It is difficult to keep attending college or university in your plans when nobody in your neighborhood is doing so. The majority of success and failure in the United States of America is largely based on the environment in which a person is brought up combined with their own ambitions. There should be programs in place which strive to equalize opportunity and allow every American to see the potential in front of them rather than live in ignorance of their opportunities.

It Feels Good to Do Good

If you were raised in a family and area which presented you with a vision of the opportunities in front of you and allowed you to attend a college or university, you should impart some of the knowledge and ability you gained to others who are less fortunate. As the esteemed poet Ralph Waldo Emerson once said, “It is one of the most beautiful compensations of life, that no man can sincerely try to help another without helping himself.” Helping others through volunteering will lift your own spirits as you see the beneficial effects of your work. It is a beautiful thing to make other people’s lives better and witness their conditions improving.

Different Volunteering Opportunities

There are a myriad of places where you can volunteer your time and energy to bettering the lives of others and the conditions in which they live. Whatever you want to improve, chances are there are organizations dedicated to this mission where you can help. Some possible volunteering opportunities include:

• Environmental projects – Many areas where people live have been ravaged by environmental disasters or manmade intrusions. New Orleans is still reeling from the damage caused by Hurricane Katrina and there are many other areas affected by natural disasters. Industrial areas with a history of factories may have serious environmental damage which affects water quality and the ability to grow crops. There are many programs which allow you to help reverse this damage.
• Tutoring – Children in poor areas do not have access to the educational resources that others do and they suffer for this lack of resources. They are also pulled towards non-academic activities that can be destructive to their upbringings due to local pressures in their communities. By volunteering to tutor and teach these children, you can make a difference in their lives and allow them to see the opportunities they have.
• Retirement Homes – One of the most ignored groups in America are seniors. Many older people are stuck in nursing homes without much interaction with family or friends and suffer from this. You can improve their experiences by volunteering there and providing some companionship.

Sports Management: A New Major with New Opportunities in College

Changing Educational Interests

Throughout the years the educational interests of the students of the United States of America happen to change. There are always variations in the most popular majors among college students in the country and they gradually change due to many different reasons. One of the explanations for students changing interests is that they are affected by changing conditions in the country’s economy. Students may be more inclined towards pursuing career and educational opportunities that are in higher demand within the American job market. Other factors may be the existence and entrance of new majors into the educational sphere. As new opportunities present themselves it is only natural for more students to take advantage of them. One of these new opportunities is the sports management major.

The Business of Sports

While watching sports may seem like pure entertainment to most people, there is no question that the business of sports is incredibly lucrative. The average player salary for the National Basketball Association is $5.15 million and the average salary for National Football League players is $1.9 million. This is only the tip of the iceberg as well. If you think players make a lot of money, imagine the riches that are generated by the team owners who can afford to pay the players these lucrative sums of money. Consider that the average baseball ticket across the league costs $26.91, with the Boston Red Sox having the highest average ticket at $53.38 and the Pittsburgh Pirates the cheapest at $15.30.  Baseball stadiums range in size from 56,000 seats to 34,078. Take 45,000 seats as a rough estimate of the average number of seats, multiply it by the average ticket price, then by the number of home games in the regular season (typically 81) and the average Major League Baseball team earns almost $100 million from attendance alone.

Sports Management:  What is it?

The major of sports management is increasing in popularity and it is due to the expanding commercialization of sports. The sports management major teaches students the business aspects of sports. It is essentially a business degree that is tailored towards teaching how the principles effect sports teams and programs.

Sports Management Curriculum

The typical sports management undergraduate degree curriculum is structured to include many business courses along with sports-specific topics. Students will take courses in accounting, marketing, management, economics, and information technology. The sports management courses they take may include courses such as sports in culture, sport marketing, sport ethics, sport finance, and sport law.

Careers in Sports Management

Graduating with a degree in sports management can open the door to a variety of high profile and well paying positions. Students may find employment as program directors in community sport programs, marketing and promotions directors, academic services for student-athletics, corporate sales directors, directors of ticketing and finance, sporting goods sales representatives, intramural directors of campus recreation, facilities coordinators athletic directors, compliance directors athletic business managers, sports agent, and fitness managers.