Posts
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Last fall my daughter had a procedure done at Carilion Roanoke Memorial Hospital. It went fine, but that's not what I'm writing about.
While I was there I was impressed by the courtesy and friendliness of every staff member I met. They truly wanted to make my 'experience' in the hospital (even as a visitor) good. Even the orderlies (or whatever they're called these days) had a friendly demeanor and bantered nicely with the patients and their families.
I can't recall any time this wasn't the case -- when I was having trouble with various pebbles in my kidneys, or visiting clients, I've found the staff to be helpful and friendly.
It starts from the top. In my years I've learned that the front line folks reflect the way management and top echelon approach their work and those who work for them. It seems that the top management of Carilion gets it, and my hat's off to them.
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Thursday, May 31, 2012
Wednesday, May 30, 2012
Could you explain . . . ?
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I heard this story from another Councilman who was there.
Around 40 years ago Roanoke City was in an annexation
battle with Roanoke County. One day Roanoke City Council decided to appropriate something for
pensions. The City's (then) director of finance told Council "You shouldn't have done this; you have bankrupt
the City". A week later he testified in the annexation trial and as to the
City's finances said "Roanoke City is in wonderful financial condition. Revenues
are strong and expenditures are under control. There are not any financial
problems".
Next meeting a Councilman put on the agenda a "personnel matter" and
council went into closed session. In that session the Councilman reminded the Director of Finance of both statements, and
asked "All I want to know is, Which time were you lying".
Probably a good question for today's politicians.
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Friday, March 16, 2012
Another Wells Fargo story . . .
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As if there weren’t enough reasons to stay away from Wells Fargo Bank, here’s another.
There was a brief article in the Thursday, March 15, 2012, edition of The Roanoke Times about some guy getting sentenced for identity theft. It seems that in 2010, Wachovia Bank (then owned by Wells Fargo; now actually called Wells Fargo) sent someone else’s social security number to the criminal who used it to open a bunch of accounts and charged at least $11,000.00. The Roanoke Times article
Excerpts from the story:
We all make mistakes; I certainly have and probably more than my share. But when you make a mistake, you help fix it. If you’re honorable. If you care about people and your customers. If you’re NOT Wells Fargo.
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As if there weren’t enough reasons to stay away from Wells Fargo Bank, here’s another.
There was a brief article in the Thursday, March 15, 2012, edition of The Roanoke Times about some guy getting sentenced for identity theft. It seems that in 2010, Wachovia Bank (then owned by Wells Fargo; now actually called Wells Fargo) sent someone else’s social security number to the criminal who used it to open a bunch of accounts and charged at least $11,000.00. The Roanoke Times article
Excerpts from the story:
[The Victim] had a terrible time straightening out the credit history and Social Security information, but that is under way,” [the prosecuting attorney] said of the victim during the hearing.
[The Judge] asked [the prosecutor] whether [Wells Fargo] had been approached about the mistake, and whether the bank was willing to “step up to the plate” and help with a resolution to the matter.
“We suggested that but were soundly rebuffed,” [the prosecutor] said.
We all make mistakes; I certainly have and probably more than my share. But when you make a mistake, you help fix it. If you’re honorable. If you care about people and your customers. If you’re NOT Wells Fargo.
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Tuesday, March 13, 2012
Citizenship qualifications
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The Christian Science Monitor has an on line Citizenship test which those immigrants who wish to become citizens must pass (58 out of 96 questions). You can find it here: Citizenship Test
Yeah, I passed with 94 of 96 (over-thought two questions).
This reminded me of when I taught a night course in Government at a local proprietary business school. On the first night I wanted to know the base line of the students, a mix of just-graduated from high school to been in the real world for a while.
The results were abysmal. (That's worse than horrible). As I recall the highest score was 85% (naming elected folks was the toughest question). The lowest was one correct answer. Mr. Porterfield (my High School Government teacher at PH) would have been horrified.
Here's that test:
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Your name is optional:
FIRST NIGHT QUIZ
US Government Instructor: Ross C. Hart, JD
September 14, 1998
The purpose of this quiz is to see how much you know about the government so I can better plan the course materials. It will not count against you, however those students who are brave enough to put their name on it and who answer all questions perfectly will not have to take the first test.
1. Name the three constitutional branches of the Federal Government.
2. What are the two halves of Congress? How many members in each half?
3. How many years do members of each half of Congress serve before re-election? How many terms can they serve?
4. Where in the Constitution is the “Bill of Rights” found?
5. Which amendment protects private property from being taken by the Government without due process?
6. Which amendment protects the right to petition the government?
7. What part of the Federal Government “has the sole power of impeachment”. What part of the Federal Government can try an impeachment?
8. Are you registered to vote? If not, why not?
9. What City or County do you live in? Who is your Congressional Representative?
10. Name all the Virginia members of the U.S. Senate.
11. How many justices are on the highest Court in the United States? How long is their term of office?
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The Christian Science Monitor has an on line Citizenship test which those immigrants who wish to become citizens must pass (58 out of 96 questions). You can find it here: Citizenship Test
Yeah, I passed with 94 of 96 (over-thought two questions).
This reminded me of when I taught a night course in Government at a local proprietary business school. On the first night I wanted to know the base line of the students, a mix of just-graduated from high school to been in the real world for a while.
The results were abysmal. (That's worse than horrible). As I recall the highest score was 85% (naming elected folks was the toughest question). The lowest was one correct answer. Mr. Porterfield (my High School Government teacher at PH) would have been horrified.
Here's that test:
========================
Your name is optional:
FIRST NIGHT QUIZ
US Government Instructor: Ross C. Hart, JD
September 14, 1998
The purpose of this quiz is to see how much you know about the government so I can better plan the course materials. It will not count against you, however those students who are brave enough to put their name on it and who answer all questions perfectly will not have to take the first test.
1. Name the three constitutional branches of the Federal Government.
2. What are the two halves of Congress? How many members in each half?
3. How many years do members of each half of Congress serve before re-election? How many terms can they serve?
4. Where in the Constitution is the “Bill of Rights” found?
5. Which amendment protects private property from being taken by the Government without due process?
6. Which amendment protects the right to petition the government?
7. What part of the Federal Government “has the sole power of impeachment”. What part of the Federal Government can try an impeachment?
8. Are you registered to vote? If not, why not?
9. What City or County do you live in? Who is your Congressional Representative?
10. Name all the Virginia members of the U.S. Senate.
11. How many justices are on the highest Court in the United States? How long is their term of office?
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Monday, March 12, 2012
Wells Fargo Is Stupid (in my opinion)
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I’m guardian for a guy (“Irving”) who is in a nursing home for the rest of his life. He owns a house purchased for too much money by a agent under a power of attorney that was fired by the Court after which I was appointed. The guy owns a house with a Veterans Administration loan administered by Wells Fargo. I just had ANOTHER frustrating discussion with Wells Fargo which, in my opinion, is corporately too stupid to exist.
The value of the house is $115,000.00; the loan balance is $135,000.00 (not counting late charges, interest, etc. because I'm not going to waste his money). I filed a motion to abandon the property and allow it to be foreclosed as it’s upside down, and the motion explains that he’s in a nursing home and his income has to pay for his care, not for property that he’ll never get back.
Wells Fargo got a copy of all the court papers; a while ago I got a call and was assigned a ‘single point of contact’ (which OF CURSE has changed) (pun intended). Today I was called by the ‘new’ point of contact.
First, the ‘contact’ called me his power of attorney; I’m the GUARDIAN with a court order – that trumps a POA any day of the week, but (in my opinion) Wells Fargo is too stupid to know that.
Then I was told that they were abandoning the ‘deed in lieu’ process because:
“Irving” hadn’t written a hardship letter. All that information is in the Motion to abandon property I filed, but (in my opinion) Wells Fargo is too stupid to know that.
They wanted an income worksheet, but that information for a worksheet is in the Motion to abandon property I filed, but (in my opinion) Wells Fargo is too stupid to know that.
In my opinion, and I told the poor individual this on the phone in my best Rossiferous voice and manner, Wells Fargo will make more money with a foreclosure, and make the Veterans Administration waste taxpayer's dollars on the foreclosure in this day of our Veterans needing all the help available. In my opinion, Wells Fargo is more interested in its own profit than saving the Government money (can anyone say ‘bailout’??). Of course, they’ve paid for what is probably a wasted appraisal and title examination, so they get those dollars from the taxpayer also.
My frustration boiled over. I told the representative that she’s only a small cog for a very stupid bank, and asked her to put in the notes, in all caps, that “WELLS FARGO CAN *&$# GO TO HELL”, and hung up.
Any question why I’ve closed over one-half million dollars of accounts with those idiots in the past year?
Any question why I urge my friends and clients (and blog readers) to leave Wells Fargo?
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I’m guardian for a guy (“Irving”) who is in a nursing home for the rest of his life. He owns a house purchased for too much money by a agent under a power of attorney that was fired by the Court after which I was appointed. The guy owns a house with a Veterans Administration loan administered by Wells Fargo. I just had ANOTHER frustrating discussion with Wells Fargo which, in my opinion, is corporately too stupid to exist.
The value of the house is $115,000.00; the loan balance is $135,000.00 (not counting late charges, interest, etc. because I'm not going to waste his money). I filed a motion to abandon the property and allow it to be foreclosed as it’s upside down, and the motion explains that he’s in a nursing home and his income has to pay for his care, not for property that he’ll never get back.
Wells Fargo got a copy of all the court papers; a while ago I got a call and was assigned a ‘single point of contact’ (which OF CURSE has changed) (pun intended). Today I was called by the ‘new’ point of contact.
First, the ‘contact’ called me his power of attorney; I’m the GUARDIAN with a court order – that trumps a POA any day of the week, but (in my opinion) Wells Fargo is too stupid to know that.
Then I was told that they were abandoning the ‘deed in lieu’ process because:
“Irving” hadn’t written a hardship letter. All that information is in the Motion to abandon property I filed, but (in my opinion) Wells Fargo is too stupid to know that.
They wanted an income worksheet, but that information for a worksheet is in the Motion to abandon property I filed, but (in my opinion) Wells Fargo is too stupid to know that.
In my opinion, and I told the poor individual this on the phone in my best Rossiferous voice and manner, Wells Fargo will make more money with a foreclosure, and make the Veterans Administration waste taxpayer's dollars on the foreclosure in this day of our Veterans needing all the help available. In my opinion, Wells Fargo is more interested in its own profit than saving the Government money (can anyone say ‘bailout’??). Of course, they’ve paid for what is probably a wasted appraisal and title examination, so they get those dollars from the taxpayer also.
My frustration boiled over. I told the representative that she’s only a small cog for a very stupid bank, and asked her to put in the notes, in all caps, that “WELLS FARGO CAN *&$# GO TO HELL”, and hung up.
Any question why I’ve closed over one-half million dollars of accounts with those idiots in the past year?
Any question why I urge my friends and clients (and blog readers) to leave Wells Fargo?
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Wednesday, January 25, 2012
Wells Fargo Complaint
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I just filed a formal complaint against Wells Fargo Bank National Association with the Comptroller of the Currency. They’re the folks who regulate (so to speak) the big banks – you can find them at www.helpwithmybank.gov. I’m administrator of an estate; the decedent had accounts at multiple banks. In EVERY case I went into the bank with:
Only Irving at Wells Fargo was the pain. I first went in mid-December; he said he had to ‘run it by’ someone or other so – after showing him the originals – I left him with the copies and my card, with instructions to ‘call me when the check’s ready’.
I went back today; Irving was there and said he needed something or other and that what I left him wasn’t the original. His intelligence is immediately suspect. I asked why he didn’t call requesting the information. No answer.
Anyhow, the branch manager gets into the act; she gets the check to close the account for me while Irving calls to ‘reactivate’ the account. The flunky on the other end wanted the estate tax ID number. They don’t need it – the account was in the decedent’s social security number and that’s as it should be.
They refused to deliver the check, payable to ‘estate of . . . ‘ so I filed a complaint. And poor Irving, dufus that he is, has his name on it.
Any wonder why I’ve withdrawn nearly One-Half Million Dollars from that bank in the past 6 months?
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I just filed a formal complaint against Wells Fargo Bank National Association with the Comptroller of the Currency. They’re the folks who regulate (so to speak) the big banks – you can find them at www.helpwithmybank.gov. I’m administrator of an estate; the decedent had accounts at multiple banks. In EVERY case I went into the bank with:
- Certified Copy of the death certificate
- Certified Copy of the Court papers appointing me as administrator
- My original passport to prove I’m me.
- Photocopies of the above for the Bank to keep.
Only Irving at Wells Fargo was the pain. I first went in mid-December; he said he had to ‘run it by’ someone or other so – after showing him the originals – I left him with the copies and my card, with instructions to ‘call me when the check’s ready’.
I went back today; Irving was there and said he needed something or other and that what I left him wasn’t the original. His intelligence is immediately suspect. I asked why he didn’t call requesting the information. No answer.
Anyhow, the branch manager gets into the act; she gets the check to close the account for me while Irving calls to ‘reactivate’ the account. The flunky on the other end wanted the estate tax ID number. They don’t need it – the account was in the decedent’s social security number and that’s as it should be.
They refused to deliver the check, payable to ‘estate of . . . ‘ so I filed a complaint. And poor Irving, dufus that he is, has his name on it.
Any wonder why I’ve withdrawn nearly One-Half Million Dollars from that bank in the past 6 months?
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Tuesday, September 13, 2011
How not to introduce someone
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About 35 years ago I attended my first Roanoke Bar Association Law Day Luncheon. The speaker for this occasion was William B. Spong, Jr. , then Dean of the Marshall-Wythe School of Law at the College of William and Mary, Virginia. Dean Spong had served as US Senator from Virginia for one term and was truly an honest politician. Everyone at the luncheon knew who he was.
Being so well known poses a problem for the person who gets the honor to introduce them without boring the audience. That honor fell to B. Purnell Eggleston, a senior and distinguished member of the bar. He handled it in what would now be considered politically incorrect.
"Members of the Bar and distinguished guests, our speaker really doesn't need an introduction. In fact, he recently spoke at a function in Richmond and the lady making the introduction -- a lady from the high society of Richmond matrons -- was gushing at the opportunity. She said in her genteel Southern Matronly drawl, 'Ladies and gentlemen, our speaker has served in the Virginia House of Delegates, the Virginia Senate, the United States Senate -- why, he's done so many things his Who's Who is Nine inches long!' "
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About 35 years ago I attended my first Roanoke Bar Association Law Day Luncheon. The speaker for this occasion was William B. Spong, Jr. , then Dean of the Marshall-Wythe School of Law at the College of William and Mary, Virginia. Dean Spong had served as US Senator from Virginia for one term and was truly an honest politician. Everyone at the luncheon knew who he was.
Being so well known poses a problem for the person who gets the honor to introduce them without boring the audience. That honor fell to B. Purnell Eggleston, a senior and distinguished member of the bar. He handled it in what would now be considered politically incorrect.
"Members of the Bar and distinguished guests, our speaker really doesn't need an introduction. In fact, he recently spoke at a function in Richmond and the lady making the introduction -- a lady from the high society of Richmond matrons -- was gushing at the opportunity. She said in her genteel Southern Matronly drawl, 'Ladies and gentlemen, our speaker has served in the Virginia House of Delegates, the Virginia Senate, the United States Senate -- why, he's done so many things his Who's Who is Nine inches long!' "
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Friday, September 2, 2011
Drive Collection Agents Nuts
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As a lot of my followers know, I serve as guardian and conservator for several people. A number of these folks ran up credit card debt before getting disabled and they're now in a nursing home and receive Medicaid long term care.
I'll admit that I'm not in any hurry to pay their credit cards -- they're pretty close to the bottom of the priority list, if not below the line.
Credit card companies don't keep non-paying accounts -- they sell them to third parties who then try to collect them, and then those guys sell them to fourth, fifth, and so on down the line. After 2 or 3 years the account ends up with a 'bottom feeder' who tries everything to collect. Here's the catch: when the account is sold, all that the purchaser gets is a name, social security number, address and contact info and -- maybe -- some of the account history. They don't get the copies of the original account documents or a detailed charge/payment history of the account.
So the collectors call me wanting to get paid on Irving Puffuffnick's old credit card. Actually they try to talk to Irving himself (and I've pretended to be Irving on more than one occasion -- in a sense I AM Irving by virtue of a court order) and want documentation from me to prove I have authority to act on behalf of Irving.
Of course, before I give them that authority (which is public record if they want to go to the courthouse to look for it - admittedly a long commute for someone in California) I demand proof that they are authorized to discuss the account on behalf of the creditor.
Mexican Standoff? (Wikipedia)
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As a lot of my followers know, I serve as guardian and conservator for several people. A number of these folks ran up credit card debt before getting disabled and they're now in a nursing home and receive Medicaid long term care.
I'll admit that I'm not in any hurry to pay their credit cards -- they're pretty close to the bottom of the priority list, if not below the line.
Credit card companies don't keep non-paying accounts -- they sell them to third parties who then try to collect them, and then those guys sell them to fourth, fifth, and so on down the line. After 2 or 3 years the account ends up with a 'bottom feeder' who tries everything to collect. Here's the catch: when the account is sold, all that the purchaser gets is a name, social security number, address and contact info and -- maybe -- some of the account history. They don't get the copies of the original account documents or a detailed charge/payment history of the account.
So the collectors call me wanting to get paid on Irving Puffuffnick's old credit card. Actually they try to talk to Irving himself (and I've pretended to be Irving on more than one occasion -- in a sense I AM Irving by virtue of a court order) and want documentation from me to prove I have authority to act on behalf of Irving.
Of course, before I give them that authority (which is public record if they want to go to the courthouse to look for it - admittedly a long commute for someone in California) I demand proof that they are authorized to discuss the account on behalf of the creditor.
Mexican Standoff? (Wikipedia)
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Decoding Wells Fargo as an acronym
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The office staff has been complaining about the long lines at Wells Fargo, especially after the formal changeover from Wachovia (which took over from First Union (and whose initials were really appropriate), which took over from Dominion Bank, which grew out of First National Exchange Bank . . . )
So Donna, my right arm and assistant, took a deposit over there and the line for a teller was 'nearly out the door'. While waiting she took the name "Wells Fargo" and broke it down:
"Where Every Line's Longer Seemingly Forever And Rage Grows Often"
Not bad, huh?
Think they'll care? nah. They're too big for their britches.
Guess it's time for me to close all the estate accounts I have there; doubt they'll miss a measly $500K in money.
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The office staff has been complaining about the long lines at Wells Fargo, especially after the formal changeover from Wachovia (which took over from First Union (and whose initials were really appropriate), which took over from Dominion Bank, which grew out of First National Exchange Bank . . . )
So Donna, my right arm and assistant, took a deposit over there and the line for a teller was 'nearly out the door'. While waiting she took the name "Wells Fargo" and broke it down:
"Where Every Line's Longer Seemingly Forever And Rage Grows Often"
Not bad, huh?
Think they'll care? nah. They're too big for their britches.
Guess it's time for me to close all the estate accounts I have there; doubt they'll miss a measly $500K in money.
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Thursday, August 25, 2011
Corporate America the Correct way
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Talked to a good friend/client today. He's an officer in a fair sized regional corporation. Originally he was hired as a manager of one of the company's factories that was losing money. In, I believe, a year and a half he turned it around. I asked him about it.
"It wasn't too hard, really. Yes, there were people that had to go, but mostly I worked with everyone bottom to top to educate them where they fit in and how what they did for the company made a difference. Once someone knows how the system works, they'll bend over backwards to make it work and suggest ways to streamline and save money."
I'm only a lawyer, but to me it's that simple. I'm proud to have him as a friend and client.
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Talked to a good friend/client today. He's an officer in a fair sized regional corporation. Originally he was hired as a manager of one of the company's factories that was losing money. In, I believe, a year and a half he turned it around. I asked him about it.
"It wasn't too hard, really. Yes, there were people that had to go, but mostly I worked with everyone bottom to top to educate them where they fit in and how what they did for the company made a difference. Once someone knows how the system works, they'll bend over backwards to make it work and suggest ways to streamline and save money."
I'm only a lawyer, but to me it's that simple. I'm proud to have him as a friend and client.
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Tuesday, June 28, 2011
Political story
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Among my past sins is activity in politics; I say past sins because I'm no longer enamored with politicians and -- while I consider a number of them in both parties friends -- I feel they're more interested in following the party line (regardless of consequences) than doing what is necessary even if unpopular.
But this isn't about my disdain for elected wonks.
Many years ago I was a local Democratic Party chair; Sen. Charles "Chuck" S. Robb was running for re-election against Ollie North (who was the only person Republicans could have nominated that Chuck could beat). The Annual Salem Fair was in town, and was crowded with the great unwashed of southwestern Virginia. (and as a side not, I first met Chuck when I went to the State Fair in Richmond when he first ran for statewide office 'back when. Going to Fairs and such is de-riguer for politicians.)
I got called on to walk with Chuck among the crowd as he shook hands and encouraged their vote for him in November. As we were walking and talking, I observed the people and wondered how many actually voted. After some more thought I asked, "Chuck, how many of these folks you've been shakin' hands with do you think have had their right to vote restored".
"You know, that's a damn good question".
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Among my past sins is activity in politics; I say past sins because I'm no longer enamored with politicians and -- while I consider a number of them in both parties friends -- I feel they're more interested in following the party line (regardless of consequences) than doing what is necessary even if unpopular.
But this isn't about my disdain for elected wonks.
Many years ago I was a local Democratic Party chair; Sen. Charles "Chuck" S. Robb was running for re-election against Ollie North (who was the only person Republicans could have nominated that Chuck could beat). The Annual Salem Fair was in town, and was crowded with the great unwashed of southwestern Virginia. (and as a side not, I first met Chuck when I went to the State Fair in Richmond when he first ran for statewide office 'back when. Going to Fairs and such is de-riguer for politicians.)
I got called on to walk with Chuck among the crowd as he shook hands and encouraged their vote for him in November. As we were walking and talking, I observed the people and wondered how many actually voted. After some more thought I asked, "Chuck, how many of these folks you've been shakin' hands with do you think have had their right to vote restored".
"You know, that's a damn good question".
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Wednesday, March 30, 2011
Cutsey Phone Scripts
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I'm back to the blog. Been kinda busy and didn't realize how long it's been.
I just called a nursing home in Salem, part of a large for-profit nursing home chain headquartered in Roanoke. The poor receptionist is required to answer the phone "It's a great day, thank you for calling (nh name) home of . . . " yadda yadda. It seems to take fifteen seconds and two full breaths to get it all out. As is my nature, I immediately sympathized with her about the mouthful of nonsense she's got to spew every time the phone rings.
Ignoring the fact that it's raining and cold out, negating the 'great day' thing, the routine is silly. To me it's a turn off. Most people don't even listen to it, they wait for the spiel to end and then ask whatever they wanted.
In the office I share with another lawyer, Emily - the best receptionist we've ever had - answers simply "Hart & Hart Attorneys; how may I help you?" It starts the call with basic information: what office the caller got, and then sets the tone of wanting to help the caller.
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I'm back to the blog. Been kinda busy and didn't realize how long it's been.
I just called a nursing home in Salem, part of a large for-profit nursing home chain headquartered in Roanoke. The poor receptionist is required to answer the phone "It's a great day, thank you for calling (nh name) home of . . . " yadda yadda. It seems to take fifteen seconds and two full breaths to get it all out. As is my nature, I immediately sympathized with her about the mouthful of nonsense she's got to spew every time the phone rings.
Ignoring the fact that it's raining and cold out, negating the 'great day' thing, the routine is silly. To me it's a turn off. Most people don't even listen to it, they wait for the spiel to end and then ask whatever they wanted.
In the office I share with another lawyer, Emily - the best receptionist we've ever had - answers simply "Hart & Hart Attorneys; how may I help you?" It starts the call with basic information: what office the caller got, and then sets the tone of wanting to help the caller.
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Wednesday, October 13, 2010
Acronyms
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Just had a good lawyer and good friend call me, and we had a good chuckle over her question.
I'm representing an estate and she the major claimant against the estate. I had sent the final payment with cover letter, receipt and a pre-addressed, stamped, envelope for her to return the receipt once her client signed it. In the letter I referred to the "SASE" - Self-Addressed Stamped Envelope - and she hadn't seen the term before. Actually, it's fallen out of common use; before the internet a lot of advertisements said to use one if you wanted information; now the information is on-line.
But this reminded me of another stupid financial industry story. (here we go again!)
15 or 20 years ago I was working on a Small Business Administration backed loan. Involved were senior finance wonks in Richmond and Occupied (excuse me, that's 'Northern') Virginia. Naturally there had to be hazard insurance on the property, and because of the SBA there were three or four financial fingers in the pie.
Insurance companies don't really care who gets the money in event of a loss; with multiple parties listed as loss payees they frequently list them all and then say "As Their Interests May Appear" or, universally shown in industry shorthand, "ATIMA".
So I get a fax from one of the senior wonks asking "Who is ATIMA?"
DOH! "Here's your sign."
Shoulda sold my bank stock -- all the clues were there . . .
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Just had a good lawyer and good friend call me, and we had a good chuckle over her question.
I'm representing an estate and she the major claimant against the estate. I had sent the final payment with cover letter, receipt and a pre-addressed, stamped, envelope for her to return the receipt once her client signed it. In the letter I referred to the "SASE" - Self-Addressed Stamped Envelope - and she hadn't seen the term before. Actually, it's fallen out of common use; before the internet a lot of advertisements said to use one if you wanted information; now the information is on-line.
But this reminded me of another stupid financial industry story. (here we go again!)
15 or 20 years ago I was working on a Small Business Administration backed loan. Involved were senior finance wonks in Richmond and Occupied (excuse me, that's 'Northern') Virginia. Naturally there had to be hazard insurance on the property, and because of the SBA there were three or four financial fingers in the pie.
Insurance companies don't really care who gets the money in event of a loss; with multiple parties listed as loss payees they frequently list them all and then say "As Their Interests May Appear" or, universally shown in industry shorthand, "ATIMA".
So I get a fax from one of the senior wonks asking "Who is ATIMA?"
DOH! "Here's your sign."
Shoulda sold my bank stock -- all the clues were there . . .
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Wednesday, October 6, 2010
Dumb and Dumber financing
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This is an old story -- about 25 years old -- but it illustrates some of the reasons for the failure of our financial system. Years ago I represented a major national commercial lender -- it's 'out of business' now having merged into one of the megabanks. I'll call it 'BlahCorp' and hope it's not someone's real name, and change names of others as well.
BlahCorp was, at the time, headquartered in Chicago. It specialized in commercial loans for trucks (18-wheelers) and heavy equipment (think Caterpillar, etc.) and so forth. Typically, the dealer selling the item helped the customer get the financing and had some stake in the ability of the customer to meet the payments (in the financial world this is called "recourse" financing)
SwampCorp was an equipment dealer -- earth moving equipment, cranes, all that big stuff you see on highway construction, mining, commercial buildings, etc. Heavy Lifting Inc. was a startup crane contractor in the area and bought $1Million in cranes from SwampCorp (probably $2.5+M now). Jane was President and sole shareholder of Heavy Lifting and submitted the documents to BlahCorp for the financing. Due to the size of the loan, it required approval of the Senior Vice President of Finance in Chicago; on the corporate totem pole he was #3 and had 25 years 'experience'.
Jane submitted financial statements for Heavy Lifting showing that the corporation had about $20,000.00 in equity, at cost value (not liquidation value). Jane had to personally guarantee the loan so submitted a financial statement showing her net worth of $535,000.00: the value of her stock in Heavy Lifting was $500,000.00; the sum total of equity in her other assets was $35,000.00 on a good day.
Heavy Lifting filed bankruptcy and I was hired to protect BlahCorp. The Sr. VP flew to Roanoke for the hearing. I looked at the financing and said "I'm only a lawyer, but I don't understand why you made this loan" He responded that the 'guarantors financial statement was strong'. My response was in the early days of being Rossiferous: "Nonsense; she shows $500,000.00 as value of Heavy Lifting, but it's financial statement shows only $20,000.00; didn't you notice that?"
"Um, we never looked at it that way"
D'OH
And the industry got dumber and dumber since.
.
This is an old story -- about 25 years old -- but it illustrates some of the reasons for the failure of our financial system. Years ago I represented a major national commercial lender -- it's 'out of business' now having merged into one of the megabanks. I'll call it 'BlahCorp' and hope it's not someone's real name, and change names of others as well.
BlahCorp was, at the time, headquartered in Chicago. It specialized in commercial loans for trucks (18-wheelers) and heavy equipment (think Caterpillar, etc.) and so forth. Typically, the dealer selling the item helped the customer get the financing and had some stake in the ability of the customer to meet the payments (in the financial world this is called "recourse" financing)
SwampCorp was an equipment dealer -- earth moving equipment, cranes, all that big stuff you see on highway construction, mining, commercial buildings, etc. Heavy Lifting Inc. was a startup crane contractor in the area and bought $1Million in cranes from SwampCorp (probably $2.5+M now). Jane was President and sole shareholder of Heavy Lifting and submitted the documents to BlahCorp for the financing. Due to the size of the loan, it required approval of the Senior Vice President of Finance in Chicago; on the corporate totem pole he was #3 and had 25 years 'experience'.
Jane submitted financial statements for Heavy Lifting showing that the corporation had about $20,000.00 in equity, at cost value (not liquidation value). Jane had to personally guarantee the loan so submitted a financial statement showing her net worth of $535,000.00: the value of her stock in Heavy Lifting was $500,000.00; the sum total of equity in her other assets was $35,000.00 on a good day.
Heavy Lifting filed bankruptcy and I was hired to protect BlahCorp. The Sr. VP flew to Roanoke for the hearing. I looked at the financing and said "I'm only a lawyer, but I don't understand why you made this loan" He responded that the 'guarantors financial statement was strong'. My response was in the early days of being Rossiferous: "Nonsense; she shows $500,000.00 as value of Heavy Lifting, but it's financial statement shows only $20,000.00; didn't you notice that?"
"Um, we never looked at it that way"
D'OH
And the industry got dumber and dumber since.
.
Tuesday, October 5, 2010
Monkeys and Bananas
.
I just had a client ask me about a form another company wants him to sign as he is renting commercial warehouse space to the other firm. I reviewed the form: It's a hold harmless about engineering and design work, relates to purchase orders, covers subcontractors, etc.
My client had already questioned whether it was needed; the corporate contact said "we're required to get it in all our contracts". My guess is that he has no idea what the form does, just that "Corporate" has said "Get it".
Some years ago a sociologist did an experiment with monkeys. Check it out at Monkeys and Bananas
and a You-Tube: Banana Vid (I really like the corporate suits on the 'monkeys' in the video!)
Probably a lesson for our governments also.
.
I just had a client ask me about a form another company wants him to sign as he is renting commercial warehouse space to the other firm. I reviewed the form: It's a hold harmless about engineering and design work, relates to purchase orders, covers subcontractors, etc.
My client had already questioned whether it was needed; the corporate contact said "we're required to get it in all our contracts". My guess is that he has no idea what the form does, just that "Corporate" has said "Get it".
Some years ago a sociologist did an experiment with monkeys. Check it out at Monkeys and Bananas
and a You-Tube: Banana Vid (I really like the corporate suits on the 'monkeys' in the video!)
Probably a lesson for our governments also.
.
Wednesday, September 1, 2010
Agreeable disagreement
.
Wednesdays at noon, a bunch of lawyers have lunch at Mac-n-Bob’s restaurant in Salem. Nothing formal, just lawyers trading stories, talking politics, sports, junk and running theories/cases past each other. It is an opportunity for an informal exchange of ideas and camaraderie. I consider anything of substance discussed at lunch to be off the record. No matter who you are, you’ve got to be able to unwind, speak freely without worrying about someone accusing you of whatever. (Good jokes or one-liners, however, are fair game.)
Attendees are personal injury lawyers, criminal defense lawyers, judges from every level of court that sits in Virginia, niche lawyers (we have an immigration attorney; I do elder-law) and so forth. I look forward to learning something each week.
Occasionally we get a distinguished visitor: Appellate judges from out of the area (Chief Justice Hassell, Supreme Court of Virginia for one), members of Congress, Federal judges, and so forth. Today I was surprised to have the Hon. Kenneth T. Cuccinelli, II, Attorney General of Virginia, join the table for lunch.
Historically, I’ve been a Democrat, fiscally conservative but a Democrat. It’s been 15 or more years since I was ‘active’ in party politics, and there have been times I’ve been less than happy with the party. Mr. Cuccinelli is a Republican – and a conservative Republican at that. Naturally, being me, I introduced myself as the “former chair of the Salem Democratic Party”. We had a good laugh at that.
I came away from lunch liking and respecting the guy. A helluva lot more than I did before I met and talked to him. Our Attorney General has a wicked sense of humor and takes as good as he gives. The kind of guy you’d enjoy putting your feet up and drinking a beer (or a Mint Julep) with.
Our philosophies are different and I disagree with a number of the actions – or maybe the reasons behind the actions – he’s taking. The Health Reform law that was bludgeoned through Congress last year is one, and I agree that there are dangerous components of it. The Health Care system is broken – at least as far as paying for care is concerned, and the Health Reform law attempted to fix it. Our Attorney General is trying to get the whole law thrown out, based on dangerous intrusion to constitutional freedoms as much as anything else. I could write volumes on the Health Care issue (remember, I served 9 years as a ‘Citizen’ member of the Virginia Board of Medicine), but that’s not the point here.
Ken’s (yeah, we all got on first name basis) attack is in good faith, and not just because of politics. Strategy was discussed – and while I don’t think anything he said is a big secret, lunch table discussion is off the record – and the strategy has a strong chance of working. Even more important is that he wanted comments from us – he wanted to listen, especially if someone – respectfully – disagreed with him. The two of us agreed that listening with an open mind to someone with a different point of view forces us to examine our beliefs and test their validity.
I may not agree with him, but I disagree less. If we run into each other at a watering hole, I’ll buy the first round and look forward to an enjoyable conversation.
Wednesdays at noon, a bunch of lawyers have lunch at Mac-n-Bob’s restaurant in Salem. Nothing formal, just lawyers trading stories, talking politics, sports, junk and running theories/cases past each other. It is an opportunity for an informal exchange of ideas and camaraderie. I consider anything of substance discussed at lunch to be off the record. No matter who you are, you’ve got to be able to unwind, speak freely without worrying about someone accusing you of whatever. (Good jokes or one-liners, however, are fair game.)
Attendees are personal injury lawyers, criminal defense lawyers, judges from every level of court that sits in Virginia, niche lawyers (we have an immigration attorney; I do elder-law) and so forth. I look forward to learning something each week.
Occasionally we get a distinguished visitor: Appellate judges from out of the area (Chief Justice Hassell, Supreme Court of Virginia for one), members of Congress, Federal judges, and so forth. Today I was surprised to have the Hon. Kenneth T. Cuccinelli, II, Attorney General of Virginia, join the table for lunch.
Historically, I’ve been a Democrat, fiscally conservative but a Democrat. It’s been 15 or more years since I was ‘active’ in party politics, and there have been times I’ve been less than happy with the party. Mr. Cuccinelli is a Republican – and a conservative Republican at that. Naturally, being me, I introduced myself as the “former chair of the Salem Democratic Party”. We had a good laugh at that.
I came away from lunch liking and respecting the guy. A helluva lot more than I did before I met and talked to him. Our Attorney General has a wicked sense of humor and takes as good as he gives. The kind of guy you’d enjoy putting your feet up and drinking a beer (or a Mint Julep) with.
Our philosophies are different and I disagree with a number of the actions – or maybe the reasons behind the actions – he’s taking. The Health Reform law that was bludgeoned through Congress last year is one, and I agree that there are dangerous components of it. The Health Care system is broken – at least as far as paying for care is concerned, and the Health Reform law attempted to fix it. Our Attorney General is trying to get the whole law thrown out, based on dangerous intrusion to constitutional freedoms as much as anything else. I could write volumes on the Health Care issue (remember, I served 9 years as a ‘Citizen’ member of the Virginia Board of Medicine), but that’s not the point here.
Ken’s (yeah, we all got on first name basis) attack is in good faith, and not just because of politics. Strategy was discussed – and while I don’t think anything he said is a big secret, lunch table discussion is off the record – and the strategy has a strong chance of working. Even more important is that he wanted comments from us – he wanted to listen, especially if someone – respectfully – disagreed with him. The two of us agreed that listening with an open mind to someone with a different point of view forces us to examine our beliefs and test their validity.
I may not agree with him, but I disagree less. If we run into each other at a watering hole, I’ll buy the first round and look forward to an enjoyable conversation.
Thursday, August 26, 2010
Government Statistics
.
We watch the news and some government politico (including Pres. Obama) talks about the 'recovery' and how many jobs have been created and saved and restored and . . . Usually the one speaking has no direct knowledge what he's talking about but relies on someone else for the data and frequently the speech being given.
This reminds me of when I kibbitzed on a speech 30 years ago.
My then wife was working - as administrator - with a Federally funded jobs program for the City of Roanoke; there was a 'consortium' which managed similar programs not including the City's. All workers in the program worked for local governments in some capacity as they were 'trained' with new skills.
Ex's program was managed properly - office staff minimally sized to do the job but no empire; the bulk of the funds actually went to the hired workers. The Consortium was not so well managed and ended up collapsing under its own fiscal mismanagement; the City of Roanoke (i.e. the Director of Finance and Ex) had to take over management, shut it down, and 150 workers in the area faced loss of their jobs .
Ex and I are at home, and she's got to prepare a speech for the DOF and press release about all the workers and where they would end up with the closing down. The good news is that a lot of the workers were picked up by their local government employer. Another bunch were able to use the skills learned to get a job in the 'private sector'. There were 'hard numbers' for the government hires; there was reasonable - but not exact - data for the private hires. Ex was pleased to show me her draft that had all 150 workers 'taken care of', and admitted some numbers came off the top of her head although based on her experience.
My response was that the report was not realistic. A couple of poor slobs wouldn't find anything - they'd be SOL (Straight Outta Luck). Ex agreed, but asked "well, how many". My response was that, politically, if you went over six percent it'd look bad, but under three percent would look phony. (Yeah, I was BS'ing at my best here, too). I think we settled on four percent.
Of course you can't write in a press release that four percent of the workers were SOL. So we went to the standby "other opportunities".
On TV news the next night, the City's Director of Finance (and acting administrator of the Consortium) was shown reading the press release Ex had written, and the media was eating it up. "55 percent were hired by the government they were assigned to in the program; 35 percent found private sector jobs, 6 percent resumed education courses (another discussion ex and I had) and 4 percent will pursue other opportunities".
I've never looked at government statistics the same way since.
.
We watch the news and some government politico (including Pres. Obama) talks about the 'recovery' and how many jobs have been created and saved and restored and . . . Usually the one speaking has no direct knowledge what he's talking about but relies on someone else for the data and frequently the speech being given.
This reminds me of when I kibbitzed on a speech 30 years ago.
My then wife was working - as administrator - with a Federally funded jobs program for the City of Roanoke; there was a 'consortium' which managed similar programs not including the City's. All workers in the program worked for local governments in some capacity as they were 'trained' with new skills.
Ex's program was managed properly - office staff minimally sized to do the job but no empire; the bulk of the funds actually went to the hired workers. The Consortium was not so well managed and ended up collapsing under its own fiscal mismanagement; the City of Roanoke (i.e. the Director of Finance and Ex) had to take over management, shut it down, and 150 workers in the area faced loss of their jobs .
Ex and I are at home, and she's got to prepare a speech for the DOF and press release about all the workers and where they would end up with the closing down. The good news is that a lot of the workers were picked up by their local government employer. Another bunch were able to use the skills learned to get a job in the 'private sector'. There were 'hard numbers' for the government hires; there was reasonable - but not exact - data for the private hires. Ex was pleased to show me her draft that had all 150 workers 'taken care of', and admitted some numbers came off the top of her head although based on her experience.
My response was that the report was not realistic. A couple of poor slobs wouldn't find anything - they'd be SOL (Straight Outta Luck). Ex agreed, but asked "well, how many". My response was that, politically, if you went over six percent it'd look bad, but under three percent would look phony. (Yeah, I was BS'ing at my best here, too). I think we settled on four percent.
Of course you can't write in a press release that four percent of the workers were SOL. So we went to the standby "other opportunities".
On TV news the next night, the City's Director of Finance (and acting administrator of the Consortium) was shown reading the press release Ex had written, and the media was eating it up. "55 percent were hired by the government they were assigned to in the program; 35 percent found private sector jobs, 6 percent resumed education courses (another discussion ex and I had) and 4 percent will pursue other opportunities".
I've never looked at government statistics the same way since.
.
Tuesday, August 17, 2010
REAL Financial Freedom
.
I'm guardian for a young man who had a stroke; he lives with his dad "Mr. B" (his mother passed away several years ago). I get the young man's social security disability and pay his bills, including a stipend to Mr. B for taking care of him.
Dad called the office today and happened to mention that he was getting a reverse mortgage. Donna knows my thoughts on them and alerted me; I got him in immediately and reviewed the loan. Basic financial picture: monthly income 1830, monthly expenses less than 800 (not counting groceries). But Mr. B can't last the month without invading savings. No Budget (his wife handled the household finances before she died) No mortgage - house is paid for. Mr. B is over 80.
The loan was going to net $100,000 - after almost $7000 in fees and expenses. Plus there was going to be a monthly service charge added (but not prominently disclosed in the application documents).
Mr. B just wanted to have the money available. NO plan on what to spend it on, just some vague ideas. "But that Winkler fella (Henry Winkler, a/k/a Happy Days the Fonz) and Robert Wagner (It Takes a Thief, Hart to Hart, etc) say on TV how good it is". They're paid to say that!
I told Mr. B that there are a dozen different ways to accomplish what he needed, and will help him meet them. The way he didn't need was this loan, or Financial Freedom servicing it. With his signed consent we called it off.
Guess that won't get me back on FF's Christmas Card list, huh?
Seriously, in my opinion reverse mortgages are dangerous; if you, your parents, or any elder person you care for is thinking of one, get an independent review from a professional before you do it. A Fee-Only financial planner (one who doesn't sell you something), a lawyer who's practice emphasizes ElderLaw (find one at www.naela.org) etc. In some cases it's an appropriate tool, but -- in my opinion -- it's oversold, wastes the estate and creates a lot of hardship on families.
.
I'm guardian for a young man who had a stroke; he lives with his dad "Mr. B" (his mother passed away several years ago). I get the young man's social security disability and pay his bills, including a stipend to Mr. B for taking care of him.
Dad called the office today and happened to mention that he was getting a reverse mortgage. Donna knows my thoughts on them and alerted me; I got him in immediately and reviewed the loan. Basic financial picture: monthly income 1830, monthly expenses less than 800 (not counting groceries). But Mr. B can't last the month without invading savings. No Budget (his wife handled the household finances before she died) No mortgage - house is paid for. Mr. B is over 80.
The loan was going to net $100,000 - after almost $7000 in fees and expenses. Plus there was going to be a monthly service charge added (but not prominently disclosed in the application documents).
Mr. B just wanted to have the money available. NO plan on what to spend it on, just some vague ideas. "But that Winkler fella (Henry Winkler, a/k/a Happy Days the Fonz) and Robert Wagner (It Takes a Thief, Hart to Hart, etc) say on TV how good it is". They're paid to say that!
I told Mr. B that there are a dozen different ways to accomplish what he needed, and will help him meet them. The way he didn't need was this loan, or Financial Freedom servicing it. With his signed consent we called it off.
Guess that won't get me back on FF's Christmas Card list, huh?
Seriously, in my opinion reverse mortgages are dangerous; if you, your parents, or any elder person you care for is thinking of one, get an independent review from a professional before you do it. A Fee-Only financial planner (one who doesn't sell you something), a lawyer who's practice emphasizes ElderLaw (find one at www.naela.org) etc. In some cases it's an appropriate tool, but -- in my opinion -- it's oversold, wastes the estate and creates a lot of hardship on families.
.
Thursday, July 22, 2010
Radio Shack losing a customer
.
I'm a gadget freak. All my friends are going 'duh!'
I've been shopping at Radio Shack stores for 40+ years -- I remember when they were a catalog only, then they started their retail operation.
Radio Shack helped get the personal computer revolution started 'back in the day'. My first several computers were from Radio Shack.
But what I liked best was being able to go in there to buy parts so I could make or fix electronic stuff. Unfortunately that's no more.
In the past week I've gone in twice to buy something I've gotten there before. And it's no longer offered. Instead, there are cell phones, a few cb's, and 'pop' electronic stuff. It seems Radio Shack is trying to compete with Best Buy. Ain't gonna succeed.
What the mba grad who decided to do this didn't understand is that while, yes, parts are a low margin item, they bring people in. Once in, we see something we've 'just gotta have' and buy it.
Remember the Sears Catalog? When they did away with it, Sears headed towards bankruptcy. The brilliant Sears mba who decided THAT didn't realize that we'd sit at home, look through the catalog, and THEN head to the retail store to buy whatever, plus something on display we 'just hadta have'. No catalog, no visit to the retail store, reduced sales.
Looks like history repeating itself. If I owned Radio Shack's stock I'd be selling it.
.
I'm a gadget freak. All my friends are going 'duh!'
I've been shopping at Radio Shack stores for 40+ years -- I remember when they were a catalog only, then they started their retail operation.
Radio Shack helped get the personal computer revolution started 'back in the day'. My first several computers were from Radio Shack.
But what I liked best was being able to go in there to buy parts so I could make or fix electronic stuff. Unfortunately that's no more.
In the past week I've gone in twice to buy something I've gotten there before. And it's no longer offered. Instead, there are cell phones, a few cb's, and 'pop' electronic stuff. It seems Radio Shack is trying to compete with Best Buy. Ain't gonna succeed.
What the mba grad who decided to do this didn't understand is that while, yes, parts are a low margin item, they bring people in. Once in, we see something we've 'just gotta have' and buy it.
Remember the Sears Catalog? When they did away with it, Sears headed towards bankruptcy. The brilliant Sears mba who decided THAT didn't realize that we'd sit at home, look through the catalog, and THEN head to the retail store to buy whatever, plus something on display we 'just hadta have'. No catalog, no visit to the retail store, reduced sales.
Looks like history repeating itself. If I owned Radio Shack's stock I'd be selling it.
.
Litterbugs
.
Last Saturday I happened to stop by my office to pick up something. As I was leaving, there was a car parked in my lot while the driver went to the store next door. Susan and I saw the passenger door open and the ash tray dumped into my lot.
Littering is one of my buttons you don't wanna push.
I pulled in and blocked the car, and in a remarkably calm (for me) manner asked the passenger if he'd kindly pick up the butts. He ignored me, rolled up the window and locked the door.
I called 911 (police station is in next block). As one responding officer said, as I remarked on three cars showing up, 'it's been a slow day and we were about to fall asleep'.
Yes, the butts got cleaned up. No, I didn't press charges because of the inconvenience to the legal system if I did -- they'd have to bring in an out of town judge to hear the case and litterbugs just aren't worth that.
Litterbugs aren't worth much else in my opinion.
.
Last Saturday I happened to stop by my office to pick up something. As I was leaving, there was a car parked in my lot while the driver went to the store next door. Susan and I saw the passenger door open and the ash tray dumped into my lot.
I pulled in and blocked the car, and in a remarkably calm (for me) manner asked the passenger if he'd kindly pick up the butts. He ignored me, rolled up the window and locked the door.
I called 911 (police station is in next block). As one responding officer said, as I remarked on three cars showing up, 'it's been a slow day and we were about to fall asleep'.
Yes, the butts got cleaned up. No, I didn't press charges because of the inconvenience to the legal system if I did -- they'd have to bring in an out of town judge to hear the case and litterbugs just aren't worth that.
Litterbugs aren't worth much else in my opinion.
.
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