Wishing You All A Happy Noise-free Diwali !

- Krishnamurthy & family

Book Mark:THE MONEYCHANGERS

A great introduction to the financial world!   Having known Arthur Hailey has authored many other outstanding titles like “Hotel”, “Airport”, “Strong Medicine”, to sprinkle a few, it is awe-inspiring how he managed to pick an industry and dish out such uncanny details, let alone blend it with amazing plots.

“THE MONEYCHANGERS”   is a combo of money, people and banking made into a thrilling, totally absorbing story of the financial and personal crises in a reputed financial institution. It is a tale about a big bank which is one day powerful and next day is on the verge of bankruptcy, due to the greed of some executives.

The position of CEO of America’s large bank, Federal Mercantile American Bank, is about to become vacant due to the terminal illness of Ben Roselli, whose grand-father founded the bank.  Two senior vice-presidents – Roscoe Heyward and Alex Vandervoort begin to vie for the position and the power play kicks in.

Roscoe wants financial prosperity for the bank, more importantly  prosperity for himself, at the expense of bank’s credibility.  Whereas, Alex’s basic banking principles are sound.  Roscoe believes in high risk, high gain, even while compromising on basic ethics.   Alex, on the contrary, insists compliance with principles along with calculated risk (where need be).

Roscoe gets involved in a high-profile affair in arranging a loan for $59 million to a big business conglomerate, concealing the negative realities to the FMA’s Board.   Alex, the sole opposition, could not negate the loan, as he failed to command enough support.

The author takes the reader through the journey amid various plots and the tale gets more gripping.  In the process, the reader is navigated through a panoramic view of the banking industry – in security arrangements, branch operations, profit margins, the attractions of foreign currency, the inside of a stock market, the techniques of a surprise audit in a branch bank and much more.

FMA faces a number of problems / decisions:  the mysterious disappearance of $6,000 from the teller’s cash box; counterfeit credit-cards; the question of whether to continue funding a low-cost housing development or to float a master loan for a multinational corporate entity; policy decisions on whether to open new branches……   Above all, the bank faces the choice of a new president.

The plot, in the bargain, engages embezzlement, a little blackmail, undercover operations in counterfeit ring, some high level corporate scam, a major financial disaster, a panic and a near-run on the bank, employing a call-girl character, some kidnapping, torture, visits to insane asylums, a suicide….  Hailey designs his characters carefully so that we relate them to sustain the momentum. .

By the time you finish, page 476,  you are impressed  that you are learning something.  You will really know what is banking. If you are interested in business and finance, you would enjoy the title to the full.  The entire narration in the book is akin to reading a movie.

Though the book was first published in 1975, yet what he said such as credit card abuse, using tomorrow’s money to pursue today’s “dreams”, printing US dollars, the inflation, the gold standard and the monetary system ….  is perfectly valid even in today’s scene , is n’t it?

An  interesting excerpt: "For what they -  the politicians, mostly - on one hand have created a Himalayas of debt which neither they, we, nor our great-great-grand children can ever pay.  And, on the other hand, they have printed, as if producing toilet tissue, a cascade of currency, debasing our good money - especially the honest, gold-backed dollars which Americans once owned.  It is all simply house-keeping - the most flagrantly incompetent, dishonest housekeeping in human history.  This, and this alone, is the basic reason for inflation."  Such epithets are perfectly valid for a country like India.  And there are many such sparkles spread through the book.

Instead of reading a mere fiction, I feel it makes  better sense when you read “THEMONEYCHANGERS” by Arthur Hailey.   You get your money’s worth!  Relentlessly readable!

Fascinating First January

Fascinating First January

What is special of this date that generates so much charm and glamour over us?  It is nothing new that many of us set goals on this eve.  The resolutions we make to stop smoking, multiply money, lose weight ……reflects fresh hope of a new or renewed start.  A feeling of “I have to do” or “can’t fail this year”!

I have not gone through any surveys, nor done any research.  But common sense conveys that even at a conservative assessment, 40 to 50 per cent of those who make declarations break it even before you turn over the January sheet.  Life continues like any other time and majority of the people sail around like a ship without rudder. Complaining about how bad life has become, continues, which is sad!

We all have a clean slate at the commencement of the year.  “A goal is a dream, unless you write it down” – an admirable quote.  If you don’t write it, or tell (if not announce) others, chances are the goal gets derailed sooner.  Of course, the written-down plan of action must be quantified.  You want to lose, say 24 kgs in 2013, that is 2 kgs per month.  By January end, you celebrate that you lost 2 kgs or look at February and say, Oh! I need to shed down 4 kgs.! We are also familiar with experiences like, “This goal cannot be reached” and go for the chocolates and ice-creams.

Setting goals are great.  The top reason for not achieving, I believe, is there is no plan or fear of self-accountability. Again, the goals need not be new.  If you have done a good job in 2012, even sustaining it in 2013 is a good ambition.  Keep it straight and simple!

I wish you all  a Healthy & Happy New Year ( with or without goals!)

                                                                                       

If it is up, it is out

How secure are banks?

                                                           

OPEN PAGE (March 18, 1986)

How secure are banks?

(By C.S. Krishnamurthy)

"Armed men rob bank", "Rs.14 lakh stolen from bank", "City bank manager murdered".  Dailies greet you with such pungent headlines.  Crimes in general are on the rise.  Banks are potential treasure chests for criminals, since currency is obviously more tempting and less traceable than other valuables.

The daring hold-up of the Karnataka Bank in Madras some time ago with the diabolical murder of a bank official, still green in memory, showed that such offences are not exclusive to the north.

Socio-economic and political reasons alone with the negative application of technological innovations have abetted organised crime.

Statistics put the number of  robberies/dacoities at only three in 1973.  It has mounted at least 20 times annually in recent times.

"Modus operandi"

It is interesting to know the modus operandi.  A gang of bandits loot at gun-point during banking hours or prior to opening or soon after the business time.  They lock up the entire staff, often in the strong room, and use the keys obtained to rummage the lockers and flee with the booty.  Some vanish after extracting currency bundles from the cashier.

Bank funds are robbed while in transit from one bank to another on public roads, the looters at times killing the driver and security guard in the vehicle.

Removal of money from cashiers or customers by diverting their attention, using a blade to cut the wallet, or stealthily throwing some "itching" powder on the victim and suggesting that he go for a wash are other tricks of the trade!  While distracting the attention, the culprit flicks the cash and passes it on to his associates though he himself may still be present, consoling the victim!

How do they plan and execute it?  Dacoits mostly in the 20-25 age group, work overtime to accomplish their target.  Frustration in life, failure in securing jobs, glorification of horror,  settling political vendetta are the usual reasons that make a delinquent.

Ninety to ninety five per cent of the crimes are successfully carried out, says a security official of a leading bank.  Their preliminary planning dwells on how many are to operate.  The number is kept to three or four.  To draw a detailed plan, they spot the target and closely study the bank's mode of functioning, for which even neighbouring premises may be hired.

The time of operation: bandits prefer minimum staff and no customers.  The vulnerable time: around 11 a.m. when the staff go in groups for tea/cigaratte; lunch-break when other staff leave and the cashier is alone to close the counter; or evening, when the deposit is removed to the "safe-room".  The duration of the operation: An average of 10 minutes; most masterly loots are over in seven to eight minutes.  The operating time is minimised as the chances of their actions being observed are greater.

After looting, they flee using a vehicle, often stolen with changed number plates.  Vehicles, preferably two-wheelers in immaculate condition, are spotted ahead.  The local law and order situation, alternative routes against the blockade (like a procession) are considered in their escape plan.

The post-nationalisation period had witnessed a high rate of branch expansion and functional diversification, with emphasis on rural and urban areas.  There are over 40,000 branches as against 8,262 in 1969.  This swift expansion, however, is not reflected in the infrastructural base.  Some branches are sadly located in lanes where even an auto cannot enter.

Another reason relates to the flouting of norms and procedures.  Cash remittance from one branch to another, or to the Currency Chest or the RBI must be transported only in an enclosed vehicle.  Strangely, remittances are effected even by cycle-rickshaws! While cameras are banned in many public places, they can easily be brought inside the banking premises during busy hours - a vulnerable prelude indeed to a hold up!

The conspicuous absence of armed guards make "late sitting" of officials more hazardous.  Blind faith in colleagues, negligence in properly latching the cashier cabin door from inside and accepting cash after business hours are often over-looked.  White-collared bank staff often invariably deal with white-collared customers.  Criminals, on the other hand, are well trained to challenge the staff, with violence if necessary, to  hit their target.

A joint-custodian of  the Currency Chest of a nationalised  bank observes: "As long as the currency in the banks is insured against robberies, bankers will continue to be lethargic.  Insurance companies, more business-oriented, do not even insist that certain norms like provision of armed guards, ensuring safe and secure premises, etc. to be observed".  He is outraged that culprits, after being nabbed, are imprisoned for a year or two before being released to resume their activities, instead of being dealt with sternly.  He cites the Emergency period when the miscreants were aptly dealt with and the crime rate was negligible.  It is the intervention of political pressure that obstructs the punishment process, he deplores.

Comments an executive with three decades of experience: "As bankers, our role is limited. The government has a greater responsibility in controlling the menace.  A hot line between the branch and the nearest police station is essential".

Effective aids

A senior inspecting official says: "Police personnel report daily at all Calcutta banks at the opening hour and remain till the cash is taken back to the strong room.  All branches have a siren and the panic buttons are concealed in three places - one each in the manager's and cashier's cabins, the third at some other desk.  Access to any of these during a hold-up will the raise the alarm".

A bank officer reveals that a new electronic alarm is being devised, which sets off panic signal when a key is pushed to unlock the "safe-room".  A former chairman of a primary bank suggests making in-depth studies of ten cases and analysis of the weaknesses of the system.

What is to be done after a hold up?  Apart from contacting the police control room (in a  city) or the nearest police station, note the vehicle number of the escape vehicle, its make, type, prints, etc.  The crime scene must be left intact to help sleuths trace clues.  Forensic experts confirm even  cigarette-buds and sweat stains help identify the blood group.  Blood stains, voice, eyes, feet, vaccination marks, scars, height, weight, colour, hair (in a comparitive manner) are effective aids for follow-up.

Laments a Director General of Police: "When crimes are committed against individuals the victims provide a continuous source of motivation that helps in the pursuit of clues.  Crimes occurring in public institutions, however, lack such individual and enthusiastic sources of inspiration".

What can be done? Armed guards should be posted before every bank door and secure premises selected.  Shutters should be unfailingly pulled down after banking hours.  A half-closed door is as good as open.  Alarm bells and emergency lamps should be fitted inside the strong room, and access to cash vaults must be strictly confined to authorised personnel.  Surplus cash (cash in excess of sanctioned limit) must be scrupulously remitted to the bank's Currency Chest, the Reserve Bank, or needy banks.

Joint-custodians should not leave the keys of the strong room in their table drawers overnight.  The location of the manager's cabin must ensure his visual supervision of all the departments, particularly the cash counter.  The training curriculum of staff should include lectures/group-discussions/ and role-play on this subject.  Checking unauthorised loitering and prominent display of warning notices to alert the public must be observed.  Arrangement of cash counters in such a manner that movement towards the exit door is delayed, is worth pondering.  Finally, the Police should be trained to nab culprits with minimum identity data.

======

Food: Waste, not in good taste

A recent UN report highlighted that “an estimated one-third of food produced for human consumption is lost or wasted, amounting to 1.3 billion tons per year”.  If the world is to feed its seven billion inhabitants – a population predicted to climb to over nine billion by 2050, the wastage number looks more than alarming, the report added.

My grand father (an amazing soul!) used to impart that each grain as  God’s gift. “Athithi Devo Bhava”,  is a tribute paid to Annalakshmi, the Goddess of plenty. Wasting food is scoffing the deity.  We are, ironically, ‘modernised’.  Sip  half cup of  tea, leave the rest,  probably that is deemed ‘etiquette’.  Food courts  are renowned for lavish wastage of food. I used to wonder at Dubai, where I lived for about a decade, for so many reasons, except when it would be depressing and  painful to sight at the volume of food wasted at the food courts, specifically in the huge malls.

Back home in Bangalore, I have known of  a local mutt (a term used for religious establishment of Hinduism and usually more formal and hierarchical), probably there may be many, where during lunch (blessed food), heaps of rice would be served, nay pushed on the plantain leaf without ever looking at the person , adult or child, leaving a despicable display of huge left-overs. When queried the manager, he  laughed it off as a non-event! We see a few, in  extravagant parties, fill their plates like there is no tomorrow, and throw major portion of it away, cautioning a need for a social movement to curb the desire of ostentation.  Food is an integral part of our culture. Be it a wedding, an informal get-together or even someone's death, Indian ceremonies and customs are intrinsically tied to the concept of organising lavish feasts.

At the first World Food Conference (1974) at Rome, Henry Kissinger made a laudable pledge. “In ten years’ time, no child will go to bed hungry”.  A reason for optimism.  For years, global food production increased faster than the rate of population growth.  Still, by the mid-nineties about half a billion reported as undernourished, only to revive the “hungry” war again.

Consumers  in the West waste lots of food, which speaks of western hypocrisy about the Third world.  No wonder, you and I are witnesses to the legacy of  Haves and the  Have-nots.  In developing nations, lack of transportation, inadequate storage and processing facilities leads to losses. Government allowing food stocks to rot is one side.  On the other, it is  sad that hungry children beg on the streets for a morsel, competing with stray dogs in garbage bins!

At times, it takes  efforts to keep the produce fresh.  Spinach, for instance, must be dipped in cold water or it quickly wilts.  Where the infrastructure doesn’t exist, the situation is worse.  Our friends toss out everything from bananas that have turned brown to last week’s ‘Chinese’ left over. Half the loaf of bread goes stale, because no one wants to eat sandwiches "today". “Why should I care? I paid for it” seems the attitude. Is it wrong to infer that obesity in the opulence is proportionately related to the malnourishment among the poor? When you drop the food-waste in the bin, it is like contaminating the world.

How do we organise our lives to minimise the food waste?  When it comes to food, we do weekly shopping. Often people buy food to cook, when their life style has become eating out most of the week.  Many eat more than the physical needs, again a significant life-style problem. Affluence is ignorant of famine? Why  not restaurants  impose a penalty on the left-overs, especially where buffet meal is served.  Isn't it true that we often fall for malls’ marketing gimmicks? Proper education would reduce this malady. Children should be trained to finish all the food on their plates. Pause for a moment, think if you would actually need that many, before you do grocery shopping.  Always, carry a plastic bag or food container so that you can pack unfinished food. Food courts have a big potential in terms of raising awareness.

If you consider the galloping food inflation, your overshopping habits probably needs to be pondered. Why buy two bags of tomatoes, when your need is one? When you go to a supermarket without a proper shopping list, it is very much possible you end up piling up your trolley with whatever items catch your eye.  Write a food diary to see how much you eat and  how much you throw away.  Over a week you will know what food you need when you head to a shop and what in your fridge might be going waste. Food saved is food produced, true?

At schools, students, parents and staff should be inspired to pack a waste-free lunch.  Promote a sale in which waste-free lunch vendors are invited and sell their products.  Students can sit next to the vendors with waste-free ideas.  They can create a display that compares the economic, health and environmental costs of a waste-free lunch vs. Other types, and show an example of a waste-free lunch and a waste-ful lunch.

Overall, the remedy warrants a human disposition. Charity begins at home. It doesn’t require a religion to preach; just be ordinary to realise it.  We send rockets to the space, produce IT wizards .... Is it that hard to put an end to the food wastage?  Wasting food appears a curiosity of modern life. It is one of the issues on which the universe is in agreement – bad.

Happy World Food Day!

Your feedback is welcome at: krs1957@hotmail.com

                                                     

Me....... without coffee?

Sorry, I couldn't resist telling you that coffee is a big part of me (may be, you as well).  The caffeine kick .... wow!  My laptop is not just supported with the mouse, but along with my work, a cup of coffee adds to my working ambience.

"Drinking coffee lifts my mood, or a mood triggers me to drink coffee", I was sharing my views with my family circle in a domestic function recently.

I continued: "My coffee should have that golden brown color or I loathe drinking it.  I like the strong smell, the brew, the bold taste, the flavour.  I never liked drinking coffee in big quantity in one go; rather, sip in small  measure with  regular intervals.  There is nothing like freshly roasted coffee. I don't prefer the mug or the cup-n-saucer (may be okay for tea); but the steel cup ( baitu- filter-kaapi in typical Bangalorean lingo)".

My sister, just then, interrupted: "The coffee beans should be ideally the big ones; grind the beans as close to the brew time as possible;  use a coffee filter; don't use  a percolator or  clothes to filter. When you pour boiling water, make sure the coffee decoction drips very slowly, literally drop by drop .  A drop of decoction when touched with the right thumb and point finger should have a sort of semi-solid feel.  The coffee powder should have a blend of Plantation A and B".

Joining the conversation, my wife: "You  can add a small percentage of chicory and a pinch of salt for achieving the strength.  While the hot decoction is extracted, boil the milk simultaneously.  Add half-a-tea(coffee?)-spoon of sugar for a cup of coffee.  Importantly, to have a better taste, sip the coffee in steel cup."

"Most important thing, before I forget, NEVER RE-HEAT COFFEE" , your moods become insipid; also coffee poured from a flask will not give you a grade-1 aroma, at times it even renders a stale taste"  raising  her voice, she dutifully scored a point.

"Anybody can drink coffee anytime for any reason" my brother-in-law opined, adding that "if you are a good coffee drinker, it is difficult to accept mediocre quality".  True. I reckon many a time  that it was safer to compromise to drink tea, than to gamble with second-grade or poor quality coffee.  It is hard, at the same time, to resist  good coffee. In some restaurants and homes, you get light anemic colour coffee, milk diluted, coffee decoction carelessly or ignorantly prepared, with heaps of sugar mixed, -  all makes you feel ' why at all I asked for the beverage'. Bangalore, by and large, is the best Indian destination for coffee-lovers, while there may be good coffee-joints in patches elsewhere. It may not be overstating the fact that coffee and  South Indian (Bangalore and Chennai, in particular) are made for each other!

It is a pleasure to use all our senses to enjoy the coffee.  Even if your eyes are closed, the aroma will entice you to the beverage. Once the coffee is served, the frothy golden brown color is visually perceived. Hold the cup towards your lips, gently slurp (don't swallow straight away!),  mix with the taste-buds and the flavour reaches all areas of the tongue. Observe the mood. Now let the coffee gently trickle down the throat to complete the true spirit.  The quality of the coffee is also determined by the duration of the lingering of the flavour; the longer the better.  I have seen some people gulp it as if a ritual, without appreciating the art of sipping good coffee.

A characteristic Bangalorean will easily teach you how to have a bite of dosa and alternate it with a sip of coffee.  Agreed. That is the way you should enjoy your breakfast to be experienced!

A recent study claims that drinking coffee can help one live longer, though too much  caffeine is not advised.  I also learn that those drinking 2 - 3 cups a day were 10 per cent less likely to die from ailments like heart disease, respiratory disease, injuries, diabetes, infections ....., those drinking 4 - 5 cups per day were 12 per cent less likely to die, than non-coffee drinkers.

Why take a chance, go and grab your cuppa, right away!

Your feedback is welcome:  krs1957@hotmail.com