Updated: 3:40 pm Bank stocks have not lately been the heroes of Wall Street. With the major bank stocks at year-lows and analysts pondering their market values, merger activity for regional banking continues. PNC Financial Services said Monday that it will buy the American retail banking business of Royal Bank of Canada today for $3.45 billion. The deal includes an additional $165 million for the sale credit card assets to PNC, bringing the full amount value to $3.62 billion. The companies say the deal is a $112 million discount to the tangible book value of the business, or 97% of the full book value.

The financial services provider said it will gain 424 branches in the American southeast, and RBCs presence will be reduced in the US, although is still has services including investment banking in the region. PNC CEO James E. Rohr called it an “outstanding growth opportunity.” Shares in PNC Financial fell 2.2% after the announcement, however, as investors considered the earnings impact that adding lending branches within an already struggling market will add to the company. RBC’s southeast banking unit currently holds about $25 billion of assets, and would make PNC a player in the largest number of bank branches offered in the US

Rohr continued, The success of our recent acquisitions demonstrates that when we bring our innovative products and services to new markets we have the proven ability to win clients and take out costs.

Todays deal follows news last week of Capital One’s acquisition of ING’s US online banking arm. With major bank stocks trading at below book value today, the deal offers some questions about the ability of lending institutions to find earnings value in the near term, with the federal funds interest rate still near zero. Bank of America is trading today at 50% to its book value, Citigroup at 65% and JP Morgan Chase is trading 94% below book value, according to a note from analyst Justin Hoogendoorn at BMO Capital Markets today.

As costs climb in all sectors of the economy, even universities are coming up with creative ways to save money. UCLA, the University of California at Los Angeles, says it will begin charging students who pay their tuition, parking permits, and housing costs with credit cards a 2.75% credit card processing fee come August 1. The university states it costs the educational institution $6.5 million in credit card processing fees each year that it can no longer absorb.

Student Reaction

This will especially hurt lower income students, who may need credit to make ends meet. One of UCLA students, who wished to be unnamed, when asked, have expressed that he is: nickeling and dimming, trying to save up some money. I am relying on perks like a rewards credit card that can give cash backs to budget daily necessities. The overall feeling on campus is: its preposterous that we are being taken advantage of.

With 79% of students paying these education expenses with credit cards, switching to another payment system may pose big problems on campus. Stanford University previously charged a similar amount, but stopped doing so because it turned out to be too large a burden on its student body.

The problem is that students are also expecting an 8% hike in tuition fees to help offset the state budget issues. “Especially at a time when tuition is increasing substantially and steadily year after year, forcing students to pay yet another additional fee is unnecessary,” said Emily Resnick, the UCLA student body president.

In addition to the surcharge for using credit cards, students are also facing very short notice for the change in policy. The announcement went out to students in early June and is expected to kick in on August 1.

Credit Cards Accepted

Adding insult to injury, students who continue to pay with credit cards can no longer use their Visa card. Because Visa does not allow institutions or merchants to charge a percentage-based user fee, the university will no longer accept it as a form of payment. Credit cards, such as Discover, American Express and MasterCard, however, will still be accepted.

The university is hoping that students will use other options to pay their bills that are less costly. It offers a program called eCheck that supposedly offers the same convenience of a credit card payment, without any fees. Students can sign up online and even arrange a payment plan which would spread the payments out over several months.

Frustrated by the Egyptian medias portrayal of women as second-class citizens, Amani El Tunsi set up the Girls Only radio station to challenge stereotypes about women. The station has now won a German prize.

Before we rejoice over what is designed to look like zero-based budgeting at city hall, we should be very suspicious, says Ric McIver.Photograph by: Greg Fulmes, Greg Fulmes

ARMONK, NY, June 23, 2011 /PRNewswire/ — A new generation of startups is entering the market with software designed to analyze large volumes of data, IBM (NYSE: IBM) said today. The company is coaching a new group of entrepreneurs who will compete next week in the New York City IBM Global Entrepreneur SmartCamp competition. The five finalists have developed software that helps people and businesses better manage energy consumption, monitor environmental hazards, understand mobile device usage patterns and track brand sentiment.

(Logo: http://photos.prnewswire.com/prnh/20090416/IBMLOGO )

Today, 83 percent of midmarket CIOs surveyed by IBM have identified analytics, the ability to extract actionable insights from Big Data as their top-priority investment area. Software that uses Watson-like analytics to interpret and apply big data represents a unique opportunity for the entrepreneur community. IBMs Watson, the machine that bested Jeopardy! quiz show champs, represents the most advanced analytics technology available.

Five startups whose technology and business model capitalizes on this trend will meet with IBM and the venture capital community at the New York competition June 28 and 29. By pushing the boundaries of what is possible with analytics, cloud and mobile computing, these entrepreneurs are creating new business opportunities and driving economic growth.

Startups face tremendous challenges in a global market, especially as they compete against much large companies going after the data analytics opportunity, said Jim Corgel, general manager, Developer Relations, IBM. IBM can convert these companies from startups to speedups by providing coaching and connections to IBM clients and partners. We help these startups get to market faster and at the same time, we provide IBM clients with the hottest new technologies.

The finalists at SmartCamp New York include:

• EnvEve: A wireless sensor network and tailored analytics solution that gives organizations real time information on the environment and physical infrastructures. For example, using sensors and analytics, the solution can help city officials understand the likelihood of a mudslide, the level of toxins in a river, the nitrates in farmland soil or the road conditions of a highway.
• Envirolytics: A combination of analytics software and mobile devices that puts homeowners in control of their energy usage. Using basic measurements, camera and video functions as well as applications for tests such as light intensity on mobile devices, homeowners can capture the data for a home energy audit without the need for sensors in the home. Based on this input and criteria such as geographic location, local weather patterns and home type, the Envirolytics software analyzes current home energy performance and recommends more energy efficient products and services.
• Localytics: A real-time analytics service that helps the makers of mobile phone and tablet applications better understand their clients. By analyzing data on user preferences and tendencies such as the amount of time spent in an application, errors and crashes, businesses can build more successful mobile applications.
• MediaFunnel: A social media firewall and dashboard that helps organizations analyze and monitor brand sentiment, protect their brand, and engage with their customers, prospects or members in real-time. It ensures that no brand-damaging statements are going out to the public, and monitors social media and the web for conversations that need immediate attention, alerting the team so they can jump into the conversation right away.
• Examville: A global web-based educational content and services platform that enables collaboration for students, educators and content providers, including publishers. The service leverages the collective knowledge of many with collaborative learning tools, peer review, recommendations and educator inputs into a single comprehensive platform where users can customize their learning experiences.

IBM SmartCamps bring together innovative entrepreneurs with venture capitalists, academics and other industry leaders to provide coaching and critical industry support and advice. These events are part of IBMs commitment to the Obama administration StartUp America initiative.

Small and medium sized companies have long been the engines driving economic growth. They are responsible for nearly 65 percent of the global GDP representing more than 90 percent of all businesses and employing over 90 percent of the worlds workforce. This group of entrepreneurial companies faces stiff competition, not only in their local markets, but also with larger enterprises across an increasingly global marketplace. (Source: Organization for Economic Cooperation). The IBM SmartCamps are designed to provide these entrepreneurs with the mentoring and insight needed to continue to drive growth and innovation in their markets.

SmartCamp New York is part of the IBM Global Entrepreneur initiative, which is designed to bring new technologies to market faster that tackle some of the worlds most pressing issues. The five finalists were selected from more than 200 startup companies that are creating new technologies in critical areas such as healthcare, energy and environment, and other services that improve the life of citizens around the globe.

IBM SmartCamps judge the best start-up company in different cities around the globe, rewarding the winners with mentoring, services, access to industry experts, and deeper partnership opportunities from IBM, venture capital firms and industry partners. The winner will also be invited to the next SmartCamp World Finals to square off against other SmartCamp winners from around the globe to claim the title of IBM Global Entrepreneur of the Year.

Vote for Your Favorite SmartCamp New York Finalist with the IBM SmartCamp Peoples Vote Award

Help us pick the IBM SmartCamp Online Peoples Vote Award winner. Each of the final five startups has created a one-minute video pitch that you will be able to watch on the Smarter Planet blog at ASmarterPlanet.com. After watching the pitch videos and watching the companies live on LiveStream, you will be able to vote for your favorite. Voting begins June 23 at www.asmarterplanet.com.

The event will be webcast at www.livestream.com/ibmsoftware. There will also be live blogging on ASmarterPlanet.com on June 28 at http://bit.ly/kFS3Kn and on June 29 at http://bit.ly/iYPQ39. In addition, you can follow the action on People for a Smarter Planet on Facebook at http://on.fb.me/9S1Jp8, and on Twitter at #IBMSmartCamp.

For more information about the IBM Global Entrepreneur initiative, please visit: http://www.ibm.com/isv/startup. For more information on the IBM Venture Capital Group, please visit http://www.ibm.com/venturecapitalgroup.

Media Contact
Tim Willeford
IBM Media Relations
(978) 413-4041
twilleford@us.ibm.com

SOURCE IBM

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TERRE HAUTE, Ind. (WTHI) – The cost for Hoosiers attending college continues to rise. Now, more than ever, students in Indiana turn to loans to pay for their college tuition.

Indiana State University proudly boasts its role as one of Indianas most affordable colleges.

Even with the lower price tag students still pay around 16,000 dollars a year.

Nearly 70 percent of the ISU student body takes out some sort of financial aid. Many, like ISU student Alisha Whitecotten, turn to loans.

I had money saved up instead of my parents for the beginning of school and then once it ran out I needed money,” Alisha said.

Student loans finance college educations now more than ever.

Probably 15 or 20 years ago, most of the money that was given out was in the form of grants; 60 percent grants 40 percent loans. Today the absolute reverse is true,” John Beacon of ISU’s Enrollment department said.

Loans, unlike grants, require students pay them back after college. Most Federal subsidized loans, like a Stafford loan, allow students to complete college without paying interest until after graduation. Then students generally have a grace period after school before they begin paying off their loans.

Many students would not qualify for a loan if they went to a bank, but theyre going to get a loan to get an education because the federal government is guaranteeing it,” Beacon said.

But for some students a non-federal loan is the only option to pay for college. Those loans gather interest right away and some require payments while students are still taking classes. For many that initial debt is seen as an investment.

If you have the potential of earning, because you have a college degree $1.6 million over the course of your life. Who wouldnt borrow $20,000 if the return on that investment was $1.6 million,” Beacon said.

That $20,000 investment can still look pretty scary to future college graduates, facing a troubled job market.

I really hope I find a job afterwards. If I dont find a job after four months then I think Ill be worried about it,” Alisha said.

Leaving Alisha, like many other college students, hoping education pays off in the future. 

Jefferies JEF
reported net earnings to common shareholders of $84.7 million, or $0.36 per diluted share, on $723 million of net revenues for the fiscal second quarter of 2011. Excluding a $4.6 million charitable contribution to Japan relief efforts and $4.8 million of costs related to the companys pending acquisition of Prudential Bache from Prudential Financial PRU
, net income would have been $87 million and diluted earnings per share would have been $0.39 per share. Net revenue was sequentially flat, with revenue lines moving as we had expected. Principal transactions (mainly fixed-income trading) decreased 40% from what we thought was abnormally high first-quarter levels. On the other hand, investment banking revenue increased 37%, due primarily to strong debt underwriting. This was the highest quarterly investment banking revenue that Jefferies has ever reported, and it offset the weakness in fixed-income trading results. We dont expect any material change to our fair value estimate for the company.

The Prudential Bache acquisition will build out Jefferies capabilities in commodities, financial futures, and foreign-exchange trading. Jefferies will be paying approximately $430 million, the units tangible book value. In the quarter, Jefferies issued $500 million of common stock and $800 million of long-term debt to finance the acquisition and to support future growth. We believe there is potential in the acquisition as Jefferies introduces Prudential Baches services to its current customer base, gains exposure to the fast growing commodities and foreign-exchange space, and gains capabilities in derivatives where opportunities could emerge following financial regulatory reform.

From Super Bowl MVP to TV ballroom dance champ and now Craftsman spokesman and honorary Goodwill Ambassador — Hines Wards time off from football as the NFL lockout continues has been anything but downtime.

Since winning season 12 of ABCs Dancing With the Stars in May with professional dance partner Kym Johnson, the Steelers wide receiver has garnered attention for more than just catching passes.

The reality show definitely created some more fanfare, he said. I thought I was known in football world, but now Im being recognized by females all over.

His athlete-to-Astaire transformation not only surprised his family (They were shocked, he said) but also piqued the interest of Craftsman, which approached Mr. Ward shortly after he took home the Mirror Ball trophy to promote its new interactive online series SCREW D: Where Survival Comes Down to the Right Tools.

4 days ago

ALBANY, N.Y. (AP) — This year’s nationally scrutinized battle in New York over whether to legalize gay marriage has attracted big money.

One longtime Albany lobbyist describes it as a “limitless” amount of lobbying dollars and campaign contributions from gay marriage advocates.

Susan Lerner of the good-government group Common Cause says she hasn’t seen anything like the spending over gay marriage since the abortion fights of the 1970s.

Both sides have had commitments of over a million dollars, mostly from national advocates for their position.

A vote could come as soon as Wednesday and is seen as a critical moment in the national movement for gay marriage rights.

Copyright © 2011 The Associated Press. All rights reserved.

Holders of Washington Mutual Inc.’s (PINK: WAMUQ) trust-preferred securities, which include Black Horse Capital, are looking to join a probe of four hedge funds alleged of using confidential data to trade in the debt of the bankrupt company.

US Bankruptcy Judge Mary Walrath, who is overseeing Washington Mutual’s bankruptcy, has been asked by holders of the company’s trust preferred securities to force the four hedge funds accused of using confidential data to turn over their trading-related documents. The hedge funds include Centerbridge Partners LP, Appaloosa Management LP, Owl Creek Asset Management LP and Aurelius Capital Management. The four hedge funds also assisted in drafting the bankrupt company’s latest bankruptcy plan.

The latest plan has been opposed by Washington Mutual’s trust preferred holders, who along with the company’s common shareholders are the last group to object to the plan.

The settlement talks with shareholders to end their opposition to the company’s bankruptcy plan apparently failed last week, according to a report by Reuters, citing sources close to the matter.

Washington Mutual, which filed for bankruptcy back in September 2008, has been in discussions with its shareholders to end their opposition to a bankruptcy plan that will pay creditors, including the four hedge funds, in full. However, shareholders continue to argue that they will be left with little once creditors are paid.

Recently, Washington Mutual’s attorney said in a bankruptcy court hearing that if the company failed to reach an agreement with shareholders it will go ahead with its “Sixth Amended Plan.” The bankruptcy court will decide on July 13 on whether to allow Washington Mutual to go ahead with the latest plan.

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