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A Financial Icon’s Rise and Fall

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Wayne CurtisOne of the most recognizable financial names recently reached the century mark.  Merrill Lynch, the firm that democratized finance for the middle class, turned 100 on January 6.  It rose from humble beginnings to become a financial giant, only to be rescued from failure by Bank of America.
The story of the firm that “brought Wall Street to Main Street” began in 1914 when Charles Merrill established Charles Merrill and Company – with no assets and no clients.  The firm consisted of Merrill and Edmund Lynch, and the name changed to Merrill Lynch in 1915.
The company grew rapidly and made several highly successful investments. The most successful came in 1926 with the purchase of controlling interest in Safeway Stores, which shortly became the largest grocery chain in the nation.
Significant change took place in the 1930s and 1940s.  Merrill merged with E. A. Pierce and Cassatt and Company.  Later, the combined company merged with Fenner and Beane, an investment bank and commodities company.  The new entity became Merrill Lynch, Pierce, Fenner, and Beane.
In 1958, the name changed to Merrill Lynch, Pierce, Fenner, and Smith. By now, it had become the largest securities firm in the world.
Merrill Lynch rose to prominence on the strength of its extensive brokerage network that brought investment opportunities to millions.Name and reputation were paramount in its growth.
Subtle changes surfaced in the 1990s. They started with the collapse of Orange County, California. Accusations that Merrill Lynch sold inappropriate and risky investments to Orange County led to a then-massive $400 million settlement.
The financial collapse hammered the last nails in the company’s coffin. Prior to the collapse, it added billions of dollars of mortgages to its balance sheet and purchased a subprime lender, First Franklin Financial.
Unfortunately, the company was in a business in which it had little expertise. In November 2007, it announced a write-down of $8.4 billion in losses associated with the national housing crisis.
Conditions worsened. For the year ended June 30, 2008, Merrill Lynch lost $19.2 billion or $52 million per day.  And on September 15, 2008, it agreed to be purchased by Bank of America for the fire-sale price of $20 per share, marking the end of a storied era.

Wayne Curtis, Ph.D., is a former superintendent of Alabama banks and Troy University business school dean. He is retired from the board of directors of First United Security Bank.  Email him at wccurtis39@gmail.com.

INSIDE THE STATEHOUSE

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Steve Flowers
Steve Flowers
Steve Flowers

By Steve Flowers

It seemed to go under the radar last year but the Bentley administration quietly inaugurated the largest road-building program seen in the state in over six decades.
Gov. Bentley launched the Alabama Transportation Rehabilitation and Improvement Program (ATRIP). The ATRIP program, coupled with another road program, the Rural Assistance Match Program, will bring the total for road and bridge construction in Bentley’s first term to well over $1 billion.
This probably makes Bentley’s road program the largest since Gov. James E. “Big Jim” Folsom’s famous Farm to Market road program in the late 1940s and early 1950s. Big Jim’s Farm to Market road program was his greatest legacy. Folks in rural Alabama still talk about Big Jim’s roads today.
Bentley designed his road program to come to fruition and have the greatest political impact while he was running for governor this year. It appears that he will have smooth sailing and will not need the ATRIP program to propel him to victory.
Under ATRIP the state borrows 80 percent of the cost of each project through what are called Grant Acquisition Revenue Vehicle bonds (GARVEE). It allows the state to borrow against future federal highway grants at an interest rate of 2.6 percent. Local cities and counties are required to make a 20 percent match, except in the rural counties that cannot afford to match state funds. For these poorer counties, matching funds are provided under the Rural Assistance Match program.
Mayors and county commissioners throughout the state have made hay with Bentley’s road program. The governor has endeared himself to these local officials. Roads are near and dear to the hearts of mayors, city councilors and especially county commissioners. In fact, roads have been an integral part of political patronage in state politics for years. In my early legislative years, the governor would entice legislators to vote for his programs by holding the lure of a particular road project important to a legislator over the head of that legislator like a carrot over the head of a rabbit.
This discussion of road programs reminds me of a humorous story that occurred during the Wallace years.
The year was 1983. George Wallace was beginning his fourth and final term as governor. As you know, Wallace had been shot numerous times by a crazed would be assassin in 1972 in a Maryland parking lot while running for president. Wallace miraculously survived that assassination attempt but was left paralyzed and in constant pain. He had to take medication to alleviate the pain so some days he was not quite cognizant.
However, Wallace was determined to remedy the shortfall he inherited in the state coffers. His solution was to raise taxes. He called them revenue enhancement measures. I called it a tax-a-day club.
Wallace made me one of his floor leaders in the House. Therefore, I felt duty bound to vote for his revenue enhancement measures. My seatmate and new best friend was a gentleman from Talladega named Jim Preuitt. Jim and I were the only two freshman floor leaders. We dutifully toed the line on the first six revenue enhancement measures but then the Wallace team came with a biggie. It was a substantial gasoline tax for road improvement. I told Jim, “I’m falling off the wagon here. I can’t have a record of voting for every tax that comes down the pike.”
The governor had earned a vaunted reputation through the years of cajoling reluctant legislators to his side of an issue by calling them down to the governor’s office in small groups and enticing them with plum projects for their districts, usually a road. Wallace was on his game for this road tax vote. Therefore, those of us who had indicated our reluctance were called down to the governor’s office to be hot boxed.
Preuitt and I were in a group of real naysayers to Wallace’s taxes. Wallace looked over as though he was surprised to see us. He then zeroed in on Rep. Noopie Cosby from Selma. Noopie had not voted for any of Wallace’s revenue enhancement measures and he was not planning on breaking his streak with Wallace’s gas tax.
Noopie has gone by this name since childhood but Wallace immediately addressed Noopie as “Nudie.” He began, “Nudie, when I was a young legislator I had a road program. So Nudie, you need you a road program and, you see Nudie, if you vote for the gas tax then your road program will be part of my road program. But Nudie, if you don’t vote for my gas tax then I’m afraid your road program will not be part of my road program.” Wallace explained politics to Nudie that day.

See you next week.

Steve Flowers is Alabama’s leading political columnist. His column appears weekly in more than 70 Alabama newspapers. Steve served 16 years in the state legislature. He may be reached at www.steveflowers.us.

Meet and Greet

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YWI (3)

2014 Impact Women’s Business & Empowerment Conference

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Women's ConferenceCreating a Stronger Economy through Leadership Development and Business Grow
Birmingham, AL will unite 23 of the most influential and prolific business professionals, corporate and spiritual leaders, financial experts, and health professionals in the country at the 2014 Ladies of Royalty (L.O.R.) Impact Women’s Business & Empowerment Conference on February 28th – March 1st.
The 2014 L.O.R. Impact Women’s Business & Empowerment Conference will be held at the Birmingham Jefferson Convention Complex, which will feature the “Woman of the Year” Awards Luncheon, honoring seven influential women who are making an impact on a local, national, and global level.
Attendees will receive two days of power packed information which will include six business strategy workshops, compelling Q&A panel discussions, keynote address, business to business network opportunities, strategies to grow in a challenging market, and much more.
“As a leader our individual purpose in life is not to just build big businesses but to be a professional example and a beacon of light to those we encounter.” says Yakinea Marie.
Yakinea Marie Duff, event coordinator and Executive Director of the L.O.R. Women’s Business & Empowerment Network, Inc., is an author, speaker, and entrepreneur who understand the importance of staying relevant and connected through educational and entrepreneurial forums.
For more information about the 2014 L.O.R. Impact Women’s Business & Empowerment Conference or for information on sponsorship and vendor opportunities please visit www.LadiesofRoyalty.com, call (205) 563-6344, or email info@ladiesofroyalty.com .

Agape Breakfast

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Agape BreakfastBethel African Methodist Episcopal Zion Church
105 Parker Springs Street, Brighton, Alabama 35020

You are cordially invited to attend our 17th Annual Agape Breakfast, Saturday, February 8,
Nine O’ clock  in the morning. The breakfast is hosted by The Women’s Home & Overseas Missionary Society, Mrs. Delores Senior, President-Parent Body.

Christianway

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CHESTER CHRISTIANWAY

Please Ma’am/Sir Don’t Cancel Your Own Order

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Angela Moore

By Angela Moore
Imagine being famished!!! Imagine walking into your favorite restaurant while famished and having the ability to order anything off of the menu that’s pleasing to your palate and fit for your consumption. Imagine all you have to do is be seated, place your order, wait on the food, eat and enjoy. Sounds good, huh? Well, imagine what the owner of the restaurant, who is offering up your all-you-can-eat, at no cost meal to you, would think if, as soon as you ordered you cancelled the order, then ordered, then cancelled, then ordered, then cancelled again. Ummm, yep, I don’t think he’d be too happy with that and you’d still be starving.
That’s a lot like life. So many times we choose to cancel our own orders with our own words then we get mad or discouraged when what we wanted isn’t received.
·         We’ll ask God for a good mate then say, “All men are dogs” or “Women just want you for the money”. #cancelled
·         We’ll ask God for a good job then say, “I could never get a job like that because I don’t have experience or a degree”. #cancelled
·         We’ll ask God to change our lives then say, “Well, this is just who I am. I’ve been this way all my life.” #cancelled
·         We’ll ask God for friends then say, “I can’t trust ‘nobody’. I’ll just fly solo.” #cancelled
·         We’ll ask God to draw us closer to Him then say, “God knows my heart. I’m not going to church. Church people are messy and pastors are crooks.” #cancelled
·         We’ll ask God for healing then say, “I’m so sick. I guess I’ll be like this always. My mama was like this too so…” #cancelled
·         We’ll ask God to restore a relationship then say, “He/She won’t ever change.” #cancelled
Do you get my drift? Please ma’am/sir, don’t cancel your own order.

Angela Scott Moore has sported many hats in her lifetime. She’s a former broadcast anchor/reporter/producer, a trained motivational speaker, fundraiser and marketing/PR expert. She spent nine years as a pastor’s wife working in full-time ministry before that union ended in divorce. A majority of her time in ministry was spent empowering women and girls. She’s an avid inspirational blogger and also a philanthropic community supporter who has served with more than 25 local and national organizations over her 15+ year professional career. Currently she’s working in the fields of Social Justice and Human Resources and operates the blossoming, full-service events planning venture Amazing Kreations with her business partner, offering media and event planning assistance at low or no cost to small organizations and businesses. Taking lessons learned from each phase of her ever-evolving life, Angela’s now donning the hat of a single woman on a single mission to use spoken and written words to motivate others to “thrive while they survive.”
Contact Angela Scott Moore about speaking engagements at amazingkreations2@gmail.com, follow her blog at www.angelamooreblog.wordpress.com, on twitter at @AngelaMMoore316 or check out her facebook page for people experiencing separation or divorce at I’m More Than What Happened. 

Peoples Choice Awards

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Peoples Choice Awards

Are You Ready For Restoration?

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Deidra Bibb copyI have seen his ways, and will heal him; I will also lead him, And restore comforts to him And to his mourners. Isaiah 57:18
In life opportunities present themselves and decisions are made. Sometimes the decisions are right and sometimes they are wrong. There are times when your decisions are instantly revealed and some don’t surface until later, but each decision and every opportunity can be used for your good in the end. Even if you lost things, your reputation was damaged, the family split up or anything else that resulted from a period of time in your life when things weren’t what you wanted, hoped or imaged them to be. Well there’s good news!!! God is a restoring God and He can restore you. He can show you how to fix what you messed up, He can touch the hearts of those that said they would never forgive you and He can direct you to people and places you would have never met or gone.
Restore now to them, even this day, their lands, their vineyards, their olive groves, and their houses, also a hundredth of the money and the grain, the new wine and the oil, that you have charged them.” Nehemiah 5:11

If you don’t have any goals, it’s time to set some. God is ready to restore His children and the ones that will be restored are those that are preparing for elevation. You may not have what you need, you may not understand where you are going and you may not even be able to imagine yourself doing anything else but I am writing to tell you today get ready for the next big opportunity. God is ready to restore you – are you ready to be restored?

Restore me Lord,
Minister Deidra Bibb

Character Contents!

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Electra AdamsI cannot but think on our African American forefathers who have long time come and gone, not by consent, but by constraint. Who left behind very few tangible possessions as a legacy or inheritance, but great levels of hope for the future. Reverend Joseph Lowery, when interviewed on TBN declared most recently the progress we have made, but also the mountains we have yet to push down. He also pointed out the degree of regression made as pertaining to our young people. Hastily my mind reflected a proclamation of Dr. Martin Luther King – I have a dream that one day my four little children will live in a nation where they will no longer be judged by the color of their skin but by the contents of their character. God our Father, has brought us across many great rivers, but as a citizen, I agree with Rev. Lowery, we have great mountains to tear down. We have a right to celebrate our heritage, for what the halls of congress declared would never manifest in this country has happened. Not because a man alone said it but because God had declared that the first shall be last and the last shall be first!  He cannot lie!
We had been programmed to believe God gave us nothing, to very little, to bring to the table of social culture. But we, African American descendants, are most innovative and resilient. We have always known how to survive under great pressure. We took scraps and built upon them; for we had respect for the “little”, in that we despised it not. My grandfather would always tell us that a poor man had nothing to waste. We were drilled to hate the bondage that was forced upon us, but to gaze through the window of hope. I contend with the theory to a degree that poverty breeds slum: for, in many cases, what has given rise to poverty is not a lack of opportunity, but a lack of self-motivation and inspiration to move forward.
The Word of God speaks of a man who kills an ox and sits allowing it to rot before he stands to prepare it. It speaks of the man who has chosen to sleep and twiddle his thumbs, doing nothing and finds himself in need. It (Proverbs) speaks of the procrastinator who is always going to do, yet never does. As a mother, grandmother, pastor, and ordinary citizen I often search out the ball, when it was dropped. Where did it roll? Every human in America who works and pays taxes contributes to the aid of the poor and needy who are in the system. It is designed to strengthen weak links, to offer a hand for those who are struggling. But it saddens many of us who watch those who sit on the front porch watching as the employed drive by; for it is the tax payers who afford them social assistance. Section Eight affords them housing, where in time it began to look like the hood they left behind. The absence of integrity and self-worth deprives them of better. Our grandparents could have only desired the luxury of such a temporary boost; while they continued to gaze through the window of hope in their day; for many it was a step down to depend on social services.
Many are asking what would Dr. King say to this generation??? Let’s meet here another day! Join me at the downtown library for  the local Authors’ Book Fair and Expo. (9 a.m. ‘til 3 p.m.), Saturday February 1!
Electra.gethsemaneministries@yahoo.com