Jan 6, 2016

By Samuel Phineas Upham Banks are usually held to different standards because of the volume of money that flows through them. In the most recent fiscal crisis, we frequently heard this term “too big to fail” in reference to banks. Banking regulation aims to provide some guidelines and frameworks banks can work within to prevent this kind of thing from happening. They are not always successful, and some of these regulations can be rather knee jerk, but they come from a place of wanting to preserve the integrity and credibility of our financial system. Three basic principles guide the concepts involved with banking regulation. The Minimum It’s typical for banking regulations to lay out some minimum requirements that help to telegraph the objectives of the regulation. The one most commonly used is maintaining minimum capital ratios, but regulations usually apply to whichever parts of the bank stand to be exposed to the most risk. US banks have quite a bit of control during this process, and typically work closely with regulators on this aspect. Review by Supervisor Every bank is required to hold a license to operate. Those licenses are overseen by a regulatory supervisor, whose job it is to monitor the activity of registered banks. Regulatory supervisors also respond when there is a breach or a crisis at the bank. They are empowered to issue fines, give direction or revoke the bank’s license in extreme cases. Discipline Banks with discipline aren’t simply fiscally responsible; they have to disclose their financial information. That aspect is crucial when assessing risk, as is the market price. Together, that data signals the financial health of the institution. About the Author: Samuel Phineas Upham is an investor at a family office/ hedgefund, where he focuses on special situation illiquid investing. Before this position, Phin Upham was working at Morgan Stanley in the Media and Telecom group. You may contact Phin on his Samuel Phineas Upham website or...

Dec 21, 2015

Saving for retirement is often overlooked, since most young people assume that it is too far along the way to warrant any present investment. Saving for retirement early means that once you do retire you will have sufficient funds to do the things that you have always enjoyed. It’s good to start with a well paying job but a well paying job doesn’t guarantee savings for retirement. Here are a few tips to help you save for a secure, happy retirement. Save…NOW Don’t wait till you’re over 30 to start saving for your retirement. Speak to your local bank and look into a retirement fund. Your retirement fund value will vary according to your earnings. Since you will have to save a set value every month, you will learn to manage your other expenses accordingly. Don’t use the saved funds Avoid using a lump sum from your investment before retirement. Think of your retirement fund as money spent, therefore making it inaccessible. Expenses such as purchasing a new home, car or paying for your child’s education will come up, but remember that there are other ways to fund these expenses and your retirement fund is not one of them. Save more. If you have excess funds after your retirement fund monthly fee has been charged, save the excess. These saving can be invested in stocks, bonds, Exchange Traded Funds (ETFs) and mutual funds, but make sure you receive sound investment advice from a reputed...

Dec 2, 2015

By Samuel Phineas Upham In the olden days of commerce, one had to go through significant bureaucracy to perform interstate commerce. Today, this is something we take for granted and much of that has to do with the Electronic Signatures in Global and National Commerce Act. The Internet completely changed much of the business that people do day to day. On the consumer side, this transition looked quite simple. First we began swiping a debit card, then we had Internet access to track our purchases, and finally we are to the point where we need little more than a phone screen to send money to someone else. Every state in the Union has laws that govern how it handles electronic signatures, which are now a requirement for many transactions we will perform throughout our lives. This includes transmitting data electronically, which is becoming an increasing part of our lives. The ESIGN is the federal law that acts as a guideline to those state regulations. What the ESIGN does is validate contracts transmitted (wholly or partially) through electronic means. The act specifically prevents someone from challenging the effect, validity, or enforceability of a contract based on how it was transmitted in the first place. By making electronic documents as valid as their paper equivalents, commerce can continue online without causing any serious legal problems. Congress also took a forward-thinking approach to this document, allowing for the same provisions to apply to global transactions and documentation as well. About the Author: Samuel Phineas Upham is an investor at a family office/ hedgefund, where he focuses on special situation illiquid investing. Before this position, Phin Upham was working at Morgan Stanley in the Media and Telecom group. You may contact Phin on his Samuel Phineas Upham website or...

By Phin Upham This is the story of how an economist won the Army Distinguished Service Medal for applying economics. Bernard Baruch was born in 1870 in South Carolina, and his family moved him to New York City when he was 11 years old. Baruch eventually became broker, which led to opportunities at partnering with A.A. Housman & Company. He earned enough to eventually buy a seat on the New York Stock Exchange for $18,000, which would translate to more than$400,000 in today’s money. By the age of 30, that seat had earned him a substantial fortune from the sugar market. He developed his own firm and his unwillingness to work with others earned him the nickname “The Lone Wolf of Wall Street.” In 1916, however, at the height of World War I, he left Wall Street to assist President Wilson in national defense. After serving on the Advisory commission to the Council of National Defense, Baruch found himself chairing the War industries Board. There, Baruch was directly involved in managing the costs of mobilizing the US war effort. This important position put Baruch under a tremendous amount of stress, but he persevered and helped the American fighting force do what it does best. His efforts also earned him an invitation to the Paris Peace Conference of 1919, where the Allied victors met. There, Baruch made his opposition to Franc and Britain’s demands of reparations from Germany clear. He sided with Wilson, who believed they’d asked for too much. He also advocated the formation of the League of Nations, which was the foundation for the modern-day UN. Phin Upham is an investor from NYC and SF. You may contact Phin on his Phin Upham website or Facebook...

Oct 21, 2015

Any student will agree that a car will definitely help them commute easier in and around the campus no matter what tasks you need to attend to.   Yet with little or no experience, buying a second-hand car can be a difficult task. There’s every risk of losing a lot of money. Here are a few pitfalls to avoid when buying one:   1: Invest in a car data check It costs very little to invest in one but it will provide you with history about the car that you wish to purchase. Just by using the car’s number plate, you can tell whether it has been stolen, been written off by insurance companies or has outstanding payments. It will even tell you the accurate number of miles traveled as this can influence the car’s value substantially. 2: Ask about service history A number of these cars would have amassed MOT certificates as well as records of regular servicing since they would require some work from time to time. If you see a vehicle with a no-service history, then be careful. All cars will go to the garage at some point of time or the other. One thing to check for is whether the car handbook is there as that will be necessary during the time of purchase.   3: Always be careful who you buy from While you might be buying a car through the classifieds, it’s best to buy from a trusted name. For this reason, always take a friend or a relative with you. Avoid carrying cash for the first time. This is because you never know who you will be meeting....

By Phineas Upham Most people handle smaller denominations of money, like a $20 or $100 bill. Some of us come across the occasional $50, but these smaller denominations are in much higher supply as far as our regular currency is concerned. Enter William McKinley, who died with journalists noting him to be “the most beloved President in US history” at the time. America had not yet had the opportunity to experience Theodore Roosevelt firsthand. By the 1920s, McKinley was a fading figure and a mere foot note before gaining a surge of popularity in the 1950s. McKinley was beloved for his time. So much so that there are significant memorials that bear his name, and the reminder that he once sat in the most powerful seat in American politics. 20 schools in Ohio bear the McKinley name, and nearly a million dollars was pledged to construct memorials for him after his passing. Perhaps Ohioans felt McKinley’s legacy was secured, but more than a dozen states chose to memorialize him in some form. He is also memorialized on the $500 bill. There are actually two color seals associated with this bill, and separate sizes. As a result, the $500 bill is today something of a collector’s item. McKinley’s face adorns both the green and gold bills, with the smaller of the two having been far more common. The gold is worth more than the green, and some are still in circulation. There are people still trading $500 bills for the face value. Phineas Upham is an investor from NYC and SF. You may contact Phin on his Phineas Upham website or LinkedIn...