Pros and Cons for Paying Organ Donors - 1534 Words

My grandfather was a lucky one, though he had to wait 5 years until his luck was fully granted. He was diagnosed with sever kidney failure, spent 5 years on dialysis, then was blessed with the option of getting a kidney†¦ twice. Though the first time he had to reject because of the health of his wife-after her death, he was called once more with the option of having a kidney transplant. However, my grandfather is an exception, most people do not get called once, let alone twice, for the option of receiving a kidney. As of October 25th 2013, about 100,000 people were waiting for a new kidney in the United States. (SCU) Every day, 18 people from that list die along with 10 others being added. As of October 25th, 2013, out of the 100,000 people waiting for a new kidney while only about 10,000 received one; that means 90,000 people are either rolled over to the next year, or die waiting. The marvelousness of kidney donations, compared to other organs donations, is that each per son is born with two and can sustain a healthy life with just one; simple facts such as this is what has driven the black market kidney trade to flourish. (CBSNEWS) However, if this is the case then why aren’t more people donating? Is it because they are not getting something in return? Why donate for free when someone on the black market will pay 10,000 dollars? The main arguments against black market organ donations, not limited to kidneys, is that people do not know the risks- yet if someone isShow MoreRelatedorgans will save lives911 Words   |  4 PagesWriting Caitlin Pierpoint Summary of Organ Sales Will Save Lives In the essay â€Å"Organ Sales Will Save Lives† by Joanna MacKay, kidney failure is the main topic. In her thesis, MacKay states that, â€Å"Governments should not ban the sale of human organs; they should regulate it (92).† The thesis is supported by one main reason: it will save lives. In America 350,000 people struggle each year from this situation. MacKay also states that with the legal selling of organs, more people will be willing to giveRead MoreThe Price is Right Essay examples942 Words   |  4 Pagesthe wrong problems. One major problem deals with organ donations, and there is always a recurring question; should the family of the donor be compensated? Each patient unfortunately becomes an insignificant statistic joining the lines of hopeless patients who wait in line on the organ transplant list. The scarcity of transplant organs in the United States is accredited to many reasons: the unwillingness of families to approve donation after the donors death, even if the patient has wished to do so;Read MoreOrgan Transplantation Is The Surgical Removal And Transfer1931 Words   |  8 PagesOrgan transplantation is the surgical removal and transfer of an organ from one body to another (Kanniyakoni, 2005). The process begins with someone needing an organ transplant, then being put on a waiting list. Once a patient is added to the national organ transplant waiting list, the individual may receive an organ fairly quickly or may wait many years. In general, the average time frame is three to five years at most centers. Waiting time is also dependent upon certain factors such as a patientRead MoreAn Ethical Implication of Organ Transplants3625 Words   |  15 PagesAn Ethical Implication of Organ Transplants Nickolus Sorenson Health Care Ethics and Medical Law Instructor: Kymberly Lum September 24, 2012 All aspects of health care face the inevitability of moral and ethical issues arising on numerous fronts. The organ donation and transplantation field of medicine is no exception. Each day, approximately 18 people die waiting for an organ to become available for transplant (Taranto, 2010). In the grand schemeRead MoreSelling Human Organs10012 Words   |  41 PagesTERM PAPER RESEARCH : Selling Human Organs ARTICLE 1 : Should people be allowed to sell their organs? Currently, exchanging organs for money or other valuable considerations is illegal, but some members of the medical and business communities would like to change that. One of those is the American Medical Associations influential Council on Ethical and Judicial Affairs. Convinced that the balance of moral and ethical concerns favors the ability to sell organs, they would like the laws to changeRead MoreThe Medical Ethics Team The Judges Of A Human s Life2184 Words   |  9 Pagescurrent healthcare system in the United States having to do with medical ethics. Some of these problems include balancing care and quality efficiency, improving access to care, addressing end-of-life-issues, and allocating limited medications and donor organs. The healthcare facilities that we have here are most likely hard at work twenty-four-seven. With that in mind, the question of how the establishment should be run is always present. Considering how busy th ey are and that the work around thereRead MorePhysical Relationships Between A Client And A Therapist1875 Words   |  8 Pagesbe less accessible except for extreme crimes or repeated offenders. 5. Ethical issues regarding cloning Pros: †¢ Parents with no eggs or sperm can have children that are still genetically theirs. †¢ Same sex couples can have kids that are genetically theirs. †¢ Parents can clone their children who have passed away. †¢ Endangered animals can be cloned. †¢ Allows for genetic testing. †¢ Allows for organ replacement. †¢ Obtaining desirable traits in organism. For example, pigs who have compatible hearts forRead MoreHsm 542 Week 12 Discussion Essay45410 Words   |  182 Pagesdo have health care insurance or do pay the bill. Hospitals are loosing millions of dollars in people going to emergency for reasons that should be seen in a doctors office. Then the people do not pay the bill and the hospital has to charge more to paying customers because they need to get reimburse for the money they are loosing. | | | | | RE: Healthcare | Mary Claire Jennings | 3/8/2013 8:44:18 PM | | | Eddie I cannot agree more with you because about three weeks ago one of my friendsRead MoreBhopal Gas Disaster84210 Words   |  337 Pages-long, 800-km walk from Bhopal. Hindu/ New Delhi/ 29/03/06 Cabinet nod on compensation to Bhopal victims Special Correspondent NEW DELHI: The Union Cabinet on Wednesday approved the implementation of the 2004 Supreme Court order for disbursement of pro-rata additional compensation on one-on-one basis to victims of the Bhopal gas tragedy. It also decided that the Government will take responsibility for meeting the shortfall of about Rs. 50 crore, as estimated by the Office of Welfare Commissioner.Read MoreMarketing Mistakes and Successes175322 Words   |  702 Pagesroasting sealed in before shipping. Now the road was opened for almost unlimited expansion. Employee Benefits â€Å"From the beginning of my management of Starbucks, I wanted it to be the employer of choice, the company everybody wanted to work for. By paying more than the going wage in restaurants and retail stores, and by offering benefits that weren’t available elsewhere, I hoped that Starbucks would attract people who were well-educated and eager to communicate our passion for coffee.† 6 These

Boko Haram Africa Of Peril - 1529 Words

Boko Haram: Africa in Peril The African Continent has had numerous problems in the last century that have caused low development, low hygiene, and high death rates. These problems include finances, lack of clean food and water, poor weather, diseases, and terrorist attacks. All of these problems can cause death, poverty, or a need to emigrate from the area. For years these problems have made it difficult to develop these countries to enable them to help their citizens and vanquish these problems. Terrorism is a large threat to Africa, but mainly in Western Africa, due to the large group known as Boko Haram. Boko Haram has done mass abductions, displaced millions from their homes, and killed thousands. To understand how Boko Haram effects Africa one must be familiar with their history and attacks,tactics and strategy, and their organization and recruitment. Boko Haram has a brief, but very eventful history where it has gone through periods of violence, allegiance to other groups, and turmoil within their group. The group was founded in 2002 by Mohammed Yusuf in Maiduguri, the northern state Borno. A religious center was set up here, where it attracted Muslims to create an Islamic State. For example, in an article by Africa Check Boko Haram’s founding was discussed: â€Å"The group now known as Boko Haram began to emerge in 2002, when a collection of like-minded Islamists retreated to a remote area of the northeast called Kanamma†¦ They had been followers of a young, charismatic

Grey Eye Glances - Eventide free essay sample

Grey Eye Glances is an extraordinary group of musicianswith harmonious music and chilling lyrics. Eventide, their firstrecording with Mercury Records, is certainly proof of this. The band, whogot its name from an Edgar Allan Poe poem, started in 1994 and consists ofJennifer Nobel (lead vocals and 12-string guitar), Eric ODell (background vocalsand bass guitar) and Dwayne Keith (background vocals, keyboards and piano). Thethree got their start playing in Borders bookstores in the Philadelphia area, andsoon got bigger gigs around southern New England. Eventually, Tom Vickers ofMercury Records saw them perform and knew instantly that the band had a distinctsound. Grey Eye Glances sound and style are indescribable, but Nobelsvoice is clear and strong, and Keiths lyrics (with some help from Nobel andODell) are capable of taking you to another place and time. OnEventide, listeners feel the joy of life and love inAngel and nostalgia for days past in Chills. We will write a custom essay sample on Grey Eye Glances Eventide or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Snow, a beautiful, depressing ballad full of piano and heart, is mypersonal favorite. It is a nostalgic love song about someone wondering how toreturn to the past in a relationship. The strains of piano and Nobels chillingvoice could make even the strongest person stop to listen and think about his orher past. Not all of the album is downhearted. In Something to LiveFor, the Celtic-sounding violins and strings definitely make you want toget up and dance, while the lyrics communicate how people often wonder about whatlies ahead, and how sometimes you need to think about your life and where youreheaded. I recommend this album to everyone, from fans of pop toalternative to classical music. It may be hard to find, since Grey Eyes Glanceshasnt received the airplay and recognition it deserves, but if youre reallyinterested you can listen to the music and order it at their website:www.greyeyeglances.com. If youre open to different styles and sounds sobeautiful they give you shivers, this album is for you.

The Kite Runner Parody free essay sample

I slowly but surely stayed within close proximity of Hannah as she kept sprinting and sprinting toward the descending kite. The kite took a sharp corner and she followed right with it. As soon as she turned the corner, Ash and his two groupies were standing in the back alley. I wasn’t scared at all†¦ no. I, Amy, am a very brave boy. But I just wanted to watch from afar. As I watched from the distance, I witnessed Ash and his compadres change Hannah forever. They pushed her in the corner and forced her to†¦. eat broccoli.It was the worst thing I had ever seen in my life and I did nothing to help her. It not only changed my life, but Hannah’s life forever too. I could never forgive myself for this incident†¦ or I could I? Later in 1975 to 1976ish†¦ Hannah and I stopped talking. We will write a custom essay sample on The Kite Runner Parody or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page I just avoided her at all cost. I kept trying to get Papa to kick them out of our house†¦but I couldn’t stop thinking about what happened to her in the alley. March 1981 We were split up forever. I never saw Hannah again. At the time, I thought it was the best time of my life. A new start and a new time to make new friends.But I couldn’t stop thinking about what happened to Hannah in the alley. California June 2001†¦ or something like that. I met a woman named Sam. We married, but couldn’t have children. Adoption wasn’t a choice, but what other choices were there? All I could think about was that darn alley situation†¦ STILL. December 2001 â€Å"There’s a way to be good again† flew in and out of my head like a kite. Who was this anonymous person, and what did he mean by this? I think he meant there was a way to forgive myself for what happen to Hannah in the alley.I flew to Afghanistan, and somehow found out that Hannah had a child, and I wanted to adopt her. There were many obstacles to overcome to get her, including a confrontation to Ash. Things were said, punches†¦ were thrown, mostly at me. ( and NO, not because I’m feminine! ) But in the end, I forced HIM to eat broccoli, and I never heard from him again. I felt†¦ good again. I was good again. For you, Hannah, a million times under. For you a thousand times under? For you a million times over? Oh! I know! it’s ‘For you a thousand times over. ’ †¦Yeah, that sounds right.

Gun Control Essays (276 words) - Gun Politics, Firearms, Gun Control

Gun Control Are you ready to die? What's more, are you ready to kill? When you hold a gun anywhere but the firing range you'd better be ready and able to use it or die. Don't get me wrong; just because you carry a gun doesn't mean people automatically start being violent towards you but if you get in a fight and someone realizes you have a gun it's more than likely that they will pull one and shoot you if they have it. Most people think that a gun will make them invincible but the truth is: Every bullet is another life and every gun is another instrument of death. The more people that carry guns, the more people that die. On the flip side, if nobody but the military carries guns then the people the control the military have free reign over everyone. It is a nice thought to have absolutely nobody carry guns but unfortunately that goes strictly against the human nature that is "create to destroy". It is a pessimistic view but unfortunately it has been repeated consistently enough to have backing. I wish there was an easy answer to it all but there isn't. I have come to the conclusion that everyone should be allowed to carry a gun, but everyone should have to go through a psychological evaluation before they can buy one in order to determine whether they are more of a danger to others and themselves with a gun or not. Another stage of getting a gun after that level is to be taught the full consequences of killing a person. It should be a much harder process to get a gun then it is, but after passing; the people should be given a license to carry firearms.

The Right Way to Identify and Assess Risks. Hydroelectric Development vs. Irrigation Scheme

The Right Way to Identify and Assess Risks. Hydroelectric Development vs. Irrigation Scheme There can be no project without taking risks. Each idea presupposes dealing with certain difficulties, and implementing these ideas is doubtlessly a challenge.Advertising We will write a custom case study sample on The Right Way to Identify and Assess Risks. Hydroelectric Development vs. Irrigation Scheme specifically for you for only $16.05 $11/page Learn More Despite the fact that both Hydroelectric Development and Irrigation Scheme offer a fair assessment of the possible risks and provide a detailed account of the challenges that one can face in the course of putting these projects to practice, one of the two projects is definitely superior, which calls for conducting comparison between the two case studies. To start with, each of the projects identifies the risks which can be faced rather accurately. It is essential that each of them offers a table in which every possible risky occasion is considered. However, it seems that the Irrigation Scheme offers a better identification of risks, since it not only provides a detailed account of every risk involved, but also splits the risks into categories according to their types and, thus, provides a better estimation of the threats which the project can possibly face. The same can be said about the way the case studies quantify the risks. One must give credit to both case studies, since they offer a detailed description of the risks assessment and provide the risks percentage. Nevertheless, it is worth mentioning that the Hydroelectric Development project offers the percentage of all possible costs in the summary of the hydro cost estimate, which makes it more comprehensible than the Irrigation Scheme. However, speaking of which case study is easier to understand, one has to admit that in the given case, numbers and rates are enough only to give the general idea of the situation which the authors of the projects face. For a better understanding of the situation specifics, hoverer, a more e xplicit description of the factors, the risks and the circumstances is required, which the Irrigation Scheme project provides in a much better way.Advertising Looking for case study on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More In addition, it is worth mentioning that a good assessment presupposes considering the costs which the project can possibly spend. While Hydroelectric Development suggests only the table of the probable risks, Irrigation Scheme offers the information concerning the financial resources which the project will probably need. Such data as â€Å"Expected cost $20 million, standard deviation $3 million† is essential to fully realize the scale of risks. Finally, speaking of the risk assessment, one must mention that the Hydroelectric Development takes the winning position again, because it takes into account not only the inside factors, but also the outside ones, such as weather cond itions. In contrast to Hydroelectric Development, Irrigation Scheme provides only the information concerning the risks which come from within the project. Therefore, it can be considered that the Hydroelectric Development project is by far more compelling and offers much better analysis of the risk factors. In addition, the assessment offered by the above-mentioned project covers not only the major issues, but also the details, which altogether makes it much more plausible than the alternative. Once all the probable risks are properly evaluated, a project can be considered a success, which, as one can assume, is the case with the Hydroelectric Development. Although it is not clear yet which of the projects will prove more efficient, and the opinion in the given paper is based solely on the facts offered by the case studies, it can still be assumed that the Hydroelectric Development project is bound to take the first prize in the contest for a better risk evaluation.

Case Study Example | Topics and Well Written Essays - 500 words - 11

Case Study Example Since India’s GDP was low, the vast majority of the population could only afford two wheeler vehicles. The strategies employed in ensuring that the Nano met all demands by the non-four-wheeler customers included ensuring that it was affordable for this portion of the population. It was priced at only 1 Lakh making it the cheapest car. In addition, it met high fuel efficiency standards and met all safety standards that the two wheelers could not meet. For these reasons, people placed orders before they had even seen the car. There were several hurdles that the Nano had to address in the market. First, the Nano had to ensure that it offered better services than the two-wheeler by becoming a safe, all-weather vehicle. In addition, it had to be affordable. Second, the car had to be designed in a way that it promised an upward social mobility. Third, the designers could not compromise the buyers so as to ensure low cost car. For instance, they could not design it being a two door vehicle since this would reduce accessibility to rear seats. In spite of the huge initial orders, there were obstacles which resulted in poor sales. First, Tata did not have its own distribution channels; therefore, it resorted to using the traditional dealerships, which had limited space. Although this was a main issue Tata resulted to using other outlets so as to make the showrooms available in many cities in India. For instance, the company tied up with Big Bazaar to display the vehicles in smaller cities. Additionally, two wheeler customers who were the main target were turned off by the perception of the Nano being the cheapest car as people wanted to upgrade their social status. Second, Tata also had a production problem since the interim facilities’ production was low. Third, the company had issues with local communities who protested the use of arable land for industrial uses. This is one of the main obstacles that affected the progress of the Nano

Dole Food Company Essay Example | Topics and Well Written Essays - 750 words

Dole Food Company - Essay Example In July 2001, it was reincorporated as a Delaware corporation. Its headquarters is located in Westlake village, California. Dole is one of the world’s leading producers of pineapples, bananas, packed fresh vegetables, salads and fruit products. In the fiscal year ended 2, 2010, this company generated operating income of about $352 million and total revenue of approximately $6.8 billion. By January 2, 2010, Dole had total revenue of $4.1 billion. Dole has divided its business operations into three segments: the fresh vegetable segment produces and distributes fresh-packed and value added salads, and vegetables to institutional customers and retailers primarily in Europe, North America and Asia (Dole Food Company, Castle & Cooke, Inc, 2003). The fresh fruit segment is divided into several departments, which are responsible for the production and distribution of fresh fruits to retail, wholesale and institutional customers worldwide. The third segment is packaged foods segment, w hich also includes a number of divisions that process and distribute packed foods including frozen fruit, juices, fruit and healthy snack food (U.S. International Trade Commission, 2002). The writer chose to analyze the accounting process and financial statements of Dole Food Company because of its outstanding performance in the food processing industry. In addition, it was not difficult obtaining the company’s financial statement since my mother works in the company as a quality assurance manager. The financial statements used for this project were obtained from the internet, by opening the company’s Website link I was given by my mother. The main aim of this paper is to understand the analysis of the accounting process and financial statements of Companies by focusing on Dole Food Company. In the paper, I will analyze Dole’s balance sheet, statements of cash flow, and income statements. Before analyzing Dole’s accounting process and financial statements , it is necessary to understand some of the key accounting concepts and terms that are used by Dole’s accountants when recording and balancing financial statements and other transactions. 1) Generally Accepted Accounting Principles (GAAP) - this principle refers to the standard framework of guidelines for financial accounting (Bernstein & Wild, 2000). It includes conventions, standards and principles that accountants observe when recording and balancing financial statements and other transactions. GAAP can be obtained from several sources including promulgation of the Accounting Principle Board and Financial Accounting Standards (Pefianco & Rosario, 2006). 2) Accrual Basis verses Cash Basis Accounting: accrual basis is the income earned and reported in particular periods despite of when it was received (Costales & Szurovy, 1993). It also includes the expenses that were incurred regardless of whether they were paid or not. In the financial statements used for this project, it is evident that Dole’s accountants recorded both expenses and income when they occurred. Cash basis accounting involves recording of transactions based on cash position and cash flow. Revenue is recorded upon cash receipt, and expenses when cash is paid. This accounting method is evident in Dole’s financial statements; however, it is not commonly used like Accrual Basis Accounting (Hey-Cunningham, 2007). 3) Current Assets and Liabilities verses Non-Current Items: Current assets are items that are available in cash form, or can be changed into cash within a short period (Dyckman, 2001). Example that is present in Dole’s financial statement is inventory or accounts receivable. Fixed assets, on the other hand, are assets which cannot easily be converted

PEP - netball Essay Example for Free

PEP netball Essay Bike ride: aim to do an hours bike ride around Froyle, Bentley, Binsted etc (suggestions only) and pace yourself to reach the hour. Dont worry about getting up to early because its a Saturday and your next activity is at 14:30; but dont forget lunch!  Afternoon  Go to the park to play football or basketball at the park. This way you can enjoy yourself whilst doing an aerobic activity with some anaerobic working (sprints etc) could also go and find the boat and go rowing down the river and work on your upper body strength so undercuts will be easier to save. Row down to Binsted or further. Could also go cycling. Aim to be working for at least 3 hours. Evening  Nothing: go and play with your friends or just rest!  Wednesday  Morning Afternoon  Paper round: as this is my job I kind of have to do this. The cycling helps to build up the leg muscles and improves the aerobic system. Could do time trials when on the way there and back and try to improve my time each day.  Big Bike ride: get a few friends together, a packed lunch and bikes to go on an 8 hour bike ride (Inc lunch)! Try not to have to many rests but also dont over exert yourself though! Evening  Weights: Firstly do 150 bicep curls, 15 sets of 10 reps as this will help with me stick and glove save. Next do 20 quad thrusts (I think thats what theyre called!) as this will help with my kick in hockey and let me clear the ball further and faster. Afterwards do 50 (5 sets of 10 reps) sit-ups with the 22 lb dumbbells as this will help keep the correct head, knee, tip-toe position throughout the whole match. Lastly do 30 (3 sets of 10 reps) press-ups as this will help with muscles around the arms and the arm muscles. Week 4: Fourth week  Thursday  Morning  Paper round: as this is my job I kind of have to do this. The cycling helps to build up the leg muscles and improves the aerobic system. Could do time trials when on the way there and back and try to improve my time each day.  Afternoon  Go to the sports centre and first do a certain sport like badminton, racket ball or swimming etc as this will work on the aerobic system. After doing this go to the gym and do whichever circuit you have been given by the trainer. Should hopefully work on aerobic/cardiovascular system, muscular strength, muscular endurance and flexibility. Evening  Nothing: go and play with your friends or just rest!  Friday  Morning  Paper round: as this is my job I kind of have to do this. The cycling helps to build up the leg muscles and improves the aerobic system. Could do time trials when on the way there and back and try to improve my time each day.  Bike ride: aim to do 2 hours bike ride around Froyle, Bentley, Binsted etc (suggestions only) and pace yourself to reach the 2 hours. Dont worry about getting up to early because its a Saturday and your next activity is at 14:30; but dont forget lunch! Afternoon  Go to the park to play football or basketball at the park. This way you can enjoy yourself whilst doing an aerobic activity with some anaerobic working (sprints etc) could also go and find the boat and go rowing down the river and work on your upper body strength so undercuts will be easier to save. Row down to Binsted or further. Could also go cycling. Aim to be working for at least 4 hours. Evening  Weights: Firstly do 150 bicep curls, 15 sets of 10 reps as this will help with me stick and glove save. Next do 30 quad thrusts (I think thats what theyre called!) as this will help with my kick in hockey and let me clear the ball further and faster. Afterwards do 70 (7 sets of 10 reps) sit-ups with the 22 lb dumbbells as this will help keep the correct head, knee, tip-toe position throughout the whole match. Lastly do 40 (4 sets of 10 reps) press-ups as this will help with muscles around the arms and the arm muscles. Saturday  Morning  Nothing to do! Stay in bed or get up and do whatever. Afternoon  Go to the sports centre and first do a certain sport like badminton, racket ball or swimming etc as this will work on the aerobic system. After doing this go to the gym and do whichever circuit you have been given by the trainer. Should hopefully work on aerobic/cardiovascular system, muscular strength, muscular endurance and flexibility.  Evening  Nothing: go and play with your friends or just rest! Sunday  Morning  Big Bike ride: get a few friends together, a packed lunch and bikes to go on a 9 hour bike ride (Inc lunch)! Try not to have to many rests but also dont over exert yourself though!  Afternoon  Big Bike ride: get a few friends together, a packed lunch and bikes to go on a 9 hour bike ride (Inc lunch)! Try not to have to many rests but also dont over exert yourself though! Evening  Weights: Firstly do 150 bicep curls, 15 sets of 10 reps as this will help with me stick and glove save. Next do 30 quad thrusts (I think thats what theyre called!) as this will help with my kick in hockey and let me clear the ball further and faster. Afterwards do 70 (7 sets of 10 reps) sit-ups with the 22 lb dumbbells as this will help keep the correct head, knee, tip-toe position throughout the whole match. Lastly do 40 (4 sets of 10 reps) press-ups as this will help with muscles around the arms and the arm muscles.

Impact of the Credit Crunch in the UK

Impact of the Credit Crunch in the UK Factors Influencing the Financial Institutions in the UK With Particular Reference to Credit Crunch A Comparative Study between Barclays and Northern Rock Bank I- Abstract Banks acts as intermediaries between surplus units depositing funds and investors or individuals seeking capital for investments. Thus, banks role is important in maintaining the flow of fund between these different parties. Banks like any other profit maximising firms are influenced by various factors that represent risks or opportunities. Therefore, banks business decisions are founded on aspects such as confidence in the market, the level of risks, the state of the economy, and their competitive strength. Regulation is essential for assuring compliance and integrity in the financial system, but rigid rules stifles the dynamicity of the banking industry and the financial sector as whole. Moreover, Central Bank role as a lender of last resort can rise the issue moral hazard by helping imprudent banks, however because banks are financial intermediaries, the impact of bank failure can have a detrimental effect on the financial system (systemic risk), and also on clients and customers, therefore bank supervision is vital due to their sensitive important role and their extensive impact. Furthermore, the development of events in the US financial market particularly the high default rate of subprime mortgage market led to a decrease in demand for tradable securities. This has affected confidence in the US and the global financial market, and consequently some financial institutions and banks such as northern rock in the UK faced difficulties in obtaining the necessary funds to maintain the business operation and remain solvent due to lack of short term liquidity. However, other banks faced similar difficulties but are using various methods to improve their balance sheets to overcome the current credit crisis. Moreover, governments and regulatory bodies are all taking the necessary measure to stimulate the market and tackle the core sources of the current credit crisis. II- Introduction Sustained economic development is often linked to efficient management of fund that is used to finance investments, which are projected to further create more wealth and opportunities for states, corporate and individual investors. Banks acts as intermediaries between surplus units depositing funds and investors seeking capital for investments. Thus, banks role is fundamental in maintaining the flow of fund between these different parties. Furthermore, the stability of financial and banking system is vital for the sustainability of economic growth and the preserve of investors confidence. Banks like any other profit maximising firms are influenced by various factors, these includes internal and external factors, which represent risks or advantages. Therefore, banks decisions are based on elements such as confidence in the market, the measurement and management of risks, the state of the economy, and their competitive power and market share. This study will look onto various factors influencing the financial institutions in the UK, with particular reference to Credit Crunch. This literature will comprise the banks management of risks, the role of authorities regulating and supervising the financial system, and explore the regulation of the banking industry and the financial system as a whole, in addition of the effect of regulation on banks performances. The analysis will include a comparative study between Barclays and Northern Rock Bank, taking into accounts the differences in their structure, size, as well as their reaction to changes in global financial markets. Furthermore, the Research will examine the fast moving global effect of the credit crunch; discuss the two banks business model, and explore their activities and behaviours. The study will also investigate the two banks high exposure to credit risks arising from risky investments, highlight the consequences of the heavy reliance on money market, and the use of securitisation for liquidity sources. IV- Methodology The research objective is to investigate the various factors that influence financial institutions in the UK, notably the banking industry. This research was based mainly on secondary research, the gathered data and information was sufficient for this research topic. However, sensitive data regarding the value of risk were not disclosed in both banks publication, such data is useful for the researcher to scrutinise banks estimation of risk and how realistic are the projections. Nevertheless, information about estimation of risks may be obtained directly from banks for further analysis of this specified area of banks management of risk. Research material relevant to the topic was collected from various academic sources; this is to explore issues and arguments regarding the regulation and supervision of the banking system. The two banks internet site was used to gather the background information along with the financial statements of the last six years, which were used in the research analysis to perform the comparison between Barclays and Northern Rock bank business strategies and financial performance. Publications from the Bank of England website were collected to study the central bank regulation and the management of the UK banking system, in addition to the historical data regarding interest, LOBOR, and inflation rate changes. Furthermore, articles from the Financial Services Authority (FSA) were gathered to study the role of the organisation and its contribution in supervising and stabilising the UK financial system. Recent publications from the Bank of International Settlement (BIS) were collected to study the role, the objectives and the effect of Basel directives on banks. Besides research the progress of current Basel II implementation along with the development of new requirements arising from the present credit crunch. Recent newspaper articles and various other media sources were gathered to collect the latest information regarding the development of the present credit crunch and its effect on banking industry, these includes sources such as BBC business, yahoo finance and the Financial Times website, and follow recent actions of regulators and banks management of the current crisis. Moreover, data from the two banks financial statements was collected to perform the Gap Analysis using Microsoft excel package to conduct a series of calculations. Other methods could have been used to assess bank risks such as value at risk (VaR) using regression analysis by utilising a computer package such as Microsoft Excel. The regression result will determine the degree of risk that the researched banks possess in their portfolio. However, the banks seldom disclose such sensitive information in published financial statements. This is to avoid adverse reaction by investors and credit rating agencies, which could therefore affect the banks stock prices, their reputation and confidence in the capital market. V- Literature review (Part I): The nature of banking The term bank can be applied to a wide range of financial institutions, from large banks to smallest mutually owned building society in the UK. The provision of deposit and loan distinguishes Banks from other financial institutions. Deposits products supply money on demand or following time notice. Deposits are liabilities for banks, thus must be well managed if banks want to make profit. Similarly, banks manage assets created through lending. Therefore, Banks main activity is being an intermediary between depositors and borrowers. Other non banks financial institutions, such as building societies and stockbrokers, also act as intermediaries; however it is the provision of loans and taking of deposits that distinguishes banks, though many banks provide various other financial services. 1) Management of risks in banking The fact is that bankers are in the business of managing risk. Pure and simple, that is the business of banking. (Walter Winston, former CEO of Citibank; the Economist, 10 April 1993). Banks, like all profit maximising firms, have to deal with macroeconomic risks, such as recession, inflation level, as well as other micro economic risks including political pressure, commercial breakdown of core customers or suppliers, natural disaster, in addition to the emergence of new competitive threats. From a finance theory viewpoint, Bank risk management is primarily composed of four main balance sheet risks, which includes liquidity risk, interest rate risk, credit risk, and capital risk (Hempel et al, 1989). Credit risk has been recognised as the principal risk in its effect on bank performance (Sinkey, 1992, p. 279) and bank failure (Spadaford, 1988). The primary reason why the correct management of credit risk is essential is because banks have restricted ability to absorb loan losses. Generally, the ability of a bank to absorb a loan loss is originated firstly from generated income of other profitable loans, and secondly by bank own capital. 2) Factors influencing financial institutions Banks and other profit maximising firms are influenced by various factors; financial institutions in particular are susceptible to a range of changes that may affect their projected growth. Some of these changes are internal changes, this occurs subsequent to restructuring program that a bank adopt following an expansion strategy such as in mergers and acquisitions or as a defensive strategy to remain competitive and maintain market share and fight competitive predators from acquiring the bank. Moreover, there are other external factors that can influence financial institutions, these includes a countys government monetary policy, the economic condition, the financial stability and the level of confidence in the market, the inflation rate, in addition to other risks such as credit and market risks. There are a range of risks that a bank may encounter, these includes the followings: a) Credit risk and counterparty risk: counterparty risk refers to the risks that after the creation of two parties contract, one party will renege the terms of the contract, while credit risk is the risk that a loan or an asset becomes lost due to default. b) Liquidity or funding risk: these are similar terms that refer to the risk of shortage of liquidity for maintaining operational commitments, that is the ability for the bank to cover its liabilities at due date. A shortage of sufficient liquid assets is often the trigger of financial distress, as it is increasingly difficult for the bank to obtain funds from the wholesale markets. Thus funding risk is the inability for the bank to maintain its daily operations. c) Market or price risk: this type of risk refers to the risk linked to over the counter instruments or traded stocks in a non liquid market, such as equities and bonds. Thus if a bank hold these items in its portfolio, then it is vulnerable to market or price risk, this is the risk that the price of these items is unstable, which is caused by systematic (movement of prices in all traded market instruments, for instance due to changes in economic policy) or specific market risks (the movement of a particular instrument is opposite to the rest of similar instruments, for example, this may be caused by unfavourable information about the issuer of that instrument). d) Interest rate risk: this is similar to price risk, because interest rate is price of money, it represent the opportunity cost of keeping money. This occurs because of interest rate mismatches between assets and liabilities, which differ in volume and maturity arising from the banks performing asset transformation. e) Capital or gearing risk: because banks are highly leveraged firms, they have to set aside some capital to cover the losses. The size of capital is proportional to the level of risk taken by the banks. Basel risk asset ratio principle requires banks to hold up to 8%. Besides, settlement or payments risk. This is when one party in the contract deliver assets or makes payment in advance, which creates exposure to potential loss. Furthermore, operational risk refers to risks from human capital, legal risks such as law suits, fraud, and physical capital. While sovereign and political risk refers to the risk that a government default on its debt obligation to a bank. Moreover, financial regulators has identified three main risks linked to banks, these includes market risks such as risks from exchange rates, interest rates, operational risk, commodity and equity prices. 3) The Asset-Liability Management (ALM) technique Because the fundamental and the primary activity of a bank is intermediation between surplus units that makes deposits and those that seek capital, which acquire fund from the bank, thus this payment system gives the bank the role of intermediation , where the intermediation is key activity, risk management is founded principally on a sound asset liability management (ALM). Furthermore, the ALM is a technique practiced by banks to effectively manage their risks, which was largely utilised by banks in the post war period up to the 1980s. The ALM method was the main tool used to manage banks books, it is essential that the bank maintain its assets and liabilities under control to minimise risks and remain solvent. Besides, banks are keeping their managers updated with newer techniques and skills to maintain their efficiency and competitiveness for the future, for instance, ALMA is an association that comprise around 40 financial institutions, which are international and local banking groups and building societies, mostly UK and Irish. However it is growing its membership and links around Europe. Its objective is to offer an informal and inclusive forum regarding the balance sheet management issues (Byrne, J. 2004). Due to the development of banking activities, innovative instrument became increasingly used by banks to manage their assets such as off balance sheet instruments, where banks moved from interest earning income products to non-interest income sources, thus this required that banks risk management should adopt newer techniques other then just the ALM to includes the risks originating from the off balance sheet instruments. Moreover, one of the new methods included in managing market and then credit risks is the Value at Risk (VaR), which involves giving an estimate of losses arising from the volatility of banks assets. 4) Credit Culture A recent research conducted by the Australian institute of bankers on the issue of Improving Asset Quality (Brice, 1992), which focused on the significance of credit culture. The great emphasis on credit culture was due to its influence on bank performance and in some occurrences bank failure ( Spadaford (1988) and Brice (1992)). Spadaford (1988) stated in his study of 162 bank failures in the United States that the analysis showed that 98% of bank failure occurred due to asset quality problems, among these problems are poor management of loan policy, inadequate systems to ensure compliance with internal rules and procedures, and the lack of supervision on senior and key management members in the organisation. McKinley (1991) has defined four main cultures that influence bank performance. predominantly the immediate performance-driven, which emphasis on earnings targets, followed by Market share/production-driven that focuses on being the biggest with greater production volume, along with Values-driven that balances between credit quality and generated income. In addition to the Unfocused (current priority-driven) bank, such bank lacks vision and appropriate strategy often set short term targets which consequently lead to unsuccessful ventures. VI- Literature review (Part II): Banks regulation The base of regulating financial institutions is founded on three broad frameworks. Primarily, the consumer protection argument, this is based on the notion that investors and depositors cannot be demanded to perform risk assessment of financial institutions they deal with, nor monitor standard of service or performance of these institutions. The consumer protection underlying principle is based on three types of regulation; firstly, compensation schemes created to repay all or part of losses caused by the insolvency of financial institutions; secondly, rules and regulations such as capital adequacy requirements designed to prevent insolvency; and lastly promote fairness in business or market practices by setting rules and standards. The latter regulation reveals market imperfections arising from principle agent problems, asymmetric information, and the issue of determining the true value of financial products or services, which are established well after the transaction or contract was formed (Dale, R and Wolfe, S. 1998). Furthermore, there are other concerns associated with consumer protection rationale. The provision of compensation to depositors and investors for losses sustained from the insolvency of financial institutions will further encourage these institutions to pursue risky investment decisions, thus there will be minimal or no incentive for prudence. This indicates that risky firms will be able to attract trade with identical terms and ease as prudent institutions, thus affecting financial market standards and discipline, and rising potential insolvency incidences. Therefore, the resulting losses must be covered by the deposit insurance scheme, investor protection fund, or in some cases by the tax payer. Thus, prudential controls on financial institutions are essential to minimise losses and to balance the regulatory incentives with the excessive risk-taking. The third aim of financial regulation is to promote integrity of markets, encompassing various issues such as market manipulation, fraud, transparency, and fairness; market integrity emphasis on organising the market as whole beyond just the relationship between financial firms and their consumers. Supervisors implementing the financial regulation consider systematic risk as the factor that causes great concerns. That is the risk that failure of one or more distressed financial institution could spread and cause a contagion effect, which could cause the collapse of other prudent institutions. It is their vulnerability to the contagion effect that single out financial institutions from other non financial firms. 1) Targets of regulation The major objectives of Financial regulation is to set guidelines for the activities of Banks, insurance companies, investment firms, exchanges, and fund management companies. The diverse principles for financial regulation mentioned above vary in their relation to these various institutions of the financial services sector. Banks are distinguished by what is referred to as short- term and unsecured value certain liabilities (deposits) and illiquid value-uncertain assets (loans). Banks conforms to deposits insurance and other type of consumer protection, partly because banks balance sheet consists of a variety of complex instruments and depositors are not capable to measure the riskiness of their deposits. However, depositor protection creates moral hazard problem. Furthermore, banks regulation focuses more on systemic risk. That is the possibility of a bank run that can spread to a number of banks and trigger a wider instability in the financial system. According to this notion, bank runs are the result of action by depositors retrieving their funds in response to amounting fear and uncertainty of the bank future arising from bank asset losses that could render it insolvent. Due to potential risk of losing all or some of their assets, depositors tend to make a run when initial signs indicate some troubles. Moreover, recent research found that the occurrence of a bank run can not be entirety explained by the decline of banks underlying assets (LaWare, J.1991.p34), (Diamond and Dybvig, 1983).The emphasis is on a banks maturity transformation notably the transfer of illiquid assets (bank loans) into liquid claims (bank deposits), taking into account that the banks loan portfolio substantially decline in value in an event of liquidation than on going concern. What triggers a rational bank run is that the uncertainty and the higher probability that the loan portfolio liquid value is less than the value of liquid deposits. This notion demonstrates how bank runs can possibly arise and affect even healthy banks. Thus distressed bank have to liberate its assets at liquidation value, therefore leading to possible insolvency. 2) Techniques of regulation While procedures of conduct of business regulation do not differ among various types of institutions, but in terms of prudential regulation there are fundamental differences that reveal the distinctive risk features of banks, insurance firms, and investment companies. Because bank failure has a greater effect on the whole market, and can create systemic crisis, governments and central banks have set bank regulation for creating extra protection in provision of extra fund by setting the lender of last resorts facilities, and deposit protection, however, these facilities creates moral hazard. Moreover, the deposit protection fund may exceeds the available protection from deposits insurance schemes, demonstrating policymakers greater emphasis for protecting the banking institutions rather then just depositors, as well showing the regulatory objectives of sustaining the banking system, while preventive regulation focuses more on tackling excessive risk taking by setting capital adequacy requirements for assets. Institutional regulation varies between states; in the UK for instance there was a single mega regulator, all regulation is institutional, each group/ institution have a diversified activity which all work under a single agency that overlook the supervision. Alternatively, in a system of multiple regulatory agencies specialised by duty, a fixed institutional regulation is unattainable due to the fact that these agencies are divers in functions, which calls for the appointment of a lead regulator for diversified groups (Taylor, M. 1995). 3) Regulation of the financial system By tradition banks are providers of loans among other services to firms and individual investors, temporary banks falls in deficits when their expenditure exceeds receipts; however banks generally adjust their liquidity position by using capital or wholesale market. Problems occur when banks capital is misused in funding high risk investments; this is often the consequences of bad governance by senior management in controlling the banks assets or it is the outcome of a contagion effect resulting from systemic risk. Moreover, the central bank controls and monitor commercial banks activities and set rules to regulate the banking system. This is to create stability and to promote confidence in financial market, which are vital elements in maintaining steady economic growth. 4) Bank failure Regulation of banks must be explored in context of bank failure. As any substantial problem produces the need for the introduction of changes in the regulatory framework, because the regulators attempt to correct any loophole in the system. Major bank failures in the history of banking occurred in the US in the year 1929. At that period there were 25,000 operating banks, however by 1934 the number had reduced to 14,000. These incidences consequently led to the implementation of more restrictive bank rules, such as single state operations, which until recently remained the feature of the US banking system. The subsequent major bank failure was the fringe banking crisis in the UK in the year 1973. 5) Reasons for regulating banks The principle reason is the systemic risk, because the financial system is susceptible to level of confidence, therefore external regulation is essential in maintaining the stability and reduces further volatility. The second reason represents the social cost that a failure of bank causes, which have a greater impact then a failure an ordinary firm. The insolvency of a firm affects the shareholders, while the failure of a bank will have a greater number of affected customers (depositors), which could also be spread across larger geographical locations. As well as the effect it will have on providing savings for potential investors which will have a detrimental impact on the economic growth. The third reason is the possible lack of knowledge by the public, it is suggested that they lack the necessary background information to distinguish between safe and risky investments partly due to asymmetric information because depositors do not have access to the same information available for banks. Thus comprehensive risk assessments necessitate additional information to that included in financial reports. Hence for this particular reason regulators had introduced depositor protection. Although the above arguments support regulation, however there should be some caution on the use of excessive control over banks. It is primarily the issue of sustained cost in terms of resources on banks and the regulators. Because the central bank has to set teams of experts to perform the prudential control, likewise banks have to employ skilled resources capable to produce the necessary required returns to the regulator. Such costs can be large, thus it is a matter of cost benefit analysis to establish whether the gain of applying prudential control exceeds the incurred costs. Other possible dangers of excessive regulation are the fall of competition, increase in costs and the diminishing pace of financial innovation and development. Furthermore, heavy regulation on a particular centre may lead to the migration of the activities to locations that have lenient regulation, which has been the principle factor in the development of offshore banking centres that led to the need for a global regulation system for international banks, which is known as a level playing field. 6) The supervision of the financial system in the UK The above arguments about prudential regulation are based on banks but it can also be applied on various other financial institutions. Furthermore, the current UK financial regulation system utilise the same measures in authorising and supervising financial institutions without a distinction between insurance firms, building societies, or banks. The FSA is the principle regulator of the financial system in the UK. The FSA was established in 1997, succeeding the Securities and Investments Board (SIB), which was supervising the investment industry. However, the FSA has progressively thought to become the main controller responsible for regulating insurance and investment industry, building societies, and banks. In addition to regulating financial exchanges such as Euronext.liffe and the Stock exchange besides clearing houses, along with other functions such as the responsibility of regulating the access of companies to Official List in cooperation with the UK Listing Authority. The initial development occurred in 1998, when the Bank of England transferred its responsibility of regulation and supervision of banking to the FSA, which was succeeded with the passing of the Financial Services and Markets Act (FSMA) 2000 that provided the FSA with full power as the main regulator. The FSMA requires the FSA to attain the following objectives: Promote public awareness of financial system Maintain confidence in the UK financial market Secure consumer protection Reduce financial crime. 7) The FSA approach to supervision The FSA approach to supervision is risk based; the primary phase is to assess the risks associated with four objectives above. The FSA attain this through gathering information from various sources including customers and supervision of firms. The secondary phase is risk weighing and estimating impact, by giving each risk the probability of occurring, thus giving it a score or value. Thus firms with high magnitude impact require greater supervision. This is to reduce systemic risk and consumer losses. However, firms that possess highly sophisticated and effective risk assessment systems require less supervision by the FSA. Finally, after the risks are identified, assessed and weighted, the FSA select the appropriate measures to respond using various tools, which can be summed as follows: Those aimed to influence the behaviour of consumers, operators, and the industry Those aimed to influence the behaviour particular firms. The first category encompasses consumer education, the discloser of information, and compensation method, while the second category includes the provision of authorisations to firms and discipline, in addition to reimbursement of losses. 8) Capital adequacy (Basel Capital Accord, 1988). Liquidity is essential for any firm to maintain its daily operation, whereas solvency refers to the ability of a bank to meet its commitments in terms of liabilities at due time. However, there is a distinction between liquidity and solvency. There is a general understanding that if a bank is thought to remain solvent then it should be able to borrow fund from open market to meet its short term liquidity requirements. Likewise, the presence of liquidity problems that cannot be resolved through the wholesale market suggests that other lenders believe that the risk of insolvency of that particular bank is great. Furthermore, if a bank struggle to find short term funds in the markets, it will face difficulties in paying its claims. Therefore the Bank of England and the FSA requires banks to efficiently managing their liquidity as a principal policy element of reducing the risk of insolvency. The Basel committee on Banking Supervision has introduced Basel Capital Accord II; it included new amendments to the assessment of capital adequacy of banks. This new approach was ought to be implemented in year 2006, which contains three pillars: Minimum capital requirements Supervisory review of capital adequacy Public disclosure. Basel II accord focuses on credit risk and market risk. In pillar 1, the treatment of market risk was not altered but changes were made on the treatment of credit risk notably operational risk. The bank for international settlement and the Basel committee on banking supervision have founded the financial stability institute (FSI) to assist central banks across the world to improve their financial systems. The new Basel II requirements set challenges on banks to develop and increase efficiency on their capital management. In this section, there is a discussion of the effect of Basel II on Banks in Europe and North America, and how the new directives are going to improve the cohesion of trade between the International Banks. Furthermore, this study will examine the banks resource capability to meet Basel II requirements, and discuss the impact and the implementation of the proposed guidelines. The Basel II framework is a tool that international financial institutions have created to be used by banks around the world as a common standard. The principle of Basel II is that banks are required to hold in reserve certain level of capital as a protection to maintain bank operation when making losses. It promotes transparency of banks activities and encourages efficient management of capital. It is estimated to total 8% of bank assets. The Basel II framework has set standards for banks in managing their capital and requires the discloser of information to detect any risks. The guidelines promote efficien Impact of the Credit Crunch in the UK Impact of the Credit Crunch in the UK Factors Influencing the Financial Institutions in the UK With Particular Reference to Credit Crunch A Comparative Study between Barclays and Northern Rock Bank I- Abstract Banks acts as intermediaries between surplus units depositing funds and investors or individuals seeking capital for investments. Thus, banks role is important in maintaining the flow of fund between these different parties. Banks like any other profit maximising firms are influenced by various factors that represent risks or opportunities. Therefore, banks business decisions are founded on aspects such as confidence in the market, the level of risks, the state of the economy, and their competitive strength. Regulation is essential for assuring compliance and integrity in the financial system, but rigid rules stifles the dynamicity of the banking industry and the financial sector as whole. Moreover, Central Bank role as a lender of last resort can rise the issue moral hazard by helping imprudent banks, however because banks are financial intermediaries, the impact of bank failure can have a detrimental effect on the financial system (systemic risk), and also on clients and customers, therefore bank supervision is vital due to their sensitive important role and their extensive impact. Furthermore, the development of events in the US financial market particularly the high default rate of subprime mortgage market led to a decrease in demand for tradable securities. This has affected confidence in the US and the global financial market, and consequently some financial institutions and banks such as northern rock in the UK faced difficulties in obtaining the necessary funds to maintain the business operation and remain solvent due to lack of short term liquidity. However, other banks faced similar difficulties but are using various methods to improve their balance sheets to overcome the current credit crisis. Moreover, governments and regulatory bodies are all taking the necessary measure to stimulate the market and tackle the core sources of the current credit crisis. II- Introduction Sustained economic development is often linked to efficient management of fund that is used to finance investments, which are projected to further create more wealth and opportunities for states, corporate and individual investors. Banks acts as intermediaries between surplus units depositing funds and investors seeking capital for investments. Thus, banks role is fundamental in maintaining the flow of fund between these different parties. Furthermore, the stability of financial and banking system is vital for the sustainability of economic growth and the preserve of investors confidence. Banks like any other profit maximising firms are influenced by various factors, these includes internal and external factors, which represent risks or advantages. Therefore, banks decisions are based on elements such as confidence in the market, the measurement and management of risks, the state of the economy, and their competitive power and market share. This study will look onto various factors influencing the financial institutions in the UK, with particular reference to Credit Crunch. This literature will comprise the banks management of risks, the role of authorities regulating and supervising the financial system, and explore the regulation of the banking industry and the financial system as a whole, in addition of the effect of regulation on banks performances. The analysis will include a comparative study between Barclays and Northern Rock Bank, taking into accounts the differences in their structure, size, as well as their reaction to changes in global financial markets. Furthermore, the Research will examine the fast moving global effect of the credit crunch; discuss the two banks business model, and explore their activities and behaviours. The study will also investigate the two banks high exposure to credit risks arising from risky investments, highlight the consequences of the heavy reliance on money market, and the use of securitisation for liquidity sources. IV- Methodology The research objective is to investigate the various factors that influence financial institutions in the UK, notably the banking industry. This research was based mainly on secondary research, the gathered data and information was sufficient for this research topic. However, sensitive data regarding the value of risk were not disclosed in both banks publication, such data is useful for the researcher to scrutinise banks estimation of risk and how realistic are the projections. Nevertheless, information about estimation of risks may be obtained directly from banks for further analysis of this specified area of banks management of risk. Research material relevant to the topic was collected from various academic sources; this is to explore issues and arguments regarding the regulation and supervision of the banking system. The two banks internet site was used to gather the background information along with the financial statements of the last six years, which were used in the research analysis to perform the comparison between Barclays and Northern Rock bank business strategies and financial performance. Publications from the Bank of England website were collected to study the central bank regulation and the management of the UK banking system, in addition to the historical data regarding interest, LOBOR, and inflation rate changes. Furthermore, articles from the Financial Services Authority (FSA) were gathered to study the role of the organisation and its contribution in supervising and stabilising the UK financial system. Recent publications from the Bank of International Settlement (BIS) were collected to study the role, the objectives and the effect of Basel directives on banks. Besides research the progress of current Basel II implementation along with the development of new requirements arising from the present credit crunch. Recent newspaper articles and various other media sources were gathered to collect the latest information regarding the development of the present credit crunch and its effect on banking industry, these includes sources such as BBC business, yahoo finance and the Financial Times website, and follow recent actions of regulators and banks management of the current crisis. Moreover, data from the two banks financial statements was collected to perform the Gap Analysis using Microsoft excel package to conduct a series of calculations. Other methods could have been used to assess bank risks such as value at risk (VaR) using regression analysis by utilising a computer package such as Microsoft Excel. The regression result will determine the degree of risk that the researched banks possess in their portfolio. However, the banks seldom disclose such sensitive information in published financial statements. This is to avoid adverse reaction by investors and credit rating agencies, which could therefore affect the banks stock prices, their reputation and confidence in the capital market. V- Literature review (Part I): The nature of banking The term bank can be applied to a wide range of financial institutions, from large banks to smallest mutually owned building society in the UK. The provision of deposit and loan distinguishes Banks from other financial institutions. Deposits products supply money on demand or following time notice. Deposits are liabilities for banks, thus must be well managed if banks want to make profit. Similarly, banks manage assets created through lending. Therefore, Banks main activity is being an intermediary between depositors and borrowers. Other non banks financial institutions, such as building societies and stockbrokers, also act as intermediaries; however it is the provision of loans and taking of deposits that distinguishes banks, though many banks provide various other financial services. 1) Management of risks in banking The fact is that bankers are in the business of managing risk. Pure and simple, that is the business of banking. (Walter Winston, former CEO of Citibank; the Economist, 10 April 1993). Banks, like all profit maximising firms, have to deal with macroeconomic risks, such as recession, inflation level, as well as other micro economic risks including political pressure, commercial breakdown of core customers or suppliers, natural disaster, in addition to the emergence of new competitive threats. From a finance theory viewpoint, Bank risk management is primarily composed of four main balance sheet risks, which includes liquidity risk, interest rate risk, credit risk, and capital risk (Hempel et al, 1989). Credit risk has been recognised as the principal risk in its effect on bank performance (Sinkey, 1992, p. 279) and bank failure (Spadaford, 1988). The primary reason why the correct management of credit risk is essential is because banks have restricted ability to absorb loan losses. Generally, the ability of a bank to absorb a loan loss is originated firstly from generated income of other profitable loans, and secondly by bank own capital. 2) Factors influencing financial institutions Banks and other profit maximising firms are influenced by various factors; financial institutions in particular are susceptible to a range of changes that may affect their projected growth. Some of these changes are internal changes, this occurs subsequent to restructuring program that a bank adopt following an expansion strategy such as in mergers and acquisitions or as a defensive strategy to remain competitive and maintain market share and fight competitive predators from acquiring the bank. Moreover, there are other external factors that can influence financial institutions, these includes a countys government monetary policy, the economic condition, the financial stability and the level of confidence in the market, the inflation rate, in addition to other risks such as credit and market risks. There are a range of risks that a bank may encounter, these includes the followings: a) Credit risk and counterparty risk: counterparty risk refers to the risks that after the creation of two parties contract, one party will renege the terms of the contract, while credit risk is the risk that a loan or an asset becomes lost due to default. b) Liquidity or funding risk: these are similar terms that refer to the risk of shortage of liquidity for maintaining operational commitments, that is the ability for the bank to cover its liabilities at due date. A shortage of sufficient liquid assets is often the trigger of financial distress, as it is increasingly difficult for the bank to obtain funds from the wholesale markets. Thus funding risk is the inability for the bank to maintain its daily operations. c) Market or price risk: this type of risk refers to the risk linked to over the counter instruments or traded stocks in a non liquid market, such as equities and bonds. Thus if a bank hold these items in its portfolio, then it is vulnerable to market or price risk, this is the risk that the price of these items is unstable, which is caused by systematic (movement of prices in all traded market instruments, for instance due to changes in economic policy) or specific market risks (the movement of a particular instrument is opposite to the rest of similar instruments, for example, this may be caused by unfavourable information about the issuer of that instrument). d) Interest rate risk: this is similar to price risk, because interest rate is price of money, it represent the opportunity cost of keeping money. This occurs because of interest rate mismatches between assets and liabilities, which differ in volume and maturity arising from the banks performing asset transformation. e) Capital or gearing risk: because banks are highly leveraged firms, they have to set aside some capital to cover the losses. The size of capital is proportional to the level of risk taken by the banks. Basel risk asset ratio principle requires banks to hold up to 8%. Besides, settlement or payments risk. This is when one party in the contract deliver assets or makes payment in advance, which creates exposure to potential loss. Furthermore, operational risk refers to risks from human capital, legal risks such as law suits, fraud, and physical capital. While sovereign and political risk refers to the risk that a government default on its debt obligation to a bank. Moreover, financial regulators has identified three main risks linked to banks, these includes market risks such as risks from exchange rates, interest rates, operational risk, commodity and equity prices. 3) The Asset-Liability Management (ALM) technique Because the fundamental and the primary activity of a bank is intermediation between surplus units that makes deposits and those that seek capital, which acquire fund from the bank, thus this payment system gives the bank the role of intermediation , where the intermediation is key activity, risk management is founded principally on a sound asset liability management (ALM). Furthermore, the ALM is a technique practiced by banks to effectively manage their risks, which was largely utilised by banks in the post war period up to the 1980s. The ALM method was the main tool used to manage banks books, it is essential that the bank maintain its assets and liabilities under control to minimise risks and remain solvent. Besides, banks are keeping their managers updated with newer techniques and skills to maintain their efficiency and competitiveness for the future, for instance, ALMA is an association that comprise around 40 financial institutions, which are international and local banking groups and building societies, mostly UK and Irish. However it is growing its membership and links around Europe. Its objective is to offer an informal and inclusive forum regarding the balance sheet management issues (Byrne, J. 2004). Due to the development of banking activities, innovative instrument became increasingly used by banks to manage their assets such as off balance sheet instruments, where banks moved from interest earning income products to non-interest income sources, thus this required that banks risk management should adopt newer techniques other then just the ALM to includes the risks originating from the off balance sheet instruments. Moreover, one of the new methods included in managing market and then credit risks is the Value at Risk (VaR), which involves giving an estimate of losses arising from the volatility of banks assets. 4) Credit Culture A recent research conducted by the Australian institute of bankers on the issue of Improving Asset Quality (Brice, 1992), which focused on the significance of credit culture. The great emphasis on credit culture was due to its influence on bank performance and in some occurrences bank failure ( Spadaford (1988) and Brice (1992)). Spadaford (1988) stated in his study of 162 bank failures in the United States that the analysis showed that 98% of bank failure occurred due to asset quality problems, among these problems are poor management of loan policy, inadequate systems to ensure compliance with internal rules and procedures, and the lack of supervision on senior and key management members in the organisation. McKinley (1991) has defined four main cultures that influence bank performance. predominantly the immediate performance-driven, which emphasis on earnings targets, followed by Market share/production-driven that focuses on being the biggest with greater production volume, along with Values-driven that balances between credit quality and generated income. In addition to the Unfocused (current priority-driven) bank, such bank lacks vision and appropriate strategy often set short term targets which consequently lead to unsuccessful ventures. VI- Literature review (Part II): Banks regulation The base of regulating financial institutions is founded on three broad frameworks. Primarily, the consumer protection argument, this is based on the notion that investors and depositors cannot be demanded to perform risk assessment of financial institutions they deal with, nor monitor standard of service or performance of these institutions. The consumer protection underlying principle is based on three types of regulation; firstly, compensation schemes created to repay all or part of losses caused by the insolvency of financial institutions; secondly, rules and regulations such as capital adequacy requirements designed to prevent insolvency; and lastly promote fairness in business or market practices by setting rules and standards. The latter regulation reveals market imperfections arising from principle agent problems, asymmetric information, and the issue of determining the true value of financial products or services, which are established well after the transaction or contract was formed (Dale, R and Wolfe, S. 1998). Furthermore, there are other concerns associated with consumer protection rationale. The provision of compensation to depositors and investors for losses sustained from the insolvency of financial institutions will further encourage these institutions to pursue risky investment decisions, thus there will be minimal or no incentive for prudence. This indicates that risky firms will be able to attract trade with identical terms and ease as prudent institutions, thus affecting financial market standards and discipline, and rising potential insolvency incidences. Therefore, the resulting losses must be covered by the deposit insurance scheme, investor protection fund, or in some cases by the tax payer. Thus, prudential controls on financial institutions are essential to minimise losses and to balance the regulatory incentives with the excessive risk-taking. The third aim of financial regulation is to promote integrity of markets, encompassing various issues such as market manipulation, fraud, transparency, and fairness; market integrity emphasis on organising the market as whole beyond just the relationship between financial firms and their consumers. Supervisors implementing the financial regulation consider systematic risk as the factor that causes great concerns. That is the risk that failure of one or more distressed financial institution could spread and cause a contagion effect, which could cause the collapse of other prudent institutions. It is their vulnerability to the contagion effect that single out financial institutions from other non financial firms. 1) Targets of regulation The major objectives of Financial regulation is to set guidelines for the activities of Banks, insurance companies, investment firms, exchanges, and fund management companies. The diverse principles for financial regulation mentioned above vary in their relation to these various institutions of the financial services sector. Banks are distinguished by what is referred to as short- term and unsecured value certain liabilities (deposits) and illiquid value-uncertain assets (loans). Banks conforms to deposits insurance and other type of consumer protection, partly because banks balance sheet consists of a variety of complex instruments and depositors are not capable to measure the riskiness of their deposits. However, depositor protection creates moral hazard problem. Furthermore, banks regulation focuses more on systemic risk. That is the possibility of a bank run that can spread to a number of banks and trigger a wider instability in the financial system. According to this notion, bank runs are the result of action by depositors retrieving their funds in response to amounting fear and uncertainty of the bank future arising from bank asset losses that could render it insolvent. Due to potential risk of losing all or some of their assets, depositors tend to make a run when initial signs indicate some troubles. Moreover, recent research found that the occurrence of a bank run can not be entirety explained by the decline of banks underlying assets (LaWare, J.1991.p34), (Diamond and Dybvig, 1983).The emphasis is on a banks maturity transformation notably the transfer of illiquid assets (bank loans) into liquid claims (bank deposits), taking into account that the banks loan portfolio substantially decline in value in an event of liquidation than on going concern. What triggers a rational bank run is that the uncertainty and the higher probability that the loan portfolio liquid value is less than the value of liquid deposits. This notion demonstrates how bank runs can possibly arise and affect even healthy banks. Thus distressed bank have to liberate its assets at liquidation value, therefore leading to possible insolvency. 2) Techniques of regulation While procedures of conduct of business regulation do not differ among various types of institutions, but in terms of prudential regulation there are fundamental differences that reveal the distinctive risk features of banks, insurance firms, and investment companies. Because bank failure has a greater effect on the whole market, and can create systemic crisis, governments and central banks have set bank regulation for creating extra protection in provision of extra fund by setting the lender of last resorts facilities, and deposit protection, however, these facilities creates moral hazard. Moreover, the deposit protection fund may exceeds the available protection from deposits insurance schemes, demonstrating policymakers greater emphasis for protecting the banking institutions rather then just depositors, as well showing the regulatory objectives of sustaining the banking system, while preventive regulation focuses more on tackling excessive risk taking by setting capital adequacy requirements for assets. Institutional regulation varies between states; in the UK for instance there was a single mega regulator, all regulation is institutional, each group/ institution have a diversified activity which all work under a single agency that overlook the supervision. Alternatively, in a system of multiple regulatory agencies specialised by duty, a fixed institutional regulation is unattainable due to the fact that these agencies are divers in functions, which calls for the appointment of a lead regulator for diversified groups (Taylor, M. 1995). 3) Regulation of the financial system By tradition banks are providers of loans among other services to firms and individual investors, temporary banks falls in deficits when their expenditure exceeds receipts; however banks generally adjust their liquidity position by using capital or wholesale market. Problems occur when banks capital is misused in funding high risk investments; this is often the consequences of bad governance by senior management in controlling the banks assets or it is the outcome of a contagion effect resulting from systemic risk. Moreover, the central bank controls and monitor commercial banks activities and set rules to regulate the banking system. This is to create stability and to promote confidence in financial market, which are vital elements in maintaining steady economic growth. 4) Bank failure Regulation of banks must be explored in context of bank failure. As any substantial problem produces the need for the introduction of changes in the regulatory framework, because the regulators attempt to correct any loophole in the system. Major bank failures in the history of banking occurred in the US in the year 1929. At that period there were 25,000 operating banks, however by 1934 the number had reduced to 14,000. These incidences consequently led to the implementation of more restrictive bank rules, such as single state operations, which until recently remained the feature of the US banking system. The subsequent major bank failure was the fringe banking crisis in the UK in the year 1973. 5) Reasons for regulating banks The principle reason is the systemic risk, because the financial system is susceptible to level of confidence, therefore external regulation is essential in maintaining the stability and reduces further volatility. The second reason represents the social cost that a failure of bank causes, which have a greater impact then a failure an ordinary firm. The insolvency of a firm affects the shareholders, while the failure of a bank will have a greater number of affected customers (depositors), which could also be spread across larger geographical locations. As well as the effect it will have on providing savings for potential investors which will have a detrimental impact on the economic growth. The third reason is the possible lack of knowledge by the public, it is suggested that they lack the necessary background information to distinguish between safe and risky investments partly due to asymmetric information because depositors do not have access to the same information available for banks. Thus comprehensive risk assessments necessitate additional information to that included in financial reports. Hence for this particular reason regulators had introduced depositor protection. Although the above arguments support regulation, however there should be some caution on the use of excessive control over banks. It is primarily the issue of sustained cost in terms of resources on banks and the regulators. Because the central bank has to set teams of experts to perform the prudential control, likewise banks have to employ skilled resources capable to produce the necessary required returns to the regulator. Such costs can be large, thus it is a matter of cost benefit analysis to establish whether the gain of applying prudential control exceeds the incurred costs. Other possible dangers of excessive regulation are the fall of competition, increase in costs and the diminishing pace of financial innovation and development. Furthermore, heavy regulation on a particular centre may lead to the migration of the activities to locations that have lenient regulation, which has been the principle factor in the development of offshore banking centres that led to the need for a global regulation system for international banks, which is known as a level playing field. 6) The supervision of the financial system in the UK The above arguments about prudential regulation are based on banks but it can also be applied on various other financial institutions. Furthermore, the current UK financial regulation system utilise the same measures in authorising and supervising financial institutions without a distinction between insurance firms, building societies, or banks. The FSA is the principle regulator of the financial system in the UK. The FSA was established in 1997, succeeding the Securities and Investments Board (SIB), which was supervising the investment industry. However, the FSA has progressively thought to become the main controller responsible for regulating insurance and investment industry, building societies, and banks. In addition to regulating financial exchanges such as Euronext.liffe and the Stock exchange besides clearing houses, along with other functions such as the responsibility of regulating the access of companies to Official List in cooperation with the UK Listing Authority. The initial development occurred in 1998, when the Bank of England transferred its responsibility of regulation and supervision of banking to the FSA, which was succeeded with the passing of the Financial Services and Markets Act (FSMA) 2000 that provided the FSA with full power as the main regulator. The FSMA requires the FSA to attain the following objectives: Promote public awareness of financial system Maintain confidence in the UK financial market Secure consumer protection Reduce financial crime. 7) The FSA approach to supervision The FSA approach to supervision is risk based; the primary phase is to assess the risks associated with four objectives above. The FSA attain this through gathering information from various sources including customers and supervision of firms. The secondary phase is risk weighing and estimating impact, by giving each risk the probability of occurring, thus giving it a score or value. Thus firms with high magnitude impact require greater supervision. This is to reduce systemic risk and consumer losses. However, firms that possess highly sophisticated and effective risk assessment systems require less supervision by the FSA. Finally, after the risks are identified, assessed and weighted, the FSA select the appropriate measures to respond using various tools, which can be summed as follows: Those aimed to influence the behaviour of consumers, operators, and the industry Those aimed to influence the behaviour particular firms. The first category encompasses consumer education, the discloser of information, and compensation method, while the second category includes the provision of authorisations to firms and discipline, in addition to reimbursement of losses. 8) Capital adequacy (Basel Capital Accord, 1988). Liquidity is essential for any firm to maintain its daily operation, whereas solvency refers to the ability of a bank to meet its commitments in terms of liabilities at due time. However, there is a distinction between liquidity and solvency. There is a general understanding that if a bank is thought to remain solvent then it should be able to borrow fund from open market to meet its short term liquidity requirements. Likewise, the presence of liquidity problems that cannot be resolved through the wholesale market suggests that other lenders believe that the risk of insolvency of that particular bank is great. Furthermore, if a bank struggle to find short term funds in the markets, it will face difficulties in paying its claims. Therefore the Bank of England and the FSA requires banks to efficiently managing their liquidity as a principal policy element of reducing the risk of insolvency. The Basel committee on Banking Supervision has introduced Basel Capital Accord II; it included new amendments to the assessment of capital adequacy of banks. This new approach was ought to be implemented in year 2006, which contains three pillars: Minimum capital requirements Supervisory review of capital adequacy Public disclosure. Basel II accord focuses on credit risk and market risk. In pillar 1, the treatment of market risk was not altered but changes were made on the treatment of credit risk notably operational risk. The bank for international settlement and the Basel committee on banking supervision have founded the financial stability institute (FSI) to assist central banks across the world to improve their financial systems. The new Basel II requirements set challenges on banks to develop and increase efficiency on their capital management. In this section, there is a discussion of the effect of Basel II on Banks in Europe and North America, and how the new directives are going to improve the cohesion of trade between the International Banks. Furthermore, this study will examine the banks resource capability to meet Basel II requirements, and discuss the impact and the implementation of the proposed guidelines. The Basel II framework is a tool that international financial institutions have created to be used by banks around the world as a common standard. The principle of Basel II is that banks are required to hold in reserve certain level of capital as a protection to maintain bank operation when making losses. It promotes transparency of banks activities and encourages efficient management of capital. It is estimated to total 8% of bank assets. The Basel II framework has set standards for banks in managing their capital and requires the discloser of information to detect any risks. The guidelines promote efficien

Evolution Of American Society Essay

Following the War of1812, Americans started to feel the spirit of nationalism. Proud of what they achieved, Americans started to expand westward. This dramatic rise in expansion helped mold the American society as it separated from the Old World. This migration produced â€Å"profound effect on the nation’s economy. Likewise, the westward movement also played out in the Civil War. It brought people of diverse backgrounds to convene and associate with each other, some with favorable outcomes, others were deemed â€Å"disastrous†. The expansion fever is indeed a major step unification of the United States. Several reasons were cited for this westward expansion: population and economic burdens, vast lands in the West, and the weakened Indian resistance making them migrate to the West. The growth of population in the East grew dramatically that people started to notice how dense the areas had become. By 1820, the population had reached 9. 6 million. The increasing population was caused either naturally or through immigration. European immigration rapidly grew in the country, most of whom were Germans and Irish. The influx of Germans and Irish in the country was mainly due to liberal revolution that plagued Germany and potato famine that ravaged Ireland. Such migration to the country affected the population that some people started to pack up and look for a new home. Furthermore, the growing population also affected the economy of the region. The lands in the east were all occupied, with some becoming depleted already. This caused the settlers to find new agricultural lands. Their search led them to the west. Settling in the west, they started to cultivate the lands, raise families, created communities and institutions such as schools, churches, and stores. It served as the foundation for the formation of American society. Additionally, trading started to look up for the white settlers. Mexico, which controlled Texas and California at that time, proved to be a perfect opportunity for white settlers to move eastward. Mexico opened its trade and the white settlers grabbed it. They sold their trades at a low price and eventually were able to depose of the Mexicans and Indian traders in the area. They would also settle in the region, with some of the settlers marrying Indian and Mexican women. After the War of 1812, the federal government sought a policy that would move Indian tribes to the west. The government also created a â€Å"factor system† which provided the tribes with goods at a certain cost. This did not only help the Native Americans but also the government in transacting with them. In 1830, the Indian Removal Law was passed, which enabled the President to do land exchanges. Five tribes exchanged their lands in the east of Mississippi for lands in the west. The years that follow saw the rise of the Industrial revolution. The outburst in transportation, communication, and technology further helped the country’s expansion. The creation of the Erie Canal paved the way for the Canal Age. The construction proved to be valuable to the nation’s economy. It facilitated faster transfer of goods for merchants. Another breakthrough was the railroad system. By 1840, railroads replaced canals and were used not just for merchandise for but migration as well. This also contributed to the enlargement of the population of the country in the west. The settlement in the west opened up a lot of roads in the country- creation of new states, better economic opportunities, and enlarging the population of the country, which paved the way for the evolution of the American society. BIBLIOGRAPHY Brinkley, Alan. American History A Survey 11th ed. USA: McGraw-Hill, 2003. May, Ernest and Winthrop Jordan. The American People A History to 1877. Illinois: McDougal, Littell and Company, 1989.

Waiting Fo Death – Samuel Beckett’s Waiting for Godot

Waiting for Death By: Stephanie Melo Pabon Analysis on Samuel Beckett’s â€Å"Waiting for Godot†. Waiting for Godot by Samuel Beckett is a play starred by Vladimir and Estragon, two men who seem to spend their days in a country road talking, wandering and blathering while waiting for a person they call Godot. This Godot never appears in the story but they both talk about him -her, it, it is difficult to define- at the same time that they look for things to do while waiting.During the two days they spend in that place just in the company of a dead tree, they have two encounters with two other men: Pozzo, an aggressive that seems to be the master of the other; the other man is Lucky, a terribly sick and tired man that looks like a mistreated donkey. The last character that appears is a boy who brings messages to Vladimir and Estragon saying that he -because the boy calls him ‘he’- is not coming today but tomorrow, for sure.The setting, as I said before, is a country road with just one mound and a dead tree -a willow like they think it is called-, everything leading to a hopeless atmosphere that accompanies their endless waiting. I think reading Beckett is a very difficult as he takes modernism to the highest level. He really expresses stories with plot and characters through his own way of thinking. I liked reading the play in spite of my dislike for reading plays; I do not like to read the setting and the characters actions and movements in such an explicit way.This time I was totally delighted by the characters’ dialogues. It was interesting to see how many thoughts about their conversations, the objects they use in the story, the setting, and their physical and personal description, actually arose. I read the play two times and watched one staging; since the first time I had many different thoughts and ideas to interpret the characters and situations they are in, these interpretations are the ones I will be telling. The main c haracters Estragon and Vladimir are, to me, the absurd depiction of the body and mind.They both are the same person: a poor man -Mr. Albert could be his name like the boy called Vladimir at the end of both Act I and II. Estragon is the body as he is the one with the need of sleeping and eating. He always wants to sleep but Vladimir does not let him do it and he always wants to eat, for instance when he asks for the chicken bones Pozzo leaves after eating in Act I, and in Act II when Pozzo falls and asks for help but Estragon only thinks about asking him for food to eat.Vladimir is the mind as he is the most lucid one; he remembers everything while Estragon never does, and he says Estragon he would be a heap of bones without him to show the dependence on each other. Also, at the beginning of the two Acts, Vladimir asks Estragon if he was beaten again and next he assures him that if he had been with him he would not have been beaten as he is the one that can make him stop of doing thi ngs he should not do.Although they say the idea of them together is to contradict and abuse each other, they both get along well: they communicate and seem to be friends. Estragon says they â€Å"always find something to give them the impression they exist†; they reason about many topics but Vladimir, the mind, is very healthy whereas Estragon is very tired all the time. The other two characters, Pozzo and Lucky, are the opposite; Pozzo, the very healthy but cruel man who is the slaver of Lucky. He is ambitious to the extreme of being greedy; he says he has professional worries, and about beauty and grace.Lucky is the tired and sick mind of a rich person that was never satisfied with material things; and I say he is rich because of the scene when Estragon asks for the chicken bones Pozzo is leaving but Pozzo says he has to ask Lucky because he is the owner. Estragon does that and Lucky does not answer, so Pozzo says it is ok if he takes the bones but at the same time he think s something is wrong as he had not seen him refuse a bone before. This episode means to me Lucky’s tiredness of always wanting everything for him, even the wastes, and Pozzo’s surprise for his change.The relationship between Pozzo and Estragon is the main topic when Vladimir and Estragon ask why Lucky does not do anything and never put down the bags he carries, and Pozzo’s answer is that â€Å"he used to be very kind, helpful and entertaining but now he is killing me†, he also says Lucky wants to impress him by doing a job is not for him. Here the mind is sick; Pozzo is healthy but he is dying because of his mind while Lucky cannot bare any longer all that burden and pressure Pozzo has put on him to control him and not to let him think and decide his life is better without external pleasures and material worries.These all four characters are making an absurd portrayal of what life is. Estragon and his struggle for the boots to fit and how in the second ac t when he tries a pair of boots that were not of his, he says they fit and then he complains saying they are too big; it is the way they refers to our constant complains of the life we live and the circumstances, bad or good, we do not want to be in, as Vladimir says â€Å"There is a man all over for you, blaming on his boots the faults of his feet†.This is another way to say the metaphor about the life each one has to carry about with a cross: â€Å"†¦ to every man his little cross till he dies and is forgotten†. They both also talk about the searching of meaning when they say people speak always to themselves trying to determine where are â€Å"these corpses and skeletons† come from. They wonder if it is necessary to think or if they could have lived without it, as it was not enough just to live.Pozzo and Lucky are depicting the way society is always more concerned about material things, sometimes having as priority money and the mundane and superficial a spects rather than let the minds fly using the imagination and thinking beyond the banalities of the world. Also, with this two characters the performance of good deeds is visible when in Act II Pozzo falls and ask for help but Estragon prefers not to help him if he does not give anything to him in return.Vladimir compares what a tiger does to help his congeners without hesitating. Finally, as they spend their days in the same place and just looking for things to do to pass the time, it is just an ironic criticism to the routine the life becomes at some point; to the repetitive start, attempts, give up, and start again. This is just a cycle people live while for the end of the night to come, for the end of the daily routine to finish, for the death to come. When it comes they will be saved.