Impact of Cartoons on Children Research

Impact of Cartoons on Children Research Cartoon or animated movie is a form which uses optical illusion and movements of consecutive performing of many still images. The first cartoon in the world was Fantasmagorie which was made by a France artist, Emile Cohl in 1908. Produced in over 100 years ago, this film had no sound and was called silent film. With white stroke on a black board in class table the film about the adventure of the cartoon character called Stick figure. All are represented by dots and simple strokes. Traditional animated cartoon, developed in early 1900s, was practiced by Ubbe Ert Iwwerks, Walt Disney and others. They had used 24 different pictures for each second of their animated movie. The first complete cartoon was produced in 1991. However, cartoon was not recognized by worldwide audience until 1914 via category animation film Gertie the Dinosaur by producer John Bray. In fact, in 1913, a film studio had producing as ones only occupation and within 5 years, the new entertaining program was born. At that time, a lot of artist took part in animated and got a lot of success. Early 30s of twentieth century, manufactures began to enhance color elements and sound in animation. The most representative works are maximum use of such elements as Snow white and the Seven Dwarfs (1973), this is the long animated the first episode in the history of the genre. Pinocchio (1940) was a cartoon produced by technical systems and the last complete. Frequently, people think cartoons are made by many simple drawing and just put them on order. In most peoples opinion, cartoons are several pictures describe consecutive actions. In fact, the second though is true. However, nowadays, in order to bring out a perfect product; producers have to make a lot of specific things. We have brief proceed about how to make a short cartoon movie. A cartoon movie, even just 30 or 80 minutes also need a number of producer and amount of time to make it completely. Everything starts from the idea, as soon as the script has done, a group of artists begin develop many storyboard which include brief conversations and the sound in the movie. After director checked the storyboard out, they move on to sound recording. Many people whose voice suit with character in the movie will be invited to dub. The sound will be deal with and provided on the number of frame on the movie and written called paper the dope sheet. Next to this step, the main parts of the movie are performed. Rough layout will be drawn first; in this part, artist just only use the pencil for perspective, arrangement of character and design. At the same time, animators make movements and after all of these the producers will make a test of lead draft and move on to check the film composition out. Then, they ad d more colors and theme on movie and move it to computer in order to join the scenes with the sounds. Finally, they check it out again to fix the problems and public. The cartoon making spends a lot of time. It usually takes them, on average, 6 to 12 months or maybe more just only to make a half hour cartoon. It is truly a difficult job. Watching cartoon had many bad effects on children. According to her, even in cartoon, children effected by violence across the screen kicking, killing each other with frequency of about 20 time an hour. Children watch violence images on television many hours a week there will have many violence actions as hitting, punching, biting his parents, sibling and friends. For advertising of food and alcohol, young tend to think the food in advertisements is good for health and not interested in the importance of vegetable in their diet. In addition, kids watch more cartoon are less physically active, easy weight gain leading to obesity while in young ages, children need to play creatively to social development. Finally, cartoon or television also influences a childrens eyesight if they focus on looking at the screen for prolonged periods. Method I. Participants: The researcher chose 100 people from many areas in Hanoi who have different jobs and ages. The participants in this study are: 20 students are working in Banking Academy, Hanoi, Vietnam. 30 kids from Katies living place. (Mage = 15.6 years, age range: 8 18 years) 20 younger parents who have kids (Mage = 27.3 years, age range: 23 35 years) 30 adults live around Hoan Kiem Lake (Mage = 36,3 from 19 45 years) In those participants, researcher chose 3 people to ask them a lot of special question. All of them have kid on school-age: Nguyà ¡Ã‚ »Ã¢â‚¬ ¦n Ngà ¡Ã‚ »Ã‚ c Hoa, 29 years old, lives in Hanoi and she is a business woman. She has two children, one kid is 7 years old and the other one is 10 years old. Nguyà ¡Ã‚ »Ã¢â‚¬ ¦n Phà ºc Là ¢m, 32 years old, lives in Hanoi and works as a director in a Japan Company. He has a son whom is 9 years old. Là ² A Pà ¡o, 27 years old and lives in Hanoi. He works as sale manager on a company. I choose participants of different age living in different area to be objective and results of comprehensive. I focus on those who are kids by age group most influenced by this art. As young adults age is less influenced. I. Procedure: First, the researcher collected the information from some source such as: newspaper, books, Internet and so on. Then, basing on it, the researcher made some relevant questions for adults and people who care about Cartoon. Thirdly, the researcher met them in persons and interviewed to get more information. With the adults, the researcher asked them filling questionnaire or ask and the researcher filled the question list for children. After that, some quotation were cited, analyzed and compared. Finally, the researcher showed the conclusion from studies. Results Many reports have mentioned and researches about the opinion of people about media, including cartoon, and its affect to the peoples life. Stevie Hossler  (August, 2011) said that typically, children begin watching cartoon on television at an early age of six month, and by age two or three, children become enthusiastic audience. This has become a problem because there are too many children are watching TV too much and these programs (even cartoon) become violent and addictive. Children watch cartoon too much on TV are more likely to have mental problems and feelings, along with brain and eyes injuries and unexpectedly the risk of a physical problem increase. Furthermore, because of seeing violent on TV, children become less sensitive to hurting and affliction of others, they are not afraid of violent and easily become aggressive or use harmful action towards other people. Besides above results that I found in references, I also had a survey with 100 people have different ages (from 6 to over 45 years old and come from many different areas around Hanoi) on the question: Do you watch cartoon movie? and if yes: How old are you?. Then, I build on one pie chart that shows us Which are age groups who usually watch cartoon? Nowadays, cartoon movies are very popular and improve very quickly. Variety of cartoon movies were built for every age. From this chart we can see easily that at the period of age from 28 35, the percentage of people watch cartoon is 6 percent, makes up the smallest part of the pie chart. In that period of age, people usually too busy with their job and have no time to watching television, relaxing, even playing with their kids. A few of them spend the weekend to do those things, however it is just a short time. Hoa said that: I work as a business person so I have a lot of things to worry about, such as counting numbers, business, bosses, colleagues and so on. All of them make me crazy to dealing with. However, I still try to spend time playing with my girls, especially watching their favorite animation together. While, children on school age are the ones who watch cartoon the most. On the research, all kids watch cartoon every days, they watch it at home, at school and spend at least 3 hours per day for looking at television screen. It is really a huge number Moreover, we had a survey of a number of people who watch cartoon to find answers of the question: What kind of cartoon movie do you watch? Discussion When we did the research about cartoon with many people, there are two opposite opinions. Nobody can deny that cartoons have many surface advantages. First, watching cartoon movie is a useful entertainment activity for children and adults. A child can lie down quietly on sofa and just watch his favorite cartoon, instead of running around or screaming when his parents are working so they can play with their kid. Moreover, cartoons also have important effect on adults, especially the couples whose young children. After several busy working hours, parents can sit next to their kids and watch cartoon together. Thank to this film, they can relax completely and have a chance to stay their children nearer. These things are better than plunging into job immediately after arriving home and do not spend any time talking to the children. Nguyà ¡Ã‚ »Ã¢â‚¬ ¦n Ngà ¡Ã‚ »Ã‚ c Hoa (29 years old, Hanoi) said that: When my daughter was younger than she is now, after working time, I arrived home and just focused on housework such as cleaning, washing, cooking and so on. Because of my job, I did not have enough time to play with my child and usually took her play by herself or with her friends next door. Recent time, I have spent more time watching Tom and Jerry and other cartoons on Disney channel or Cartoon Network. I realize that when I watching cartoons with my daughter, the conversation between me and my kid become closer than ever. Now, I understand my honey more clearly, know what she wants, what she thinks, what she needs, and how she grows day by day. As a mother, I really feel very happy and so glad to understand her. J.Wolffe, an animation researcher wrote in an article on April, 23, 2012 that the animation is where kids learn how the hero is really, when she was a child, she could learn to pronounce quickly difficult words which make people confusing when listen to them. Smart will help you get almost everything and there is always anybody is more intelligent than you, animation teaches all that. Why? Because, via animation kids can learn and understand quickly when they are entertaining, which is one of the reason why children have difficulty learning from teachers, the pressure makes them liable to remember vocabulary as fast as sing a song in animation. At home, I always buy CD or open a cartoon channel to watch many funny movies with my son. In the past, my child was very active; he always run around house, from a room to another room and never sits quietly on a place within thirty minutes. However, since he has watched cartoon, he can sit on chair with concentration to television without saying any word. Furthermore, after watching a movie, if he does not get anything on this film, he will try to discover by asking me or other ones. He also often dram the characters on cartoon scene, training every day and improves it day by day. I am so proud of my little boy said Nguyà ¡Ã‚ »Ã¢â‚¬ ¦n Phà ºc Là ¢m (32 years old, Hanoi). Not only does cartoon bring happy time for parents with their children, but it also is a special teacher for kids, who is closest and most friendly with younger generation. Nowadays, there are many cartoon series which including educative programs. It teaches children arithmetic, drawing by using beautiful and attractive shape and funny situation. Besides that, via a lot of movies, kids can learn about some knowledge around them, improving their grasp and learning. Some programs teach 7- and 8- years old a little of a foreign language, such as English an international language. Learning English from young is an important step for language ability for children in the future. In addition, animated films have a lot of funny and eye-catching picture which attract the kids so these points will help develop and enrich the childrens imagination. A vast number of people think that watching cartoon is totally good and it does not have any bad influence on children and adults. In fact that opinion is not absolute true. Cartoon is a kind of movie which causes addiction easily. More and more kids have trend toward sitting on room and they prefer watching cartoon to going out and playing with other kids, doing exercise or other activities. Sitting and watching animated movies several hours like that can make the kids sink into the world of many imaginary characters, they can use that time to do more useful work, instead of wasting it only on watching cartoon. Cartoon is just a program used to relax and improve kids brain; it cannot replace healthy activities which will train childrens body. Moreover, base on an unpublished study perform by Mary Fenway, watching cartoon on several hours cause autism for 46% of children who usually do this work and they will find difficult on opening relationship. This is really an unexpected disadvantage of watching cartoon, which nobody is looking forward to. Besides that, nowadays, appeared many animated companies just care about their profit and are insensitive to their products affection for younger generation. Là ² A Pà ¡o (27 years old, Hanoi) said that: I usually let my son watching cartoon himself because he is very interested in this funny program. However, recently, I feel that my son got mad more often than he had been, lazy to eat and sometime he beat his classmate in kindergarten. I felt very nervous and could not explain what the reason was. A few day later, I found that a cartoon channel that my child usually watch for, project an animated movie whose a lot of violent scene. Immediately, I delete that channel because it made much bad influent on my kid. Instead, I let my son watch a lot of educative cartoon and care more about what he watches. In modern life, many parents are busy with their jobs and do not notice what their child watch. Bad animated movies bring a lot of evil effect on young people, teach them things and make them have the wrong view about the lives around. Furthermore, a few animated movies which are made for adults, has unsuitable content with kids and effect on the childrens souls if they watch those movies accidentally.     Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  American Academy of Pediatrics (AAP) and American of Child Psychiatry and adolescents (AACAP) felt that television does not affect the behavior of children as young an age. From  their research, the AACAP countries, Kids watch shows in which violence is very realistic, frequently repeated or unpunished, are more likely to imitate what they see. They also said that childrens parents need to keep a close eye on what their kids watch, and explain for children that the cartoon character was shot was not hurt, but really would be seriously injuries or die in real life. They should tell their kids that violence is not the best ways to deal with a conflict. In conclusion, because of a lot of cartoons affections on childrens life and character in future, choosing a best cartoon for kids is an important work with who are mothers and fathers. In addition, there is an alarm for the industry for kids; they need block the commercial cartoon, give back the innocent, pure and suitable animated movies for the future generation of the world.

Osteoarthritis :: Health, Diseases

Osteoarthritis (OA) of the knee is a common problem throughout the world. As estimated by the World Health Organization, it is one of the major causes of impaired function that reduces quality of life worldwide and estimated to be the fourth leading cause of disability by the year 2020 (Kraus et al., 2006 and Wluka, 2006). Knee osteoarthritis (OA) is a leading cause of chronic disability worldwide including Malaysia (Zakaria et al., 2009). As defined by Jette et al., 2002 disability is the impaired performance of expected socially defined life tasks, in a typical sociocultural and physical environment. Physical function limitation, or difficulty with physical tasks and activities, is fundamental to the development of disability in OA. Pain is likely to be a central factor in the physical function limitation of knee OA, both due to its direct effects on function and as a route through which other factors operate. However, measuring only the pain is not enough. Physiotherapy must know exactly what functional limitation experienced by the patient and help them to handle those instead of treating just the pain. In the study by Izal et al., 2010 they discovered that there was discrepancy between levels of disability and quality of life (QOL) of Spanish elderly people with OA knee. They found this disparity possible due to active coping strategies practiced by the patient such as positive self-statements, re-interpreting pain sensations, distraction, ignoring sensations, prayer and joint protection strategies. Knee Osteoarthritis prevalence is expected to rise significantly in the upcoming decades due to increasing life expectancy and decreasing physical activity, leading to a constant increase in body weight. Facing this situation, the WHO and the United Nations have declared the years 2000 to 2010 to be the "Bone and Joint Decade" (Rosemann et al., 2007). The exact prevalence of OA is difficult to determine because of the lack of use of standardized criteria. In epidemiological studies OA is often described by radiological criteria, however radiological disease especially when mild has poor correlation with the presence of pain. Studies found that in all populations, so far the prevalence of knee OA is higher than that of hip OA but this is more marked in Asian populations. In Malaysia, knee becomes the most common site for OA (Zakaria et al, 2009). Regarding prevalence, it is a frequently replicated result that women have a higher probability for developing OA, especially OA of the knee (Felson et al.

Financial Analysis of Bank of America

Financial Statement Analysis of Bank of America Group 1 Chen, Yelin Dong, Xiaoxu Gransbach, Jennifer Shuai, Wang Weiss, Charles 1Financial Statements of Bank of America1 1. 1Balance sheet1 1. 2Income statement2 1. 3Regulatory capital ratios2 1. 4Investment portfolio2 1. 5Impact of the FSP FAS 115-2 and FAS 124-2 on OTTI3 1. 5. 1Bank of America3 1. 5. 2JP Morgan Chase3 1. 5. 3Citi Group3 1. 6Netting Financial Instruments3 1. 6. 1Bank of America4 1. 6. 2Comparable banks4 1. 6. 3Analysis of the impact4 2Fair Value Accounting for Financial Instruments4 2. Fair value accounting4 Table 6 Summary of the Fair Value Income5 2. 2Opinions about fair value accounting5 3Interest Rate Risk and Net Interest Earnings6 3. 1Net interest margin6 3. 2Interest rate risk7 4Credit Risk and Losses7 4. 1Main loss reserve adequacy ratios8 4. 2Policy to designate past due loans as non-performing8 4. 3Adequacy of the bank’s allowance for loan losses8 4. 4Disclosure policies relating to loans8 5Appendix9 * Part 1 Financial Statements of Bank of America . 1. 1 Balance sheetBank of America’s balance sheet has total assets of $2,129,046 million in 2011, which is less than last year’s $2,264,909 million, a fairly significant decline. There are a few primary assets on the balance sheet. The largest asset is loans and leases which makes up 41. 92% of the total assets. The next largest asset was Available-For-Sale securities making up 12. 97% of total assets. Total liabilities on the balance sheet were $1,898,945 million, with the primary liability being deposits in U. S. offices both interest bearing and noninterest bearing, at 50. 4% of total liabilities. The next largest liability was long-term debt at 19. % of total liabilities. In millions| 2011| % of total assets| 2010| % of total assets| % chg from 2010-2011| Total asset| 2,029,046 | 100. 00%| 2,264,909 | 100. 00%| -10. 41%| Loans and leases| 892,417 | 43. 98%| 898,555 | 39. 67%| -0. 68%| Available-for-sale| 276,151 | 13. 61%| 337,627 | 14. 91%| -18. 21%| Total liabilities| 1,898,945 | 93. 59%| 2,036,661 | 89. 92%| -6. 76%| Total deposits| 1,033,041 | 50. 91%| 1,010,430 | 44. 61%| 2. 24%| Deposits in U. S. offices| 957,042 | 47. 17%| 930,913 | 41. 10%| 2. 81%| Long-term debt| 372,265 | 18. 35%| 448,431 | 19. 80%| -16. 98%| Leverage ratio| 14. 0 | ? | 8. 92 | ? | 63. 58%| Table 1 Selected Financial Data from Balance Sheet of Bank of America Chase and Citi are fairly similar in size and distribution of their balance sheets. Chase and Citi have total assets of 2,265,792 and 1,873,878( ) respectively, both with slightly lower loans as a percentage of total assets at slightly over 30%, while AFS securities are around 16% of total assets for each. Liabilities are also very similar, with Chase having total liabilities of $2,082,219 million and Citi $1,694,305 million. The primary line items are also very similar once again with Chase’s total deposits 54. 6% and long-term debt 22. 77% of total lia bilities, while Citi has deposits 51. 11% and long-term debt of 19. 09%. According to the deposits in U. S. offices, BOA focus more in U. S market and Citi focus more on market outside U. S. In millions| Bank of America| % of total assets| JP Morgan Chase| % of total assets| Citi Group| % of total assets| Total asset| 2,129,046 | 100. 00%| 2,265,792 | 100. 00%| 1,873,878 | 100. 00%| Loans and leases| 892,417 | 41. 92%| 696,111 | 30. 72%| 617,127 | 32. 93%| Available-for-sale| 276,151 | 12. 97%| 364,793 | 16. 10%| 293,413 | 15. 66%| ? | ? | ? | ? | ? | ? | ? |In millions| Bank of America| % of total liabilities| JP Morgan Chase| % of total liabilities| Citi Group| % of total liabilities| Total liabilities| 1,898,945 | 100. 00%| 2,082,219 | 100. 00%| 1,694,305 | 100. 00%| Total deposits| 1,033,041 | 54. 40%| 1,127,806 | 54. 16%| 865,936 | 51. 11%| Long-term debt| 372,265 | 19. 60%| 256,775 | 22. 77%| 3,235,050 | 190. 94%| Leverage ratio| 8. 25 | ? | 11. 34 | ? | 9. 44 | ? | | | | | | | | In millions| Bank of America| % of total deposits| JP Morgan Chase| % of total deposits| Citi Group| % of total deposits| Deposits in U. S. offices| 957,042 | 92. 64%| 851,534 | 75. 0%| 343,288 | 39. 64%| Table 2 Selected Financial Data from Balance Sheets of Three Banks in 2011 In the event of a bank run, Bank of America will be in trouble due to its high leverage, similar to many banks. Bank of America has deposits of $1,033,041 million, among which liquid assets only have $314,425 million, including cash and cash equivalents of $120,102 million, time deposits and other short-term investments of $26,004 million and trading assets of $169,319 million. Even with the ability to liquidate those non-cash assets, it will still only be able to honor slightly more than 30% of its depositors.Income statement The primary line item on Bank of America’s income statement is net income of $1,446 million, which increased compared to a net loss of 2,238 in 2010. Interest income was $66 ,236 million, down from $75,497 million in 2010. Total interest expense was $21,620 million, which makes the net interest income become $44,616 million, down 13. 4% from the previous year. Lastly, total noninterest income was $48,838 million, decreased by 16. 8% from 2010. This is partly due to the big loss of mortgage banking income, decreasing from $2,734 million in 2010 to $(8,830) million in 2011.Chase and Citi had similar trends, both slightly increasing their bottom line while having net interest income decrease slightly. Regulatory capital ratios 2011| Bank of America| JP Morgan Chase| Citi Group| To be well capitalized| Leverage ratio| 7. 53%| 6. 80%| 7. 19%| 5%| Tier 1 risk-based capital ratio| 12. 40%| 12. 30%| 13. 55%| 6%| Total risk-based| 16. 75%| 15. 40%| 16. 99%| 10%| Table 3 Regulatory Capital Ratios of Three Banks in 2011 In 2011, Bank of America was considered well capitalized for all three regulatory ratios–Tier 1 capital, risk-based capital and leverage.Ba nk of America slightly increased all of its ratios from 2010 to 2011. Its tier 1 capital ratio was 12. 4% while 6% is considered well capitalized, its risk based capital ratio was 16. 75% while 10% is considered well capitalized, and its leverage ratio was 7. 53% while 5% is considered well capitalized. ( Table 4, Table 3) Chase and Citi had very similar ratios to Bank of America. Chase was slightly below Bank of America and Citi for all three ratios but still well above the floor to be well capitalized.Citi had a slightly lower leverage ratio and slightly higher tier 1 capital and risk based capital ratios. Regulatory ratios are fairly important; however there are some issues with them. The ratios are backwards looking, so there could be a large amount of change since in the numbers. There are also lots of adjustments made by the company to the different numbers that make up the ratio that might not even make sense such as ignoring AFS losses. The current risk weighting is also ve ry simplistic currently and might not reflect the actual risk of the assets.One important thing to note is that the newly released Basel III norms by Basel Committee on Banking Supervision (BCBS) would require a higher regulatory capital ratio on banks. It is recommended that Basel III be implemented by January 1, 2015. According to the new rules, the mandatory Tier 1 common capital ratio would be 7%. Banks should maintain conservation buffer of 2. 5% and reserves amounting to 8. 5% of assets. Therefore, in order for Bank of America to meet the future requirements and be well capitalized in face of potential financial meltdowns, it should hold more and better quality capital, carry more liquid ssets, and limit leverage. ( , ) Investment portfolio The net unrealized gains on HTM securities of $177 million = $181 million + ($4) million that have not been recognized in OCI as of the end of 2011 are attributable to HTM securities that have not been deemed other than temporarily (OTT) i mpaired, so that amortized cost is the carrying value. Amortized cost is a highly limited valuation basis for risky securities. There was very little mention of reclassification in Bank of America’s 10-K. There was a mention of a reclassification of $26. billion primarily due to noninterest earning equity securities being moved from trading account assets to other assets, but no mention of anything else. Impact of the FSP FAS 115-2 and FAS 124-2 on OTTI Bank of America According to FSP FAS 115-2 and FAS 124-2, banks are allowed to report non-credit related OTTI in Other Comprehensive Income (OCI). Only credit-related OTTI is recognized in net income. The Total OTTI losses (unrealized and realized) for 2011 is $360 million, and portion of other-than-temporary impairment losses recognized in other comprehensive income is about $61 millions.The net amount is $299 million which is recognized in earnings on AFS debt securities in 2011, compared to $970 million on AFS debt and mark etable equity securities in 2010. When we compute the regulatory Tier One Capital, the unrealized losses on AFS investments are (added back) excluded. Thus, the $61 million is added back to calculate the Tier One Capital. With adding back, Tier 1 risk-based capital ratio is 12. 40% as shown on 2011 Y9C. In absence of adding back, the ratio is (159,231,999-61,000)/ 1,284,466,933=12. 39%. JP Morgan Chase For JP Morgan Chase, the10K shows Total other-than-temporary impairment losses for are 27, 94, nd 946 million for year 2011, 2010 and 2009 respectively. ( ) However, it doesn’t divide these amounts into credit-related portion and non-credit related portion. Based on the other two banks examples, we can infer that the Tier One Capital for JP Morgan Chase will go up after adoption. Citi Group Citigroup also adopted the same rules above in first quarter of 2009. As a result of the FSP, Company’s Consolidated Statement of Income reflects the full impairment on debt securiti es that the Company intends to sell or would more-likely-than-not be required to sell before the expected recovery of the amortized cost basis.As a result of the adoption of the FSP, Citigroup’s income in the first quarter of 2009 was higher by $631 million on a pretax basis ($391 million on an after-tax basis) and AOCI was decreased by a corresponding amount. However, 2011 10K does not gives details about regarding the credit loss component of OTTI in 2011. When we compute the regulatory Tier One Capital for Citigroup, the unrealized losses from non-credit loss component on debt securities are (added back) excluded, which leads to an increase in Tier One Capital.Netting Financial Instruments | Â  | Bank of America| JP Morgan Chase| Citi Group| IFRS(Before netting)| Total assets| 2,130,796| 3,976,317| 2,749,470| | Total debt| 1,900,695| 3,792,742| 2,564,671| | Total equity| 230,101| 183,575| 184,799| | Leverage ratio| 8. 26| 20. 66| 13. 88| GAAP(After netting)| Total assets| 2,129,046| 2,265,792| 1,873,878| | Total debt| 1,898,945| 2,082,219| 1,694,305| | Total equity| 230,101| 183,573| 179,573| | Leverage ratio| 8. 25| 11. 34| 9. 44| Table 4 Netting Adjustments for Three Banks in 2011 Bank of AmericaAccording to Note 4—Derivatives, Bank of America had legally enforceable master netting agreement that would reduce both derivative assets and derivative liabilities by the same amount of 1,749. 9 million, respectively. Moreover, cash collateral was applied to net off derivative assets by 58. 9 million and derivative liabilities by 51. 9 million, respectively. However, the reduction caused by cash collateral wouldn’t affect total assets and total liabilities. If Band of America were to adopt IFRS, it would report higher gross derivative assets and liabilities by an increase of 1,749. million. However, the adjustment (1,749. 9 million) was insignificant compared to Bank of America’s total asset base (2,129,046 million, about 0. 08%). Th erefore, the leverage ratio would only increase slightly due to this change, from 8. 25 under GAAP to 8. 26 under IFRS. Comparable banks J. P. Morgan Chase’s gross derivative assets were offset by 1,710,525 million netting adjustments and gross derivative liabilities by 1,710,523. Such adjustments almost made up of 75% of Chase’s total asset base which is 2,265,792 million.Therefore, if to adopt IFRS, Chase would record a much higher assets and liabilities up to 3,976,317 million and 3,792,742 million, respectively. Leverage ratio, accordingly, would rise from 11. 34 to 20. 66, with an almost doubled increase. Citi Group’s netting adjustments of 875,592 million against derivative assets made up 46. 7% of total assets, and 870,366 million against derivative liabilities made up 33. 9% of total liabilities. When adopting IFRS, Citi would report a higher assets and liabilities, with its leveraging ratio growing from 9. 44 to 13. 88 due to the significant amount of t he netting adjustments. Analysis of the impactFrom the above table, we can see that Bank of America was merely affected by the presentation of netting financial instruments, while the other two banks were greatly affected in terms of leverage ratio. The main reason to such a distinguished difference is that Bank of America had the smallest investment in derivative instruments, compared to Chase and Citi. The gross approach would definitely give a more comprehensive picture of banks’ derivative instruments; however, it would overstate risk to some extent. Market risk of the derivative positions can be better evaluated using the gross presentation which is more detailed.Firstly, net figures are by far more relevant metrics than the gross amounts. Naturally, this comes about from looking to the way that derivatives are traded under an enforceable master netting agreement. The master netting agreement allows for the aggregation of all trades and the replacement by a single net am ount. Secondly, another metric to measure derivative portfolios is volatility which is driven by the risk of open market positions and the potential changes in net asset values and not the size of gross derivatives amounts.Therefore, gross balance sheet amounts are not particularly useful indicators of how much net derivative asset values would have to change before solvency is affected. Finally, as the third most important metric when evaluating the risks, collateral together with cash settlement procedures results in a liquidity profile that is more aligned with net presentation. Collateral amounts further reduce the risks and have to be taken into consideration for reporting derivatives Fair Value Accounting for Financial InstrumentsFair value accounting From table 5 and the three computation tables in Appendix, we can see that under Full Fair Value method, Bank of America’s net income would grow from 1,446 million to 2,750 million, an increase of 90. 2%. Similarly, Citi w ould experience an increase of 128. 2% in net income from 11,067 million to 25,257 million. However, full fair value method had insignificant impact on Chase, with a total adjustment of 1,773 million compared to its pre-adjustment net income of 18,976 million.In millions| Bank of America| JP Morgan Chase| Citi Group| Adjustments for assets and liabilities at HC on balance sheet| 6,127 | 1,140 | 12,000 | Adjustments for assets and liabilities at FV on balance sheet with gains and losses in OCI| -4,819 | 633 | 2,190 | Total adjustment| 1,308 | 1,773 | 14,190 | Net income as per financial statements| 1,446 | 18,976 | 11,215 | Full fair value income with information available| 2,754 | 20,749 | 25,405 | * Table 5 Summary of the Fair Value IncomeAnother thing to note is that BOA stands out as it had a significant unrealized loss of 4,819 million on AFS, while its comparable banks, Chase and Citi, had a positive gain of 633 million and 2,190 million, respectively. Based on our analysis, su ch difference was driven by the following factors. (1). According to its disclosure, Bank of America recognized $299 million of other-than-temporary impairment (OTTI) losses in earnings on AFS debt securities in 2011 compared to $970 million on AFS debt and marketable equity securities in 2010, which contributes greatly in such a large amount of unrealized loss on AFS.The recognition of OTTI losses on AFS debt and marketable equity securities is based on a variety of factors, including the length of time and extent to which the market value has been less than amortized cost, the financial condition of the issuer of the security including credit ratings and any specific events affecting the operations of the issuer, underlying assets that collateralize the debt security, other industry and macroeconomic conditions, and management’s intent and ability to hold the security to recovery. (2).According to its disclosure, Bank of America presents debt securities purchased for longer term investment purposes which are as part of asset and liability management (ALM) and other strategic activities, as available-for-sale (AFS) securities, and report these securities at fair value with net unrealized gains and losses included in accumulated OCI. In 2011, the fair value of net ALM contracts decreased $7. 9 billion to a gain of $4. 7 billion, compared to $12. 6 billion in 2010. The decrease was primarily attributable to changes in the value of U. S. dollar-denominated pay-fixed interest rate swaps of $9. billion, foreign exchange contracts of $1. 8 billion and foreign exchange basis swaps of $1. 4 billion. The decrease was partially offset by a gain from the changes in the value of U. S. dollar-denominated receive-fixed interest rate swaps of $6. 6 billion. Opinions about fair value accounting Fair Value Accounting has many advantages and disadvantages as listed below. FVA advantages include the following: FVA depicts a clearer picture of the company’s financi al situation, as it provides an accurate asset and liability valuation as the prices are reflected in the market price.Fair value accounting limits managers’ ability to manipulate the reported net income, as the gains and losses are reported in the period they occur, not when they are realized as the result of a transaction. For Level 1 & 2, the price for financial instruments, are available in a liquid market. While under amortized accounting method, firms can manage their income through the selective realization of cumulative unrealized gains and losses on positions, an activity referred to as gains trading.FVA provides investors with more accurate, timely, and comparable financial information versus other alternative accounting approaches, even during extreme market conditions. Gains & losses resulting from changes in fair value estimates indicate economic events that companies and investors may find worthy of additional disclosures. Under amortized accounting, income typi cally is persistent for as long as firms hold positions, but becomes transitory when positions mature or are disposed of and firms replace them with new positions at current market terms.Disadvantages of FVA include: The price for certain assets and liabilities may fluctuate often, resulting in higher volatility than other accounting methods. When the market is volatile, the price for financial instruments may change a lot, so companies may recognize gains/losses. This volatility of earnings would make it more difficult for users to predict future performance and make regulatory capital ratio vary dramatically across periods. A solution for this disadvantage is regulatory capital should be delinked from fair value and reported by using historic cost information.After the market stabilizes, the price may change back to the normal level. Not every asset or liability can be easily fair valued. For financial instruments in level 3, there is no fair value in the liquidity market. Manager s need model to estimate the value of financial instruments in level 3. Using fair value accounting may have adverse effect on a down market. Companies may sell some financial instruments whose value decreased because of the drop in the current market price. They may not realize the drop without the fair value accounting.The market may stabilize over time, and the price for the financial instruments will return to their normal level. Another issue with fair value accounting is that when the market for instruments freezes up and there’s no liquidity in the market, financial instruments would have to be valued by using mark-to-model which in many situations are not reliable and transparent to investors. A solution to this is that regulators provide more specific guidance on how to determine fair value for financial statements.Disclosure requirements would include disclosure of fair value of all financial instruments along with method adopted to determine fair values, any signif icant assumptions used in their estimation, some indications of the sensitivity of the estimated fair value to these assumptions, and discussion of risk exposure and issues associated with the estimation of fair value. In addition, fair value accounting has very significant feedback effects, especially during financial crisis.Fair value accounting would further contribute to the deterioration in the value of a company’s financial instruments or assets and make it more difficult for companies to recover from the crisis. Recommendation here is that in special situations, regulators would allow companies that face severe crisis to adopt other accounting methods temporarily and minimize the loss of these companies. In summary, fair value has both advantages and disadvantages under today’s economy. FVA provides better insight of the financial statements, in ddition to limiting the potential for manipulation. However, in my opinion, under today’s economy situation, it is hard to fully implement the fair value accounting. Every disadvantage has proposed solutions to resolve the issues identified. Overall, FVA is recommended for use. Interest Rate Risk and Net Interest Earnings Net interest margin The net interest yield on a FTE basis was 2. 48 percent for 2011 compared to 2. 78 percent for 2010. Net interest income on a FTE basis decreased $7. 1 billion in 2011 to $45. 6 billion. The decline was primarily due to: (1).There’s a noticeable decrease in the yield on consumer loans from 6. 04% in 2010 to 5. 37% in 2011, which reduces net interest income by about 4,244 million (633,507 million * 0. 57%). * Debt securities and residential mortgage mainly contributed to the decline. The yield rate for debt securities decreased from 3. 66% to 2. 85%, and the residential mortgage from 4. 78% to 4. 18%. (2). Noninterest income declined from the previous year due to lower mortgage banking income, reflecting$11. 6 billion in representations and warrant ies costs and decline of $3. billion income from trading account profits. Noninterest income being the major source of Bank of America's income drastically impacts the profitability of the company. (3). In 2011 Bank of America had a decreased investment security yields, including the acceleration of purchase premium amortization from an increase in modeled prepayment expectations, and increased hedge ineffectiveness. (4). Bank of America’s declining net interest margin was partially offset by ongoing reductions in its debt footprint and lower rates paid on deposits.The total U. S interest-bearing deposits had an average yield of 0. 36%, compared to 0. 55% in 2008. Such downward trend in net interest margin can be observed in other banks as well. The following table presents total interest-earning assets rate and total interest-bearing liabilities for all three banks over 2009 to 2011. As shown, all banks experienced a decline in interest-earning assets rate over three years: 1) BOA from 4. 31% in 2009 to 3. 65% in 2011, with an average decrease of 8% every year; 2) Chase from 4. 04% to 3. 1%, with an average decrease of 6. 8%; 3) Citi from 4. 78% to 4. 27%, with an average decrease of 5. 5%. The main reasons for the other two banks’ declining net interest margin were higher deposit balances with lower loan yields. | Bank of America| JP Morgan Chase| Citi Group| | 2011| 2010| 2009| 2011| 2010| 2009| 2011| 2010| 2009| Total interest-earning assets rate| 3. 65%| 4. 02%| 4. 31%| 3. 51%| 3. 83%| 4. 04%| 4. 27%| 4. 55%| 4. 78%| Total interest-bearing liabilities| 1. 39%| 1. 39%| 1. 77%| 0. 86%| 0. 84%| 1. 02%| 1. 63%| 1. 61%| 1. 3%| Table 6 Net Interest Margin of Three Banks Interest rate risk BOA’s net interest income decreased by $2,122 million in 2011 and $998 million in 2010 from a 1% downward parallel shift in interest rate. 1% downward change in interest rate results in a bigger decrease in net interest income in 2011 than in 2010. However , according Chase’s 10K, downward 100bps parallel shocks result in a Federal Funds target rate of zero and negative three- and six-month treasury rates. The earnings-at-risk results of such a low-probability scenario are not meaningful.For Citi, a 100 bps decrease in interest rates would imply negative rates for the yield curve, so not meaningful either. 1% downward shift| 2011| 2010| BOA| ($2,122)| ($998)| JP Morgan Chase| NM| NM| Citi Group| NM| NM| Table 7 The Impact of 1% downward shift on Net Interest Income BOA’s net interest income would increase by $1,505 million in 2011 and $601 million in 2010 from a 1% upward parallel shift in interest rate. The same as downward change, 1% upward change in interest rate also would result in a bigger increase in the net interest income in 2011 than in 2010.Compared with BOA, 1% upward shift in interest rate has a bigger impact for Chase and smaller impact for Citi. 1% upward shift| 2011| 2010| Bank of America| $1,505 | $601 | JP Morgan Chase| $2,326 | $1,483 | Citi Group| $97 | ($105)| Table 8 The Impact of 1% Upward Shift on Net Interest Income Credit Risk and Losses Main loss reserve adequacy ratios Policy to designate past due loans as non-performing Adequacy of the bank’s allowance for loan losses Disclosure policies relating to loans Appendix BOAIn $ millions| 2011| 2011| 2010| 2010| 2011| 2010| 2011| ? | Carrying Value| Fair Value| Carrying Value| Fair Value| CURG| CURG| URG| Adjustments for assets and liabilities at HC on balance sheet| Assets:| ? | ? | ? | ? | ? | ? | ? | Held-to maturity debt securities| 35,265 | 35,442 | 427 | 427 | 177 | – | 177 | Loans| 870,520 | 843,392 | 876,739 | 861,695 | (27,128)| (15,044)| (12,084)| Total assets| 905,785 | 878,834 | 877,166 | 862,122 | (26,951)| (15,044)| (11,907)| Liabilities:| ? ? | ? | ? | ? | ? | ? | Deposits| 1,033,041 | 1,033,248 | 1,010,430 | 1,010,460 | 207 | 30 | 177 | Long-term debt| 372,265 | 343,211 | 448,431 | 441,672 | (29,0 54)| (6,759)| (22,295)| Total liabilities| 1,405,306 | 1,376,459 | 1,458,861 | 1,452,132 | (28,847)| (6,729)| (22,118)| Pretax adjustments before AFS securities and CFH derivatives| ? | ? | ? | ? | 1,896 | (8,315)| 10,211 | Aftertax adjustments before AFS securities and CFH derivatives| ? | ? | ? | ? | ? ? | 6,127 | Adjustments for assets and liabilities at FV on balance sheet with gains and losses in OCI? | Aftertax adjustment for AFS securities| ? | ? | ? | ? | ? | ? | (4,270)| Aftertax adjustment for CFH derivatives| ? | ? | ? | ? | ? | ? | (549)| Total adjustment to net income| ? | ? | ? | ? | ? | ? | 1,308 | Net income as per financial statements| ? | ? | ? | ? | ? | ? | 1,446 | Full fair value income with information available| ? | ? | ? | ? | ? | ? | 2,754 | JP Morgan ChaseIn $ millions| 2011| 2011| 2010| 2010| 2011| 2010| 2011| ? | Carrying Value| Fair Value| Carrying Value| Fair Value| CURG| CURG| URG| Adjustments for assets and liabilities at HC on balance sheet| Assets:| ? | ? | ? | ? | ? | ? | ? | Loans| 696,100 | 695,800 | 660,700 | 663,500 | (300)| 2,800 | (3,100)| Other| 66,300 | 66,800 | 64,900 | 65,000 | 500 | 100 | 400 | Total assets| 762,400 | 762,600 | 725,600 | 728,500 | 200 | 2,900 | (2,700)| Liabilities:| ? | ? | ? | ? | ? | ? | ? |Deposits| 1,127,800 | 1,128,300 | 930,400 | 931,500 | 500 | 1,100 | (600)| Accounts payable and other liabilities| 167,000 | 166,900 | 138,200 | 138,200 | (100)| – | (100)| Beneficial interests issued by consolidated VIEs| 66,000 | 66,200 | 77,600 | 77,900 | 200 | 300 | (100)| Long-term debt and junior subordinated deferrable interest debentures| 256,800 | 254,200 | 270,700 | 271,900 | (2,600)| 1,200 | (3,800)| Total liabilities| 1,617,600 | 1,615,600 | 1,416,900 | 1,419,500 | (2,000)| 2,600 | (4,600)| Pretax adjustments before AFS securities and CFH derivatives| ? | ? ? | ? | 2,200 | 300 | 1,900 | Aftertax adjustments before AFS securities and CFH derivatives| ? | ? | ? | ? | ? | ? | 1,140 | Adjustment s for assets and liabilities at FV on balance sheet with gains and losses in OCI| Aftertax adjustment for AFS securities| ? | ? | ? | ? | ? | ? | 1,067 | Aftertax adjustment for CFH derivatives| ? | ? | ? | ? | ? | ? | (279)| Cash flow hedge| ? | ? | ? | ? | ? | ? | (155)| Total adjustment to net income| ? | ? | ? | ? | ? | ? | 1,773 | Net income as per financial statements| ? | ? | ? | ? | ? | ? | 18,976 | Full fair value income with information available| ? ? | ? | ? | ? | ? | 20,749 | Citi Group In $ millions| 2011| 2011| 2010| 2010| 2011| 2010| 2011| ? | Carrying Value| Fair Value| Carrying Value| Fair Value| CURG| CURG| URG| Adjustments for assets and liabilities at HC on balance sheet? | Assets:| ? | ? | ? | ? | ? | ? | ? | Investment| 293,400 | 292,400 | 318,200 | 319,000 | (1,000)| 800 | (1,800)| Loans| 614,600 | 603,900 | 605,500 | 584,300 | (10,700)| (21,200)| 10,500 | Total assets| 908,000 | 896,300 | 923,700 | 903,300 | (11,700)| (20,400)| 8,700 | Liabilities:| ? ? | ? | ? | ? | ? | ? | Deposits| 865,900 | 865,800 | 845,000 | 843,200 | (100)| (1,800)| 1,700 | Long-term debt| 323,500 | 313,800 | 381,200 | 384,500 | (9,700)| 3,300 | (13,000)| Total liabilities| 1,189,400 | 1,179,600 | 1,226,200 | 1,227,700 | (9,800)| 1,500 | (11,300)| Pretax adjustments before AFS securities and CFH derivatives| ? | ? | ? | ? | (1,900)| (21,900)| 20,000 | Aftertax adjustments before AFS securities and CFH derivatives| ? ? | ? | ? | ? | ? | 12,000 | Adjustments for assets and liabilities at FV on balance sheet with gains and losses in OCI| Aftertax adjustment for AFS securities| ? | ? | ? | ? | ? | ? | 2,360 | Cash flow hedge| ? | ? | ? | ? | ? | ? | (170)| Total adjustment to net income| ? | ? | ? | ? | ? | ? | 14,190 | Net income as per financial statements| ? | ? | ? | ? | ? | ? | 11,215 | Full fair value income with information available| ? | ? | ? | ? | ? | ? | 25,405 | Financial Analysis of Bank of America Financial Statement Analysis of Bank of America Group 1 Chen, Yelin Dong, Xiaoxu Gransbach, Jennifer Shuai, Wang Weiss, Charles 1Financial Statements of Bank of America1 1. 1Balance sheet1 1. 2Income statement2 1. 3Regulatory capital ratios2 1. 4Investment portfolio2 1. 5Impact of the FSP FAS 115-2 and FAS 124-2 on OTTI3 1. 5. 1Bank of America3 1. 5. 2JP Morgan Chase3 1. 5. 3Citi Group3 1. 6Netting Financial Instruments3 1. 6. 1Bank of America4 1. 6. 2Comparable banks4 1. 6. 3Analysis of the impact4 2Fair Value Accounting for Financial Instruments4 2. Fair value accounting4 Table 6 Summary of the Fair Value Income5 2. 2Opinions about fair value accounting5 3Interest Rate Risk and Net Interest Earnings6 3. 1Net interest margin6 3. 2Interest rate risk7 4Credit Risk and Losses7 4. 1Main loss reserve adequacy ratios8 4. 2Policy to designate past due loans as non-performing8 4. 3Adequacy of the bank’s allowance for loan losses8 4. 4Disclosure policies relating to loans8 5Appendix9 * Part 1 Financial Statements of Bank of America . 1. 1 Balance sheetBank of America’s balance sheet has total assets of $2,129,046 million in 2011, which is less than last year’s $2,264,909 million, a fairly significant decline. There are a few primary assets on the balance sheet. The largest asset is loans and leases which makes up 41. 92% of the total assets. The next largest asset was Available-For-Sale securities making up 12. 97% of total assets. Total liabilities on the balance sheet were $1,898,945 million, with the primary liability being deposits in U. S. offices both interest bearing and noninterest bearing, at 50. 4% of total liabilities. The next largest liability was long-term debt at 19. % of total liabilities. In millions| 2011| % of total assets| 2010| % of total assets| % chg from 2010-2011| Total asset| 2,029,046 | 100. 00%| 2,264,909 | 100. 00%| -10. 41%| Loans and leases| 892,417 | 43. 98%| 898,555 | 39. 67%| -0. 68%| Available-for-sale| 276,151 | 13. 61%| 337,627 | 14. 91%| -18. 21%| Total liabilities| 1,898,945 | 93. 59%| 2,036,661 | 89. 92%| -6. 76%| Total deposits| 1,033,041 | 50. 91%| 1,010,430 | 44. 61%| 2. 24%| Deposits in U. S. offices| 957,042 | 47. 17%| 930,913 | 41. 10%| 2. 81%| Long-term debt| 372,265 | 18. 35%| 448,431 | 19. 80%| -16. 98%| Leverage ratio| 14. 0 | ? | 8. 92 | ? | 63. 58%| Table 1 Selected Financial Data from Balance Sheet of Bank of America Chase and Citi are fairly similar in size and distribution of their balance sheets. Chase and Citi have total assets of 2,265,792 and 1,873,878( ) respectively, both with slightly lower loans as a percentage of total assets at slightly over 30%, while AFS securities are around 16% of total assets for each. Liabilities are also very similar, with Chase having total liabilities of $2,082,219 million and Citi $1,694,305 million. The primary line items are also very similar once again with Chase’s total deposits 54. 6% and long-term debt 22. 77% of total lia bilities, while Citi has deposits 51. 11% and long-term debt of 19. 09%. According to the deposits in U. S. offices, BOA focus more in U. S market and Citi focus more on market outside U. S. In millions| Bank of America| % of total assets| JP Morgan Chase| % of total assets| Citi Group| % of total assets| Total asset| 2,129,046 | 100. 00%| 2,265,792 | 100. 00%| 1,873,878 | 100. 00%| Loans and leases| 892,417 | 41. 92%| 696,111 | 30. 72%| 617,127 | 32. 93%| Available-for-sale| 276,151 | 12. 97%| 364,793 | 16. 10%| 293,413 | 15. 66%| ? | ? | ? | ? | ? | ? | ? |In millions| Bank of America| % of total liabilities| JP Morgan Chase| % of total liabilities| Citi Group| % of total liabilities| Total liabilities| 1,898,945 | 100. 00%| 2,082,219 | 100. 00%| 1,694,305 | 100. 00%| Total deposits| 1,033,041 | 54. 40%| 1,127,806 | 54. 16%| 865,936 | 51. 11%| Long-term debt| 372,265 | 19. 60%| 256,775 | 22. 77%| 3,235,050 | 190. 94%| Leverage ratio| 8. 25 | ? | 11. 34 | ? | 9. 44 | ? | | | | | | | | In millions| Bank of America| % of total deposits| JP Morgan Chase| % of total deposits| Citi Group| % of total deposits| Deposits in U. S. offices| 957,042 | 92. 64%| 851,534 | 75. 0%| 343,288 | 39. 64%| Table 2 Selected Financial Data from Balance Sheets of Three Banks in 2011 In the event of a bank run, Bank of America will be in trouble due to its high leverage, similar to many banks. Bank of America has deposits of $1,033,041 million, among which liquid assets only have $314,425 million, including cash and cash equivalents of $120,102 million, time deposits and other short-term investments of $26,004 million and trading assets of $169,319 million. Even with the ability to liquidate those non-cash assets, it will still only be able to honor slightly more than 30% of its depositors.Income statement The primary line item on Bank of America’s income statement is net income of $1,446 million, which increased compared to a net loss of 2,238 in 2010. Interest income was $66 ,236 million, down from $75,497 million in 2010. Total interest expense was $21,620 million, which makes the net interest income become $44,616 million, down 13. 4% from the previous year. Lastly, total noninterest income was $48,838 million, decreased by 16. 8% from 2010. This is partly due to the big loss of mortgage banking income, decreasing from $2,734 million in 2010 to $(8,830) million in 2011.Chase and Citi had similar trends, both slightly increasing their bottom line while having net interest income decrease slightly. Regulatory capital ratios 2011| Bank of America| JP Morgan Chase| Citi Group| To be well capitalized| Leverage ratio| 7. 53%| 6. 80%| 7. 19%| 5%| Tier 1 risk-based capital ratio| 12. 40%| 12. 30%| 13. 55%| 6%| Total risk-based| 16. 75%| 15. 40%| 16. 99%| 10%| Table 3 Regulatory Capital Ratios of Three Banks in 2011 In 2011, Bank of America was considered well capitalized for all three regulatory ratios–Tier 1 capital, risk-based capital and leverage.Ba nk of America slightly increased all of its ratios from 2010 to 2011. Its tier 1 capital ratio was 12. 4% while 6% is considered well capitalized, its risk based capital ratio was 16. 75% while 10% is considered well capitalized, and its leverage ratio was 7. 53% while 5% is considered well capitalized. ( Table 4, Table 3) Chase and Citi had very similar ratios to Bank of America. Chase was slightly below Bank of America and Citi for all three ratios but still well above the floor to be well capitalized.Citi had a slightly lower leverage ratio and slightly higher tier 1 capital and risk based capital ratios. Regulatory ratios are fairly important; however there are some issues with them. The ratios are backwards looking, so there could be a large amount of change since in the numbers. There are also lots of adjustments made by the company to the different numbers that make up the ratio that might not even make sense such as ignoring AFS losses. The current risk weighting is also ve ry simplistic currently and might not reflect the actual risk of the assets.One important thing to note is that the newly released Basel III norms by Basel Committee on Banking Supervision (BCBS) would require a higher regulatory capital ratio on banks. It is recommended that Basel III be implemented by January 1, 2015. According to the new rules, the mandatory Tier 1 common capital ratio would be 7%. Banks should maintain conservation buffer of 2. 5% and reserves amounting to 8. 5% of assets. Therefore, in order for Bank of America to meet the future requirements and be well capitalized in face of potential financial meltdowns, it should hold more and better quality capital, carry more liquid ssets, and limit leverage. ( , ) Investment portfolio The net unrealized gains on HTM securities of $177 million = $181 million + ($4) million that have not been recognized in OCI as of the end of 2011 are attributable to HTM securities that have not been deemed other than temporarily (OTT) i mpaired, so that amortized cost is the carrying value. Amortized cost is a highly limited valuation basis for risky securities. There was very little mention of reclassification in Bank of America’s 10-K. There was a mention of a reclassification of $26. billion primarily due to noninterest earning equity securities being moved from trading account assets to other assets, but no mention of anything else. Impact of the FSP FAS 115-2 and FAS 124-2 on OTTI Bank of America According to FSP FAS 115-2 and FAS 124-2, banks are allowed to report non-credit related OTTI in Other Comprehensive Income (OCI). Only credit-related OTTI is recognized in net income. The Total OTTI losses (unrealized and realized) for 2011 is $360 million, and portion of other-than-temporary impairment losses recognized in other comprehensive income is about $61 millions.The net amount is $299 million which is recognized in earnings on AFS debt securities in 2011, compared to $970 million on AFS debt and mark etable equity securities in 2010. When we compute the regulatory Tier One Capital, the unrealized losses on AFS investments are (added back) excluded. Thus, the $61 million is added back to calculate the Tier One Capital. With adding back, Tier 1 risk-based capital ratio is 12. 40% as shown on 2011 Y9C. In absence of adding back, the ratio is (159,231,999-61,000)/ 1,284,466,933=12. 39%. JP Morgan Chase For JP Morgan Chase, the10K shows Total other-than-temporary impairment losses for are 27, 94, nd 946 million for year 2011, 2010 and 2009 respectively. ( ) However, it doesn’t divide these amounts into credit-related portion and non-credit related portion. Based on the other two banks examples, we can infer that the Tier One Capital for JP Morgan Chase will go up after adoption. Citi Group Citigroup also adopted the same rules above in first quarter of 2009. As a result of the FSP, Company’s Consolidated Statement of Income reflects the full impairment on debt securiti es that the Company intends to sell or would more-likely-than-not be required to sell before the expected recovery of the amortized cost basis.As a result of the adoption of the FSP, Citigroup’s income in the first quarter of 2009 was higher by $631 million on a pretax basis ($391 million on an after-tax basis) and AOCI was decreased by a corresponding amount. However, 2011 10K does not gives details about regarding the credit loss component of OTTI in 2011. When we compute the regulatory Tier One Capital for Citigroup, the unrealized losses from non-credit loss component on debt securities are (added back) excluded, which leads to an increase in Tier One Capital.Netting Financial Instruments | Â  | Bank of America| JP Morgan Chase| Citi Group| IFRS(Before netting)| Total assets| 2,130,796| 3,976,317| 2,749,470| | Total debt| 1,900,695| 3,792,742| 2,564,671| | Total equity| 230,101| 183,575| 184,799| | Leverage ratio| 8. 26| 20. 66| 13. 88| GAAP(After netting)| Total assets| 2,129,046| 2,265,792| 1,873,878| | Total debt| 1,898,945| 2,082,219| 1,694,305| | Total equity| 230,101| 183,573| 179,573| | Leverage ratio| 8. 25| 11. 34| 9. 44| Table 4 Netting Adjustments for Three Banks in 2011 Bank of AmericaAccording to Note 4—Derivatives, Bank of America had legally enforceable master netting agreement that would reduce both derivative assets and derivative liabilities by the same amount of 1,749. 9 million, respectively. Moreover, cash collateral was applied to net off derivative assets by 58. 9 million and derivative liabilities by 51. 9 million, respectively. However, the reduction caused by cash collateral wouldn’t affect total assets and total liabilities. If Band of America were to adopt IFRS, it would report higher gross derivative assets and liabilities by an increase of 1,749. million. However, the adjustment (1,749. 9 million) was insignificant compared to Bank of America’s total asset base (2,129,046 million, about 0. 08%). Th erefore, the leverage ratio would only increase slightly due to this change, from 8. 25 under GAAP to 8. 26 under IFRS. Comparable banks J. P. Morgan Chase’s gross derivative assets were offset by 1,710,525 million netting adjustments and gross derivative liabilities by 1,710,523. Such adjustments almost made up of 75% of Chase’s total asset base which is 2,265,792 million.Therefore, if to adopt IFRS, Chase would record a much higher assets and liabilities up to 3,976,317 million and 3,792,742 million, respectively. Leverage ratio, accordingly, would rise from 11. 34 to 20. 66, with an almost doubled increase. Citi Group’s netting adjustments of 875,592 million against derivative assets made up 46. 7% of total assets, and 870,366 million against derivative liabilities made up 33. 9% of total liabilities. When adopting IFRS, Citi would report a higher assets and liabilities, with its leveraging ratio growing from 9. 44 to 13. 88 due to the significant amount of t he netting adjustments. Analysis of the impactFrom the above table, we can see that Bank of America was merely affected by the presentation of netting financial instruments, while the other two banks were greatly affected in terms of leverage ratio. The main reason to such a distinguished difference is that Bank of America had the smallest investment in derivative instruments, compared to Chase and Citi. The gross approach would definitely give a more comprehensive picture of banks’ derivative instruments; however, it would overstate risk to some extent. Market risk of the derivative positions can be better evaluated using the gross presentation which is more detailed.Firstly, net figures are by far more relevant metrics than the gross amounts. Naturally, this comes about from looking to the way that derivatives are traded under an enforceable master netting agreement. The master netting agreement allows for the aggregation of all trades and the replacement by a single net am ount. Secondly, another metric to measure derivative portfolios is volatility which is driven by the risk of open market positions and the potential changes in net asset values and not the size of gross derivatives amounts.Therefore, gross balance sheet amounts are not particularly useful indicators of how much net derivative asset values would have to change before solvency is affected. Finally, as the third most important metric when evaluating the risks, collateral together with cash settlement procedures results in a liquidity profile that is more aligned with net presentation. Collateral amounts further reduce the risks and have to be taken into consideration for reporting derivatives Fair Value Accounting for Financial InstrumentsFair value accounting From table 5 and the three computation tables in Appendix, we can see that under Full Fair Value method, Bank of America’s net income would grow from 1,446 million to 2,750 million, an increase of 90. 2%. Similarly, Citi w ould experience an increase of 128. 2% in net income from 11,067 million to 25,257 million. However, full fair value method had insignificant impact on Chase, with a total adjustment of 1,773 million compared to its pre-adjustment net income of 18,976 million.In millions| Bank of America| JP Morgan Chase| Citi Group| Adjustments for assets and liabilities at HC on balance sheet| 6,127 | 1,140 | 12,000 | Adjustments for assets and liabilities at FV on balance sheet with gains and losses in OCI| -4,819 | 633 | 2,190 | Total adjustment| 1,308 | 1,773 | 14,190 | Net income as per financial statements| 1,446 | 18,976 | 11,215 | Full fair value income with information available| 2,754 | 20,749 | 25,405 | * Table 5 Summary of the Fair Value IncomeAnother thing to note is that BOA stands out as it had a significant unrealized loss of 4,819 million on AFS, while its comparable banks, Chase and Citi, had a positive gain of 633 million and 2,190 million, respectively. Based on our analysis, su ch difference was driven by the following factors. (1). According to its disclosure, Bank of America recognized $299 million of other-than-temporary impairment (OTTI) losses in earnings on AFS debt securities in 2011 compared to $970 million on AFS debt and marketable equity securities in 2010, which contributes greatly in such a large amount of unrealized loss on AFS.The recognition of OTTI losses on AFS debt and marketable equity securities is based on a variety of factors, including the length of time and extent to which the market value has been less than amortized cost, the financial condition of the issuer of the security including credit ratings and any specific events affecting the operations of the issuer, underlying assets that collateralize the debt security, other industry and macroeconomic conditions, and management’s intent and ability to hold the security to recovery. (2).According to its disclosure, Bank of America presents debt securities purchased for longer term investment purposes which are as part of asset and liability management (ALM) and other strategic activities, as available-for-sale (AFS) securities, and report these securities at fair value with net unrealized gains and losses included in accumulated OCI. In 2011, the fair value of net ALM contracts decreased $7. 9 billion to a gain of $4. 7 billion, compared to $12. 6 billion in 2010. The decrease was primarily attributable to changes in the value of U. S. dollar-denominated pay-fixed interest rate swaps of $9. billion, foreign exchange contracts of $1. 8 billion and foreign exchange basis swaps of $1. 4 billion. The decrease was partially offset by a gain from the changes in the value of U. S. dollar-denominated receive-fixed interest rate swaps of $6. 6 billion. Opinions about fair value accounting Fair Value Accounting has many advantages and disadvantages as listed below. FVA advantages include the following: FVA depicts a clearer picture of the company’s financi al situation, as it provides an accurate asset and liability valuation as the prices are reflected in the market price.Fair value accounting limits managers’ ability to manipulate the reported net income, as the gains and losses are reported in the period they occur, not when they are realized as the result of a transaction. For Level 1 & 2, the price for financial instruments, are available in a liquid market. While under amortized accounting method, firms can manage their income through the selective realization of cumulative unrealized gains and losses on positions, an activity referred to as gains trading.FVA provides investors with more accurate, timely, and comparable financial information versus other alternative accounting approaches, even during extreme market conditions. Gains & losses resulting from changes in fair value estimates indicate economic events that companies and investors may find worthy of additional disclosures. Under amortized accounting, income typi cally is persistent for as long as firms hold positions, but becomes transitory when positions mature or are disposed of and firms replace them with new positions at current market terms.Disadvantages of FVA include: The price for certain assets and liabilities may fluctuate often, resulting in higher volatility than other accounting methods. When the market is volatile, the price for financial instruments may change a lot, so companies may recognize gains/losses. This volatility of earnings would make it more difficult for users to predict future performance and make regulatory capital ratio vary dramatically across periods. A solution for this disadvantage is regulatory capital should be delinked from fair value and reported by using historic cost information.After the market stabilizes, the price may change back to the normal level. Not every asset or liability can be easily fair valued. For financial instruments in level 3, there is no fair value in the liquidity market. Manager s need model to estimate the value of financial instruments in level 3. Using fair value accounting may have adverse effect on a down market. Companies may sell some financial instruments whose value decreased because of the drop in the current market price. They may not realize the drop without the fair value accounting.The market may stabilize over time, and the price for the financial instruments will return to their normal level. Another issue with fair value accounting is that when the market for instruments freezes up and there’s no liquidity in the market, financial instruments would have to be valued by using mark-to-model which in many situations are not reliable and transparent to investors. A solution to this is that regulators provide more specific guidance on how to determine fair value for financial statements.Disclosure requirements would include disclosure of fair value of all financial instruments along with method adopted to determine fair values, any signif icant assumptions used in their estimation, some indications of the sensitivity of the estimated fair value to these assumptions, and discussion of risk exposure and issues associated with the estimation of fair value. In addition, fair value accounting has very significant feedback effects, especially during financial crisis.Fair value accounting would further contribute to the deterioration in the value of a company’s financial instruments or assets and make it more difficult for companies to recover from the crisis. Recommendation here is that in special situations, regulators would allow companies that face severe crisis to adopt other accounting methods temporarily and minimize the loss of these companies. In summary, fair value has both advantages and disadvantages under today’s economy. FVA provides better insight of the financial statements, in ddition to limiting the potential for manipulation. However, in my opinion, under today’s economy situation, it is hard to fully implement the fair value accounting. Every disadvantage has proposed solutions to resolve the issues identified. Overall, FVA is recommended for use. Interest Rate Risk and Net Interest Earnings Net interest margin The net interest yield on a FTE basis was 2. 48 percent for 2011 compared to 2. 78 percent for 2010. Net interest income on a FTE basis decreased $7. 1 billion in 2011 to $45. 6 billion. The decline was primarily due to: (1).There’s a noticeable decrease in the yield on consumer loans from 6. 04% in 2010 to 5. 37% in 2011, which reduces net interest income by about 4,244 million (633,507 million * 0. 57%). * Debt securities and residential mortgage mainly contributed to the decline. The yield rate for debt securities decreased from 3. 66% to 2. 85%, and the residential mortgage from 4. 78% to 4. 18%. (2). Noninterest income declined from the previous year due to lower mortgage banking income, reflecting$11. 6 billion in representations and warrant ies costs and decline of $3. billion income from trading account profits. Noninterest income being the major source of Bank of America's income drastically impacts the profitability of the company. (3). In 2011 Bank of America had a decreased investment security yields, including the acceleration of purchase premium amortization from an increase in modeled prepayment expectations, and increased hedge ineffectiveness. (4). Bank of America’s declining net interest margin was partially offset by ongoing reductions in its debt footprint and lower rates paid on deposits.The total U. S interest-bearing deposits had an average yield of 0. 36%, compared to 0. 55% in 2008. Such downward trend in net interest margin can be observed in other banks as well. The following table presents total interest-earning assets rate and total interest-bearing liabilities for all three banks over 2009 to 2011. As shown, all banks experienced a decline in interest-earning assets rate over three years: 1) BOA from 4. 31% in 2009 to 3. 65% in 2011, with an average decrease of 8% every year; 2) Chase from 4. 04% to 3. 1%, with an average decrease of 6. 8%; 3) Citi from 4. 78% to 4. 27%, with an average decrease of 5. 5%. The main reasons for the other two banks’ declining net interest margin were higher deposit balances with lower loan yields. | Bank of America| JP Morgan Chase| Citi Group| | 2011| 2010| 2009| 2011| 2010| 2009| 2011| 2010| 2009| Total interest-earning assets rate| 3. 65%| 4. 02%| 4. 31%| 3. 51%| 3. 83%| 4. 04%| 4. 27%| 4. 55%| 4. 78%| Total interest-bearing liabilities| 1. 39%| 1. 39%| 1. 77%| 0. 86%| 0. 84%| 1. 02%| 1. 63%| 1. 61%| 1. 3%| Table 6 Net Interest Margin of Three Banks Interest rate risk BOA’s net interest income decreased by $2,122 million in 2011 and $998 million in 2010 from a 1% downward parallel shift in interest rate. 1% downward change in interest rate results in a bigger decrease in net interest income in 2011 than in 2010. However , according Chase’s 10K, downward 100bps parallel shocks result in a Federal Funds target rate of zero and negative three- and six-month treasury rates. The earnings-at-risk results of such a low-probability scenario are not meaningful.For Citi, a 100 bps decrease in interest rates would imply negative rates for the yield curve, so not meaningful either. 1% downward shift| 2011| 2010| BOA| ($2,122)| ($998)| JP Morgan Chase| NM| NM| Citi Group| NM| NM| Table 7 The Impact of 1% downward shift on Net Interest Income BOA’s net interest income would increase by $1,505 million in 2011 and $601 million in 2010 from a 1% upward parallel shift in interest rate. The same as downward change, 1% upward change in interest rate also would result in a bigger increase in the net interest income in 2011 than in 2010.Compared with BOA, 1% upward shift in interest rate has a bigger impact for Chase and smaller impact for Citi. 1% upward shift| 2011| 2010| Bank of America| $1,505 | $601 | JP Morgan Chase| $2,326 | $1,483 | Citi Group| $97 | ($105)| Table 8 The Impact of 1% Upward Shift on Net Interest Income Credit Risk and Losses Main loss reserve adequacy ratios Policy to designate past due loans as non-performing Adequacy of the bank’s allowance for loan losses Disclosure policies relating to loans Appendix BOAIn $ millions| 2011| 2011| 2010| 2010| 2011| 2010| 2011| ? | Carrying Value| Fair Value| Carrying Value| Fair Value| CURG| CURG| URG| Adjustments for assets and liabilities at HC on balance sheet| Assets:| ? | ? | ? | ? | ? | ? | ? | Held-to maturity debt securities| 35,265 | 35,442 | 427 | 427 | 177 | – | 177 | Loans| 870,520 | 843,392 | 876,739 | 861,695 | (27,128)| (15,044)| (12,084)| Total assets| 905,785 | 878,834 | 877,166 | 862,122 | (26,951)| (15,044)| (11,907)| Liabilities:| ? ? | ? | ? | ? | ? | ? | Deposits| 1,033,041 | 1,033,248 | 1,010,430 | 1,010,460 | 207 | 30 | 177 | Long-term debt| 372,265 | 343,211 | 448,431 | 441,672 | (29,0 54)| (6,759)| (22,295)| Total liabilities| 1,405,306 | 1,376,459 | 1,458,861 | 1,452,132 | (28,847)| (6,729)| (22,118)| Pretax adjustments before AFS securities and CFH derivatives| ? | ? | ? | ? | 1,896 | (8,315)| 10,211 | Aftertax adjustments before AFS securities and CFH derivatives| ? | ? | ? | ? | ? ? | 6,127 | Adjustments for assets and liabilities at FV on balance sheet with gains and losses in OCI? | Aftertax adjustment for AFS securities| ? | ? | ? | ? | ? | ? | (4,270)| Aftertax adjustment for CFH derivatives| ? | ? | ? | ? | ? | ? | (549)| Total adjustment to net income| ? | ? | ? | ? | ? | ? | 1,308 | Net income as per financial statements| ? | ? | ? | ? | ? | ? | 1,446 | Full fair value income with information available| ? | ? | ? | ? | ? | ? | 2,754 | JP Morgan ChaseIn $ millions| 2011| 2011| 2010| 2010| 2011| 2010| 2011| ? | Carrying Value| Fair Value| Carrying Value| Fair Value| CURG| CURG| URG| Adjustments for assets and liabilities at HC on balance sheet| Assets:| ? | ? | ? | ? | ? | ? | ? | Loans| 696,100 | 695,800 | 660,700 | 663,500 | (300)| 2,800 | (3,100)| Other| 66,300 | 66,800 | 64,900 | 65,000 | 500 | 100 | 400 | Total assets| 762,400 | 762,600 | 725,600 | 728,500 | 200 | 2,900 | (2,700)| Liabilities:| ? | ? | ? | ? | ? | ? | ? |Deposits| 1,127,800 | 1,128,300 | 930,400 | 931,500 | 500 | 1,100 | (600)| Accounts payable and other liabilities| 167,000 | 166,900 | 138,200 | 138,200 | (100)| – | (100)| Beneficial interests issued by consolidated VIEs| 66,000 | 66,200 | 77,600 | 77,900 | 200 | 300 | (100)| Long-term debt and junior subordinated deferrable interest debentures| 256,800 | 254,200 | 270,700 | 271,900 | (2,600)| 1,200 | (3,800)| Total liabilities| 1,617,600 | 1,615,600 | 1,416,900 | 1,419,500 | (2,000)| 2,600 | (4,600)| Pretax adjustments before AFS securities and CFH derivatives| ? | ? ? | ? | 2,200 | 300 | 1,900 | Aftertax adjustments before AFS securities and CFH derivatives| ? | ? | ? | ? | ? | ? | 1,140 | Adjustment s for assets and liabilities at FV on balance sheet with gains and losses in OCI| Aftertax adjustment for AFS securities| ? | ? | ? | ? | ? | ? | 1,067 | Aftertax adjustment for CFH derivatives| ? | ? | ? | ? | ? | ? | (279)| Cash flow hedge| ? | ? | ? | ? | ? | ? | (155)| Total adjustment to net income| ? | ? | ? | ? | ? | ? | 1,773 | Net income as per financial statements| ? | ? | ? | ? | ? | ? | 18,976 | Full fair value income with information available| ? ? | ? | ? | ? | ? | 20,749 | Citi Group In $ millions| 2011| 2011| 2010| 2010| 2011| 2010| 2011| ? | Carrying Value| Fair Value| Carrying Value| Fair Value| CURG| CURG| URG| Adjustments for assets and liabilities at HC on balance sheet? | Assets:| ? | ? | ? | ? | ? | ? | ? | Investment| 293,400 | 292,400 | 318,200 | 319,000 | (1,000)| 800 | (1,800)| Loans| 614,600 | 603,900 | 605,500 | 584,300 | (10,700)| (21,200)| 10,500 | Total assets| 908,000 | 896,300 | 923,700 | 903,300 | (11,700)| (20,400)| 8,700 | Liabilities:| ? ? | ? | ? | ? | ? | ? | Deposits| 865,900 | 865,800 | 845,000 | 843,200 | (100)| (1,800)| 1,700 | Long-term debt| 323,500 | 313,800 | 381,200 | 384,500 | (9,700)| 3,300 | (13,000)| Total liabilities| 1,189,400 | 1,179,600 | 1,226,200 | 1,227,700 | (9,800)| 1,500 | (11,300)| Pretax adjustments before AFS securities and CFH derivatives| ? | ? | ? | ? | (1,900)| (21,900)| 20,000 | Aftertax adjustments before AFS securities and CFH derivatives| ? ? | ? | ? | ? | ? | 12,000 | Adjustments for assets and liabilities at FV on balance sheet with gains and losses in OCI| Aftertax adjustment for AFS securities| ? | ? | ? | ? | ? | ? | 2,360 | Cash flow hedge| ? | ? | ? | ? | ? | ? | (170)| Total adjustment to net income| ? | ? | ? | ? | ? | ? | 14,190 | Net income as per financial statements| ? | ? | ? | ? | ? | ? | 11,215 | Full fair value income with information available| ? | ? | ? | ? | ? | ? | 25,405 |

Pretty Babies, Child Beauty Pageants Essay

Many of us first learned about the world of child beauty pageants when a 5  ½ year old beauty queen named JonBenet Ramsey was found murdered the day after Christmas in 1996. The child was murdered in her Boulder Colorado home and found in the basement with her hands tied, her mouth duct taped, and her throat garroted. Her death was ruled strangulation but there was also blunt force trauma to her head as well as vaginal injury (Auge, Karen, par. 13-15). Her death brought these pageants into our minds, conversations and living rooms and many people were shocked to see a child of that age made up like an adult woman, some even said like a prostitute and accused the pageants of sexualizing her and the other children. Images and videos of JonBenet with her hair curled, teased, and sprayed, wearing heavy make-up and glamorous outfits were splattered across the newsstands and she pranced across our televisions winking, flirting and dancing. Any link of her death to the pageants is speculative since the murder remains unsolved, but many people could not help but wonder how safe it was for a child to be made a spectacle of in such a fashion. This past Monday would have been JonBenets 22nd birthday. Perhaps it is time that we as a society take a good look at child beauty pageants and decide what place if any they have in the future for our daughters. JonBenet was the daughter of a wealthy businessman named John Ramsey and his wife, a former Miss West Virginia 1977, Patsy. Patsy has since passed away but John Ramsey has written a book titled â€Å"The Other Side of Suffering† and in an interview with Nightline, John has expressed his regret that JonBenet participated in the pageants. He states in the interview â€Å"Only because- that possibly (the pageants) might have drawn attention to us. † â€Å"I don’t know. But- I think for- for advice to parents is just recognize that- regardless of where you live, there could be evil around you. And don’t be naive about it. And keep your kids protected† (Chang, par. 0). He wonders now about some of the public appearances JonBenet made and if the murderer was maybe in the audience. He says â€Å"Patsy had her sitting atop a friend’s convertible in the Christmas parade waving at people lining the streets. † â€Å"Patsy’s mother later told me that a strange man approached the car during the parade and it made her uncomfortable. I think about these things now and it makes me cringe. We were so naive. I now believe with all my heart that it is not a good idea to put your child on public display. (Chang, par. 7). His words give weight to the issue at hand and initially, it seems, many people felt the same way as child pageants took a financial hit as less people wanted to be associated with the â€Å"publicly tainted industry† (Friedman, par. 5). Fifteen years after the tragic death of JonBenet the pageants have enjoyed a resurgence in popularity (Friedman, par. 6) thanks in large part to the hit show on The Learning Channel, Toddlers & Tiaras. The show is immensely popular and is now in its fourth season (IMDB, 2012). Understanding, of course that this is a television show and not a documentary, that it has been edited for drama and to create what is commonly called â€Å"good television†, the show nonetheless gives a viewer a look inside this somewhat alien world. In his interview John Ramsey stated that he had never watched the show but had caught snippets that he finds disturbing. â€Å"It is very bizarre† he states â€Å"And, it certainly- Patsy and JonBenet didn’t approach it that way. We-they just did it for fun. †(Chang, par. 5). Will the parents or the pageant officials take heed? Or will the allure of glamour and profit make them justify their actions? Watching the television show you are immediately struck by one fact; this is a southern thing. To the people who do this, none of it is strange. In fact many of the parents were overjoyed to learn they were pregnant with girls and began to buy gowns before their babies were even born. One mother who has a boy and a girl stated that she had been very upset when she found out that she was pregnant with the boy until she found out that boys could participate in pageants as well. She even stated, on television, that she had only had children so she could put them in pageants. This would seem very strange to many people, but if you watch the show you will hear statements like this over and over, often in front of the children and always on camera (Toddlers & Tiaras, 2009-2012). What is apparent is that this is truly a culture. They call themselves â€Å"Pageant People† (Toddlers & Tiaras, 2009-2012) and this encompasses not only the contestants and their families but also the judges, pageant directors and announcers and the many, many service people used by the contestants from dress designers to make-up artists and hairstylists to spray tanners and waxers and many of the girls even get facials before a pageants even though their skin cannot possibly look much younger. The popularity of this television show is evident, anyone using a search engine that types in the name of the show will be directed to literally thousands of articles, opinion pieces and fan based websites as well as many spoofs of the show starring big names like Ashley Tisdale and Tom Hanks and has enjoyed the pinnacle of success in the eyes of many, satire on Saturday Night Live. But what about the tiny stars of the show? How safe are they? Is all of this good for them? Watching the show you will see a few kids and moms that seem almost normal, of course these people never get to be the stars. The stars are the children who are bratty, who throw temper tantrums, hit their parents, try to bite other kids and just generally misbehave. The mothers who get the most airtime are of course the ones who say the meanest and most bizarre things. Who treat their children like performing monkeys and seemingly will do anything to get their small progeny to perform on stage. It is remarkable to watch a child transform in just moments from a sparkling banshee into a sweetly smiling and composed young lady, or gentleman on stage. The majority of the children featured on Toddlers & Tiaras are little girls but there are a few boys featured as well. It seems unfortunate that the more poorly behaved the people on the show are the more they are rewarded with fame. One strange family has even got their own spin-off show called, Here Comes Honey Boo-Boo (IMDB, 2012). The children often throw fits because they are being forced to do something they do not want to do. Over and over, in almost every episode the children state that they hate doing the beauty portion of the competition. For those unfamiliar with how things work it important to know that the beauty portion is the most important piece of the pageant where girls are judged on their poise, their attire, hair and make-up, and most of all their facial beauty. They are not really expected to perform at this stage of the pageant but only to walk slowly from mark to mark on the stage stopping briefly at each mark to spin and smile sweetly at the judges and the audience and slowly turn from side to side so that all spectators can take in their appearance. One little girl who was seven was criticized by a female judge for â€Å"having too much personality for beauty† although of the same girl a male judge stated that he â€Å"could not take my eyes off her†( Toddlers & Tiaras, season 4, 2012). The girl went on to win the biggest crown in the pageant and a contract with an agent. The judges of the pageants can often seem harsh and mark the children down for seemingly acceptable things for the contestants to do, given that most of the girls featured on the show are only between the ages of four and nine. A six year old was marked down because her ankle rolled. She was wearing high heels. A four year old was marked down because her fake teeth or â€Å"flipper† fell out during the beauty portion. Another girl was marked down for being too â€Å"fake†(?! ). And in one episode the little girls were competing for ten thousand dollars and some former contestants came out of retirement to compete. They were as old as twenty-one and some were doing very sexy dances; the male judge was obviously captivated and would not stop talking about the older contestants. A 20 year old won. Against little girls. (Toddlers & Tiaras, 2009-2012) You will see some moments on the show where the parents are caring and the children seem to be keeping the whole thing in perspective. One of the fathers, who has 3 children in the pageants does not allow his kids to be tanned or wear fake teeth and lashes and says some of it is â€Å"too far†. He also keeps the bills for the pageants a little lower by renting the dresses and says he preferred the natural pageants. Another one of the parents, this one a mother, laughed when her nine year old daughter’s hair fell down during the pageant, she told her she did â€Å"so good† and reassured her when she began to cry that it was okay. Then said she was just glad she got a crown (in many of the pageants every contestant gets some type of crown) and that she did not need to win the ultimate title and the little girl stated after she calmed down â€Å"win graciously, lose humbly†. Another little girl who won a high title stated that the title she had gotten was really good because â€Å"There’s a lot of girls here†¦ and they tried hard too†. One mother who had seemed very extreme during the beginning of the pageant seemed to have an epiphany at some point during the pageant and said that this would be her seven year old daughter’s last pageant and that her daughter was â€Å"beautiful on her own†. (Toddlers & Tiaras, 2009-2012). In one touching episode, a mother had only boys and it seemed that her six year old son and her had a very special relationship based on the pageants. The father, in spite of being supportive, was done with his son being in the pageants and wanted this to be his last one. The boy seemed happy to do the pageants and seemed to have a very special relationship with his mother. At the end of the show they were crying and hugging each other and it was actually hard not to be sad for them (Toddlers & Tiaras, 2009-2012) Most of the other parents are not like those ones and the majority of the scenes shown depict these women as bitter and jealous. The way they speak of the other children is disgraceful. They say mean things in front of their own kids about the other children, especially if the other children win and their daughter did not, like that the girl who won did not deserve it and often say that the pageant was unfair or rigged. One mom on the sidelines said about a girl on the stage â€Å"If she wins, she better go get some cellulite treatment done†(Toddlers & Tiaras, 2009-2012). The little girls definitely pick up this cattiness from their mothers. Many times over these children say that they are better or prettier than the other girls. One six year old girl knew from her mother that one of the other girls was her biggest competition at the pageant. The other girl was well known for her continuing pacifier dependency and first girl said that she had a secret weapon for her opponent so she could beat her and held up a gag pacifier that had funny looking teeth on the front of it and then snickered. In one sad scene there were sister aged ten and eight who were competing in the same pageant, the eight year old stated that she was going to beat her sister and if her sister started crying she would â€Å"beat her to he ground†. When the older sister started to cry and said that it was because she was being mean the younger one told her to â€Å"Stop crying, you’re embarrassing me! † (Toddlers & Tiaras, 2009-2012). If you think the â€Å"tiger moms† would be less cruel to their own offspring you would learn that often that is not the case. Over and over when the children cry because they are hungry, tired, something being done to them hurts or they lost they are told not to cry because they are on camera or that the pageant is not over and their make-up will be ruined. One mom talking about her daughter said that she, the mom, had been better at cheerleading and that her daughter just can’t â€Å"get it† like her. Her daughter was nine. One child was forced to stop doing gymnastics because it was making her muscles too big for her costumes and her mother told her â€Å"that was sucky† when she came off stage. Over and over the children are cruelly disregarded or ignored when they state that they are in pain, feeling sick, hungry or tired. In a heart stopping scene a nine year old girl went missing in full hair and make-up and was no longer in the hotel. In every scene shown by the television show the mom was worried about her being late for her age line up and not concerned for her safety. Luckily, she was found in time, and her standing in the pageant was unaffected. That the girls often cry when they lose is no surprise when you take in that the mothers often cry or state they are going to throw up and berate their daughters for blowing on stage by forgetting to smile at the judges or forgetting part of their routine. The moms let their daughters know that they lost too if their crown is not big enough and does not come with a high title attached to it. The moms will tell their daughters who are smiling and holding a crown that they lost and the crown they have is for losers. One mom while sitting in the audience was â€Å"pissed† and going to cry and listed what the other little girls got and that her daughter didn’t get anything. No wonder the little girl had a tantrum and screamed that she wanted a crown (Toddlers & Tiaras, 2009-2012) Many of these mothers are, like Patsy Ramsey, former beauty queens themselves and will stop and nothing to ensure their daughters success in the pageant world. Sometimes it becomes so extreme that it makes the news. In 2011 ABC News did a story on a mom who gave her 8 year old daughter Botox injections because she had wrinkles (Hagan, Kunin and Ghebremedhin, par. 5). The mother was not a doctor but an esthetician, which is basically a beautician for the skin. She claims her daughter wanted to try it herself because her wrinkles bothered her. This is hopefully a rare case but more commonly these young children have their eyebrows waxed, they receive spray tans, even if they are African American or bi-racial. They have acrylic nails put on, they are fitted for fake teeth to go over their own teeth called flippers, they have hair extensions put in because often their baby fine hair either is not thick enough for the large hair-dos or not strong enough to take the heat and styling. Some of the girls have their hair bleached before a pageant. Sometimes these things hurt or are uncomfortable and the children complain. There seems to be a particular hatred amongst the little girls for the false eyelashes. Many of the girls scream and cry and beg to not have to wear them to no avail. These are typically services reserved for very high maintenance women and many adult women would not have the patience for them. The FDA has not done studies on the safety of these chemicals for use on children either. How does it feel to sit in make-up and hair for two hours for a child of say four? On pageant day the real magic begins. The girls are up early in the morning in their hotel rooms. They are fed breakfast and then the beauty regime begins. The pageants last all day and usually include several outfit changes and the performance of practiced routines. The girls, some very young, are not allowed to eat or nap so their hair and make-up do not become ruined. To make up for this, the moms have found some magic. On pageant day the girls have sugar cubes and Pixie Stix poured into their mouths all day long and are fed through a straw high caffeine and sugar drinks like Mountain Dew and some†¦ Red Bull energy drinks. There is some serious concern over the safety of these drinks (Ostrow, 2011). One mother asked her daughter before the pageant if she wanted to quit doing them. The girl nodded yes and the mom said â€Å" Let’s look at your crowns! Doesn’t that make you feel better? † (Toddlers & Tiaras, 2009-2012). One of the reasons many of the parents say they do it is often for the prizes, money, bonds and scholarships. Indeed, some of the pageants featured on the television show do boast some large prizes. But most of the parents admit that they have spent many times over what their child has received. Several of the moms admit to lying to their husbands about how much they spend and one single mom has moved in with her parents so they could continue to pay for pageants and it is common for the mothers to take a â€Å"pageant job† (Toddlers & Tiaras, 2009-2012) to cover some of the expenses. Some of the parents spend lavishly on the pageants. Many of the pageants have a top prize of only several hundred dollars yet the girls will show up in 2500$ dresses. In one episode two sisters have their very own trailer for pageant accessories that have their pictures emblazoned on the sides. One very enterprising mother has published a pageant book about her daughter, recorded a song and had a doll made in her daughters image. In an episode where they went to the Tonight Show she was saying how she was planning to get her daughter and agent and a two million dollar contract so she could quit her job and move to Hollywood. It seems as if the parents either have delusions about some pay off that will eventually come if they keep plugging away or they really have just found a very expensive habit that they justify for other reasons.

Macbeth’s Crimes Essay

Macbeth’s crimes are blood, appalling and pitiless. Does Shakespeare present this â€Å"butcher†, â€Å"hell-kite† and â€Å"fiend† as a monster or as someone with whom it is possible to feel sympathy? The play Macbeth was written by William Shakespeare. It was written for the successor of Elizabeth I, James I of England. James I of England, who was James VI of Scotland, was a descendent of Banquo, and for this reason Shakespeare changed his play from the way this event actually took place in history. In history Banquo actually aided Macbeth in the killing of Duncan, this would have upset the king and may have got Shakespeare in a lot of trouble. Therefore Shakespeare changed it so that Banquo was not part of the plan to murder the king and was against the idea totally. Shakespeare added the witches into the play, as James was deeply interested in witchcraft. This would make the play more appealing to the king. James was a firm believe of â€Å"The Divine Right Of Kings†, this was a way of thinking that kings were hand picked by God and that they were, second in the hierarchy of the whole universe underneath God. As James believed in this way of thinking it made the murder of Duncan a lot more dramatic. When Duncan was murdered there was dramatic affects on Scotland. Shakespeare showed this unnatural affect over Scotland by things happening that would not happen normally. Such as horses eating each other and earthquakes happening. In the play Macbeth is shown as a tradgic hero. A tradgic hero is when a great heroic man has a weakness in his character, for Macbeth the flaw in his character is his great ambition. His flaw has come from the witches telling him the 3 prophecies. This turned his whole perspective around and that was when his ambition took over. As the play starts we see do not see Macbeth but we hear of how great a man he is and how much of a great brave worrier he is highly respected by all of his fellow Thanes and he also commands high respect from the king as well. There seems to be a connection with him and the witches in the first scene as the witches say â€Å"Fair is foul, and foul is fair† (act 1, scene I) This quotation show that things are not exactly what they seem. Macbeth repeats these words later on in that act. â€Å"So foul and fair a day I have no seen† (Act 1, scene III) When Macbeth says this there is a sense that the witch has already got some power over him, even though they have not met each other yet. At the battle the sergeant seems very happy that they had Macbeth on his side. The sergeant shows that he has great respect for Macbeth by complimenting him. † Except they mount to the battle in reeking wounds; or memorize another Golgotha† (Act 1, scene II) This phrase means that the sergeant was not sure if Macbeth and Banquo wanted to swim in blood or make another Golgotha, which was when Jesus was sacrificed. King Duncan also shows his respect for Macbeth when he says: † O valiant cousin! Worthy gentlemen!† (Act 1, scene II) Duncan is showing that he has great amounts of respect for Macbeth. After the battle has taken place Macbeth and Banquo are on their way home when the come across the 3 witches. The witches great Macbeth with 3 prophesies: 1. All hail Macbeth! Hail to thee, Thane of Glamis! 2. All hail Macbeth! Hail to thee, Thane of Cawdor! 3. All hail Macbeth! That shalt be king hereafter. As Macbeth is told he will be king hereafter there is a thought in the back of his mind to kill the king. These prophecies have shocked Macbeth and when the witches start to leave he tries to make them stay. He tries to make them tell him more about the prophecies. When Ross tells Macbeth that he has become Thane of Cawdor, Macbeth has the thought of killing the king again. Banquo says to him self in a soliloquy â€Å"What can the devil speak true?† (Act1, scene III) Banquo is stunned at the news, as is Macbeth. Macbeth asks them where they got this information as the Thane of Cawdor lives. Ross says that the Thane of Cawdor has been a traitor and that he is to be hanged. In Macbeths first soliloquy he says â€Å"Glamis, and Thane of Cawdor: The greatest is behind.† (Act 1, scene III) This shows that Macbeth has great trust in the prophecies and is contemplating weather or not to kill the king. Macbeth also shows that he doesn’t really want to kill the king when he says † If chance will have me king, why, chance may crown me, with out my stir.† (Act 1, scene III) Macbeth is showing resistance to killing the king as he thinks that if he doesn’t do anything then maybe he will have a change of being king. This shows that Macbeth does have a conscience and that he knows the difference between right and wrong. There is a great contrast between Banquo and Macbeth when they are told about each of their prophecies. Macbeth looks a lot in to them where as Banquo doesn’t really look into them much. Banquo also warns Macbeth that the witches prophecies may not be the whole truth and may cause a lot of damage to him, despite this Macbeth still wants to be king. This shows Macbeth has ambition and this is the flaw of his character. Macbeth is not at all happy with Duncan’s decision to make Malcolm, The Prince of Cumberland his heir to the throne. Macbeth is so angry with the decision in his soliloquy he says â€Å"Stars hide your fires! Let not light see my black and deep desires† (Act 1 scene III) Macbeth has reached a turning point he wants to kill Duncan because now there is now way the he can become king unless he kills Duncan. The quotation shows that he knows what he is going to do is wrong so he wants to make no one can see what he is doing. In act 1 scene VII Macbeth has another soliloquy in which he faces a real dilemma. He is stuck with the decision weather or not to kill the king. His say â€Å"He is here in double trust: First as I am his kinsman and his subject, Strong both against deed; then, as his host, Who should against his murderer shut the door† (Act 1, scene VII) Macbeth is really confused at this point he is not sure if he wants to kill Duncan or not. The quote above shows if he does then he is going against his morals and conscience. I think Macbeth knows the full consequences of what he is about to do, this is why he has some doubt in his mind, as the consequences are terrible. Macbeth then talks to his wife about his plan to kill Duncan, and how he is having second thoughts about killing Duncan. Lady Macbeth teases him, so out of pride Macbeth is forced into killing Duncan. In Act 2 Scene I Macbeth is all alone when he sees a dagger in front off him. â€Å"Is this a dagger which I see before me, the handle toward my hand? Come, let me clutch thee: I have thee not† (Act 2, scene I) I think that there is a large significance of this dagger being there. The dagger is blood soaked and is pointing towards the chambers of the king. I think that the dagger is a way of his mind showing us that he has a guilty conscience and that he has become possessed by evil. All of the forcing from his wife has passed him over to the evil side and now he is dead set on killing Duncan. There is also an element of ambition, as he wants to kill Duncan to show he is capable and also for himself to show that he is a real man to his wife. Once Macbeth has murdered Duncan he acts very strange almost like he is in a daze. He looks very disturbed, he says â€Å"This is a sorry sight† (Act2, scene II) He says this as he is looking at his hands as if he was disgusted with himself and that he couldn’t believe he had done such a terrible thing. While Macbeth was killing Duncan he heard voices saying â€Å"Sleep no more! Macbeth does murder sleep† (Act 2, scene II) This really got to Macbeth, he didn’t know where the voice came from and it really startled him. Lady Macbeth just told him to take no notice of what the voices had said. â€Å"But wherefore could not I pronounce ‘Amen’? I had most need of blessing, and ‘Amen’ stuck in my throat.† (Act 2, scene II) This also scared Macbeth has when he was about to kill Duncan he wanted to say a prayer but the word ‘Amen’ was stuck in his throat. These two affects were the first few consequences of killing Duncan. â€Å"Will all great Neptune’s ocean wash this blood clean from my hand? No, this my hand will rather The multitudinous sea incarnadine, Make the green one red† (Act 2, scene II) This quote shows Macbeth is starting to feel guilty about his actions. When Macbeth says will great Neptune’s oceans wash this blood clean from my hands he is conveying that it is such a bad thing that he has done nothing in the universe can clear him of his sins. Macbeth shows regret for him killing Duncan when he says â€Å"Wake Duncan with thy knocking! I would thou couldst!† (Act 2, scene II) Macbeth is becoming unstable mentally and is regretting killing Duncan. In act 3 Scene 4 Macbeth is having a banquet. At the start Macbeth is called away to see on of the murderers who gave him a report. Macbeth wanted Banquo and his son Fleance to be killed, the murderers only killed Banquo but Fleance got away. â€Å"Then comes my fit again: I had else been perfect; Whole as the marble, founded as the rock, As broad and general as the casing air: But now I am cabin’d, cribb’d, confin’d, bound in To saucy doubts and fears.† (Act 3, scene IV) Macbeth is very frustrated that the killers did not kill Fleance as it has ruined his plan but he believes he can get around this hiccup. Once Macbeth has returned to the banquet he is asked to join the Lords. Lenox says to Macbeth here is a place reserv’d, sir. Macbeth asks him where? Lenox says here my good lord. What is’t that moves your highness? Macbeth goes into a rage and starts to scream â€Å"Which of you have done this?† (Act 3, scene IV) Macbeth sees Banquos ghost in his chair, now Macbeth is going insane. All of the guest’s start to worry about the king but lady Macbeth tells them â€Å"Sit worthy friends: my lord is often thus, and hath been from his youth: pray you keep seat; the fit is momentary; upon a thought He will again be well.† (Act 3, scene IV) Lady Macbeth is trying to cover for Macbeth by saying that he is disturbed because of a childhood drama. Lady Macbeth does this out of panic so that none of the lords are worried about the king. This could also affect his respect and reputation with the lords as they may think he is delusional. Lady Macbeth covers for Macbeth very well. Lady Macbeth then asks the lords to leave, as Macbeth is very sick. Once the lords had left Macbeth tells lady Macbeth that he has a spy in every house. Lady Macbeth tells Macbeth to get some sleep as he is become mentally unstable. Macbeth is suffering from all of the killing that he has done and it is not only affecting him it is also affecting his marriage to which seems to be deteriorating as the play goes on. In Act 4 scene I Macbeth goes to visit the witches, which shows he firmly trusts the witches as he has gone to them which gives a sense that they hove power over him where as if he waited and let them come to him he would not have given the impression that he was desperate. Macbeth is told 3 prophecies the first is: â€Å"Macbeth! Macbeth! Macbeth! Beware Macduff; Beware the Thanes of Fife. Dismiss me. Enough† (Act 4, scene I) The first apparition says this; it is a warning to Macbeth simply telling him to beware of Macduff, as he is dangerous. Macduff was never happy about Macbeth becoming king as Macduff never attended Macbeths crowning and he also suspected Macbeth of killing Duncan. The second prophecies is: â€Å"Be bloody, bold and resolute; laugh to scorn the power of man, for none of women born shall harm Macbeth† (Act 4, scene I) This prophecy made Macbeth relax a little, as he didn’t think that there was any one in the world that could not be of women born. Which made him feel much more safer and almost invincible. The third prophecies is: â€Å"Macbeth shall never vanquish’d be until great Birnam wood to high Dunsinane Hill; shall come against him† (Act 4, scene I) Macbeth was very happy with this prophecy as for him this meant he was invincible, as he believed that Burnam wood would never come to Dunsinane. He shows that he is very happy about his prophecies when he says: â€Å"That will never be: Who can impress the forest, bid the tree Unfix his earth bound root? Sweet bodements! Good!† (Act 4, scene I) Macbeth has decided to kill the Macduffs as Macduff has flied to England and Macbeth sees this as the perfect time and way to kill them. If they are killed Macduff will be distort and will want to kill Macbeth but Macbeth thinks he is invincible. This is the perfect time as there is no one to protect his family. In Act 5 scene I Macbeth is getting ready for battle when he hears a women screaming he sends his servant to investigate. He returns and tells Macbeth that his wife is dead. Macbeth responds to this by saying: â€Å"She would have dies hereafter; There would have been a time for such a word. To-morrow, and to-morrow, and to-morrow, Creeps in this pretty pace from day to day, To the last syllable of recorded time; and all our yesterdays have lighted fools the way to dusty death. Out, out, brief candle! Life’s but a walking shadow, a poor player that struts and frets his hour upon the stage, and then is heard no more; it is a tale told by an idiot, gull of sound and furry, signifying nothing.† (Act 5, scene V) This speech is said by Macbeth as he thinks life is not worth living for any more. He tries hard to make his life better but in the end he is going to die so what is the point. That is the kind of attitude he is taking. Macbeth is then told that Burnam Wood is moving to wards Dunsinane. Macbeth reacts very badly to this he calls the messenger a â€Å"Liar and slave† (Act 5, scene V) Macbeth cannot believe it, the wood is moving, he is in such anger as the prophecies are not holding up to their word. Macbeth has his armour put on so he is ready for battle. In the final scene Macbeth and Macduff have a battle, Macbeth is very full of himself until Macduff says â€Å"Despair thy charm: and let the angel whom thou still hast serv’d tell thee, Macduff was from his mother’s womb untimely ripp’d.† (Act 5, scene VII) Macbeth is in shock he cannot believe it, all the prophecies have been untrue. Them Macbeth is killed bye Macduff and Macbeths head is stuck on a poll and paraded around. This was a way of showing the people that if they betray the king this is what will happen to them. The witches have influenced Macbeth, if they had not shown him the 3 prophecies then he would never have killed the king and he would still be a noble man. The witches were agents of evil so they were bound to tempt Macbeth. The witches simply showed Macbeth what he could be if he listened to them they did not force him they gave him the option and Macbeth choose their way. The witches have no power so they simply temp and try to push Macbeth in the direction they want him to go. Their influence is fair great on Macbeth. Lady Macbeth is a very possessive woman and has a great amount of ambition about her. When she read the letter from her husband in Act 1 scene V she was determined on making Macbeth the king. She wanted him so badly to become the king. She showed her determination in Act 1 scene VII when she said she would: â€Å"I have given suck, and know how tender ’tis to love the babe that milks me: I would, while it was smiling up in my face, Have pluck’d my nipple from his boneless gums, and dash’d the brains out, had I so sworn as you have to this.† (Act 1, scene VII) She is so determined she would kill her own baby while she was feeding it, this shows that she is a very strong women. Lady Macbeth wants to become purely evil she shows this when she says â€Å"Come spirits that tend on mortal thoughts! Unsex me here, and fill me from the crown to the toe top-full of direst cruelty; make thick my blood.† (Act 1, scene V) Lady Macbeth also says â€Å"TH’ effect and it! Come to my women’s breasts, and take my milk for gall, you murdering ministers, wherever in your sightless substances† Lady Macbeth wants very thing that is feminine about her taken away from her so she can be purely evil. Lady Macbeth shows she isn’t purely evil in Act 2 scene II when Macbeth asks her why she didn’t kill Duncan she says â€Å"Had he not resembled my father as he slept, I had done’t.† (Act 2, scene II) As the play goes on lady Macbeth and Macbeths relationship starts to fall apart. At the beginning of the play Macbeth tells his wife every thing as the play digresses they lose faith and trust in each other. They do not tell each other anything. Lady Macbeth was not told by Macbeth that he was planning to kill Banquo or the Macduff’s he simply just didn’t communicate with her anymore. I believe that Shakespeare has presented Macbeth as some one who you can feel sympathy for, as he seems to be pushed in to killing Duncan by Lady Macbeth. I think that he never had any intentions of killing Duncan it was because his wife drove him so that he could gain power. He was not as strong as he seems, his wife bullies him into killing Duncan but he is a hero on the battlefield. Also if he had not seen the witches then I do not think that he would have any thoughts of killing the king.