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@ e i p j d f t ` n s e w ` n d e e m j t o n s t s j d k e 3 : 6 : .

www.BecsieyCiied.kno

B e c s i e y , C i i e d , K r n w , O e t ` v j d , \ n r t j s & O j i e s , \ . K . , C t t n r d e y s c t I c w

AEBRUCRZ 2

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2/522 BecsieyCiied.kno

J.

KC\J]NI

NB[ERQC]JND[

[EDC]NR[@EIBZ[]CZ[JD]NUK@VJ]@CICBCOCKJ]JWED[

[edctnr Rjk`crm [`eiby `cs mnde cd

exkeiiedt gnb na stcyjdf jd tnuk` wjt`t`e penpie na nur stcte. Utjijzjdf c strct-

efy t`ct wcs ajrst usem sukkessauiiy by

t`e icte Gjo Ciied w`ed `e wcs jd t`e

U.[. [edcte,[edctnr [ eiby oches stnps

jd cii 16 knudtjes eck` yecr. [edctnr

Ciied mjm t`e scoe t`jdf murjdf `js tjoe

jd t`e [edcte,usjdf tnwd `cii oeetjdfs

tn kcrry nut `js piemfe na heepjdf `js

ecr tn t`e frnudm jd `js `noe stcte.

[noe na ynu ocy rekcii t`ct [edctnr

Ciied rcd `js ajrst rcke cfcjdst t`e Vcs`-

jdftndkrnwm.[edctnr [`eiby, aniinwjdft`e Ciied iecm,`cs cktuciiy peraektem t`e

tnwd `cii oeetjdf kndkept.]`e sedjnr

sedctnr arno Cicbcoc `cs cirecmy

stcrtem `js cdduci 16-stnp stctewjme

tnur t`rnuf` t`e stcte anr t`js yecr. @e

fnes tn pickes t`ct ints na stctewjme

pnijtjkjcds dever seeo tn `cve t`e tjoe

tn vjsjt. Nd `js tnur inkci resjmedts cre

cbie tn tcih wjt` t`e sedctnr cdm csh

`jo udskrjptem questjnds.

J co tnim [edctnr [`eiby `cs `cm

cbnut 3,=

8/9/2019 The Jere Beasley Report, Feb. 2008

3/52BecsieyCiied.kno ;

cppecr tn be exkeiiedt.Ct t`e tjoe t`js

wcs bejdf wrjtted, t`ere wcs c frect

meci na cktjvjty t`ct knuim fet 2

8/9/2019 The Jere Beasley Report, Feb. 2008

4/52= BecsieyCiied.kno

t`e stctes `jf`est knurt `cs dever

cmmressem `nw tn knopute t`e pedcity

jd rnycity mjsputes w`ere t`ere cre cisn

pnst-gumfoedt jdterest pcyoedts mue.

Exxnd dnw kndtedms t`ct t`e pedcity

js cktuciiy jdterest, w`jk` js c tntci

reversci na jts prevjnus pnsjtjnds nd t`js

jssue. ]`e knopcdy `cm beed kndsjs-

tedtiy icbeijdf t`e pedcitycs c pedcity

cdm dnt jdterest.V`ed jt sujtem t`ejrictest pnsjtjnd, t`ct icbeijdf qujkhiy

s`jatem arno pedcitytn jdterest.

]`e $32

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5/52BecsieyCiied.kno 5

Cicbcoc stcte knurt nd Gcducry 3=t`, we

prnvem t`ct Anrm hdew cd nkkupcdt wcs

2< tjoes onre ijheiy tn be egektem ja c

mnnr kcoe nped. Jt wcs cisn estcbijs`em

t`ct Anrm hdew cd nkkupcdt w`n js

egektem js =< tjoes onre ijheiy tn mje.

Cit`nuf` iecrdjdf na Anrms hdnwiemfe

nd t`js subgekt mjmdt knoe cs c surprjse,

we were s`nkhem tn iecrd t`ct jt `cm cd

extreoeiy mcdfernus mnnr `cdmie-ictk`systeo.Ve set nut tn prnve w`ct Anrm

hdew, w`ed t`ey hdew jt, cdm w`ct t`ey

mjm cbnut jt.Ve iecrdem murjdf mjsknv-

ery t`ct t`js mcdfernus kndmjtjnd cktu-

ciiy exjsts jd cii A-35

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6/521 BecsieyCiied.kno

Frc`co Esmcie, Fref Ciied, cdm J

`cdmiem t`js kcse. Frc`co mjm cd nut-

stcdmjdf gnb jd `js pretrjci mjsknvery

eaanrts.]`e conudts na bnt` settieoedts

cre kndajmedtjci.

CDN]@ERU[] KC[E[E]]IEMJDDNR]@CICBCOC

Nur ajro `cs rekedtiy settiem c kcse

jdvnivjdf cd udmerfrnudm stnrcfe tcdh

(U[]) iech jd Mekctur,Cicbcoc. Jd t`js

kcse, we represedtem acojijes w`n ijvem

nd prnperty bnrmerjdf c fcsnijde stctjnd

hdnwd cs Bums Dn. 3.]`e iech wcs mjs-

knverem by t`e stctjnd nwder, \etrn-

ieuo [cies, Jdk., jd 3:::. ]`e stctjnd

t`ed `jrem @jf`icdm ]ek`djkci [ervjkes,

Jdk. tn kiecd up t`e iech cdm tn stnp jt

arno sprecmjdf.

Nur kijedts mjm dnt iecrd cbnut t`e

iech udtji 2

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7/52

JJJ.

]`e \resjmedtjci

[weep [tches

]@ECOERJKC\EN\IECRE[@CHJDFU\]@E\NIJ]JKCI\CR]JE[

Cater t`e vntes jd Jnwc, Dew @cop-

s`jre, Devcmc, cdm [nut` Kcrnijdc, jtmnesdt tche c pubijk npjdjnd pnii tn teii

us t`ct t`e Coerjkcd penpie cre pretty

weii aem up wjt` t`e pnijtjkci systeo jd

t`js knudtry. Dejt`er mn we deem c pnii-

ster tn teii us anihs cre upset wjt` onst

na t`e dctjndci pnijtjkjcds. ]`e buzz-

wnrm jd t`e ecriy vntjdf stctes qujkhiy

bekcoe k`cdfe. \icjdiy put, anihs gust

mndt trust onst pnijtjkjcds nd t`e

dctjndci ieveiwjt` gustjajkctjnd jd

ocdy kcsescdm cre meocdmjdf mrcstjk

k`cdfes jd t`e wcy t`e aemerci fnverd-oedt nperctes. Onst Coerjkcd kjtjzeds

aeei ieat nut na t`e systeo cdm murjdf

t`e prjocry secsnd t`ey cre iettjdf t`ejr

aeeijdfs be hdnwd.]`e rekedt vntes cre

t`e best evjmedke na t`e strndf mesjre

anr k`cdfe cdm t`ct c strndf knddektjnd

tn t`e stctus qun cdm espekjciiy tn t`e

Bus` refjoe sjopiy wndt seii jd t`js

udstcbie kijocte.

Ct yecrs edm, c Vcii [treet Gnurdci/

DBK Dews pnii s`nuim `cve ciertem us

tn w`ct wcs fnjdf nd condfst t`epenpie ckrnss t`e knudtry. ]`e pnii

reveciem t`ct =1% na t`e penpie wcdt

ocgnr reanros cdm c brcdm dew cdm mja-

aeredt cpprnck` tn fnverdjdf.]`e onnm

wcs scjm tn suppnrt onre t`cd socii

jdkreoedtci k cdfes,cdm cii na t`e ecriy

vntes kndajro jt. Onst anihs beijeve t`ct

fnverdoedt respndms tn t`e rjk`, pnw-

eraui, cdm weii-knddektem cdm t`ct cii na

t`e rest na t`e kjtjzeds cre ieat nut. Jts

cisn qujte cppcredt t`ct t`e Coerjkcd

penpie ct yecrs edm mjmdt wcdt w`ctwnuim conudt tn be c Bus` ]`jrm

]ero cdm t`ct aeeijdf seeos tn `cve

jdtedsjajem.

]`e onnm na t`e penpie kertcjdiy

cppecrs tn be anr ocgnr k`cdfes. Jdter-

estjdfiy, t`ree jd 3< respndmedts jd t`e

pnii kndmuktem anr V[G/DBK scy t`e

twn-pcrty systeo js serjnusiy brnhed

cdm t`ct t`e knudtry js jd deem na c

t`jrm pnijtjkci pcrty.]`ct ajdmjdf by t`e

pniister wcs onst sjfdjajkcdt, jd oy

npjdjnd.]`e aniinwjdf cre snoe na t`e

sjfdjajkcdt ajdmjdfs arno t`e pnii, w`jk`

wcs mnde jd icte Mekeober7

Anihs mndt reciiy trust t`e Bus`

Cmojdjstrctjnd cdm bicoe t`nse jd

k`crfe anr onst na t`e dctjnds ekn-

dnojk prnbieos. C ocgnrjty na t`e Coerjkcd penpie

mjscpprnve na t`e peranrocdke na

oeobers na Kndfress.

]`e knudtry wcdts nur trnnps nut na

Jrcq.

]`e penpie wcdt reci iecmers`jp

w`ed jt knoes tn pjkhjdf c sukkessnr

tn \resjmedt Bus`.

Meonkrcts mjspicy onre zeci anr t`ejr

presjmedtjci k`njkes.

Coerjkcds na cii cfes cdm refjnds ijst

fcsnijde prjkes cs t`e ekndnojk wne

onst caaektjdf t`eo, aniinwem by

`ecit` knsts cdm retjreoedt scvjdfs.

]`e subprjoe iedmjdf prnbieos cre

nd t`e ojdms na anihs cii ckrnss t`e

icdm.

V`ed ynu kndsjmer t`ct we `cve `cm

seved very bcm yecrs udmer c Repubij-

kcd Cmojdjstrctjnd t`ct mnesdt seeo tn`cve cdy kndkerd anr t`e reci prnbieos

ackjdf onst Coerjkcd kjtjzeds, t`e

onnm anr k`cdfe s`nuim acvnr t`e

Meonkrctjk \crty. But, jt oust be

reoeoberem t`ct t`e dctjndci Meonk-

rcts `cve mrnppem t`e bcii sn bcmiy jd

t`e icst twn presjmedtjci eiektjnds t`ct J

wnuimdt ruie nut cdnt`er oess-up t`js

tjoe crnudm. J `npe t`e tredm na insjdf

rckes t`ct s`nuim `cve beed wnd wjii be

reversem t`js yecr.

[nurke7 Vcii [treet Gnurdci

EIEK]JNDZECRJ[[UE[CREBEFJDDJDF]NKNOEJDANKU[

Dnw t`ct we `cve snoe ecriy vntes

be jdm us, J wjii ctteopt tn tche c ijttie

kinser innh ct t`e spekjajk jssues t`ct cre

bejdf mebctem by t`e kcdmjmctes arno

bnt` pcrtjes w`n wcdt tn ijve ct 31

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8/520 BecsieyCiied.kno

w`n wcdts tn be presjmedt. Udiess

t`jdfs k`cdfe qujkhiy, cdy kcdmjmcte

ijdem up wjt` t`e Bus` Cmojdjstrctjnd

wjii be jd bjf-tjoe pnijtjkci trnubie.

V`ed ynu kndsjmer t`e treoedmnus

knst na t`e 5-yecr wcr jd Jrcq, bnt` jd

ijves inst cdm ajdcdkjci knsts, t`e resuits

na t`js pnii were eved onre teiijdf.

Ajdcdkjci wnrrjes `cve kiecriy rjsed jd

prnojdedke. ]`ese dew pubijk knd-kerds were reaiektem nd t`e kcopcjfd

trcji jd cii na t`e ecriy prjocry stctes.

Kcdmjmctes cre dnw `jttjdf `crm nd

mnoestjk jssues cdm espekjciiy t`e

ekndnoy. Jts nbvjnus t`ct Meonkrcts

`cve cd cmvcdtcfe nver Repubijkcds

w`ed jt knoes tn knddektjdf wjt` t`ejr

knre vnters, cdm w`jie t`ct s`nuim pcy

naa jd Dnveober ndiy tjoe wjii teii ja t`e

Meonkrcts binw cdnt`er nde.

[nurke7 Cssnkjctem \ress

]@EEMVCRM[OE[[CFEVJIIKND]JDUE]NBE@ECRM

Refcrmiess na `nw oy fnnm arjedm

Gn`d Emwcrms ajdjs`es jd `js rud anr t`e

V`jte @nuse, `e `cs ocme c ocrh nd

t`e kcopcjfd t`ct js extreoeiy jopnr-

tcdt.]`e vntes jd Jnwc,Dew @cops`jre,

cdm Devcmc weredt excktiy w`ct t`nse

na us w`n beijeve strndfiy jd Gn`ds kcd-

mjmcky `cm expektem.]`js jssue wedt tn

t`e prjdter beanre t`e Meonkrctjk

prjocry vnte jd [nut` Kcrnijdc. [n t`ct

nutknoe wcsdt hdnwd w`ed J wrnte

t`js pjeke. But, nde t`jdf t`ct `cs knoe

nut na t`e pnijtjkci mebcte t`us acr `cs

beed Gn`ds oesscfe cbnut knrpnrcte

freem.]`ct t`eoe, knobjdem wjt` `js

mjskussjnd na t`e jdaiuedke na t`e pnw-

eraui inbbyjsts jd Vcs`jdftnd, sedt c

very strndf oesscfe. Udanrtudcteiy,

t`nse w`n nwd t`e oemjc nutiets arnze

Gn`d nut very ecriy jd cd eaanrt tn heep

`js vnjke jd k`ekh. But, `js pnweraui

oesscfe wcs ecrm by t`e nt`er kcdmj-

mctes cdm t`cts udmjsputem.]`ere cre

ocdy spekjajk excopies na knrpnrcte

freem cdm `nw jt wnrhs.]`e dn-bjm knd-

trckts rekejvem by @nustnd-bcsem @ci-

ijburtnd anr wnrh jd Jrcq cdm t`e reknrm

prnajts ecrdem icst yecr by ExxndOnbji,

t`e wnrims icrfest nji knopcdy, were

kjtem by Gn`d cs prjoe excopies na knr-

pnrcte freem knobjdem wjt` pnijtjkci

jdaiuedke jd jf` pickes. J cfree wjt`

Gn`ds kndkiusjnd t`ct knrpnrcte freem

js hjiijdf t`e auture anr k`jimred na nrmj-

dcry anihs jd nur knudtry.

Gn`d wcs t`e ajrst Meonkrctjk kcdmj-

mcte wjiijdf tn tche nd t`e knrpnrcte

kuiture t`ct ansters freem cdm knrrup-

tjnd. Dnw jt cppecrs t`ct [edctnrs

Nbcoc cdm Kijdtnd cdm, eved ct iecstnde Repubijkcd. Ojhe @ukhcbee,w`n js

dnw ajdmjdf nut w`ct Gn`d iecrdem t`e

`crm wcy, s`nws snoe prnojse nd t`nse

jssues. Gn`d trjem `crm tn kndvjdke

vnters t`ct stcdmjdf up tn t`e pnweraui

jdterests jd Vcs`jdftnd, w`jk` rud t`e

fnverdoedt anr t`e finrjajkctjnd na knr-

pnrcte prnajts js krjtjkciiy jopnrtcdt.

But, t`e rnkh-stcr qucijty na [edctnr

Nbcoc cdm t`e nrfcdjzctjnd shjiis na t`e

Kijdtnds tnnh kedter stcfe jd t`e ecriy

vntjdf. Cs stctem cbnve, t`e dctjndcioemjc vjrtuciiy jfdnrem t`e Emwcrms

kcopcjfd arno t`e befjddjdf, cdm t`ct

`urt Gn`ds k`cdkes. ]`e Nbcoc kco-

pcjfd `cs mnde c ocsteraui gnb na

ochjdf t`e Jiijdnjs [edctnr t`e kcdmj-

mcte na k`cdfe jd t`js eiektjnd yecr.

[edctnr Kijdtnd tnn `cs wnrhem `crm tn

heep pcke nd t`e k`cdfe jssue, cdm tn

s`ukh er stctus qun jocfe.

[cmiy, stcdmjdf up tn t`ese

edtredk`em ondeyem jdterests t`ct cve

cd jrnd-ajstem frjp nd fnverdoedt jd nurknudtry mnesdt ciwcys resuit jd c

wjddjdf kcopcjfd. J `npe t`ct wndt

wjdm up bejdf t`e kcse t`js yecr.

Cit`nuf` Gn`d Emwcrms `csdt wnd c

rcke yet, cdm ocy dever mn sn, `js

oesscfe wndt fn cwcy. Refcrmiess na

w`et`er Gn`d wjdms up cs t`e Meonk-

rctjk dnojdee, `e stcrtem c pnijtjkci

mebcte t`ct wjii kndtjdue pcst t`js

prjocry secsnd. Jd oy npjdjnd, t`js ocd

s`nuim be knooedmem anr tchjdf c

stcdm![nurke7 Binnoberf

JQ.

IEFJ[IC]JQE

@C\\EDJDF[

IEFJ[IC]JQEBNMJE[CRNUDM]@EKNUD]RZVJIIBEBU[Z]@J[ZECR

]`ere cre c frect duober na jssues

t`ct wjii be mecit wjt` by stcte iefjsic-tures crnudm t`e knudtry t`js yecr.

]`ese jssues wjii knver c duober na krjt-

jkci octters, rcdfjdf arno bumfetcry

prnbieos tn joojfrctjnd jssues. [tcte

iefjsictnrs wjii cisn be kciiem nd tn ajx

everyt`jdf t`ct wedt wrndf jd 2

8/9/2019 The Jere Beasley Report, Feb. 2008

9/52BecsieyCiied.kno :

jsictjve `ciis crnudm t`e knudtry t`js

yecr7

Bumfet \rnbieos7 Cionst every

stcte, jdkiumjdf Cicbcoc, wjii `cve

severe mjaajkuitjes jd audmjdf stcte

bumfets.Ja t`e dctjnds ekndnoy tches

c dnsemjvecs premjktembumfets

t`ct mepedm nd scies tcxes wjii suaaer.

Jiiefci Joojfrctjnd7 Vjt`nut cmnubt, iefjsictnrs wjii mebcte t`e

joojfrctjnd jssue jd vjrtuciiy every

stcte. Jd oy npjdjnd,t`js js onre pnijt-

jkci jd dcture t`cd onst na t`e jssues

tn be mebctem.Everybnmy wcdts tn fet

nd t e joojfrctjnd bcdmwcfnd. J

`cve tn wndmer w`y jt tnnh snoe sn

indf tn reknfdjze t`js cs c bjf

prnbieo.

Jdarcstrukture Repcjr7 ]`e J-;5V

brjmfe kniicpse jd Ojddecpnijs icstsuooer prnoptem c recssessoedt na

jdarcstrukture ckrnss t`e knudtry.

Rncms cdm brjmfes jd mjsrepcjr cre

inkctem jd cionst every stcte. Jt wjii

tche bjiijnds na mniicrs tn ajx t`e

prnbieo. \nijky ochers oust mjrekt

substcdtjci revedue tn repcjr cdm

ocjdtcjd jdarcstrukture.Anihs cre ocm

cbnut `jf` fcs prjkes dctjndwjme cdm

t`ct oches cd jdkrecse jd t`e fcs

tcxest`e snurke na audmjdfcionst

jopnssjbie.Cs c resuit,iefjsictnrs oustinnh eisew`ere anr t`e deemem audms.

Jd cmmjtjnd tn t`e scaety rjshs expnsem

by t`e Ojddecpnijs brjmfe kniicpse,

t`e rcpjm rjse jd kndstruktjnd knsts

wjii cisn inno nver eck` na t`ese mjs-

kussjnds. [tctes wjii ijheiy `cve tn

bnrrnw ondey tn bujim dnw, beanre

kndstruktjnd prjkes fn eved `jf`er.

Onrtfcfe Anrekinsures7 Jd respndse

tn t`e dctjndci anrekinsure epjmeojk,

iefjsictures jd ocdy stctes cre kndsjm-

erjdf nver`cuis na t`e iedmjdf jdmustry.]`e dext federctjnd na `noebuyers

oust be prntektem.But, iedmjdf reanro

federciiy wndt `eip t`e `udmrems na

t`nuscdms na `noenwders w`n

cirecmy `cve cmgustcbie-rcte onrtfcfes

cdm w`nse jdterest rctes cre sk`em-

uiem tn shyrnkhet. [noe stctes cdm t`e

aemerci fnverdoedt cre tryjdf tn `eip

`noenwders jd cmgustcbie-rcte onrt-

fcfes cvnjm ever pcyjdf t`e exnrbjtcdt

jdterest pcyoedts.Iedmjdf reanro cdm

reajdcdkjdf cre gust twn pjekes na t`e

respndse tn w`ct `cs qujkhiy beknoe

nde na t`e `nttest tnpjks jd stcte fnv-

erdoedt. [tctes cisn cre innhjdf ct

krckhjdf mnwd nd cpprcjsci arcum,

nver`cuijdf t`e anrekinsure prnkess,

cdm cssjstjdf knooudjtjes tn remuke

udnkkupjem `noes. ]`e anrekinsurekrjsjs js c onst serjnus prnbieo cdm

oust be cmmressem.]`e ickh na strndf

kndsuoer prntektjnd icws jd ocdy

stctes `eipem fjve rjse tn t`js prnbieo.

Vcter \nijky7 [nut`ecsterd stctes cre

recssessjdf cdyt`jdf cdm everyt`jdf

reictem tn wcter pnijky. ]`e ickh na

rcjdacii `cs `urt acroers cdm krectem

aecrs na wcter s`nrtcfes aecrs t`ct,

jd snoe stctes,cirecmy `cve beed reci-

jzem.]`e mrnuf`t knoes jd c refjndudckkustnoem tn wcter wnes. Frnwt`

js tjem mjrektiy tn nur wcter-suppiy

prnbieos. Cicbcoc js anrouictjdf c

wcter ocdcfeoedt picd, w`jk` js

indf nvermue.

@nspjtcis cdm @ecit`7 Jt `cs beed

repnrtem t`ct bckterjci jdaektjnds hjii

kinse tn 3:,

8/9/2019 The Jere Beasley Report, Feb. 2008

10/523< BecsieyCiied.kno

pcst severci weehs kndkerdjdf t`e deem

tn rjf`t c frjevnus wrndf w`ed jt

knoes tn t`e jssue t`ct fcve rjse tn t`js

iefjsictjnd. C rekedt emjtnrjci jd t`e

Bjrojdf`co Dews t`ct cppecrem nd

Gcducry =t` js kertcjdiy wnrt` recmjdf.

Jts nde na t`e best cssessoedts na t`e

jssue t`ct J `cve seed sn acr. @npeauiiy,

cii na nur iefjsictnrs recm jt!

IEFJ[IC]NR[[@NUIM\C[[[]RNDFKCO\CJFDAJDCDKEREANROIEFJ[IC]JND

V`jie t`ere `cs beed ints na tcih

cbnut t`e deem anr kcopcjfd ajdcdke

reanro, t`us acr jts gust t`cttcih.]`e

bjiis t`ct cre bejdf jdtrnmukem t`us acr

cppecr tn be fnnm ndes but t`ey reciiy

mndt fn acr ednuf` tn snive t`e reci

prnbieo.Udiess t`e Iefjsicture ackes up

tn t`e reci jssue,cdm t`ct js spekjci jdter-

est ondey, t`e prnbieos caaektjdf

Cicbcocs pnijtjkci systeo wndt be

snivem. J reknooedm cmmjdf t`e aniinw-

jdf jteos tn cdy pckhcfe na kcopcjfd

ajdcdke reanro bjiis t`ct ocy be jdtrn-

mukem murjdf t`e sessjnd7

Iefjsictjnd tn restrjkt t`e tntci

conudt na kcopcjfd ondey jd

stctewjme eiektjnds t`ct kcd be fjved

by cd jdmjvjmuci,knrpnrctjnd,nr nt`er

edtjty tn $5,

8/9/2019 The Jere Beasley Report, Feb. 2008

11/52BecsieyCiied.kno 33

]`e Coerjkcd penpie `cve beed sub-

gektem tn c kndstcdt bcrrcfe na jdanroc-

tjnd t`ct pcjdtem c acise pjkture na c

gumjkjci systeo t`ct wcs nut-na-kndtrni.

]reoedmnus suos na ondey were spedt

by t`e tnrt reanro frnups,w`jk` kcrrjem

nut kcreauiiy nrk`estrctem oemjc cdm

frcssrnnts kcopcjfds. Ache frcssrnnts

frnups were anroem jd stctes wjt` dcoes

ijhe Kjtjzeds Cfcjdst Icwsujt Cbusecdmwere `ecvjiy audmem jd c `jf`iy sekret

acs`jnd.]`ey eop`csjzem eiektjdf cppei-

icte gumfes w`n wnuim prntekt knrpnrcte

wrndfmners cdm jfdnre iefjtjocte kicjos

by vjktjos. ]`e weii-picddem, `jf`iy-

nrfcdjzem cdm weii-ajdcdkem kcopcjfd,

w`jk` wcs dctjndci jd sknpe cdm

mesjfdem tn prntekt knrpnrcte wrndfmn-

ers,`cs beed onst eaaektjve.

Jd rekedt yecrs, cd cdduci repnrt `cs

beed reiecsem tn t`e oemjc ct yecr-edm

t`ct frcmem t`e stctes nd `nw weii t`ey`cve respndmem tn t`e 35-yecr tnrt

reanro kcopcjfd purpnrtjdf tn rcdh

stctes nd `nw weii nr pnnriy t`e knurt

systeos jd t`e stctes audktjndem.]`ese

repnrts were kcrrjem jd stcte dewspc-

pers cdm repnrtem by oemjc nutiets cs

bejdf t`e fnspei trut`.]`js wcs pcrt na

t`e Rnve picd cdm jt `cs wnrhem. [tctes

were icbeiem cs gumjkjci `eii-`nies cdm

dnbnmy ever reciiy cshemw`y> @npe-

auiiy, t`jdfs `cve befud tn k`cdfe cdm

t`e tnrt-reanroers cre bejdf expnsem csdnt`jdf onre t`cd pcjm prntektnrs na

knrpnrcte wrndfmners.

CDN]@ERQNJKEJD]@E\REEO\]JNDBC]]IE

]`e Bus` Cmojdjstrctjnd `csdt

sinwem mnwd nd t`ejr pus` tn prntekt

knrpnrcte wrndfmners cdm pudjs` t`ejr

vjktjos. ]`e picd tn `cve aemerci pre-

eoptjnd s`ut t`e knurt`nuse mnnrs jd

t`e stcte knurt systeos js dnt`jdf onre

t`cd c pcybckh tn Knrpnrcte Coerjkc.

[jfdjajkcdtiy, t`e preeoptjnd bcttie `cs

cttrcktem c duober na pcrtjkjpcdts.

]`ere cre snoe extreoeiy pnweraui cdm

pnijtjkciiy-jdaiuedtjci knrpnrctjnds t`ct

cre meocdmjdf pcybckh arno nur presj-

medt murjdf t`e icst yecr na `js tedure jd

naajke. But, t`ere cre ocdy hdnwiemfe-

cbie anihs w`n cre strndfiy jd nppnsj-

tjnd. C rekedt crtjkie jd t e Dew

Edficdm Gnurdci na Oemjkjde, wrjtted

by t`ree mnktnrs, js weii wnrt` recmjdf

nd t`e subgekt na preeoptjnd. ]`js

crtjkie expicjds t`ejr perspektjve nd t`e

preeoptjnd jssue very weii cdm pnjdts

nut w`y t`e knurts s`nuimdt ciinw jt.

Ja t`e Bus` Cmojdjstrctjnd js sukkess-

aui cdm persnds wjt` iefjtjocte kicjos

jdvnivjdf prnmukts cdm oemjkci mevjkes

cre medjem ckkess tn gustjke, jt wjii bende na t`e wnrst t`jdfs tn `cve `cp-

pedem tn t`e Coerjkcd penpie jd yecrs. J

`npe penpie cre befjddjdf tn udmer-

stcdm `nw serjnus t`e preeoptjnd jssue

js cdm `nw jt caaekts cii Coerjkcd kjtj-

zeds. Ja ynu mndt `cve ckkess tn t`e

Dew Edficdm Gnurdci na Oemjkjde

crtjkie, iet oe hdnw cdm we wjii sedm

ynu c knpy.

[nurke7 Dew Edficdm Gnurdci na Oemjkjde

[U\REOEKNUR]IJOJ][JDQE[]NR[[EKURJ]JE[ICV[UJ][

]`e U.[. [upreoe Knurt `cs ijterciiy

puiiem t`e piuf nd jdvestnrs tryjdf tn

sue suppijers na c knopcdy w`nse

stnkh prjke wcs jdaictem wjt` t`e cjm na

t`e suppijers. Knrpnrcte Coerjkc `cm

wnrhem `crm jd cd eaanrt tn fet t`js

ruijdf by t`e @jf` Knurt.]`e knurt eim

t`ct t`e jdvestnrs mjmdt `cve t`e

prjvcte rjf`t tn sue bekcuse t`ey mjmdt

reiy upnd t`e stcteoedts nr represedtc-

tjnds ocme by t e suppijers. ]`e

jdvestnrs `cm snuf`t tn jopnse ijcbjijty

nd twn edtjtjes, w`jk , cktjdf bnt` cs

kustnoers cdm suppijers, cfreem tn

crrcdfeoedts t`ct ciinwem t`e

jdvestnrs knopcdy tn ojsiecm jts

cumjtnr cdm jssue c ojsiecmjdf ajdcdkjci

stcteoedt caaektjdf jts stnkh prjke. But

t`e [upreoe Knurt kndkiumem t`ct t`e

jopijem rjf`t na cktjnd mnes dnt reck`

t`e kustnoer/suppijer knopcdjes

bekcuse t`e jdvestnrs mjm dnt reiy upnd

t`ejr stcteoedts nr represedtctjnds.

Vjt` cii mue respekt tn t`e gustjkes,

t`cts snrt na `crm tn udmerstcdm.

Jd t`e kcse,jdvestnrs ckkusem twn sup-

pijers cdm kustnoers na kcbie teievjsjnd

knopcdy, K`crter Knooudjkctjnds, na

ciinwjdf K`crter tn ojsiecm jts cumjtnr

cdm jssue c ojsiecmjdf ajdcdkjci stcte-

oedt t`ct jdaictem jts revedue by $36

ojiijnd t`ereby caaektjdf t`e knopcdys

stnkh prjke.]`e meci jdvnivem K`crter

nverpcyjdf anr suppijes jt purk`csem jd

2

8/9/2019 The Jere Beasley Report, Feb. 2008

12/52

tn mjstcdke FN\ kcdmjmctes arno t`e

Bus` V`jte @nuse.Cs J `cve wrjtted jd

prjnr jssues, J co dnt nveriy jopressem

wjt` t`e oed w`n cre seehjdf t`e FN\

dnojdctjnd anr \resjmedt.Cater wctk`-

jdf Gn`d OkKcjd, w`n `cs eoerfem cs

t`e iecmjdf kcdmjmcte anr t`e pcrtys

presjmedtjci dnojdctjnd, recm ijterciiy

wnrm-anr-wnrm c iedft`y speek` cater

`js wjd jd Dew @cops`jre, J `cm tnwndmer ja t`e Crjzndc [edctnr wcs

reciiy t`e best t`e FN\ `cs tn naaer.

Oy jdjtjci recktjnd tn c ocd w`n wcdts

tn be presjmedt recmjdf c speek`nbvj-

nusiy wrjtted by snoebnmy eisewcs

cbsniute mjsbeijea.V`ed J recijzem t`e

[edctnr wcs cktuciiy recmjdf t`jdfs ijhe

Fnm biess cii na ynu, arno c skrjpt t`ct

ocme oe wndmer c ijttie bjt cbnut `js

sjdkerjty. Jd cdy evedt, t`e FN\ seeos

tn be tryjdf tn heep \resjmedt Bus`,

w`n js stjii t`e iecmer na `js pcrty, udmerwrcps cdm nut na sjf`t.

V`jie t`e premjktjnds na c Repubijkcd

kniicpse ocy be ckkurcte, t`e bjf ques-

tjnd reocjdswjii t`e Meonkrctjk

\crty tche cmvcdtcfe na jt> Bcsem nd

ecriy vntjdf pctterds, jts nbvjnus t`e

ocjdstreco Repubijkcd arndtrudders

cre c rct er wejrm kniiektjnd. Anr

excopie, Ojhe @ukhcbee, t`e anroer

Crhcdscs Fnverdnr, cktuciiy tcihs onre

ijhe c Meonkrct. Vjt`nut ondey, cdm

wjt`nut stcaa, `e summediy bekcoe ckndtedmer jd t`e prjocrjes cdm dnw

ajdms `joseia udmer cttckh. [edctnr

OkKcjd, w`n ndke wcs fjved up anr

mecm pnijtjkciiy, js tryjdf `crm tn refcjd

`js anroer jocfe cdm stjii be t`e Bus`

kcdmjmcte. ]`cts c tnuf` rnw-tn-`ne

eved anr t`e [edctnr. C auobijdf Ojtt

Rnodey js stjii `cdfjdf nd cater `js

knoebckh jd Ojk`jfcd, but `js k`cdkes

ct t`e dnojdctjnd cre stjii sijo cdm dnde

jd oy npjdjnd. Arem ]`nopsnd dever

wnhe up cdm mrnppem nut cater t`e[nut` Kcrnijdc vnte. ]`ed t`eres

Rumyw`n js t`e onst skcry na cii

puttjdf cii na `js effs jd nde bcshet,

Ainrjmc. [n acr, dnde na t e Repubijkcd

kcdmjmctes `cve seeoem tn exkjte t`e

vnters. J wndmer w`y>

]`e t`jdf t`ct coczes oe js t`ct

w`ed ynu kndsjmer t`ejr oesscfes,cii na

t`e Repubijkcd kcdmjmctes cre jd rnudm-

cbnut-wcys prnojsjdf anur onre yecrs

na t`e Bus` Cmojdjstrctjnds acjiem pnij-

kjes.]`nse eaanrts rcdfe arno kndtjdu-

jdf t`e \resjmedts wcr jd Jrcq, tn

pursujdf `js eaanrts tn prjvctjze [nkjci

[ekurjty, tn extedmjdf `js bumfet-

bustjdf `cdmnuts anr `js pnweraui knr-

pnrcte arjedms, tn kndtjdujdf t`e rcpe

by t`e nji cdm mruf jdmustrjes na t`e

Coerjkcd penpie. Jd oy npjdjnd, dndena t`nse oesscfes wjii seii t`js yecr. J

beijeve t`e Coerjkcd penpie wcdt reci

k`cdfe cdm t`e prjocry vnters nd [uper

]uesmcy (Aebrucry 5t`) wjii meterojde

w`n jd eck` pcrty kcd kcrry t`ct

bcdder.]`eres nde t`jdf anr kertcjd

anihs mndtwcdt cdnt`er anur yecrs na

t`e Bus` Cmojdjstrctjnds pnijkjes.

J sjdkereiy beijeve t`ct Fenrfe Bus`

`cs beed t`e wnrst \resjmedt w`no J

`cve wjtdessem nver oy yecrs na nbserv-

jdf dctjndci pnijtjks. [eved yecrs catertchjdf naajke, `js cpprnvci rctjdf js

mnwd crnudm 25%,cdm twn-t`jrms na t`e

Coerjkcd penpie beijeve t`e knudtry js

nd t`e wrndf trckh.V`jie t`e Meonkrct

kcdmjmctes kniiektjveiy naaer reci sniu-

tjnds cdm dew jmecs tn prnvjme t`e

Coerjkcd penpie wjt` t`e k`cdfe t`ey

wcdt, t`e Repubijkcds seeo tn naaer

ndiy w`ct conudts tn c t`jrm Bus`

tero. ]`e Meonkrctjk \crty `cs c reci

nppnrtudjty tn tche bckh t`e V`jte

@nuse arno t`e ijhes na Mjkh K`edeycdm Hcri Rnve cdm t`ejr knrpnrcte

bummjes.]`e wjdms na k`cdfebinwjdf

very strndf ckrnss t`e icdmkiecriy

jdmjkcte t`ct dn persnd jmedtjajem wjt`

t`e Bus` Cmojdjstrctjnd wjii mn weii

pnijtjkciiy jd t`e federci eiektjnd cdm

t`ct jdkiumes t`e FN\ dnojdee anr pres-

jmedt. ]`e reci questjnd jswjii t`e

Dctjndci Meonkrctjk \crty ajdm c wcy tn

inse cfcjd>

U.[. K@COBERNAKNOOERKE]@REC]ED[KCDMJMC]E[

Jd yecrs pcst, t`e Coerjkcd penpie

`cve wjtdessem ints na crrnfcdke nd t`e

pnijtjkci skede cdm t`ey `cvedt ijhem jt

very ouk`. Rekedtiy, c ocd w`n `cs

beed c picyer nd t`e pnijtjkci skede

nver t`e icst aew yecrs `cs reck`em c

dew ievei nd t`e crrnfcdke oeter.]no

Mndn`ue, t`e presjmedt na t`e U.[.

K`cober na Knooerke, scys `e wjii

spedm ojiijnds na mniicrs t`js yecr tn

meaect kcdmjmctes `e meeos tn be

udarjedmiy. Jd ochjdf `js pnijtjkci picds

hdnwd,Mndn`ue bncstem7

Ve picd tn bujim c frcss-rnnts

busjdess nrfcdjzctjnd sn strndf

t`ct w`ed jt bjtes ynu jd t`e butt,ynu bieem.

]`e crrnfcdt wcrdjdf arno t`e

dctjnds icrfest tnrt reanro frnup kcoe

cfcjdst c bckhfrnudm na c frnwjdf aecr

by penpie nver t`e kndmjtjnd na t`e U.[.

ekndnoy.C rekessjnd nd t`e `nrjznd, c

wech reknrm na gnb krectjnd, t`e sub-

prjoe onrtfcfe krjsjs, mekijdjdf `noe

vciues,cdm nt`er ajskci prnbieos `cve cii

`eipem oche t`e ekndnoy t`e ocgnr

kcopcjfd jssue. Cii na t`js js reciiy

`urtjdf kcdmjmctes suppnrtem byMndn`ue cdm t`e U.[. K`cober, cdm t`ct

ocy ckknudt anr `js jii-cmvjsem t`rects.

Jt cppecrs t`ct Mndn`ue js t`rected-

jdf presjmedtjci kcdmjmctes ijhe Gn`d

Emwcrms, @jiicry Kijdtnd, cdm Bcrckh

Nbcoc. Eck` na t`eo `cs beed kciijdf

anr k`cdfe nd be`cia na ojmmie-kicss

vnters. Nd t`e Repubijkcd sjme, anroer

Crhcdscs Fnverdnr Ojhe @ukhcbee

eoerfjdf cs c strndfer-t`cd-expektem

kcdmjmcte`cs usem pnpuijst t`eoes jd

`js eaanrt tn cttrckt jdmepedmedt vnters.@ukhcbee, anr excopie, `cs bicstem

bndus pcy anr knrpnrcte k`jea exeku-

tjves cdm t`e eaaekt na udaetterem finbci-

jzctjnd nd wnrhers. Mndn`ue brcfs t`ct

`js frnup wjii pudjs` cdy kcdmjmctes

w`n tcrfet busjdess jdterests wjt` t`ejr

r`etnrjk nr pnijky prnpnscis. @e

jdkiumem kndfressjndci cdm stcte-ievei

kcdmjmctes, cs weii cs t`nse presjmedtjci

kcdmjmctes oedtjndem cbnve jd `js

cddnudkeoedt.

Mndn`ue jdmjkctes t`ct `js nrfcdjzc-tjnd wjii spedm onre t`cd t e $1