Category Archives: Financial Services

Jed McCaleb’s Company Stellar Created for Economic Improvement in the Cryptocurrency Industry

GC Report’s article “The Road to Building Stellar with Jed McCaleb on Block Zero” describes the co-founder’s path to creating the recent blockchain company. Though the company was created in 2014, the path McCaleb took to create it was winding. He created this financial network as a non-profit to help repair the outdated infrastructure of the current financial system which currently limits the potential economic improvement within the world at large. The company connects technology and digital financial literacy. McCaleb hopes the company will eventually allow for full participation in the world’s economy.

McCaleb first became interested in digital finances in 2010 after he read an article on the popular technology site Slashdot. The article discussed a new technology called Bitcoin. McCaleb’s interest led him to the popular bitcoin centered chat called Bitcointalk. He was interested in the idea of a currency that wasn’t controlled centrally, but he wasn’t entirely sure it was possible.

After encountering the idea, he created a centralized trading exchange for Bitcoin called Mt. Gox. Mt Gox was one of the few exchanges available at the time for the digital currency and at one point in 2011, it controlled nearly 80% of all the cryptocurrency exchange. In 2011, McCaleb left Mt. Gox and sold it to Mark Karpeles, a software developer. Though he retained a small stake in the company of 12%, he wanted to dedicate his time to solving the issues at the heart of Bitcoin.

According to McCaleb, one of the largest issues the cryptocurrency was facing at the time was the inefficient mining abilities. It bothered McCaleb to the point of starting another company to solve the issue. The company eventually grew beyond McCaleb’s idea for it and became bigger than the original idea.

Then in 2014, McCaleb started the Stellar protocol. The Stellar Development Foundation was founded to oversee it. It was created to oversee the internet-level protocol for payments of the cryptocurrency. McCaleb wanted to create a network of banks and other financial institutions that could function in a similar way to email, streamlining the process.

McCaleb is also the advisor for a variety of companies like Machine Intelligence Research Institute and Mobius. More: Jed McCaleb on LinkedIn.

Impact of Sahm Adrangi and Zalik

GreenSky is a tech company which has changed the real estate industry in America. The main objective of the organization is arranging loans for families which want to undertake home improvements. As a result, the organizations prides its image on a different technology startup compared to others within the market. The company was founded by mathematics guru known as the David Zalik. One of the unique characteristics of the CEO David Zalik is his shyness towards the press. In many instances, he has turned down invitations to speak at the conference as well as presentations. In addition, he does not believe in the idea of raising capital outside the business, and this has enabled the firm to experience significant growth without a huge burden of debt.

The management approach adopted by the GreenSky has challenged other Silicon Valley beliefs of the importance of staying private for the long operational duration. However, GreenSky is on the brink of launching an IPO, and according to The Wall Street Journal, the company could raise $ 1 billion at the valuation of $5 billion. In the course of going public, the company has diverted from other well-funded companies such as Credit Karma, Uber, and Stripe. The main reason why many companies have steered off the IPO debate is that of the pressure arising from the investors and other shareholders on issues to do with quarterly earnings as well as profitability. Unlike many startups which depend on the public for funding, GreenSky is different, and Zalik did the opposite by working with the bank for the benefit of raising capital. Through its partnership with large banks such as SunTrust, Fifth Third, and Regions  the ones which hold the loans in the balance sheets.

In the course of the doing business with the banks, GreenSky receives one 1% of the balance each year. In order to meet the high market demand, the company has employed the services of more than 17000 contractors  who are doing the heavy lifting. Each customer who wants to engage in homemakers can access up to $65000. As a result, each loan disbursed enables the company to generate 6% on the loan amount. The application of the loan is done online using smartphones and decision of lending or decline is received in a matter of seconds.

https://www.kununu.com/us/greensky-credit/reviews

What You Must Know About SahmAdrang

The Vancouver-raised SahmAdrangi graduated from Yale University in 2003 with a Bachelor of Arts in Economics from Yale University optimistic to be a journalist. He tried short stints in several newspapers such as taking an internship at the Financial Post but he proved clearly too tentative to be a reporter. In his early 30s he became the hedge-fund manager and became a member of Canadian exclusive club of aggressive short-sellers which aimed Chinese-based companies which were in a list of North American exchanges where he ripped millions during that period.Before founding his Kerrisdale Capital Management LLC in New York Adrangi worked in many institutions as an analyst. They include Longacre management Fund, Restructuring Investment Banking Group, and the Laveraged Investment baking of Deutsche Bank. Experiences and skills acquired from his previous employers enabled his company to quickly build a track record of identifying suspect companies, purchasing substantial short positions in them and going for the kill after gathering enough evidence to prove their fraudulent.

SahmAdrangi started Kerrisdale with migger funds from his own the savings and a support from his parent’s investments and a contribution from a few supporters and friends. Since initiation, he has built a mult-million empire in terms of assets under his management with a staff comprising of six people.This career of bursting corporate fraud companies started with just a phone call with Mr. John Bird, a retired real estate developer based in Texas who in 2009 had in hand the financial statements of Chinese firms such as the China Sky One medical, a maker of diet patches and hemorrhoid ointments. Numerous communication through phone calls made Adrangi to believe independently what Mr. Bird was telling him, this compelled Adrangi’s short –selling taking off.Most Chinese companies make the list of Mr. Adrangi’s major targets for scrutiny. Company such as China Education Alliance Inc. had a net worth of $150million in terms of market value on the New York State Exchange but now worth less than $25-million after discovering the company’s fake training centers designed for 1200 students was practically null. Others appearing on the list of scrutiny include China Biotics Inc. dealing with production of nutritional supplements among others.In conclusion, Mr. Adrangi and his team is determined to pursue legal options in Canada, the United States and China to recover any potential damages resulting from illegal operations.

David Giertz Provides Important Lessons About Social Security

During an interview in the recent past, Mr David Giertz, a renown financial adviser and expert widely gave relevant advice and directions on the best practices when it comes to matters relating to social security. He spoke of a study conducted by the Nationwide Financial Retirement Institute in which he stated that the findings proved that a considerable amount of people are receiving less retirement benefits than they had anticipated. Additionally, more people wish that their advisers could talk to them about social security.

He added that the study revealed that there were only few financial advisers who guided their clients on issues concerning social security which was contrary to expectations from the clients who had hopes of receiving some lessons. This had led to poor decision making on the side of the clients leading to acquiring the benefits very early on not knowing the consequences. A complete turn in practices he added would be very useful in helping push the agenda of providing better lessons in this field.

Mr. David Giertz, was born on the 10th of April 1964. He has a bachelor’s degree in Business Management and Administration. An expert in his field of practice, he has been praised by many as a focused and all round individual wholly dedicated to serve. Giertz has risen from strength to strength in his career. He started out as the sales Vice President of Bank Channel and he then went on to become the Vice President of sales, FI/WH for a period of time.

Giertz is currently the senior vice president at the Nationwide Financial Distribution and sales, a position he has held for approximately four years. He also serves at the position of the presidency Nationwide Financial Distributors Inc. Mr. Giertz also works at different capacities in various institutions across the board.

Senior notes raised to $155 million

Nexbank is a financial services company that has its headquarters in Dallas. The company opened an initial offering for their senior unsecured notes and so far, they have made a total issuance of 155 million dollars worth of notes. The notes have been estimated to mature on 16th March 2026 and are estimated to start being callable in March, 2021. For the first five years, the notes will be bearing interest at a fixed rate of 5.5 percentage points. After the first five years, the interest rates will be spread over a period of 3 months and will be based on a 3 month LIBOR of 435.5 basis points. A BBB investment grading has been assigned to the notes and has received a stable rating by the Kroll Bond Rating Agency.

The proceeds that will be gotten from this project are going to go towards paying for indebtedness and other corporate uses. The sole placement agent for the private offering of the notes was Sandler O’Neil and partners. The offering has already been oversubscribed to by the clients of the bank, which shows that a lot of people have confidence in the services offered by this bank. The CEO of the bank John Holt stated that the proceeds of the offering would also help them solidify the balance sheet of the company with the much needed capital. He reiterated the fact that the company has had a track record of stability, having been operational for more than a century.

He was also quick to point out that the company has already received a BBB rating from the Bond Rating Agency, Kroll. This, he stated was another indication of the firms strong financial performance. The executive Vice president of Nexbank, who is also the Chief Officer of Operations stated that this was huge accomplishment by the bank and that the amount would help the organic growth of the business.

Nexbank was started in 1912 and has been serving the citizens of Texas for more than a century. They deal with commercial banking, mortgage banking, and other solutions. They help companies, institutions and also individuals that need their financial services.