Brexit must not close the door on wealth creators, say Yorkshire’s fastest growing firms

BRITAIN must secure a Brexit deal which allows for the free movement of entrepreneurs into Britain, according to representatives from the region’s fastest growing companies.

The winners of the Ward Hadaway Yorkshire Fastest 50 2017 also called on policymakers to reduce the skills deficit and make it easier for their staff to commute to work.

Round Table event at Ward Hadaway, Wellington Place, Leeds..9th May 2017 ..Picture by Simon Hulme

Round Table event at Ward Hadaway, Wellington Place, Leeds..9th May 2017 ..Picture by Simon Hulme

The comments were made during a round-table event, which was held at law firm Ward Hadaway’s Leeds office, to celebrate the three firms that picked up trophies at this year’s Yorkshire Fastest 50 awards.

The awards, which have been running in Yorkshire since 2011, celebrate and honour the region’s fastest growing firms to stimulate debate and economic growth.

The debate featured Craig Such the managing director of Sheffield-based Azzure IT, which was the fastest growing small business, Glen Harding, the CEO of Pudsey-based headoffice3, which triumphed in the fastest growing medium-sized business category and Howard Grindrod, the deputy managing director of Leeds-based Hisense UK, which was the fastest growing large business.

Hisense was also the overall fastest growing business in the region.

Round Table event at Ward Hadaway, Wellington Place, Leeds.back Row left to right Phil Jordan, Harmajinder Hayre, Craig Such. Front row Glen Harding  and Howard Grindrod.9th May 2017 ..Picture by Simon Hulme

Round Table event at Ward Hadaway, Wellington Place, Leeds.back Row left to right Phil Jordan, Harmajinder Hayre, Craig Such. Front row Glen Harding and Howard Grindrod.9th May 2017 ..Picture by Simon Hulme

The discussion, which was chaired by Greg Wright, The Yorkshire Post deputy business editor, also featured Phil Jordan, a partner in the commercial team at Ward Hadaway, and Harmajinder Hayre, executive partner for the Leeds office at Ward Hadaway.

The wide-ranging debate examined Brexit, devolution and prospects for the region’s economy. It was broadcast live on Facebook.

Mr Grindrod said he wanted the UK to be seen as the blueprint for running a good market-driven economy after Brexit.

He added: “We need good trade deals. We also need to encourage the free movement of people who are money-generators.

Round Table event at Ward  Hadaway, Wellington Place, Leeds. Howard Grindrod  is pictured centre.9th May 2017 ..Picture by Simon Hulme

Round Table event at Ward Hadaway, Wellington Place, Leeds. Howard Grindrod is pictured centre.9th May 2017 ..Picture by Simon Hulme

“There’s unforeseen consequences on immigration… the unforeseen consequence is actually stopping the movement of people to run their own businesses. To get my Chinese colleagues into the UK is far more difficult than to get them into Germany or France or any other European country.

“It’s easier for me to meet my Chinese colleagues in Germany than it is to meet them in Leeds. I would like to see a much more open way of doing business, rather than closing ourselves off.”

Mr Such said he wanted to see “very strong” trade agreements with the European Union and other nations after Brexit.

He added: “Brexit will probably enable us to build stronger relationships and deals with other countries outside of Europe. I’d like to think that we will still be able to have free movement of goods throughout Europe as well.

Round Table event at Ward Hadaway, Wellington Place, Leeds.9th May 2017 ..Picture by Simon Hulme

Round Table event at Ward Hadaway, Wellington Place, Leeds.9th May 2017 ..Picture by Simon Hulme

“That’s the bit I think is going to be more challenging.

“I believe that because the UK has been the first to exit from Europe, Brussels will be quite stubborn in their negotiations.”

Mr Harding said he hoped that the UK could still have access to skilled labour from Europe that was “desperately needed” after we leave the EU.

He added: “While I didn’t support it at the time, I would like to see some of the promises made by the Leave campaign that the money that was going into Europe, is going to be invested again, into our own economy.”

Mr Hayre said that some substitution needed to be found for EU funding after Brexit. Currently the EU provides funding that supports SME (small-and-medium sized enterprises) and economic growth in Yorkshire.

He added: “There needs to be some guarantee for SMEs that the Government will replace that funding.”

Date: 17th March 2017.
Picture James Hardisty.
Fastest 50 Awards 2017, held at Aspire, Infirmary Street, Leeds.

Date: 17th March 2017.
Picture James Hardisty.
Fastest 50 Awards 2017, held at Aspire, Infirmary Street, Leeds.

BOSSES at Yorkshire’s fastest growing companies are frustrated by the gridlock and public transport delays that cause misery for commuters.

They hoped that any planned devolution deals would reduce congestion and increase the skills catchment base for their firm.

Howard Grindrod, the deputy managing director at Leeds-based Hisense UK said: “We can get people up from London in two and a half hours from King’s Cross. To get someone over from Manchester can take just as long, and it’s a much messier journey.”

Glen Harding, the CEO of Pudsey-based headoffice3, added: “It is frustrating that I can get to our London office a lot quicker than I can get to a site in Liverpool.

“It does need to be addressed and I do think that having a metro mayor, which is a key requirement of devolution, is essential to make this happen; whether that is for the whole of the Yorkshire region or not remains to be seen.

“It will be interesting to see how it plays out in regions like Manchester. It needs to happen in terms of transport, housing, infrastructure and skills, but I think it’s a bit of a mistake to start throwing in management of the NHS and blue light services when we talk about devolution.”

Craig Such, the managing director of Sheffield-based Azzure IT, said: “Our catchment area should really cover the whole of Yorkshire. One of the key barriers is transport links. My journey into Leeds can take between 30 minutes and one hour and 30 minutes. That is what our potential employees face as well. “

He said a devolution deal covering the whole of Yorkshire might lead to a joined-up approach for transport policy.

Harmajinder Hayre of Ward Hadaway said that there might be lessons to be learned from the US, where mayors had worked to improve connections between big cities.

He added: “It’s all about inter-connectivity and individuals being able to come into places like Boston and New York and Chicago from hundreds of miles away; time efficiently and cost efficiently.”

The winners of this year’s Fastest 50 awards reflect the strength in depth of the region’s economy.

Hisense UK is the British arm of Chinese multinational Hisense Company, one of the world’s largest electronics and consumer goods manufacturers. Azzure IT is rated by Microsoft as the leading Microsoft Gold partner in the UK. Headoffice3 is a fit-out and construction specialist which provides services to schools, commercial and residential sectors.

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Cimatu to protect big mining firms? ‘I’ve been a fair man’

Newly appointed Environment Secretary Roy Cimatu also answers allegations on his human rights record and his involvement in the military’s ‘pabaon’ system

Jee Y. Geronimo

Published 6:18 PM, May 10, 2017

Updated 8:26 PM, May 10, 2017

'LOVER OF ENVIRONMENT.' Environment Secretary Roy Cimatu answers questions from reporters on Wednesday, May 10. Screenshot from Rappler

‘LOVER OF ENVIRONMENT.’ Environment Secretary Roy Cimatu answers questions from reporters on Wednesday, May 10. Screenshot from Rappler

MANILA, Philippines – Environment Secretary Roy Cimatu on Wednesday, May 10, shot back at his critics who said he will protect the interest of big mining companies.

“No. I’ve been a fair man. I will see to it that what was in the law is implemented by everybody,” Cimatu told reporters Wednesday. (READ: New DENR chief Cimatu asks for time to ‘study terrain’)

The Kilusang Magbubukid ng Pilipinas (KMP) earlier criticized Cimatu as among the “pioneers and implementors” of a counterinsurgency program during the Arroyo administration that killed hundreds of farmers, workers, and activists – including mining advocates.

“Cimatu will definitely defend and kill to protect the interests of large-scale local and foreign mining companies,” KMP Secretary General Antonio Flores said in a statement on Monday, May 8 – the day Cimatu’s appointment to the Department of Environment and Natural Resources (DENR) was announced.

The new environment secretary earlier said he will allow responsible mining in the country.

“We have to follow the law, we have to follow the safeguards on extracting minerals. If you look at the mining companies that are operational now, that’s what responsible mining [is], they were allowed to operate,” he said in a mix of English and Filipino.

Cimatu revealed he will be going to Mindanao next week to visit mining companies that were allowed to continue operating because they “followed regulations and laws properly.”

“I’ll also see the mining companies na hindi sumunod kaya na-suspend, nasaraduhan (that were suspended because they did not follow rules, closed).”

[embedded content]

Human rights, pabaon system

Cimatu was also asked about alleged human rights violations committed during his time as chief of the Armed Forces of the Philippines (AFP).

“I have neer been accused of any case like that. I am a lover of the environment,” he said during the ambush interview.

He even shared that he planted a tree back when he was still a lieutenant, and that the tree should be about 45 years old already by now.

Nakapangalan ‘yung pangalan ko doon, First Lieutenant Cimatu Tree. Kaya I’m planning to go back… and put another one, DENR Secretary Cimatu Tree,” he added.

(The tree is named after me, First Lieutenant Cimatu Tree. That’s why I’m planning to go back…and put another one, DENR Secretary Cimatu Tree.)

Cimatu was also asked about accusations that he received millions in cash from the “pabaon system” in the military.

“These are allegations,” Cimatu answered before cutting the interview short.

In 2011, AFP budget officer and comptroller Army Colonel George Rabusa claimed in a Senate hearing that former chiefs Cimatu, Angelo Reyes, and Diomedio Villanueva were beneficiaries of “converted cash.”

President Rodrigo Duterte, a Davao City vice mayor then, publicly defended Cimatu from the allegations.

Cimatu replaced Gina Lopez, whose appointment as environment secretary was rejected by the powerful Commission on Appointments last May 3. – Rappler.com

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Keais Records Retrieval : Launches SmartChron™ Web-Based Litigation Management, Enabling Insurance Carriers, Self-Insured Companies and Law Firms to Accelerate and Enhance Records Review

Complete case chronology, review-ready records and easy nuance
identification let firms conduct insightful data analysis, negotiate
more strategically and reduce cycle times.

Keais Records Retrieval today launched SmartChron™, the first data
retrieval solution that gives insurance companies, self-insured
companies and law firms a complete, secure, web-based case chronology of
review-ready records. SmartChron’s proprietary technology replaces the
manual process of data gathering with a user-friendly solution that
delivers data intelligence with speed, accuracy and cost savings.

Two years in the making, SmartChron was developed by a team of data
extraction experts and has been beta tested by members of the legal and
insurance communities.

“Before SmartChron, I would spend hours putting records in chronological
order,” said Julia Bryant, Paralegal – White, Fleischner & Fino, LLP,
who participated in the SmartChron beta testing. “It is innovative and
easy to use. SmartChron is a wonderful product that I trust.”

With the click of a button, SmartChron users easily view data in
aggregate, reducing the time required to chronologically organize a case
from hours to seconds. As a result, legal teams have more time to plan
their strategy and make a greater material impact on the claim or case.
SmartChron’s unprecedented capabilities empower users to:

  • Accelerate cycle time and expedite case resolution
  • Immediately locate desired information using keyword search, the ideal
    alternative to time-consuming manual searches
  • Easily identify nuances in records, pinpoint treatment patterns,
    determine lapses and gaps in treatment, highlight discrepancies or
    missing pages and uncover evidence of drug purchases
  • Stay abreast of new SmartChrons with automated daily notifications
  • Lower legal expenditures, settlement costs and allocated loss
    adjusting expenses (ALAE) by delivering data to all stakeholders in
    real time, so that collaborative decisions can be made faster

“SmartChron redefines the process of claims analysis and decision
making, replacing the inefficient process of organizing paper files for
weeks at a time to prepare the case,” said Steve Schumacher, President
of Keais. “Using advanced data management technologies, including
optical character recognition (OCR), SmartChron can compile thousands of
pages in a single PDF that’s accurate, organizable and insightful. This
higher level of data intelligence empowers legal teams to improve
outcomes, reduce costs and accelerate case resolution.”

From data research and retrieval to intelligence analysis and sharing,
Keais ensures that the exacting requirements of SOC2 compliance are met
or exceeded, adhering to SOC’s information security policies and
procedures set forth for the security, availability, processing,
integrity and confidentiality of customer data.

About Keais

Founded in 1975, Keais is the world’s largest records retrieval company
serving insurance companies, self-insured companies and law firms
practicing medical claims. Keais is a privately-held provider of
technology-enabled data intelligence that empowers insurance carriers,
self-insured corporations and law firms to reduce costs, make
better-informed decisions and accelerate claims resolution. Superior
service, accuracy, and industry leading turnaround times are hallmarks
of the organization.


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Keais Records Retrieval Launches SmartChron™ Web-Based Litigation Management, Enabling Insurance Carriers, Self-Insured Companies and Law Firms to Accelerate and Enhance Records Review

HOUSTON, May 09, 2017 (BUSINESS WIRE) —
Keais Records Retrieval today launched SmartChron™, the first data
retrieval solution that gives insurance companies, self-insured
companies and law firms a complete, secure, web-based case chronology of
review-ready records. SmartChron’s proprietary technology replaces the
manual process of data gathering with a user-friendly solution that
delivers data intelligence with speed, accuracy and cost savings.

Two years in the making, SmartChron was developed by a team of data
extraction experts and has been beta tested by members of the legal and
insurance communities.

“Before SmartChron, I would spend hours putting records in chronological
order,” said Julia Bryant, Paralegal – White, Fleischner & Fino, LLP,
who participated in the SmartChron beta testing. “It is innovative and
easy to use. SmartChron is a wonderful product that I trust.”

With the click of a button, SmartChron users easily view data in
aggregate, reducing the time required to chronologically organize a case
from hours to seconds. As a result, legal teams have more time to plan
their strategy and make a greater material impact on the claim or case.
SmartChron’s unprecedented capabilities empower users to:

  • Accelerate cycle time and expedite case resolution
  • Immediately locate desired information using keyword search, the ideal
    alternative to time-consuming manual searches
  • Easily identify nuances in records, pinpoint treatment patterns,
    determine lapses and gaps in treatment, highlight discrepancies or
    missing pages and uncover evidence of drug purchases
  • Stay abreast of new SmartChrons with automated daily notifications
  • Lower legal expenditures, settlement costs and allocated loss
    adjusting expenses (ALAE) by delivering data to all stakeholders in
    real time, so that collaborative decisions can be made faster

“SmartChron redefines the process of claims analysis and decision
making, replacing the inefficient process of organizing paper files for
weeks at a time to prepare the case,” said Steve Schumacher, President
of Keais. “Using advanced data management technologies, including
optical character recognition (OCR), SmartChron can compile thousands of
pages in a single PDF that’s accurate, organizable and insightful. This
higher level of data intelligence empowers legal teams to improve
outcomes, reduce costs and accelerate case resolution.”

From data research and retrieval to intelligence analysis and sharing,
Keais ensures that the exacting requirements of SOC2 compliance are met
or exceeded, adhering to SOC’s information security policies and
procedures set forth for the security, availability, processing,
integrity and confidentiality of customer data.

About Keais

Founded in 1975, Keais is the world’s largest records retrieval company
serving insurance companies, self-insured companies and law firms
practicing medical claims. Keais is a privately-held provider of
technology-enabled data intelligence that empowers insurance carriers,
self-insured corporations and law firms to reduce costs, make
better-informed decisions and accelerate claims resolution. Superior
service, accuracy, and industry leading turnaround times are hallmarks
of the organization.

View source version on businesswire.com: http://www.businesswire.com/news/home/20170509006389/en/

SOURCE: Keais Records Retrieval”>
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Hackers Face $8.9 Million Fine for Law Firm Breaches

A federal court orders three Chinese nationals to pay $8.9 million in fines and penalties for hacking into two law firms and using stolen confidential information to trade stocks.

Three Chinese stock traders were ordered to pay $8.9 million in fines and penalties for hacking into two law firms and stealing information on upcoming mergers and acquisitions and then leveraging the information to trade stocks.

A federal court in New York ordered Iat Hong, Bo Zheng, and Hung Chin to pay fines, as well as Hong’s mother Sou Cheng Lai who held a bank account where the proceeds from the stock sales were kept, according to a copy of the judgment posted by SC Media.

The three hackers installed malware on the law firms’ computer networks, enabling them to view emails on mergers and acquisitions in which the firms were involved. With the information, the attackers purchased stock in at least three public companies prior to their merger announcements, according to the Securities and Exchange Commission (SEC), which filed the lawsuit against the hackers.

The hackers shelled out roughly $7.5 million within a month’s time to buy shares in Altera prior to its 2015 acquisition by Intel. The defendants also snapped up shares in Borderfree before its 2015 buyout by Pitney Bowes, and also acquired shares in InterMune before its 2014 merger deal with Roche, according to the SEC. With these transactions, the trio racked up nearly $3 million in illegal profits, the SEC stated.

Read more about the court judgment here.

Dark Reading’s Quick Hits delivers a brief synopsis and summary of the significance of breaking news events. For more information from the original source of the news item, please follow the link provided in this article. View Full Bio

More Insights

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The Latest: NC’s LGBT law stalled 1,200 Credit Suisse jobs

MORRISVILLE, N.C. (AP) — The Latest on Swiss bank Credit Suisse expanding its North Carolina operations with 1,200 jobs (all times local):

2:30 p.m.

A top executive for Swiss bank Credit Suisse says the company was reconsidering plans to expand its North Carolina operations by 1,200 jobs until the state partially repealed a law limiting the rights of gay and transgender people.

Credit Suisse Vice Chairman Wilson Ervin said Tuesday that the company opposed House Bill 2 because it suggested North Carolina would not provide the inclusivity its employees need.

The bank bank’s decision to add the information technology and other jobs in suburban Raleigh instead of near New York City comes five weeks after the state law’s partial repeal. Critics object that North Carolina still prevents local protections from discrimination over sexual orientation and gender identity.

Ervin said the changes re-established the minimum conditions for Credit Suisse to expand in North Carolina.

11:40 a.m.

Swiss bank Credit Suisse is adding 1,200 jobs at its North Carolina technology hub as it reorganizes operations and cuts jobs elsewhere.

A North Carolina state panel has approved up to $40 million in tax breaks to lure the jobs away from the New York City area.

Zurich-based Credit Suisse is sharply reducing its workforce after two years of losses, cutting up to 6,500 jobs this year after slashing its overall headcount by 7,200 last year.

Tuesday’s announcement comes five weeks after North Carolina’s partial repeal of a state law limiting gay and transgender rights.

Critics called the partial repeal a sham meant to end boycotts, because it still prevents local protections from discrimination over sexual orientation and gender identity, and puts state lawmakers in charge of bathroom policies.

Credit Suisse is adding 1,200 jobs at its technology hub in North Carolina, which approved more than $40 million in tax breaks on Tuesday to lure the jobs away from the New York City area.

The Swiss bank is reorganizing operations and sharply reducing its workforce after two years of losses, cutting up to 6,500 jobs this year after slashing its overall headcount by 7,200 last year.

The announcement comes five weeks after North Carolina partially repealed a state law limiting the rights of gay and transgender people. Passage of House Bill 2 in March 2016 led financial firms Deutsche Bank and PayPal to cancel North Carolina expansion plans.

Critics called the partial repeal a sham meant to end boycotts, because it still prevents local protections from discrimination over sexual orientation and gender identity, and puts state lawmakers in charge of bathroom policies.

But the partial repeal is enough for Credit Suisse, which had been reconsidering its plans for North Carolina because House Bill 2 suggested the state would not provide the inclusivity its employees need, Credit Suisse Vice Chairman Wilson Ervin said.

“We opposed that law. During the period that HB2 was on the books, we had to put our plans on hold. We did not think that expansion could be done in a way that was consistent with our core values,” Ervin said at a news conference on the company’s North Carolina campus. “While we realize that the recent repeal of HB2 contains some compromises, it is an important first step that re-establishes the minimum conditions for us to expand in the state.”

The bank had also considered the jobs announced Tuesday for Jersey City, New Jersey, according to documents provided by the state committee which approves large, discretionary tax breaks. With community college training and local sweeteners, Credit Suisse could get benefits of up to $44 million related to its North Carolina jobs.

The jobs moving from the bank’s New York-area site or newly created in North Carolina will include information technology, cyber-security, machine learning, finance, and other corporate functions, and pay an average salary of more than $100,000 a year.

The bank’s jobs shift represents North Carolina’s largest corporate expansion since MetLife Inc. said in 2013 that it would move 2,600 jobs from other states.

Credit Suisse decided after the 2001 terrorist attacks to move some vital back-office operations away from New York City. The Zurich-based bank now employs about 1,700 people at its operations in the tech-heavy North Carolina metropolitan area that includes the university towns of Raleigh, Durham and Chapel Hill.

The company in 2004 announced it was investing $100 million in a support and information technology center for its investment banking division. The Research Triangle Park location also includes some finance professionals.

But Credit Suisse has seen rocky times in recent years. Chairman Urs Rohner said bank is issuing new shares to raise about 4 billion Swiss francs (US$3.98 billion) to finance the ongoing restructuring.

Credit Suisse lost 2.44 billion Swiss francs (US$2.42 billion) last year, but reported a return to profit in the first quarter of this year at 596 million francs (US$594 million) on the strength of a surge in its wealth management business.

The bank also has U.S. operations in Chicago, Houston, Los Angeles and San Francisco, and employs more than 45,000 in 50 countries focused on banking, investing and finance.

Dalesio contributed from Raleigh, North Carolina. Follow him at http://twitter.com/emerydalesio ; read his work at https://apnews.com/search/emery%20dalesio


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The Latest: NC’s LGBT law stalled 1,200 Credit Suisse jobs

The Latest on Swiss bank Credit Suisse expanding its North Carolina operations with 1,200 jobs (all times local):

2:30 p.m.

A top executive for Swiss bank Credit Suisse says the company was reconsidering plans to expand its North Carolina operations by 1,200 jobs until the state partially repealed a law limiting the rights of gay and transgender people.

Credit Suisse Vice Chairman Wilson Ervin said Tuesday that the company opposed House Bill 2 because it suggested North Carolina would not provide the inclusivity its employees need.

The bank bank’s decision to add the information technology and other jobs in suburban Raleigh instead of near New York City comes five weeks after the state law’s partial repeal. Critics object that North Carolina still prevents local protections from discrimination over sexual orientation and gender identity.

Ervin said the changes re-established the minimum conditions for Credit Suisse to expand in North Carolina.

___

11:40 a.m.

Swiss bank Credit Suisse is adding 1,200 jobs at its North Carolina technology hub as it reorganizes operations and cuts jobs elsewhere.

A North Carolina state panel has approved up to $40 million in tax breaks to lure the jobs away from the New York City area.

Zurich-based Credit Suisse is sharply reducing its workforce after two years of losses, cutting up to 6,500 jobs this year after slashing its overall headcount by 7,200 last year.

Tuesday’s announcement comes five weeks after North Carolina’s partial repeal of a state law limiting gay and transgender rights.

Critics called the partial repeal a sham meant to end boycotts, because it still prevents local protections from discrimination over sexual orientation and gender identity, and puts state lawmakers in charge of bathroom policies.

Credit Suisse is adding 1,200 jobs at its technology hub in North Carolina, which approved more than $40 million in tax breaks on Tuesday to lure the jobs away from the New York City area.

The Swiss bank is reorganizing operations and sharply reducing its workforce after two years of losses, cutting up to 6,500 jobs this year after slashing its overall headcount by 7,200 last year.

The announcement comes five weeks after North Carolina partially repealed a state law limiting the rights of gay and transgender people. Passage of House Bill 2 in March 2016 led financial firms Deutsche Bank and PayPal to cancel North Carolina expansion plans.

Critics called the partial repeal a sham meant to end boycotts, because it still prevents local protections from discrimination over sexual orientation and gender identity, and puts state lawmakers in charge of bathroom policies.

But the partial repeal is enough for Credit Suisse, which had been reconsidering its plans for North Carolina because House Bill 2 suggested the state would not provide the inclusivity its employees need, Credit Suisse Vice Chairman Wilson Ervin said.

“We opposed that law. During the period that HB2 was on the books, we had to put our plans on hold. We did not think that expansion could be done in a way that was consistent with our core values,” Ervin said at a news conference on the company’s North Carolina campus. “While we realize that the recent repeal of HB2 contains some compromises, it is an important first step that re-establishes the minimum conditions for us to expand in the state.”

The bank had also considered the jobs announced Tuesday for Jersey City, New Jersey, according to documents provided by the state committee which approves large, discretionary tax breaks. With community college training and local sweeteners, Credit Suisse could get benefits of up to $44 million related to its North Carolina jobs.

The jobs moving from the bank’s New York-area site or newly created in North Carolina will include information technology, cyber-security, machine learning, finance, and other corporate functions, and pay an average salary of more than $100,000 a year.

The bank’s jobs shift represents North Carolina’s largest corporate expansion since MetLife Inc. said in 2013 that it would move 2,600 jobs from other states.

Credit Suisse decided after the 2001 terrorist attacks to move some vital back-office operations away from New York City. The Zurich-based bank now employs about 1,700 people at its operations in the tech-heavy North Carolina metropolitan area that includes the university towns of Raleigh, Durham and Chapel Hill.

The company in 2004 announced it was investing $100 million in a support and information technology center for its investment banking division. The Research Triangle Park location also includes some finance professionals.

But Credit Suisse has seen rocky times in recent years. Chairman Urs Rohner said bank is issuing new shares to raise about 4 billion Swiss francs (US$3.98 billion) to finance the ongoing restructuring.

Credit Suisse lost 2.44 billion Swiss francs (US$2.42 billion) last year, but reported a return to profit in the first quarter of this year at 596 million francs (US$594 million) on the strength of a surge in its wealth management business.

The bank also has U.S. operations in Chicago, Houston, Los Angeles and San Francisco, and employs more than 45,000 in 50 countries focused on banking, investing and finance.

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Firms with too much cash on the books should be a red flag for investors

We increasingly hear about companies with mountains of cash on their books. While having plenty of cash to take care of anticipated expenses, ongoing liabilities and emergencies is essential, there’s a question about whether having more than this — known as excess cash — is a good thing.

The subject became exceptionally topical with all the media attention about Apple’s stockpile of cash, which has grown to about $250 billion.

Companies that make so much money that they’re rich with cash have something on the ball — because they made it. And lots of cash on hand naturally provides a safety net of sorts for shareholders. But generally, a great deal of excess cash can crimp shareholders’ return on equity — a measure of what the company gives shareholders back on the money they’ve invested.

Companies that continue to accumulate excess cash can be viewed as lacking ideas for investment in the enterprise. Isn’t there something these companies can do with the money to boost revenues, profits and earnings for shareholders?

Research shows that having too much cash on hand is almost as bad as having too little when it comes to auguring future returns to shareholders. Studying major companies with large amounts of cash between 2001 and 2016, Revelation Investment Research found that this foreshadowed poor returns the following year. The more cash, the lower the returns — into negative territory.

The returns of the biggest cash hoarders were almost as poor as those of companies studied that had the least cash on hand, whose poor performance was understandable because they likely lacked enough cash to take advantage of opportunities. The researchers suggested that the market punished the underperformers for “poor capital allocation or utilization.” Consistent with the lesson of Goldilocks and the Three Bears, companies with relatively moderate amounts of cash registered the best market performance.

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Another study, conducted at the University of Toronto, found that companies with high levels of excess cash have tended to deliver lower market returns during market downturns. And even though the higher-cash companies invested more in their future, they didn’t experience relatively high future profitability. Based on this finding, could it be that having too much cash lying around leads to less judicious decisions about how to invest in the company?

Further, a common trap for companies that have too much cash burning holes in their pockets may be more inclined to engage in share buybacks — a practice that can raise questions for shareholders.

Romantic poet William Blake wrote in the late 18th century that “one law for the lion and the ox is oppression.” Applying Blake’s logic, judging different kinds of cash-rich companies the same way probably doesn’t make sense.

Tech companies tend to accumulate more cash because, as producers of high-margin products based on intellectual property, they don’t have the same materials costs as non-tech manufacturers.

As a result, they accumulate more cash. Of the 10 companies, global and domestic, that have had the most cash in recent months, four are tech companies: Microsoft, Cisco Systems, Apple and Intel. Though two of the other top 10 — Amgen and Johnson & Johnson — were pharma or pharma-related companies, which tend to accumulate more cash for the same reasons as tech companies. This list also includes General Electric, Toyota, General Motors and French oil and gas company Total. The accumulation of cash by such capital-intensive, heavy manufacturing companies may not be a good thing, so investors should take a close look at such companies to learn why they aren’t finding places to reinvest their abundant cash in their enterprises.

Not that intellectual-property-intensive companies automatically get a pass on their penchant for hording dead presidents. Because some companies have so much excess cash, they — like a rich individual — may buy things just because they can, without enough discretion and due diligence as to whether they should. This can lead to acquisitions or the founding of new companies that may not be profitable themselves and thus can drain value or capital from the existing enterprise — a concern of shareholders.

Too much cash on hand has played a major role in corporate acquisitions that resulted in losses so high that they’re now regarded as classic blunders. Among these are AOL’s purchase of Time Warner in 2000, Sprint’s purchase of Nextel in 2005, Microsoft’s purchase of aQuantive in 2012 and Hewlett-Packard’s purchase of Autonomy the same year.

Though some highly profitable companies have excess cash, this doesn’t stop them from going into debt. Last summer a range of tech companies, including Apple and Microsoft, sold more bonds than they did in all of 2015. The justification for this move, of course, is low interest rates, but when high-cash companies go after cheap money, it merely sustains abundant cash and the potential for the problems it can bring.

Investors should regard high levels of excess cash as a definite red flag — one that should prompt them to find out why this money hasn’t been reinvested.

By David Gilreath partner/founder, Sheaff Brock Investment Advisors

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