March 2, 2012 nº 1,149 - Vol. 10
The courtesans are like those chips we use in games;
their value changes at the pleasure of those who employ them.
In today's Law Firm Marketing, Value/price equation drives hiring decision, client loyalty.
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Read Migalhas LatinoAmérica in Spanish every Tuesday and Thursday. Visit the website at www.migalhas.com/latinoamerica
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Greek crisis may test the value of swaps
The restructuring of Greece's debt that is scheduled to start next week may well demonstrate how effective credit-default swaps are. These financial instruments, which played a major role in both the 2008 financial crisis and in the European debt crisis, are meant to pay out if a company or country defaults. But the twists and turns over Greece's debt are revealing their potential limitations for investors who hope the swaps will protect them against losses if Greece defaults. On Thursday, the International Swaps and Derivatives Association, the industry body that decides whether swaps should pay out, said that Greece's proposed debt exchange did not currently activate swaps linked to the country's debt. But the association added that the swaps could activate at a later date. The body's decision reignites the debate over the usefulness of the default swaps. If Greece had simply stopped paying interest or principal on its bonds, the swaps would have paid out. European policy makers, however, decided last year to try to use a voluntary debt exchange for Greece as a way to avoid setting off the swaps. The maneuver was a brusque reminder for investors that there are ways to circumvent the conditions of credit-default swaps. If a sovereign, and those trying to rescue it, tiptoe around the periphery to avoid triggering the C.D.S., it may impair the effectiveness of the C.D.S. as a risk management tool.
Criminal Libor probe cited by US judge in denial of access to documents
Investors suing Credit Suisse Group AG, Bank of America Corp. and other companies over claims they artificially suppressed Libor lost a bid for some documents related to a US Justice Department investigation. In denying the investors' request yesterday, US District Judge Naomi Reice Buchwald in Manhattan, who's presiding over 21 class-action lawsuits, cited a letter from the department claiming that a release of the documents may interfere with its criminal antitrust probe. "To me, it is simply too much to have them piggyback on the government's investigation at this stage," the judge said in a ruling from the bench. "It is quite clear from the Department of Justice's letter that they would have serious problems with my granting the request." The multidistrict litigation before the judge involves group lawsuits filed against member banks of the British Bankers' Association London Interbank Offer Rate Panel, known as Libor. The member banks are accused of conspired to artificially suppress Libor by understating their borrowing costs to the BBA. Buchwald said that if she agreed to let investors have the documents they want, it would "inhibit the fullest response to the government requests for information."
Sharia law campaign begins as Muslim group fights bans
After heated debates in two dozen states over banning Sharia law, the legal code of Islam, a national Islamic group is beginning a multi-million dollar effort to explain how Sharia applies to the lives of American Muslims. The Islamic Circle of North America, a New York-based group, is spending $3m on its Defending Religious Freedom campaign, which kicks off Monday and explains Sharia law and common misunderstandings to everyday Americans. The effort includes billboards, TV and radio ads in 25 major cities, including New York, Los Angeles and Chicago, in addition to town hall meetings and seminars on university campuses led by Muslim academics and activists. Each directs audiences to a website and manned hotline, 1-855-Shariah. The campaign is a response to efforts to ban Sharia law over the last two years in state legislatures and on ballot initiatives, said Naeem Baig. Sharia law guides Islamic life, from praying five times a day to fasting during the holy month of Ramadan and abstaining from pork, alcohol and sex outside of marriage. Sharia has also been cited as a justification for violent, sometimes deadly punishments for minor crimes in majority-Muslim countries, including Saudi Arabia. The Defending Religious Freedom website says "American Muslims do not seek to have Sharia penal laws introduced in the US" and are more interested in the role of Sharia in "praying, fasting and alms-giving, as well as divorce, burials and inheritance." "When people talk about criminal law in the Quran, none of the Muslims say they want that legal code in America. What we are saying is that in the private life of a Muslim, nobody should impose on them how to conduct a marriage or preside over a funeral. Instead of using the word Sharia, we should use the words 'Muslim values' or 'Islamic values." That lines up with how religious laws, including Jewish and Islamic ones, are already interpreted in US courts when it comes to marriage, divorce, wills and estate contracts.
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1 - Graphic cigarette labels violate First Amendment - click here.
2 - Federal judge apologizes for racist email about president Obama - click here.
3 - The daily writing sample: Cell phones and diaries - click here.
4 - Vatican Secret Archives: Galileo's heresy trial and Henry VIII's divorce plea - click here.
5 - Legalizing the tools of repression in China - click here.
6 - German Minister slammed, played Sudoku in Greek debate - click here.
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Forbes in Asian women power list
Women from China, Taiwan, Hong Kong and Macau dominate the first list of the 50 most powerful women in business in Asia by Forbes. The media company said the women were chosen for "their hands-on management of profit-seeking companies". This inaugural list celebrates the dynamic ways in which Asia's businesswomen are driving some of the region's most exciting growth. However, many women in Asia still face issues of inequality in the workplace.
China firm to challenge US reach in espionage case
Lawyers for a Chinese steel company will challenge the ability of US prosecutors to bring a criminal case against the company for trying to steal business secrets from chemical giant DuPont. A Northern California grand jury indicted Pangang Group last month for conspiracy to commit economic espionage and other crimes including conspiracy to steal trade secrets.
Value/price equation drives hiring decision, client loyalty
by Trey Ryder
How much can you charge your clients?
You probably know lawyers who charge a fortune for their services and their clients happily pay it. At the same time, you probably know lawyers who have to fight for every dollar they earn.
What is the difference between these lawyers?
Often, it comes down to the value/price equation, which says:
Prospects will hire your services -- and clients will continue to use your services -- as long as they believe that the value they receive from you is (1) greater than the price they pay, and (2) greater than the value they would receive from another lawyer for the same fee. In most cases, unless both of these conditions are met, you'll lose clients.
How much prospects and clients value your services is the direct result of how well you provide things they believe are important. For example, how do you rate yourself in the following areas?
(1) Knowledge, skill and experience. The more you have, the higher your value.
(2) Self confidence. The more confident you appear, the better your clients feel and the more peace of mind they enjoy.
(3) Responsiveness. How quickly you return clients' phone calls. How quickly you finish clients' work. How quickly clients can see you in your office or talk with you on the telephone. The shorter the time, the higher your value.
(4) Understanding and communication. How well your clients understand what you tell him. How well and how often you communicate with clients about their cases. The better the communication, the higher your value.
(5) Reputation. The better your reputation, the more your clients value working with you.
(6) Results. The better the results you achieve for clients, the higher your value.
(7) Relationship. How much clients depend on you. How much clients feel they can trust you. How long you and your clients have worked together. The stronger your client relationships, the greater your value.
(8) Your reception area. A pleasing appearance adds value. A dingy or drab look detracts from value. New magazines neatly arranged, a plus. Old magazines thrown in a pile, a minus.
(9) Greeting. A friendly, warm, caring reception is a plus. Cold or impersonal, a minus.
(10) Access. If your clients get in to see you quickly, a plus. The longer they wait in the reception area, the lower your value.
(11) Office location. The closer it is to clients, the more value they perceive. However, if clients never come to your office, this may have no effect on your value.
(12) Parking lot. When parking spaces are easily available, that's more value for your clients. If your clients have trouble parking, that's less value.
This is just the beginning. Everything in your relationship either adds to or subtracts from the value your clients perceive. Whether it's good service, peace of mind, or sports tickets, everything counts.
The one element that does not increase or decrease value is your fee. Your fee is your client's gauge against which he measures your value. Regardless of whether your fee is high or low, the fee itself does not add to or subtract from your value.
If you have a low fee, it may be a competitive advantage if other lawyers have higher fees. But if higher-priced attorneys also offer their clients more value, then you're comparing apples and oranges because what the client receives is not the same.
I had a friend who passed away a few years ago. He was a prominent tax attorney in Phoenix. Just after I graduated college, our paths crossed and he invited me to breakfast. From that day forward, I felt bonded to this man because he always treated me as if I were the most important person in the world.
Obviously, I was not in this man's target audience. I was just a kid fresh out of college. But for the 23 years I knew him, I told people about my friend and mentor. I reinforced other people's perception of his value.
This lawyer went to great lengths to add value to his services. The moment I pulled into his parking lot, I knew he would take good care of me because he provided covered parking spaces for his clients. (In the summer heat in Phoenix, covered spaces have a high perceived value.)
And the spaces weren't off in some far corner of the lot. They were the very first spaces outside the building's entrance. I knew this man had power and influence or he wouldn't have been able to get those spaces for his clients.
What's more, when I entered his reception area, he served soft drinks in glass tumblers. (You would never find a pop can in this man's office. He wouldn't stand for it.) And ice cubes? Only the hard-frozen kind that were crystal clear. The spotlights in his reception area reflected off the ice cubes like sparkling diamonds in a jeweler's showcase.
What did this man charge? The standing joke was that he charged twice what any other lawyer would dare charge. But his clients loved to pay their bills because they believed they had the top tax lawyer in town and he treated them like royalty.
You can do a lot to increase your value to clients. The first things clients notice are speed and accessibility. The quicker clients get in to see you, the quicker you complete their work, the quicker you return phone calls -- all add value to your services.
Review the 12 points above and identify where you can increase your value. Remember, not all clients perceive value the same way. One client may appreciate a quick response. To another, speed might not matter. One client may like your covered parking spaces. But to the client who doesn't come to your office, parking is not important.
If you want to make improvements in your value, ask clients what improvements they would value most. Or poll your most important clients to see what value they would like you to add.
Client loyalty is the result of value delivered over time. The more value you provide, and the longer you provide it, the more client loyalty you'll enjoy. For years. For decades. For life.
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© Trey Ryder
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Acciones
Los accionistas del grupo minorista chileno Cencosud, una de las mayores firmas del sector en América Latina, aprobaron el jueves una emisión de acciones en el extranjero, que se enfocaría en Estados Unidos, como parte de un aumento de capital que apunta a financiar su expansión. Hace unas semanas, la firma chilena inicio gestiones para una posible colocación de títulos en el mercado de Estados Unidos, mediante un programa de ADR - American Depositary Receipt, para lo cual contactó a bancos de inversión y oficinas de abogados en Chile y el exterior.
Acuerdos
La presidenta argentina instruyó a su Canciller renegociar el acuerdo con Gran Bretaña que permite vuelos a las Islas Malvinas, cuya soberanía reclama el país austral, para que puedan ser habilitados servicios aéreos directos desde Buenos Aires al disputado archipiélago. El gobierno de la isla ve pocas probabilidades. (Presione aquí)
Demanda
Una empresa británica de servicios públicos que opera proyectos de generación de energía en América Latina dijo que presentó una demanda por 142 millones de dólares contra Bolivia en La Haya a raíz de la nacionalización de su participación en una empresa boliviana. (Presione aquí)
Lawsuit seeks to block Empire State Building IPO
Several investors have sued to block a proposed initial public offering by the owner of the Empire State Building, saying it unfairly undervalues their interests. The Malkin family, which controls the company that owns the iconic 102-story skyscraper, is trying to engineer a "one-sided" transaction that leaves smaller investors in the dark about whether the possible $1bn IPO is fair, a complaint filed Thursday with the New York state court in Manhattan showed. Plaintiffs include investors in companies whose equity could be converted into stock of the Malkins' proposed new company, Empire State Realty Trust. That company would be a real estate investment trust whose holdings would include 12 office buildings, six retail properties and land in New York and Connecticut.
Brazil declares new 'currency war'
Brazil has declared a fresh "currency war" on the US and Europe, extending a tax on foreign borrowings and threatening further capital controls in an effort to protect the country's struggling manufacturers.
US House approves bill restricting eminent domain
The US House of Representatives approved legislation on Tuesday restricting the ability of states to take control over private property for public use under eminent domain. The Private Property Rights Protection Act of 2012 would effectively overturn the 2005 US Supreme Court decision in Kelo v. City of New London, authored by retired justice John Paul Stevens. The Kelo case drew sharp criticism, particularly from Republicans who believed the court disregarded the traditional standard for "public use." The proposed act would prevent states from seizing private property for the purpose of economic development and create a private cause of action for property owners.
Federal judge rules tobacco warning label requirements unconstitutional
A judge for the US District Court for the District of Columbia ruled Wednesday that a FDA - Food and Drug Administration regulation requiring cigarette packaging and advertisements to display more prominent graphic health warning labels is unconstitutional, issuing a permanent injunction. The regulation mandating nine new warning signs, initially set to take effect in September 2012, was deemed a violation of the tobacco companies' First Amendment rights. Rather, Judge Richard Leon suggested less restrictive alternatives to the warnings to convey the repercussions of smoking to the public. His suggestions include increasing anti-smoking advertisements, raising cigarette taxes, improving efforts to prevent unlawful sale to minors or changing display requirements.
Eurozone jobless rate at new high
The unemployment rate in the eurozone continued to rise in January, hitting another record high. The jobless rate in the 17 countries that use the euro rose to 10.7% in January, while December's figure was revised up from 10.4% to 10.6%. There are now 16.9 million people out of work in the bloc.
EU grants Serbia candidate status
European Union leaders grant Serbia "candidate status" at a summit in Brussels, after Romania drops its objections. Belgrade has made a series of democratic reforms and captured war crimes suspects to satisfy EU demands. It applied for EU membership in 2009.
Accused NGO workers leave Egypt
Seventeen foreign democracy activists, including Americans, at the center of a row between Egypt and the US, have left Cairo after a travel ban was lifted. The activists - who worked at non-governmental organizations - were on trial for allegedly receiving illegal foreign funding and stirring up unrest. Police in the Egyptian capital raided the offices of 17 NGOs in December and confiscated documents and computers, before imposing the travel ban a month later. The ongoing case has led to a major row, risking $1.3bn in US aid.
Drug cartels threaten Latin American democracy
Drugs gangs are posing a growing threat to democracy in Latin America, the OAS - Organization of American States has warned. Cartels are influencing elections by threatening politicians and even running their own candidates, OAS Secretary for Multidimensional Security Adam Blackwell said. "Crime and violence are today the biggest threat to security in our region," he said. More than 45,000 Mexicans have died in drug-related violence since 2006, when Mexico began deploying the military to combat the cartels. The flow of South American cocaine north to the US has also helped turn Central America into one of the most violent regions in the world, with Guatemala, Honduras and El Salvador particularly affected.
Google privacy changes 'in breach of EU law'
Changes made by Google to its privacy policy are in breach of European law, the EU's justice commissioner has said. The transparency rules have not been applied. The policy change, implemented on Thursday, means private data collected by one Google service can be shared with its other platforms including YouTube, Gmail and Blogger. Google said it believed the new policy complied with EU law.
Iran holds parliamentary election
Iranian voters take part in parliamentary polls that pit supporters of supreme leader Ayatollah Khamenei against those of President Ahmadinejad. There's a battle taking place between various conservative factions in Iran as the country prepares for parliamentary elections on Friday. The candidates seeking broad changes have been barred from running, with many in jail or under house arrest.
Ninth Circuit upholds Washington immigrant food stamp cuts
The US Court of Appeals for the Ninth Circuit on Wednesday ruled that the state of Washington did not violate the constitutional rights of certain legal immigrants when it discontinued their food stamp benefits to save approximately $7m in state funds. In reversing an injunction by the US District Court for the Western District of Washington, the Ninth Circuit upheld budget cuts responsible for eliminating the benefits provided by the state program Basic Food, asserting that "States constitutionally can do precisely what Washington did here: provide supplemental benefits when the state's coffers bulge, but eliminate them when the state's resources diminish." Plaintiff Monica Pimentel, a legal immigrant and mother of three, argued that the state's decision to terminate the food assistance program violated the Equal Protection Clause of the Fourteenth Amendment, but to no avail.
US asks court to overturn Alabama immigration law
An Alabama law aimed at cracking down on illegal immigration usurps powers reserved for the federal government, a Justice Department official told a three-judge federal appeals court panel on Thursday. The federal government sued in August to block the law. The regulation of immigration is a matter exclusively for the federal government.
Federal judge rules medical marijuana providers not shielded from federal prosecution
A judge for the US District Court for the Eastern District of California on Tuesday dismissed a lawsuit challenging the US Attorney's authority to prosecute medical marijuana providers in the state. The suit was filed by the El Camino Wellness Center Collective, a Sacramento dispensary and a medical marijuana user. The plaintiffs relied on a 2009 memorandum from the Deputy Attorney General directing all US attorneys to avoid allocating resources to the prosecution of "individuals whose actions are in clear and unambiguous compliance with existing state laws providing for the medical use of marijuana." In his order, Judge Garland Burrell ruled that the memorandum was not legally enforceable.
UN Security Council demands access to Syria
Al Jazeera, Doha, Qatar
Dying man who aided Saddam denied bid for freedom
Asharq Al-Awsat, Pan-Arab daily, London, England
Yemen's Hadi takes oath, replaces Saleh
Egyptian Gazette, English-language, Cairo, Egypt
Former top aide: Netanyahu thinks state comptroller wants to destroy him
Haaretz, Liberal daily, Tel Aviv, Israel
Iran religious, political hardliners face off in vote
JPost, Conservative, Jerusalem, Israel
Red Cross to enter Homs district
BBC News, Centrist newscaster, London, England
French journalists safely out of Syria
CNN International, London, England
Harry embarks on first solo tour
Daily Express, Conservative tabloid, London, England
Even the monkeys are at it! Female bonobos show 'barsexual' side to impress rivals
Daily Mail, Conservative daily, London, England
Colin Firth bags himself Nicole Kidmand as his new wife in play Railway Man
Daily Mail, Conservative daily, London, England
Serbia moves a step closer to EU membership
EuroNews, International news, Ecully Cedex, France
LEBANON: French reporter Bouvier safe in Lebanon after Homs siege
France 24, Issy-les-Moulineaux, France
A French lesson: It's not over yet
Hurriyet Daily News, (Liberal, English-language), Istanbul, Turkey
Sarkozy holes up in café as protesters vent their anger
Independent The, London, England
Altai pipeline stirs ecology fears
Moscow News The, Independent, Moscow, Russia
PC David Rathband: timeline on his fight for life since Raoul Moat shooting
Telegraph The, Conservative daily, London, England
George Clooney: 'I don't give a s--- ' if people think I am gay
Telegraph The, Celebrity news, London, England
UTCC: 2012 GDP growth over 5%
Bangkok Post, Independent, Bangkok, Thailand
NKorea nuclear envoy to visit US on heels of deal
China Post, English-language daily, Taipei, Taiwan
This Is No Time to Go Soft on N.Korea
Chosun Ilbo, Conservative daily, Seoul, South Korea
Iran votes in test for Ahmadinejad
Hindustan Times, New Delhi, India
Pregnant woman fakes kidnap, molestation in Mumbai
India Times, Conservative daily, New Delhi, India
30 tornadoes strike US Midwest in two days
New Zealand Herald, Conservative daily, Auckland, New Zealand
Over 17,000 move from Kazakhstan to Russia since 2006: diplomat
People's Daily Online, English-language, Beijing, China
Serbia makes 'historic' leap into European Union
Straits Times, Pro-government, Singapore
Carr's ambition fulfilled
Sydney Morning Herald, Centrist daily, Sydney, Australia
Turkish parliament ratified legislation to add pension payments
Taiwan News, English-language daily, Taipei, Taiwan
Sri Lanka C. bank: Will act to curb rupee volatility
The Economic Times, Business, Mumbai, India
Election call tapes being reviewed by Conservatives
Canadian Broadcasting Centre, Toronto, Ontario
With friends like Harper, Bibi can do no wrong
Globe and Mail The, Centrist daily, Toronto, Canada
Egypt's Confused Policy May Hinder Recovery
International Business Times, Business news organization, New York, U.S
EU argues over balance between austerity, growth
Reuters, Business News, New York, U.S
Pakistan Khyber clash kills at least 33, officials say
Reuters, World News, New York, U.S
Mariam's mother contacted after human remains found
Toronto Star, Toronto, Ontario
Somali militants in surprise raid
BBC News, Centrist newscaster, London, England
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