Verizon Communications

With an estimated 17 bllion dollars in assets, Verizon is exploring a sale or spin-off of the business unit to finance its expansion in wireless and high-speed Internet services.^[7]. Main article: History of banking. It had an operating revenue of $3.6 billion in 2004 and employs 7,300 nationwide.^[6]. has acquired Bank One Corp., making the combined 6/30/04 deposit total for the merged company $377 billion, vaulting it to second place on the list. The web sites receives 17 million unique visitors a month. Morgan Chase & Co. The yellow page business for Verzion known as Superpages is a Texas-based sales, publishing and related services for 1,200 directory titles with a circulation of about 121 million copies in 41 states. (1) Since this report, J.P.

Verizon calls this "FiOS Internet".^[5]. based global banks. Verizon recently began offering FTTP (Fiber to the Premises) to some subscribers. This is not a ranking of the largest U.S. Verizon provides DSL (Digital Subscriber Line) Internet service in many areas where it offers phone service. deposits only. Verizon provides standard POTS (Plain Old Telephone Service) service as well as VoIP (Voice Over Internet Protocol) and Fiber line services. These are U.S.

The merger was completed January 6, 2006. As of June 30, 2004. This not only renders the company, effectively, a regional phone company, but also forces it to pay usage fees to a long-haul carrier such as MCI to complete calls for its customers whenever those calls go outside the Verizon "footprint." That need is obviated by the MCI acquisition. The banks' main obstacles to increasing profits are existing regulatory burdens, new government regulation, and increasing competition from non-traditional financial institutions.
. While it is the largest telecommunications company in the world, the bulk of Verizon's profitable business is concentrated in the eastern United States. Banks make money from card products through interest payments and fees charged to consumers and companies that accept the cards. However, the real benefit to Verizon is the acquisition of long-haul lines. However, with convenience there is also increased risk that consumers will mis-manage their financial resources and accumulate excessive debt.

Media coverage has focused on several ways in which that acquisition, once completed, will benefit Verizon, including economies of scale derived from a potential productivity boost to be achieved via the elimination of thousands of jobs at the combined company, and access to the large base of business customers currently served by MCI. These products make it easier for consumers to conveniently make transactions and smooth their consumption over time (in some countries with under-developed financial systems, it is still common to deal strictly in cash, including carrying suitcases filled with cash to purchase a home). On February 14, 2005, Verizon agreed to acquire MCI, formerly WorldCom, after SBC Communications agreed to acquire AT&T just a few weeks earlier. These products include debit cards, pre-paid cards, smart-cards, and credit cards. In 2005, Verizon sold off GTE's former telephone operations in Hawaii to The Carlyle Group, This operation is now known as Hawaiian Telcom. Third, they have sought to increase the methods of payment processing available to the general public and business clients. In 2002, Verizon sold GTE's former telephone operations in 4 states: Missouri, Arkansas and Alabama operations were sold to CenturyTel, and Kentucky operations were sold to Alltel. This dramatically helps to offset the losses from bad loans, lowers the price of loans to those who have better credit histories, and extends credit products to high risk customers who would have been denied credit under the previous system.

Verizon also owns 50% of Gibraltar NYNEX Communications and part of Vodafone Italia. Second, they have moved toward risk based pricing on loans, which means charging higher interest rates for those people who they deem more risky to default on loans. (TELPRI). Merging banking, investment, and insurance functions allows traditional banks to respond to increasing consumer demands for "one stop shopping" by enabling cross-selling of products (which, the banks hope, will also increase profitability). Verizon also serves international customers in the Dominican Republic through Verizon Dominicana, Venezuela through CANTV, and Puerto Rico through Telecomunicaciones de Puerto Rico, Inc. First, this includes the Gramm-Leach-Bliley Act, which allows banks again to merge with investment and insurance houses. Due to the rigorous climate and high costs, GTE Alaska was sold to Alaska Power and Telephone Company rather than be merged with Verizon. In the past 10 years in the United States, banks have taken many measures to ensure that they remain profitable while responding to ever-changing market conditions.

It also provides service to secondary markets (mostly from its acquisition of GTE) in:. industries combined. The primary states that it provides service to include:. Now if Citigroup were to be as dominant in its industry as a Home Depot, Starbucks, or Wal Mart in their respective industries, with a 30 percent market share , it would make more money than the top ten non-banking U.S. Verizon serves customers throughout much of the United States. For example, the largest bank, Citigroup, which for the past 3 years has made more profit than any other company in the world, has only a 5 percent market share. As of 2003, it has more than 203,000 employees. This amount is even higher if one counts the credit divisions of companies like Ford, which are responsible for a large proportion of those company's profits.

It also has more than 16 million long distance customers. Large banks in the United States are some of the most profitable corporations, especially relative to the small market shares they have. Verizon shares were made a component of the Dow Jones Industrial Average on April 8, 2004.^[4] Verizon currently has 140.3 million land lines in service. Specific concerns are policies that permit banks to hold deposited funds for several days, policies that permit banks to apply withdrawals before deposits, policies that permit applying withdrawals from greatest to least, which is most likely to cause the greatest overdraft, policies that allow backdating funds transfers and fee assessments, and policies that authorize electronic funds transfers despite an overdraft. Note this section refers to land lines only, as Verizon Wireless operates nationwide.. Currently, many people are outraged due to various banking policies that take advantage of consumers. Genuity was formerly the Internet division of GTE Corp and spun off in 2000.^[2] Level 3 Communications acquired the bankrupt ISP in 2002 for only $137 million; a bargain-basement price the $616 million that a pre-Bell Atlantic-merger GTE paid for Genuity (then BBN Planet) paid in 1997.^[3]. Jackson fought against the bank as a symbol of greed and profit-mongering, antithetical to the democratic ideals of the United States.

Verizon then became the majority owner (55%) of Verizon Wireless. In United States history, the National Bank was a major political issue during the presidency of Andrew Jackson. GTE's wireless operations became part of Verizon Wireless—creating what was initially the nation's largest wireless company before Cingular Wireless acquired AT&T Wireless in 2004—when the Bell Atlantic–GTE merger closed nearly three months later. There is almost always a lender of last resort—in the event of a liquidity crisis (where short term obligations exceed short term assets) some element of government will step in to lend banks enough money to avoid bankruptcy. This wireless joint venture received regulatory approval in six months, and began operations as Verizon Wireless on April 4, 2000, kicking off the new "Verizon" brand name. Another reason banks are thoroughly regulated is that ultimately, no government can allow the banking system to fail. wireless assets (Bell Atlantic Mobile (which was previously called Bell Atlantic-NYNEX Mobile by 1997), AirTouch Cellular, PrimeCo Personal Communications and AirTouch Paging). In addition, banks are usually required to purchase deposit insurance to make sure smaller investors are not wiped out in the event of a bank failure.

Meanwhile, on September 21, 1999, Bell Atlantic and UK-based Vodafone AirTouch Plc (now Vodafone Group Plc) announced that they had agreed to create a new wireless business with a national footprint, a single brand and a common digital technology—composed of Bell Atlantic's and Vodafone's U.S. Major banks are subject to the Basel Capital Accord promulgated by the Bank for International Settlements. Verizon began trading on the New York Stock Exchange (NYSE) under its new "VZ" symbol on Monday, July 3, 2000. The amount of capital a bank is required to hold is a function of the amount and quality of its assets. Fractional shares resulting from the exchange of GTE stock into Verizon Communications shares were sold at a price of $55.00 per share. The combination of the instability of banks as well as their important facilitating role in the economy led to banking being thoroughly regulated. The merger of Bell Atlantic and GTE, to form Verizon Communications, became effective on June 30, 2000, with an exchange ratio of 1.22 shares of Verizon Communications Common Stock for each share of GTE Common Stock owned. Savings and Loan crisis in 1980s and early 1990s, the Japanese banking crisis during the 1990s, and the bank run that occurred during the Great Depression,and the recent liquidation by the central Bank of Nigeria.where about 25 banks were liquidated.

The Bell Atlantic-GTE merger, priced at more than $52 billion at the time of the announcement, closed nearly two years later, following analysis and approvals by Bell Atlantic and GTE shareowners, 27 state regulatory commissions and the Federal Communications Commission (FCC), and clearance from the United States Department of Justice (DoJ) and various international agencies. Prominent examples include the U.S. The mergers that formed Verizon were among the largest mergers in United States business history, culminating in a definitive merger agreement, dated July 27, 1998, between Bell Atlantic, based in New York City since the merger with NYNEX in 1996, and GTE, which was in the process of moving its headquarters from Stamford, Connecticut, to Irving, Texas. Banking crises have developed many times throughout history when one or more risks materialize for a banking sector as a whole. Its former Canadian subsidiaries have combined with the former Alberta Government Telephones (AGT) to create TELUS, the second largest telecommunications carrier in Canada. Risks include liquidity risk (the risk that many depositors will request withdrawals beyond available funds), credit risk (the risk that those that owe money to the bank will not repay), and interest rate risk (the risk that the bank will become unprofitable if rising interest rates force it to pay relatively more on its deposits than it receives on its loans), among others. GTE operated in Canada via controlling interest in subsidiary companies such as BC TEL and Quebec Tel. Banks are susceptible to many forms of risk which have triggered occasional systemic crises.

GTE provided local telephone service in a large number of areas of the U.S. Even where the reserve ratio is not controlled by the government, a minimum figure will still be set by regulatory authorities as part of bank regulation. They also owned Automatic Electric, a telephone equipment supplier similar in many ways to Western Electric. Some governments (or their central banks) restrict the proportion of a bank's balance sheet that can be lent out, and use this as a tool for controlling the money supply. It would later merge with the second largest independent, Continental Telephone (ConTel). This behaviour is called fractional-reserve banking and it is a central issue of monetary policy. General Telephone and Electronics (GTE) was the largest of the "independent" telephone companies during the days of the Bell System. Bank reserves are typically kept in the form of a deposit with a central bank.

parent company's merger with Verizon, before being dropped in 2002 in favor of Gibtelecom, although it is still used colloquially in Gibraltar. It must keep a certain proportion of its funds in reserve so that it can repay depositors who withdraw their deposits. The NYNEX name was retained after the U.S. However, it would not be prudent for a bank to lend out all of its balance sheet. In Gibraltar, NYNEX had a 50 per cent stake in a joint venture with the Government of Gibraltar, called Gibraltar NYNEX Communications, also known as GNC or GibNYNEX. The bank then lends out most of these funds to borrowers. NYNEX also operated cable TV services in some parts of the UK, although these were later sold to Cable & Wireless, which subsequently sold these to NTL. A bank raises funds by attracting deposits, borrowing money in the inter-bank market, or issuing financial instruments in the money market or a capital market.

NYNEX was created as one of the original Regional Bell Operating Companies (RBOCs) in 1984 and it owned New York Telephone and New England Telephone. They act as Lender of last resort in event of a crisis. NYNEX was consolidated into this name by 1997. Central banks are non-commercial bodies or government agencies tasked with responsibility for controlling interest rates and money supply across the whole economy. when it merged, it moved its corporate headquarters from Philadelphia to New York City. In some jurisdictions retail and investment activities are, or have been, separated by law. Pennsylvania, Delaware, Maryland, West Virginia, and Virginia as well as Washington, DC. However, some are owned by government, or are non-profit making.

states of New Jersey, New York. Most banks are profit-making, private enterprises. Until its then Chairman and CEO, Raymond Smith orchestrated its merger with NYNEX in 1996, Bell Atlantic operated in the U.S. Banks' activities can be characterised as retail banking, dealing direct with individuals and small businesses, and investment banking, relating to activities on the financial markets. Bell Atlantic's original roster of Operating Companies was Bell of Pennsylvania, New Jersey Bell, Diamond State, and Chesapeake and Potomac Telephone Companies. Although the type of services offered by a bank depends upon the type of bank and the country, services provided usually include:. The origins of this company began as Bell Atlantic, and was created as one of the original Regional Bell Operating Companies (RBOCs) in 1984. .

. In recent history, with historically low interest rates a limited ability to earn money by lending deposited funds, much of a bank's income is provided by overdraft fees and riskier investments.
. Traditionally, a bank generates profits from transaction fees on financial services and on the interest it charges for lending. The name is a portmanteau of the Latin word veritas (meaning truth) and the English word horizon. Money lenders in Northern Italy originally did business in open areas, or big open rooms, with each lender working from his own bench or table. Prior to its transformation into Verizon, Bell Atlantic had merged with another Regional Bell Operating Company, NYNEX, in 1997. The terms bankrupt and "broke" are similarly derived from banca rotta, which refers to an out-of-business bank, having its bench physically broken.

Verizon Communications (NYSE: VZ) is a New York City-based Baby Bell formed when Bell Atlantic, one of the Regional Bell Operating Companies, bought GTE, formerly the largest independent local-exchange telephone company in the United States in 2000. The word bank is derived from the Italian banca, which is derived from German language and means bench. Wisconsin. Banks have a long history, and have influenced economies and politics for centuries. Washington. There are also financial institutions that provide certain banking services without meeting the legal definition of a bank, a so called non-banking financial company. Texas. Banking licenses are granted by bank regulatory authorities and provide rights to conduct the most fundamental banking services such as accepting deposits and making loans.

South Carolina. Currently the term bank is generally understood as an institution that holds a banking license. Puerto Rico. A bank is an institution that provides financial service, particularly taking deposits and extending credit. Oregon. Imperial Bank of Persia — History of banking in the Middle-East. Ohio. United States Banking.

North Carolina. Swiss bank. Nevada. Bank of America — The invention of centralized check and payment processing technology. Michigan. Bank of England — The evolution of modern central banking policies. Indiana. Bank of Sweden — The rise of the national banks.

Illinois. Bank of Amsterdam. Idaho. Banknotes — Introduction of paper money. Florida. Florentine banking — The Medicis and Pittis among others. California. — 64 billion.

West Virginia. National City Corp. Virginia. BB&T Corporation — 67 billion. Vermont. — 78 billion. Rhode Island. SunTrust Banks, Inc.

Pennsylvania. Bancorp — 112 billion. New York. U.S. New Jersey. — 150 billion (1). New Hampshire. Bank One Corp.

Massachusetts. — 193 billion. Maryland. Citigroup Inc. Maine. — 227 billion (1). District of Columbia. Morgan Chase & Co.

Delaware. J.P. northeastern Connecticut. — 238 billion. Wachovia Corp. — 256 billion.

Wells Fargo & Co. — 526 billion. Bank of America Corp. Merrill Lynch — 4 billion.

Morgan Stanley — 5 billion. Wachovia — 5 billion. UBS AG — 6 billion. JP Morgan Chase — 7 billion.

Wells Fargo — 7 billion. Royal Bank of Scotland — 8 billion. HSBC — 10 billion. Bank of America — 15 billion.

Citigroup — 21 billion. Mitsubishi Tokyo Financial Group — 832 billion. BNP Paribas — 835 billion. ING Group — 843 billion.

Fannie Mae — 888 billion. Deutsche Bank — 892 billion. Sumitomo Mitsui Financial Group — 903 billion. UBS — 907 billion.

Allianz — 1,002 billion. Citigroup — 1,097 billion. Mizuho Financial Group — 1,265 billion. BNP Paribas — 35 billion.

HBOS — 36 billion. Mizuho Financial Group — 39 billion. Mitsubishi Tokyo Financial Group — 40 billion. Royal Bank of Scotland — 43 billion.

Credit Agricole Group — 63 billion. Bank of America — 64 billion. HSBC — 67 billion. JP Morgan Chase — 69 billion.

Citigroup — 73 billion. Also, deposit makers earn a share of the Bank’s profit as opposed to a predetermined interest. Instead of interest, the Bank earns profit (mark-up) and fees on financing facilities that it extends to the customers. Since the concept of Interest is forbidden in Islam, all banking activities must avoid interest.

Islamic banking revolves around several well established concepts which are based on Islamic canons. Islamic banks adhere to the concepts of Islamic banking. In Europe and Asia, big banks are very diversified groups that, among other services, distribute also insurance, whence the bancassurance term. Almost all large financial institutions are diversified and engage in multiple activities.

For example, Citigroup, a very large American bank, is involved in commercial and retail lending; it owns a merchant bank (Citicorp Merchant Bank Limited) and an investment bank (Salomon Smith Barney); it operates a private bank (Citigroup Private Bank); finally, its subsidiaries in tax-havens offer offshore banking services to customers in other countries. Universal banks, more commonly known as a financial services company, engage in several of these activities. Unlike Venture capital firms, they tend not to invest in new companies. The modern definition, however, refers to banks which provides capital to firms in the form of shares rather than loans.

Merchant banks were traditionally banks which engaged in trade financing. Examples of investment banks are Goldman Sachs of the USA or Nomura Group of Japan. Investment banks "underwrite" (guarantee the sale of) stock and bond issues and advise on mergers. Building societies and Landesbanks both conduct retail banking.

Today, some countries have broadened the permitted activities of savings banks. Savings banks traditionally accepted savings deposits and issued mortgages. Many offshore banks are essentially private banks. Offshore banks are banks located in jurisdictions with low taxation and regulation, such as Switzerland or the Channel Islands.

Private banks manage the assets of high net worth individuals. Japan and Germany are examples of countries with prominent postal savings banks. Postal savings banks are savings banks associated with national postal systems. Community development bank are regulated banks that provide financial services and credit to underserved markets or populations.

Since the two no longer have to be under separate ownership, some use the term "commercial bank" to refer to a bank or a division of a bank that mostly deals with corporations or large businesses. Commercial bank, is the term used for a normal bank to distinguish it from an investment bank. Storing valuables, particularly in a safe deposit box. Issuing credit cards, ATM, and debit cards.

Facilitating money transactions such as wire transfers and cashiers checks. Cashing cheques. Making loans to indivudals and businesses. Taking deposits from the general public and issuing checking and savings accounts.