Host: It’s going to be a US-led problem then on the current trajectory.

Todd G. Everts: Yes that’s correct.

Host: Nothing anybody else outside can do about it?

Todd G. Everts: Certainly the G7, the D20 can get together and try to stop this moving train but the US must solve this toxic asset problem.

Host: Well they’re trying, trying. Nobody would say that they’re not sincere about wanting to solve the problem.

(BREAK)

(Segment with Fred Schlomann)

Todd G. Everts: Could you talk a little bit about …or what is your opinion, are US banks and employers at a disadvantage from, maybe foreign employers, because of caps and bonuses and caps and compensation?

Fred Schlomann: I think long term that’s going to have an effect. At the end of the day the caps and any kind of compensation package are going to drive in their own direction, their kind of results. listen, folks have to be in Asia, companies have to be here. How are they going to get the talent they need. Expats are hired because local talents are not available and how do you incentivize people to take those jobs?

Host: Who’s your clientele? It’s individuals mostly is it?

Fred Schlomann: Now it’s actually corporations.

Host: It’s actually companies. What are they coming to you with? What is the mandate they hand you? Did they say we need to cut cost and I’ve got an employee X, great …5 college degrees, PhD and a really great mind but costs 5 times more than a local PhD.

Fred Schlomann: That’s right, the gut reaction is we got to cut cost, we’ve got to do something quick but companies do not want to put themselves in a hole where they can’t recover and respond when they need to respond and that’s going to happen. Things are going to turn around. Companies have to look at it strategically and they have to look at it from a standpoint of if this is the person we want and the person we need we’ve got to make sure we do it right.

Host: Maybe it’s a cultural thing but there are different ways to deal with…we’ve got too many people for what we’re actually doing these days…do we furlough? Do we do not pay leave? Do we say take very Friday off? Do we make them 3 months of unpaid leave or we keep them on benefits, something like that. I mean there are all kinds of iterations, all kinds of variations out there.