“Swiss president faces calls to resign in Libya row - Salon” plus 4 more

Swiss president faces calls to resign in Libya row - Salon
BofI Holding, Inc. Announces Record Net Income for Fourth Quarter and ... - Market Wire
Investing: Handicapping the Caps - MSNBC
UPDATE 1-KKR, others eye SocGen's TCW subsidiary- paper - Reuters
Lessons of Extreme Job-Hunting - Wall Street Journal

Swiss president faces calls to resign in Libya row - Salon

Posted: 01 Sep 2009 08:29 AM PDT

Sep 1st, 2009 | GENEVA -- Switzerland's president faced growing pressure to resign Tuesday, as the government failed to secure the release of two citizens detained in Libya since the arrest of Moammar Gadhafi's son in Geneva last year.

Figures across the political spectrum accused President Hans-Rudolf Merz of bungling negotiations with Libya as the deadline for the men's release passed at midnight.

"This is clearly a debacle, because promises were made and not kept," lawmaker Kathy Ricklin of the centrist Christian Democrats told state-owned radio DRS. "I think he should finish his presidential year, but then I expect his party to make a change."

Her view was mild compare to calls from the nationalist People's Party and the left-wing Social Democrats for Merz's immediate resignation.

Switzerland's largest-selling newspaper Blick mocked the president by declaring "Merz loses face," which the president himself said would happen if he couldn't free the men by Sept. 1.

The president's office responded by saying Merz had no intention of resigning and lashed out at Libya for failing to keep its side of a bargain brokered last month to restore normal relations.

The accord signed by Merz and Libyan Prime Minister al-Baghdadi Ali al-Mahmoudi in Tripoli commissioned an independent panel to examine Gadhafi's arrest and possibly recommend compensation.

"The two Swiss were unable to leave Libya by midnight Monday, despite written assurances to this effect by the Libyan prime minister," said Merz's spokesman Roland Meier.

Libya also failed to appoint one of three judges to the arbitration tribunal by the deadline, Meier said.

Calls to Libya's embassy in Bern went unanswered, but Deputy Foreign Minister Khaled Kaiym said Monday the Swiss men must pay a fine for violating immigration rules before being released.

The two businessmen, Max Goeldi and Rachid Hamdani, were detained July 19, 2008, four days after Hannibal Gadhafi and his wife were arrested in a Geneva luxury hotel for allegedly beating up two of their servants. Libya recalled some of its diplomats from Switzerland, suspended visas for Swiss citizens, withdrew funds from Swiss banks, and reduced flights to the Alpine country in retaliation.

The servants withdrew their complaint after receiving compensation from an undisclosed source, but Tripoli cut off supplies of crude oil to a Libyan-owned refinery in Switzerland. Libyan officials have demanded wide-ranging concessions from Switzerland in return for the release of Goeldi and Hamdani, who have been described as "hostages" by Swiss media and government officials.

According to respected Swiss weekly NZZ am Sonntag, Libya wanted Switzerland to suspend three Geneva police officers involved in the arrest, declare their actions "illegal" and pay euro20 million ($29 million) in damages to Gadhafi.

During his visit to Tripoli on Aug. 20, Merz apologized for the arrest and signed what appeared to be a final agreement to resolve the two countries' differences.

The apology enraged many in Switzerland.

"We've seen how Clinton did it and how Sarkozy dealt with the Bulgarians," said Oskar Freysinger, a People's Party lawmaker, referring to ex-President Bill Clinton's talks to free two American journalists in North Korea and the efforts of French President Nicolas Sarkozy and his ex-wife Cecilia to free jailed medics in Libya.

"What is (Merz) doing excusing himself to a dictator and then creating a tribunal where we can only lose?" he asked.

Freysinger told The Associated Press that Merz should step down regardless of whether the businessmen return.

Merz's apology has angered the Swiss -- and not only because of lost pride. In a country that cherishes small government and wide self-rule for individual cantons, the president's actions were seen as cutting into the autonomy of Geneva authorities.

The Libya accord comes on the heels of an equally contentious deal that Merz's government sealed with the United States to end a tax evasion standoff over American clients of the Swiss bank UBS AG. In that agreement, Merz largely sacrificed the sacred cow of Swiss banking secrecy by agreeing to hand over 4,450 names of Americans believed to have dodged the Internal Revenue Service, despite some complaints that the agreement violates Swiss law.

The pact with Libya has reinforced the idea that Switzerland can be coerced by more powerful countries.

"Would you trust this man?" Blick asked on a recent cover, with an arrow pointed to a triumphant-looking Moammar Gadhafi. "Merz did!"

--------

Associated Press Writer Onna Coray in Zurich contributed to this report.

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BofI Holding, Inc. Announces Record Net Income for Fourth Quarter and ... - Market Wire

Posted: 01 Sep 2009 08:22 AM PDT

SOURCE: Bank of Internet USA

Eighth Consecutive Year of Increased Net Income

SAN DIEGO, CA--(Marketwire - September 1, 2009) - BofI Holding, Inc. (B of I or the Company), ( NASDAQ : BOFI), parent of Bank of Internet USA (Bank), today announced unaudited financial results for its fourth quarter and year ended June 30, 2009. Net income for the fourth quarter increased to $3,604,000 up 102.5% compared to the $1,780,000 earned in the fourth quarter of fiscal 2008 and up 38.9% compared to the $2,594,000 earned in its last quarter ended March 31, 2009. Earnings attributable to B of I's common stockholders for the fourth quarter of fiscal 2009 were $3,431,000, up from the $1,700,000 earned in the fourth quarter of fiscal 2008 and up 41.7% compared to the $2,421,000 earned in its last quarter ended March 31, 2009. Diluted earnings per share for the fourth quarter of fiscal 2009 were $0.41 per share, up 105.0% from the $0.20 per share earned in the fourth quarter of fiscal 2008 and up 36.7% compared to the $0.30 per share earned in its last quarter ended March 31, 2009.

For the eighth consecutive year, the Company increased its annual earnings, reaching $7,142,000 for the year ended June 30, 2009, up 70.2% over the year ended June 30, 2008. Earnings attributable to B of I's common stockholders were $6,453,000 or $0.78 per diluted share, up from the $3,884,000 or $0.46 for the year ended June 30, 2008. Fiscal 2009 diluted earnings per share increased 69.6% over last year.

"At the end of fiscal 2008 we told our shareholders that our wholesale banking group would be able to capitalize on low risk, high return opportunities in the mortgage markets and in fiscal 2009 we delivered," said Greg Garrabrants, President and Chief Executive Officer of B of I. "We used those mortgage opportunities to increase our asset yield. We were simultaneously able to reduce our cost of funds and maintain our low overhead structure and our strong asset quality. These actions led to our highest annual net interest margin and another year of record earnings," said Mr. Garrabrants. For the year ended June 30, 2009, B of I's net interest margin was 3.04%, up 76.7% from the 1.72% for fiscal 2008.

"Just as important as our core earnings growth this year, our team made significant progress growing our retail mortgage loan origination business," said Mr. Garrabrants. "Our retail gain-on-sale mortgage banking platform is performing well and our enhanced multifamily origination group will be increasing origination volume in a market where traditional underwriting standards and more reasonable capitalization rates have returned. We made strong progress in enhancing our management team this year with additions of solid executive talent in our retail origination groups. We enhanced the Bank's core deposit and lending systems to allow us to drive greater efficiency in our origination and deposit groups. We have increased our level of analytical sophistication in managing yields from our marketing efforts allowing us to continue to grow our deposit base at reasonable costs."

"Our results this year are also attributable to more than eight years of focus on asset quality and capital," added Mr. Garrabrants. "Our non-performing assets were 0.65% of our total assets at June 30, 2009, up from last year, but still well below the majority of banks suffering through the current downturn. The lower level of problem assets is a competitive advantage for us today, as the executives of many community banks are spending more time on loss mitigation and raising capital, than on business opportunities. Despite our continued strong asset quality, during the year, we increased our allowance for loan loss by 75.4%. Our capital position remains strong with more than $25.7 million of capital above the federal standards for a well capitalized bank."

Fourth Quarter Highlights:

 -- Net interest margin grew to 3.62% in the fourth quarter, up 49.6% over the fourth quarter of 2008 and up 28.4% compared to the last quarter ended March 31, 2009. -- Asset quality remains strong with total non-performing loans of 0.45% of loan portfolio and total non-performing assets of 0.65% of total assets at June 30, 2009. -- Tangible book value increased to $9.79 per share, up $0.84 compared to the end of last year. -- Total assets reached $1,302.2 million at June 30, 2009, up 9.0% compared to the end of last year.

Quarter Earnings Summary

During the quarter ended June 30, 2009, B of I earned $3,604,000 or $0.41 per diluted share compared to $1,780,000, or $0.20 per diluted share for the three months ended June 30, 2008. Net interest income increased $4.3 million during the 2009 fourth quarter compared to the 2008 fourth quarter and increased $2.8 million compared to the quarter ended March 2009. The increases in net interest income are due to both a higher net interest margin resulting primarily from decreases in deposit rates and increases in loans and investment security rates and due to a higher level of interest earning assets. The net interest margin increased to 3.62%, up 120 basis points over the fourth quarter in 2008 and up 80 basis points compared to the quarter ended March 2009. For the fourth quarter of 2009, non-interest income was a gain of $923,000, due to the sale of $89.0 million of agency mortgage-backed securities for a gain of $2.8 million and mortgage banking income of $798,000, offset by an unrealized loss of $1.5 million associated with an other-than-temporary impairment on mortgage-backed securities and a fair value adjustment of $1.4 million on our trust preferred collateralized debt. The Bank also elected to increase its allowance for loan loss from 63 basis points at the end of March 2009, to 77 basis points. The provision for loan loss was $1,900,000 in the fourth quarter of 2009, $1,200,000 for the quarter ended March 2009 and $1,122,000 for the fourth quarter of 2008. The increase in our loan loss provision this quarter was primarily based upon the nationwide decline in housing values and higher unemployment which has negatively impacted consumer credit.

Non-interest expense, or operating costs for the fourth quarter of 2009, was $4,219,000, 32.3% higher than the $3,190,000 in operating costs for the quarter ended March 31, 2009 and higher than the $2,464,000 in operating costs for the fourth quarter of 2008. The increase in operating expense in the fourth quarter compared to the last quarter ended March 31, 2009 and the fourth quarter of 2008 was primarily the result of higher regulatory fees, increased REO expenses and increased salaries and benefits related to the formation of our lending group.

Balance Sheet Summary

Total assets increased to $1,302.2 million, up 9.0% from total assets of $1,194.2 million at June 30, 2008. The increase in total assets was the result of purchases of single-family and multifamily mortgage loans and the purchase of agency debt and AAA non-agency mortgage-backed securities. The asset growth since June 30, 2008 was funded by a net increase in deposits totaling $77.8 million and an increase in short term borrowings of $24.0 million. For fiscal 2009, stockholders' equity increased $5.8 million, primarily due to earnings of $7.1 million, an unrealized gain of $0.9 million from our available for sale mortgage-backed securities, offset by charges of $2.1 million for the cumulative effect adjustment for our election to adopt Statement of Financial Accounting Standard No. 159 for investments in trust preferred collateralized debt and $1.0 million from the repurchase of our common stock.

Conference Call

A conference call and webcast will be held on Tuesday, September 1, 2009 at 5:00 PM Eastern / 2:00 PM Pacific. To participate in the conference call, please dial the following number five to ten minutes prior to the scheduled conference call time: 888/437-9315. International callers should dial: 719/325-2146. Digital replay is available by calling 888/203-1112 and using the digital pass code #4614986. The conference call will be webcast live and may be accessed at BofI's website, http://www.bofiholding.com. For those unable to participate during the live broadcast, a replay will be available shortly after the call on the BofIholding.com website for 90 days.

About BofI Holding, Inc. and Bank of Internet USA

BofI Holding, Inc. is the holding company of Bank of Internet USA and trades on NASDAQ under the symbol BOFI. Bank of Internet USA is a consumer focused, FDIC insured, nationwide savings bank operating primarily over the Internet. It offers a variety of consumer banking services, focusing primarily on gathering retail deposits over the Internet and originating and purchasing multifamily and single-family mortgage loans. Bank of Internet USA offers products through its websites at www.bankofinternet.com and www.ApartmentBank.com. Retail deposit products include certificates of deposit, online checking accounts with check images, bill payment, high interest savings accounts, ATM or Visa Check Cards, money market savings accounts, and ATM fee reimbursement anywhere in the world.

 BofI HOLDING, INC. SELECTED CONSOLIDATED FINANCIAL INFORMATION (Unaudited - dollars in thousands, except per share data) June 30, ----------------------- Selected Balance Sheet Data: 2009 2008 ----------- ----------- Total assets $ 1,302,208 $ 1,194,245 Loans held for investment, net of allowance for loan losses 615,463 631,413 Loans held for sale, at cost 3,190 - Allowance for loan losses 4,754 2,710 Investment securities trading 5,445 - Investment securities available for sale 265,807 209,119 Investment securities held to maturity 350,898 300,895 Total deposits 648,524 570,704 Securities sold under agreements to repurchase 130,000 130,000 Advances from the FHLB 262,984 398,966 FRB Discount Window and junior subordinated debentures 165,155 5,155 Total stockholders' equity 88,939 83,082 At or For the Quarter At or For the Year Ended June 30, Ended June 30, -------------------- --------------------- 2009 2008 2009 2008 ---------- --------- --------- ---------- Selected Income Statement Data: Interest and dividend income $ 20,553 $ 18,534 $ 77,778 $ 63,301 Interest expense 9,250 11,567 41,419 45,281 ---------- --------- --------- ---------- Net interest income 11,303 6,967 36,359 18,020 Provision for loan losses 1,900 1,122 4,730 2,226 ---------- --------- --------- ---------- Net interest income after provision for loan losses 9,403 5,845 31,629 15,794 Non-interest income 923 (425) (6,687) 1,379 Non-interest expense 4,219 2,464 12,894 10,162 ---------- --------- --------- ---------- Income before income tax expense 6,107 2,956 12,048 7,011 Income tax expense 2,503 1,176 4,906 2,815 ---------- --------- --------- ---------- Net income $ 3,604 $ 1,780 $ 7,142 $ 4,196 ========== ========= ========= ========== Net income attributable to common stock $ 3,431 $ 1,700 $ 6,453 $ 3,884 Per Share Data: Net income (loss): Basic $ 0.43 $ 0.21 $ 0.79 $ 0.47 Diluted $ 0.41 $ 0.20 $ 0.78 $ 0.46 Book value per common share $ 9.79 $ 8.95 $ 9.79 $ 8.95 Tangible book value per common share $ 9.79 $ 8.95 $ 9.79 $ 8.95 Weighted average number of common shares outstanding: Basic 8,034,796 8,271,154 8,131,654 8,261,100 Diluted 8,663,445 8,380,271 8,724,528 8,375,550 Common shares outstanding at end of period 8,082,768 8,299,563 8,082,768 8,299,563 BofI HOLDING, INC. SELECTED CONSOLIDATED FINANCIAL INFORMATION (Unaudited - dollars in thousands, except per share data) At or For the Quarter At or For the Year Ended June 30, Ended June 30, ------------------ ------------------ 2009 2008 2009 2008 -------- -------- -------- -------- Performance Ratios and Other Data: Loan originations for investment $ 1,738 $ 6,285 $ 33,170 $ 64,888 Loan originations for sale 43,639 - 83,741 516 Loan purchases 5,548 59,992 57,410 201,010 Return on average assets 1.13% 0.61% 0.59% 0.40% Return on average common stockholders' equity 17.52% 9.20% 8.79% 5.41% Interest rate spread(1) 3.46% 2.16% 2.83% 1.41% Net interest margin(2) 3.62% 2.42% 3.04% 1.72% Efficiency ratio(3) 34.51% 37.66% 43.46% 52.40% Capital Ratios: Equity to assets at end of period 6.83% 6.96% 6.83% 6.96% Tier 1 leverage (core) capital to adjusted tangible assets(4) 6.98% 7.09% 6.98% 7.09% Tier 1 risk-based capital ratio(4) 14.86% 13.95% 14.86% 13.95% Total risk-based capital ratio(4) 15.64% 14.40% 15.64% 14.40% Tangible capital to tangible assets(4) 6.98% 7.09% 6.98% 7.09% Asset Quality Ratios: Net charge-offs to average loans outstanding 0.69% 0.32% 0.43% 0.18% Nonperforming loans to total loans 0.45% 0.66% 0.45% 0.66% Nonperforming assets to total assets 0.65% 0.39% 0.65% 0.39% Allowance for loan losses to total loans held for investment 0.77% 0.43% 0.77% 0.43% Allowance for loan losses to nonperforming loans 167.39% 65.29% 167.39% 65.29% (1) Interest rate spread represents the difference between the annualized weighted average yield on interest-earning assets and the weighted average rate paid on interest-bearing liabilities. (2) Net interest margin represents net interest income as a percentage of average interest-earning assets. (3) Efficiency ratio represents non-interest expense as a percentage of the aggregate of net interest income and non-interest income. (4) Reflects regulatory capital ratios of Bank of Internet USA only.

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Investing: Handicapping the Caps - MSNBC

Posted: 01 Sep 2009 08:15 AM PDT

As in the early recovery periods following past economic downturns, smaller-size stocks have performed far better than large-cap stocks since the Standard & Poor's 500-stock index hit a low on Mar. 9. The six-month anniversary of that market low is just about a week away, but already some investment strategists believe small caps may have exhausted most of their upside.

The Russell 2000 index, a proxy for small- and mid-cap stocks, jumped 70% between Mar. 9 and Aug. 27, outpacing a 53.4% gain in the Russell 1000 index, which is comprised of large-cap stocks. By an alternate measure, the S&P SmallCap 600 index rose 70.8% and the S&P MidCap 400 index gained 64.92% during the same period, vs. a 54.7% increase in the large-cap benchmark S&P 500 index, according to research outfit FactSet (FDS).

A key exception has been the financial services sector, where investors have clearly felt more comfortable buying big names such as Wells Fargo (WFC) and JP Morgan Chase (JPM) rather than smaller names such as most of the regional banks, whose ability to overcome a large number of bad loans on their balance sheets and survive is less certain.

Recovery Still "Fragile"

A look at the Nasdaq 100 index shows that larger technology companies such as Microsoft (MSFT) and Intel (INTC) have also performed relatively more strongly over the last six months, says Barbara Walchli, portfolio manager of the multicap Aquila Rocky Mountain Equity Fund (ROCAX).

For Jim Dunigan, managing executive of investments at PNC Wealth Management (PNC) in Philadelphia, however, the credit crunch is reason enough to be more conservative on small and mid-cap stocks than he was and would have been coming out of prior downturns. "There's still a fragile nature to this recovery," he says. "We're not that far away from the end-of-world-trade six months ago, so staying conservative on [small and mid-cap stocks] still made sense for us on risk-adjusted a basis."

Small companies' ability to grow will be hampered by comparatively less access to debt and equity capital and to bank lending, Dunigan predicts. But the fact that they have less access to the capital markets or bank credit lines than larger companies makes smaller companies tend to stick more to their basic business, according to Walchli. "They tend to run their businesses so they're generating their own free cash flow," she says. Her fund is currently weighted 55% in micro- and small-cap stocks and the rest in mid- and large-cap companies.

Low Manufacturer Inventories

Many smaller companies design their business model to provide a unique product or service that isn't easily replicated by competitors and that can drive excess returns, she says. That generates more free cash, which they can reinvest in the company or use to make acquisitions.

Since the market bottom, consumer cyclicals, consumer staples, and energy stocks have been key contributors to the outperformance by small and midcaps, says Bruce McCain, chief investment strategist at Key Private Bank (KEY) in Cleveland. In the energy sector, many of the drillers and oilfield service companies tend to be much smaller in size and "we've seen those light up," he says. Part of his strategy has been to sell shares of more defensive energy names such as Exxon Mobil (XOM) and Chevron (CVX) to raise money to buy more shares of smaller energy companies such as Noble (NE) and Transocean (RIG), which he sees as having more ability to grow.

In health care, that quest for higher growth rates has spurred McCain to sell Abbott Laboratories (ABT) in order to buy Covance (CVT) and Henry Schein (HSIC). In retail, the same approach would cause investors to sell a more familiar, safe bet like Wal-Mart (WMT) and buy a smaller, more volatile stock like Urban Outfitters (URBN), he says.

One reason that consumer discretionary stocks are doing better lately is the extent to which inventories of all manufactured goods were allowed to be depleted. With inventories so low, if a large manufacturer gets even a small order, it has to turn to its suppliers, the small companies that tend to be at the end of the industrial food chain, says Adriana Posada, senior portfolio manager of the American Beacon Small-Cap Value Fund (AVPAX).

Confidence is Returning

"Life does go on and appliances break and cars break down and even the consumer who is saving has to replace the stuff that they use," she says. The bigger-than-expected success of the Cash-for-Clunkers program caused automakers to run out of inventory and even rehire some of the workers they'd laid off, and companies that last replaced their computers 10 years ago have had to place orders for the latest models.

And while the pullback in consumer spending came amid pervasive fears of joblessness, an improved economic outlook is making many people who still have jobs feel more confident that they aren't not going to lose them, she says. "When you go from no spending to a little spending, that makes a huge difference to the companies that are sensitive to the consumer," she says.

Returns in the Ave Maria Funds, which invest according to Catholic values, are consistent with the broader market, with the small-cap and mid-cap funds outperforming the large-cap fund since March. But George Schwartz, chief investment officer of the Schwartz Investment Counsel , which manages the Ave Maria Funds, believes that will reverse starting now.

Doubts About Rally's Depth

He believes the smaller stocks have run so far so fast that they're not the bargains they once were. Many investors got caught up in the psychology of what's moving and drove the trend further, but he believes "ultimately clear-thinking institutional investors will go back to fundamentals, go back to valuations, and go back to bargain stocks."

Large-cap companies -- especially high-quality ones with strong balance sheets, high profit margins, and track records of increasing dividends steadily over time -- will be more in demand among institutional investors, he says.

McCain thinks investors should be overweight in small and mid-cap names at least through the end of the year, but he wonders if their rally will be shorter and shallower than in previous recoveries.

Betting on Growth Stocks

Posada of the American Beacon Small-Cap Value Fund agrees that investors are coming around to appreciate market fundamentals once again, but she believes small caps still have a lot of room to grow. Valuations, though much higher than they were in the spring, are nowhere near their normal levels, she says. But large-cap stocks belong in every portfolio as well, she adds.

Although smaller companies have a track record of outperformance over time since 1925, Walchli says that during periods of rising uncertainty investors turn defensive and retreat to mid- and large-cap stocks because they're easier to trade in and out of. She expects that to happen again this fall despite the continuing economic recovery as Congress tries to enact a wide range of legislative reforms aimed at health care and taxation.

More important than choosing between small and large stocks now is the fact that growth stocks have started to get the upper hand on value names again, says Anthony Weber, a portfolio manager for the Aston/Veredus Select Growth Fund (AVSGX). He thinks growth stocks will be the leaders over the next two to four years due to their "scarcity value" amid an absence of high-return alternatives such as leveraged buyouts and private equity deals.

Blurred Lines Between Growth and Value

For Posada, the distinction between growth and value is less clear because so many stocks with solid balance sheets and high profit potential got thrown out with everything else during the worst of the market's dog days. "A lot of growth companies are cheap enough for a lot of value investors to participate in them," she says.

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UPDATE 1-KKR, others eye SocGen's TCW subsidiary- paper - Reuters

Posted: 01 Sep 2009 08:15 AM PDT

* NYPost says KKR and other firms eyeing SocGen's TCW

* SocGen says still considering IPO of TCW in 5 years (Updates with comments from Societe Generale)

Sept 1 (Reuters) - Kohlberg Kravis Roberts & Co [KKR.UL] and other private-equity firms are eyeing a buyout of Societe Generale's (SOGN.PA) asset management subsidiary TCW Group, the New York Post said, citing sources.

Talks between SocGen and the private-equity firms are informal at the moment, the paper said.

The paper said a private-equity firm could help TCW recapitalize its ownership or assist in a management-led buyout.

TCW's interim Chief Executive Marc Stern told the paper that private-equity firms may participate in a recapitalization of TCW, but denied that SocGen was planning an outright sale of the unit.

"Whether private equity could be involved is something that could be considered," Stein told the paper.

SocGen said it was still considering listing its TCW U.S. fund management arm within five years.

"Our intention is to develop TCW as a leading player in the consolidation of the U.S. investment management industry and to envisage an IPO within five years," said a spokesman for SocGen's global investment management services division in Paris.

The SocGen spokesman declined further comment on the New York Post article.

Earlier this year, SocGen merged its asset management arm with that of rival French bank Credit Agricole (CAGR.PA). [ID:nL9165646].

The new asset management firm formed by the two banks will be 75 percent owned by Agricole and will also have 20 percent of TCW. (Additional reporting by Sudip Kar-Gupta in Paris) (Reporting by Ajay Kamalakaran in Bangalore; Editing by Derek Caney and Rupert Winchester) (ajay.kamalakaran@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800 +1 646 897 1898; Reuters Messaging: ajay.kamalakaran.reuters.com@reuters.net))

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Lessons of Extreme Job-Hunting - Wall Street Journal

Posted: 01 Sep 2009 08:15 AM PDT

Joblessness transformed Joshua Persky, James A. Williamson III and Peggy Greco into experts about extreme job-hunting tactics.

Mr. Persky, an investment banker, handed out his résumé while wearing a sandwich board that read, "Experienced M.I.T. Grad for Hire." Mr. Williamson, fresh out of business school, taped his résumé inside the cab he began driving when he couldn't land a marketing post. Ms. Greco printed a T-shirt touting her availability for private-duty nursing, then wore it during bicycle rides around wealthy neighborhoods.

The unorthodox gambits failed these job seekers—but taught them plenty about finding work, and could provide a playbook for countless unemployed Americans. Mr. Persky learned to become a multi-faceted entrepreneur. Mr. Williamson discovered why personal networks matter. Ms. Greco recognized the importance of targeted marketing.

Cynthia J. Kohll

Joshua Persky wore a hand-lettered sandwich board blocks from his old office.

Amid the still-high jobless rate, more people are devising offbeat ways to attract employers' attention. And given the length of the current downturn, some career experts don't blame job hunters for trying almost anything. Applicants shouldn't fear "standing out in promoting themselves because the tried and true isn't working during this recession," says Marilyn Machlowitz, a New York executive recruiter.

But creative techniques succeed only if they "demonstrate the unique skills or abilities that you would be able to bring," says Christina Williams, a Dallas executive coach.

Here's a look at lessons the trio gleaned from their experiments with extreme job hunting:

***

Mr. Persky lost his job as an outside contractor at Houlihan Lokey Howard & Zukin, a New York investment bank, in December 2007. He felt so bullish about his prospects that he initially didn't pursue unemployment insurance.

By June 2008, however, he remained jobless. His wife decided she and their children would relocate to her parents' Omaha, Neb., home, after being forced to relinquish their luxurious Manhattan apartment because the couple couldn't afford to renew the lease.

The separation "was very difficult," recalls the nearly 50-year-old Mr. Persky, a slender man with thinning grey hair.

Since office-building security measures were tightened after Sept. 11, Mr. Persky couldn't make the rounds of potential employers in Manhattan uninvited, and interviews grew scarce following Bear Stearns's collapse. Desperate, Mr. Persky made his hand-lettered cardboard sign and buttonholed lunchtime pedestrians blocks from his old Park Avenue office. He did fear being embarrassed if he ran into former colleagues, but he also knew "there were a lot of investment banks and hedge funds in that area."

Ken Greco

Peggy Greco, a nurse, rode around on her bike with her Web site address and phone number on a T-shirt.

His wife snapped his picture and sent it to local New York newspapers. Media outlets in many countries published his photo.

Mr. Persky launched a blog to handle his deluge of email and calls from around the world. A recruiter he knows found the blog so well-written that she recommended him to Weiser LLP. The accounting and consulting concern needed a senior valuation manager with strong writing skills. He joined in December and was laid off five months later.

But while his sandwich-board stunt helped generate another corporate gig, the latest layoff offered him a chance to reinvent himself—"to follow my true passions—writing and helping others," he says.

A book he wrote about his extreme job hunting has drawn interest from publishers. He pens career columns for a financial-services Web site, gives speeches and advises several small firms about business development. Multiple streams of income represent "the new popular paradigm," he says.

***

Mr. Williamson majored in marketing at La Salle University's business school in Philadelphia. Following his 2008 graduation, he looked for work in New York for four months.

"I couldn't get my foot in the door" due to inexperience, remembers Mr. Williamson, a North Carolina native with a thin mustache. He obtained a taxi driver license last October, and soon attached his résumé behind the cab's front seat.

The strategy "was a last resort," Mr. Williamson says. Several passengers requested his résumé. No job leads resulted, however.

The 26-year-old M.B.A. was driving 60 hours a week this spring when a longtime family friend introduced him to an accounting client employed by MetLife Inc. Mr. Williamson says he got an interview there because that staffer knew the hiring manager. In June, the insurer offered him a financial-services representative's spot once he passes three exams, which would give him the credentials to sell life insurance and other financial products.

Joann Lublin/The Wall Street Journal

Captive audience: James A. Williamson III received several requests for his résumé after he taped it behind the front seat of his cab.

Mr. Williamson now considers personal contacts crucial during a job search—especially in a highly anonymous city like New York. It's easier to network "in the South because people are more genuine," he says.

***

Like Mr. Williamson, Ms. Greco faced tough times after getting her degree. An unusual résumé prepared by the new R.N. persuaded a rehabilitation facility in Commack, N.Y., to hire her in 1995. The sky-blue document contained photos of her performing physically demanding tasks like kayaking. She believed the offbeat document would show she was physically fit, creative and "fun loving." But since 2000, she has been a private-duty nurse and household manager—mainly assisting wealthy families.

When an elderly Pennsylvania client died last November, Ms. Greco returned jobless to her home in Hobe Sound, Fla. She devised a Web site that includes anonymous testimonials about how well she cared for a sick individual or family member.

With its Web address and her phone number hand-printed with fabric paint on both sides of a T-shirt, she rode her bike past nearby hospitals and affluent homes. The ebullient, 53-year-old nurse figured the gambit demonstrated her sense of humor and her creative ability to help patients heal.

Media coverage triggered various offers of sales positions—but no private nursing gigs. In May, the family of her 2008 client chose Ms. Greco to care for another Pennsylvania relative, marking her third stint for that family.

The experience revived Ms. Greco's appreciation of references in finding clients. Ex-employers have firsthand knowledge about her skills, honesty and work ethic, she notes. Her current assignment ends later this month because the client has recovered.

Once back in Florida, she'll call numerous prior clients for fresh job leads. After all, they represent "the best marketing I have," she concludes.

Write to Joann S. Lublin at joann.lublin@wsj.com