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We like to think that when we deposit a dollar at the bank, it goes into a big vault and we can pull out that same dollar at any time. But that¿s not how the U.S. banking system works. Banks take that money and invest it to make money themselves, so cash gets spread around. This, naturally, leads to a big risk: What happens if those investments go sour? Well, you¿d be out of luck. You can¿t get your dollar back.
The Federal Reserve doesn¿t like that scenario, so it prohibits banks from putting all the cash it has on deposit on the line. In fact, the Fed forces banks to keep a portion of their assets at the Federal Reserve itself, to make sure that some of your assets won¿t get squandered if the bank¿s bets go south. These are called ¿reserves,¿ (hence, Federal Reserve. Got it? Good), and usually amount to 10% of the total cash kept in checking accounts.
These reserves are never exactly 10%, and banks like to keep a little extra in reserve ¿ not, as you might think, to make you more comfortable that they¿re in good financial shape, but rather so they can take that excess and lend it to other banks and make money off it. (They¿re banks, they can¿t help themselves.) The rate at which they make these loans is called the Federal Funds rate, which is set by the Federal Reserve¿s Federal Open Market Committee.
When you hear people chattering about how the Fed cut or hiked interest rates, this is what they¿re talking about: the interest rate banks can charge for lending money from their reserves. This begs the question: If these are essentially loans between banks, why is the Fed Funds rate so important for the rest of the economy?
Well, simply put, because loans make the financial world go round. Bank A lends Bank B $10,000 at a Fed Funds rate of 5%. Bank B then lends out $10,000 to a small business at 7%. The small business then takes that money and expands the business and hires new workers. Now someone is employed, Bank B has made interest off the loan, and Bank A is the richer for making it all happen. It¿s perhaps overly simplistic, but you get the idea. When you want the economy to thrive, you make lending cheaper.
Of course, sometimes you don¿t want the economy to thrive. In fact, you might want it to cool down, mostly to avoid money flooding the system and causing inflation. In that case, the Fed raises interest rates, making it difficult to lend or borrow.
Home / Markets / Industries / Energy
Thursday, September 04, 2008
Robert Manherz Joins CO2 Solution's Board of Directors
Comtex
QUEBEC CITY, Sept 04, 2008 /PRNewswire-FirstCall via COMTEX/ ----CO2 Solution Inc. ("CO2 Solution" or the "Company") is very pleased to announce that Mr. Robert Manherz has joined its Board of Directors as a Director on August 28, 2008. In addition to being a significant investor in the Company, Mr. Manherz brings increased operational depth and hands-on start-up expertise as the Company moves to commercialize its technology.
A serial entrepreneur, Mr. Manherz was the Founder and President of ReserveAmerica, Inc., a company he grew from a small software development firm to North America's leading supplier of camping reservation services with over 1,000 employees. Under his successful stewardship, ReserveAmerica was acquired by Ticketmaster, the world's leading ticketing company in 2000. From 2003 to 2005, he was President of, and a principal in 401 Capital Partners Inc., an Ontario based private equity and venture capital firm with investments in the areas of healthcare, biotechnology and digital media. More recently, Mr. Manherz founded as principal, Dundurn Capital Partners Inc. (DCP), a private equity firm with investments focused in clean-tech, sustainable property development and nanotechnology. Recently, DCP's student residence building became one of the first multi-residential buildings in Canada to achieve LEED(R) Platinum certification, the highest environmental standard for sustainability and energy efficiency. Dundurn Capital Partners and Mr. Manherz led the recent $2.3 million equity investment into CO2 Solution. Mr. Manherz holds an Honours Mathematics and Computer Science Bachelors degree from the University of Waterloo.
Commenting on the appointment, Rejean Blais, Chairman of the Board stated, "We are privileged to have Robert join the Board of Directors and believe that he will provide valuable contributions to CO2 Solution's growth plans, as evidenced by his impressive track record of both a successful entrepreneur and venture capitalist. We look forward to utilizing his expertise to further strengthen the Board's ability to fulfil its mandate of supporting commercial deployment of our breakthrough technology."
Robert Manherz stated, "I am very pleased to be joining the Board of Directors at the beginning of what I see as the development of a world class commercial provider of technology for low cost carbon capture. I look forward to working with the other Directors to assist in transforming the company from a Research & Development focused organization to a growth firm aimed at capitalizing on the emerging, multi-billion market for CO2 capture systems."
As a member of the Board, Mr. Manherz has been granted 10,000 stock options to purchase CO2 Solution common shares that can be exercised at a price of $0.30.
About CO2 Solution
CO2 Solution Inc. has developed a proprietary bio-technological platform for the efficient capture of carbon dioxide (CO2), the most important greenhouse gas (GHG), from power plants and other large stationary sources of emissions. The Company's technology platform exploits the natural power of a bio-catalyst (enzyme), carbonic anhydrase, which functions within humans and other mammals to manage CO2 during respiration. CO2 Solution has successfully adapted the enzyme to function within an industrial environment, and thus has taken advantage of a biomimetic approach to CO2 capture based on millions of years of evolution. The Company is commercializing its technology for coal fired power generation, the oil sands and other CO2-intensive industries where a low-cost capture solution is key to meeting climate change legislation in a cost effective manner. Additional information is available at www.co2solution.com
The TSX Venture Exchange has neither approved nor disapproved the
information contained herein and accepts no responsibility for it.
SOURCE CO2 SOLUTION INC.
Copyright (C) 2008 PR Newswire. All rights reserved
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