Everyone resident here, it seems, has been watching, speculating, and opining on the downward trajectory of one of our local bank's share performance.

Before I go any further, here is my disclaimer. I neither own, directly, or indirectly shares in this bank. Additionally, while my firm does not own shares of this bank, our clients and related parties may have positions as part of an overall diversified financial plan strategy.

The force of public opinion and confidence in this institution has been focused, negative, and while not entirely unwarranted given the concerns about the global capital market meltdown, possibly over-exaggerated.

What do I mean by such a comment? This bank, a publicly traded and publicly owned local financial institution has, because of its unique position within our local security market place, probably received far more scrutiny lately than its competitors, one of whom is a division of a monstrous global financial institution, the other a privately-held (and the word private is emphasised here) firm.

Public companies become public in an initial public offering when they sell shares on a stock exchange - to anyone in the public domain. Because this bank is publicly held, in the context of having full transparency, every component of this bank's operating cycle and the decisions that its management, and board of directors makes, is ultimately disclosed to the public.

This is your right to know if you own shares, and even if you don't, the reports are available for all to peruse. In contrast, anyone trying to wade through the consolidated report for the largest publicly-traded bank in the world (Citi is probably number two at this point) deserves a medal - even accountants and auditors get paid to figure it all out.

A privately-held bank legally does not have to share its financial reports with the public, only with the limited group of private shareholders of the firm. This is appropriate corporate structure; the definition of a public versus private firm structure is true for all types of firms, not just banks.

The Bermuda Monetary Authority (BMA) regulates our banks and our banking system and is the integrated regulator of the financial services sector in Bermuda. Established under the Bermuda Monetary Authority Act 1969, the BMA supervises, regulates and inspects financial institutions operating in or from within the jurisdiction.

A quick survey of their website today is staggering in the complexity of their regulatory mandate for the economy of Bermuda. The BMA is considered independent and autonomous from government and under the direction of its CEO, Matthew Elderfield, it has an enhanced sophisticated proactive regulatory system of supervision for all related finance institutions in Bermuda.

In plain English, the BMA staff anticipates economic situations and proactively works with financial institutions to provide credible support structures. BMA oversight and support provides an enhancement to public confidence in our financial institutions.

Our banks, in general, are actively involved in our community. This bank has a more than a century old tradition of financial stability and the sharing of its successes with return of capital, dividends, philanthropic initiatives, support of local businesses, mentoring young careerists, and employee training incentives.

It has given back again and again. It employs your friends, your neighbours, and your family. Yes, they've made money; banks and bankers are in business to make a profit. That is the after all the mandate of a business. No profit, no business, no funds flowing throughout the community for goods and services, multiplied again and again.

A dividend is not a God-given right. The article in RG last week entitled, "Unhappy shareholders approve $200 million capital raise," caught my attention. It further noted that that shareholders were particularly unhappy at the cut in dividends.

Let's get realistic here. Those of you, who know me, have heard my never-ending mantra for the last ten years about the value of diversification in a personal financial plan. Stock values do not always go up, and dividend payouts are subject to, each and every year - the decision of the board of directors and management to pay out a percentage of the profits or not; in proactive times, they will retain profits/retained earnings as capital needed for future years.

We've all conveniently forgotten that message. I've seen it again and again, on an international basis, retirement plans structured around one stock, and the dividend derived there from. This is not a plan; this is a calculated risk of overconcentration. Things change, life happens, economies expand and contract.

This is expected - the right to receive a dividend cannot be expected. But it has always worked - living off my dividends! Yes, it worked because we've been insulated and inoculated in our comfy lifestyle where the Emerald jewel in the Ocean generated waves of greenbacks that just kept rolling in, much like the perpetual motion of the beautiful surf on our shores. That was then, this is now.

Will it work again? Of course! Hopefully, you will be more diversified next time around. You get to try again by showing your support for this financial institution by stepping up to the plate and purchasing a rational portion of the preference shares guaranteed by the Bermuda Government.

Imagine - if only two-thirds of our population, some 40,000 people invest $5,000 a piece into this share offering, the $200 million could be raised in a matter of days. We investors can be completely irrational and unpredictable. How many of you haven't thought twice about buying some 'wonderful deal' on the phone from some anonymous long-distance joker-broker? "I had to buy something from him," said one lady - to make him stop calling me! Or, flying off on yet another shopping spree or Las Vegas splurge. Is that all it takes to fritter away your money?

Truth be told, those splurges cost even more - and they hardly support local businesses. Buy Bermuda is for real. This is the down end of a business cycle. We are talking about a local financial institution that is profitable and has maintained cash reserves throughout this entire global meltdown.

This bank has given again and again and again. It deserves your confidence and your support. It is your community. It is working for you and your investment in the future. This is a vote of confidence also in ourselves, in our economy, and in our country.

Believe in Bermuda; ignore the political rhetoric for the time being. Believe in our sheer obstinacy and tenacity for survival, now 400 years and counting. Believe in working toward being the best.

Martha Myron, CPA CFP (US) TEP is an independent fee-only qualified financial planner who specialises in comprehensive solutions for internationally mobile people and Bermuda residents with US connections in the areas: tax, retirement, estate, business succession and investment planning. Confidentially contact Partner at Patterson Partners Ltd - mmyron@patterson-partners.com 441 296 3528 or martha.myron@gmail.com">martha.myron@gmail.com