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talking points State slogan not a smash hit 'What happens here, stays here' sets the bar too high for 'A world within' to clear I by Richard N. Velotta CO GU LU ES M T N t's rare for a company or organization to deliver a tagline that's a no-doubt grand-slam home run. We experienced it a few years ago when the Las Vegas Convention and Visitors Authority, through its advertising consultant R&R Partners, came up with "What happens here, stays here." The campaign, though controversial to the straight-laced conservative crowd, was a smash. Its success was easy to gauge because within weeks of its release, it was being used as a punch line by sitcom writers and late-night talk show hosts. Before long, T-shirt manufacturers were illegally commandeering the phrase for their own purposes, and the LVCVA's legal department found itself sending out a flood of cease-and-desist letters. The LVCVA practically had to build a O considering the diversity of the state. I was among those who liked using Nevada's postal code, NV, in a slogan. As in, "We're the NV of the nation." Or "You'll NV our mountains." "You'll NV our deserts." "You'll NV our entertainment." "You'll NV our economic opportunity." It could be used across a spectrum of state departments, just as Gov. Brian Sandoval wanted. So far, the early returns on the worldwithin, state-apart brand haven't been good. Definitely not the grand slam tourism leaders were hoping for. But many seemed to like that the Killers sang "Don't Fence Me In" in the first television commercial using the new brand. Bringing the Las Vegas rock band into the promotion was a great move. But will it save "A world within. A state apart"? I knew I was going to be underwhelmed when I was told the message was better seen than heard. Well-meaning regulation may have unintentionally caused local banks to close down ften the passage of new laws and regulations designed to address one problem ends up creating others. A good example is the government's mark-to-market rule, originally intended to rein in volatile commodities futures trading markets in the wake of the Enron debacle. The rule also was applied to banks and their assets, which, unlike trading markets, typically change in value on a yearly basis, not minute-by-minute. New research from the University of West Georgia's Richards College of Business and its Center for Business and Economic Research suggests the rule could be hampering Nevada's economic recovery rather than stabilizing the economy. The rule requires banks to write down the value of some real estate-related assets, potentially rendering them worthless on paper even if 20130415_VI06_F.indd 6 explained, it makes sense. But the best catchphrases are the ones that immediately deliver the message in that handful of words. I'm not sure "A world within. A state apart" does that. Those who concentrate only on the dollars and cents are furious. Because the brand development project was handed off from one company to another, the cost went up. Burson-Marsteller, the company that delivered the finished product, also helped with a website, mobile app and public relations. But that's no consolation to people who simply view it as the state spending $1.5 million per word. The all-in cost of the branding is upwards of $8.5 million and there's much more to it than just the catchphrase. Developing a brand that captures everything about Nevada is no easy feat Flexibility helps state's economy by Joey Smith 6 new trophy case to accommodate all the awards the campaign received. With memories of that campaign fresh in people's minds, many in the community waited with anticipation for the Nevada Tourism Commission's new brand and catchphrase, which cost millions of dollars and has been in development for close to two years. Last week, the brand was unveiled: "Nevada: A world within. A state apart." It doesn't quite roll off the tongue like "I love New York," or "Virginia is for lovers." And it wasn't exactly a grand slam. Maybe closer to a run-scoring single. Or a bases-loaded walk. It scores a run, but not in grand style. I knew I was going to be underwhelmed when I was told the message was better viewed than heard. When the genesis of the slogan is they are still performing on a cash-flow basis. The rule has been particularly hard on smaller banks because they have more exposure to real estate loans than large banks. Ten banks have failed in Nevada since the banking crisis began, many of them community banks. In Las Vegas, several banks have been closed or sold since 2008, including local lenders such as SouthwestUSA Bank, Sun West Bank and Community Bank of Nevada. But the findings of recent research suggest that many of the failed community banks may likely have survived the banking crisis were it not for the inflexible application of this accounting rule, which forced them below the capital ratio required by regulators. Instead, too often, small banks in Nevada were sold at a steep discount to out-of-state competitors or closed down. The data show the extent to which these unintended consequences have had a harsh economic impact. Banks with assets of less than $10 billion saw their Small Business Administration loan volume drop $30.5 billion between 2006 and 2011. While it's true that hindsight is 20/20, such clarity also should compel action. For example, former Rep. Barney Frank, co-author of the Dodd-Frank financial reform bill, now admits that rather than helping consumers, the provision in the law that capped debit card interchange fees for retailers, commonly called the Durbin Amendment, is actually harming consumers. Income from the fees allowed many banks to offer free checking accounts to their customers. Meanwhile, retailers have failed to pass along their cost savings. Although the mark-to-market rule may have been appropriate for commodities futures trading, it was inflexibly applied to community banks, where big negative fluctuations in capital valuation resulted in regulatory bank closures. As our elected leaders work to strengthen vulnerable financial institutions while continuing to foster economic recovery, adjusting the mark-tomarket rule to allow more flexibility for banks during a crisis would be beneficial. Lawmakers could feel confident in this case that good intentions would produce good consequences. Joey Smith is director of the Center for Business and Economic Research at the University of West Georgia's Richards College of Business. Too often, small banks in Nevada were sold at a steep discount to out-of-state competitors or closed down, eliminating jobs and harming small businesses. | 15 APRIL 2013 | 4/11/13 2:47:30 PM