FINANCIAL SERVICES ADVISOR a PUBLICATION of the DIALOGUE July 16-29, 2015

LATIN AMERICA ADVISOR FINANCIAL SERVICES ADVISOR A PUBLICATION OF THE DIALOGUE www.thedialogue.org July 16-29, 2015

BOARD OF ADVISORS FEATURED Q&A TOP NEWS Ernesto Armenteros Vice Chairman of the Board, BANKING Banco de Ahorro y Crédito Unión Is the Money- Pablo Barahona Citi Shuttering COO for Latin America and Iberia, Banamex USA, Liberty International Transfer Industry Paying Regulators Richard Child CEO, $140 Mn in Fines Mattrix Group Facing a Shake-up? Citigroup said it will shut down Jeanne Del Casino its Banamex USA unit and pay Vice President & Group Credit Ofﬁ cer, Latin America, U.S. federal and California state Moody’s Investors Service regulators a total of $140 million Michael Diaz Jr. to settle allegations about lax Partner, anti-money laundering controls. Diaz, Reus & Targ, LLP Page 2 Brian Doran Regional Executive & INSURANCE Director of Gov’t Affairs, Popular Inc. Gallagher Ernesto Fernández Holmann Chairman of the Board, Acquires 65% Ayucus Stake in Bogotá- Rich Fogarty Based Firm Managing Director, PayPal, whose corporate headquarters are in San Jose, Calif., was founded in 1998 and is now Berkeley Research Group a wholly owned subsidiary of eBay. // File Photo: Sagar Savla. The international arm of Arthur J. Desiree Green Gallagher said it will acquire the Vice President, PayPal this month announced that it is acquiring online stake in ARM Re Ltda. Corredores International Government Affairs, money-transfer ﬁ rm Xoom in an all-cash deal. Will PayPal de Reaseguros. Prudential Financial become a major player in the remittances sector? How big Page 4 Earl Jarrett Q General Manager, a threat is the company to more traditional money-transfer Jamaica National Building Society service providers such as Western Union and MoneyGram? To what ex- BANKING Thomas J. Mackell, Jr. tent will PayPal disrupt established business models in the remittances Scotiabank Former Chairman of the Board, Federal Reserve Bank of Richmond industry? Buying Citi Units Thomas Morante in Panama, Partner, Holland & Knight Manuel Orozco, member of the Financial Services Advi- Costa Rica Manuel Orozco sor board and director of the Migration, Remittances and Scotiabank, led by CEO Brian Senior Fellow, Porter, said it is buying the units Remittances and Development, Development Program at the Inter-American Dialogue: “The for an undisclosed sum. Inter-American Dialogue acquisition of Xoom sends three main messages. First, it A Page 3 Adalberto Palma-Gomez recognizes that the cross-border payment industry is a valuable market to Senior Partner, Proxy, Gobernanza Corporativa investors. Second, investing in Xoom Corp. allows PayPal to establish a Rodolfo Pittaluga footprint in a space in which it has struggled for a decade to have a pres- Principal, ence without generating a plan or solution from within. Third, it shows Deloitte Financial Advisory Services, LLC that Internet-based digital payments are central to current market growth. Jan Smith In that sense, there is more symbolism in the acquisition, however, it Partner, KoreFusion sends a strong message to existing competitors that access to capital Roberto Teixeira da Costa will come from investors interested in these types of companies. The past Board Member, three years have seen investments in businesses offering Internet-based SulAmérica digital cross-border transfers. The acquisition poses a challenge but not Mario Trujillo CEO, a threat to competitors in the cash-to-cash business: to speed their devel- DolEx Dollar Express opments into Internet-based transfers quicker than planned. Most major companies already have an operational remittance sender Internet-based platform or are in the process of rolling one out. Those who do not have Porter // File Photo: Scotiabank. Continued on page 3

BANKING NEWS It has failed to do so,” Department of Business NEWS BRIEFS Oversight Commissioner Jan Lynn Owen said in Citi Closing Banamex a statement. The $140 million penalty that Citi Bank Lending to Small- has agreed to pay includes a $100 million fi ne and Mid-Sized Brazilian USA, Paying $140 Mn to the FDIC and a $40 million fi ne to the Depart- ment of Business Oversight. Banamex USA has Firms Evaporating in Penalties three branches—in Los Angeles, Houston and Bank lending to small- and medium-sized fi rms San Antonio—in addition to about 300 full-time in Brazil is drying up amid concerns about what Citigroup announced July 22 that it is shutting employees, assets of more than $500 million could be Brazil’s worst recession in 25 years, down its Banamex USA unit and will pay U.S. and a deposit base of approximately $460 Reuters reported July 24. Large- and medi- federal and California state regulators a total of million, said Citi. The bank said that the two um-sized banks are turning down an increasing $140 million to settle investigations about al- Texas branches will close by October, with the number of loan requests as they fear that leged defi ciencies in its anti-money laundering Los Angeles branch remaining open throughout declines in revenue could mean loan defaults, programs. In its statement, Citi said ensuring the wind-down process. bank executives told the wire service. Loans “strong and sustainable” compliance with the from banks such as Banco Daycoval and Banco Florida Bank do Brasil that typically cater to the segment have virtually stopped. Banamex agreed three Signs First Deal years ago to correct numerous weakness- for Cuba Account Peru Expands Pension es in its anti-money Stonegate Bank on July 21 became the Program by 24 Percent laundering program. fi rst U.S. bank to establish a correspondent It has failed to do so.” Peru’s Pension 65 program, which provides account with Cuba since the historic thaw monthly revenue for people aged 65 and above — Jan Lynn Owen was announced between the United States and who live in underprivileged areas of the coun- Cuba last December, The Wall Street Journal try, has added 89,760 senior citizens to its reg- reported. Stonegate Bank, based in Pompano istry over the past year, a 24 percent expansion, Bank Secrecy Act and preventing money laun- Beach, Fla., and Cuba’s Banco Internacional de state news agency Andina reported July 27. dering “is an ongoing mission.” The New York- Comercio inked the deal in Havana a day after There are nearly 500,000 current benefi ciaries based fi nancial services company added, “Citi the two nations formally restored diplomatic of the program, with the largest increase being is committed to devoting the resources and relations 54 years after diplomatic ties were registered in native Amazonian communities. expertise needed to continuously execute a broken off during the depths of the Cold War. A total of 376,092 benefi ciaries have joined the robust and comprehensive program that helps Stonegate’s president, Dave Seleski, said the banking system to receive their benefi ts, the protect the integrity of the fi nancial system.” new agreement is a positive step for American government said. Banamex USA is an arm of Banamex, Mexico’s business interests in the Caribbean nation. second-largest bank, which Citi owns. Citi es- “For U.S. companies doing business in Cuba, tablished Banamex USA in order to make it eas- we can facilitate transactions much easier ier for individuals and businesses to transfer now,” he said, The Wall Street Journal reported. Brazil’s Sovereign Wealth money across the U.S.-Mexico border, the Los Seleski arrived in Havana after attending the Fund Reducing Stake Angeles Times reported. In August 2012, the July 20 fl ag-raising ceremony at the newly in Banco do Brasil U.S. Federal Deposit Insurance Corporation and converted Cuban Embassy in Washington. The The Brazilian government’s sovereign wealth California’s Department of Business Oversight establishment of a correspondent account will fund sold 5.625 million shares of Banco do ordered Banamex USA to correct alleged viola- allow for fi nancial transactions between the Brasil between late June and early July, earning tions of the Bank Secrecy Act. The federal law United States and Cuba, permitting customers it approximately 134 million reais ($39 million), governs anti-money laundering and compliance to execute payments and other transactions Reuters reported July 24, citing a statement programs and has requirements for banks to that are authorized by the U.S. Treasury’s Offi ce from the fund, known as the Fondo Soberano report any suspicious activities by customers. of Foreign Assets Control. The correspondent do Brasil. The shares were sold at an average However, the bank failed to properly fi x the relationship between the two banks is expected price of 23.84 reais apiece, and the proceeds problems, said regulators. “Banamex agreed to be in place within three to four weeks, the were invested in a portfolio of domestic assets, three years ago to correct numerous weak- newspaper reported. Currently, all commer- which had been a request of the fund’s board. nesses in its anti-money laundering program. cial transactions between the United States

COPYRIGHT © 2015, INTER-AMERICAN DIALOGUE PAGE 2 FINANCIAL SERVICES ADVISOR July 16-29, 2015 and Cuba are routed through banks in third quire Merrill Lynch’s international operations in Panama and Costa Rica, The Globe and Mail countries. Seleski said Stonegate Bank wants 2012, has said he is looking for more deals and reported. The bank did not announce the terms to pursue additional opportunities in Cuba, that the Zurich-based bank will be “doing acqui- of the deal, but it said that the agreement including facilitating credit card use. “Down the sitions on different levels in different markets.” would give it a total of 387,000 customers in road, there’s many other opportunities,” he said. On July 20, the bank reported a 78 percent drop Panama and Costa Rica, tripling the size of its As more Americans travel to Cuba, the need in net profi t during the fi rst half of the year, for credit card use will grow, Jason Marczak, owing in part to its decision to set aside $350 the deputy director of the Adrienne Arsht Latin million to settle an ongoing U.S. investigation The deal will triple the size America Center at the Atlantic Council, told into the bank’s alleged role in helping American of Scotiabank’s operations the newspaper. While some U.S. credit card clients evade taxes, which offset performance companies have said they will start processing improvements. The bank is also feeling the in Panama and Costa Rica. transactions this year, U.S.-issued credit cards effects of a stronger Swiss franc. Switzerland’s still don’t work in Cuba, and most U.S. travelers central bank decided in January to let the franc there must conduct transactions in cash. [Edi- gain in value, which has depleted the relative operations in the Central American countries. tor’s note: See related Q&A in the April 21 issue value of assets held in dollars and euros. The agreement also gives Scotiabank an 18 of the Dialogue’s daily Advisor.] percent market share in credit cards in Panama Scotiabank Buying and a 15 percent market share in credit cards Switzerland’s in Costa Rica, making it the second-largest Citi Units in Panama, credit card issuer in the two nations. Scotia- Julius Baer Acquiring bank said that it has had operations in Panama Costa Rica since 1974 and in Costa Rica since 1995, The NSC Asesores Stake Wall Street Journal reported. Just two months Toronto-based Bank of Nova Scotia announced ago, Scotiabank closed a deal to acquire Citi’s Swiss private bank Julius Baer announced July July 14 that it has agreed to buy the retail commercial and retail banking operations in 20 that it plans to acquire a stake in Mexican and commercial banking units of Citigroup in Peru. Last year, Citigroup said that it would fi nancial advisory company NSC Asesores for an undisclosed sum as the European company FEATURED Q&A / Continued from page 1 pushes forward into Latin America amid head- winds elsewhere including a steep appreciation one out are slowly seeking to measure and Gram, at half the equity price, looks like a of the Swiss franc and a tax-evasion probe in contain the potential risk that these trans- better value. Now, as far as either company fers are faced with (such as identity fraud, disrupting the traditional players worldwide database hacking and card fraud). They are and becoming a major traditional remittance aware that mobile payments are showing exponential growth and staying only with C2C services is an incomplete strategy.” More than 90 percent of family Mario Trujillo, member of the remittances are Financial Services Advisor made by un-banked or board and chairman, presi- under-banked dent and CEO of DolEx Dollar individuals.” Collardi // File Photo: Julius Baer. A Express: “PayPal has been a formidable, — Mario Trujillo the United States, the Financial Times reported. electronic payments company, focusing Julius Baer chief executive Boris Collardi said mostly on P2P payments, eBay’s core July 20 the bank plans to acquire a 40 percent business and other C2B payments. As a competitor, the challenge is very different. stake in NSC, which manages about $3 billion standalone business, it should be able to Today, there are at least 50 recognized inno- in assets and specializes in high-net worth focus and innovate. Xoom, after more than vator startups, some very well-funded, also individuals. It plans to increase its stake to a a decade, also found a niche in the last few trying to disrupt the traditional remittance majority within two to three years. The acquisi- years in online/mobile family remittances, markets. All of these players have one thing tion follows Julius Baer’s expansion into Brazil mostly originating from the United States to in common: customers must be banked or in 2012, when it purchased a majority stake in India, the Philippines and Mexico. Money- have access to a bank or ‘value’ account, Brazil’s GPS. Collardi, who led the push to ac- Continued on page 6

COPYRIGHT © 2015, INTER-AMERICAN DIALOGUE PAGE 3 FINANCIAL SERVICES ADVISOR July 16-29, 2015 leave its consumer banking operations in 11 Latin American territories,” said Arthur J. to know the truth,” he said. Punishment that countries. In a statement, Scotiabank said the Gallagher’s international commercial director rebels could face if a peace accord is signed is units it is acquiring from Citi will offer “signifi - Vyvienne Wade. In 2012, Arthur J. Gallagher among the most sensitive parts of the agenda cant opportunities.” created a reinsurance operation in Chile, which recently diversifi ed into retail broking, and in 2014 entered the Peruvian market with the INSURANCE NEWS purchase of a stake in reinsurance specialist JAO & Partners. From now on, this type of bombing will only Gallagher Acquires be done by explicit or- 65% Stake in POLITICAL NEWS der of the president.” — Juan Manuel Santos Bogotá-based ARM Colombia’s Santos Arthur J. Gallagher, the international arm of Orders Halt to Air U.S.-based insurance and risk management services fi rm Arthur J. Gallagher & Co., Strikes Against FARC announced July 20 that it has expanded its for the talks. During the current round of talks, investment in Latin America and acquired a 65 Colombia President Juan Manuel Santos on negotiators are breaking into groups and tack- percent stake in Bogotá-based ARM Re Ltda. July 26 ordered the military to halt air strikes ling agenda items simultaneously, said Téllez. Corredores de Reaseguros (ARM), Insurance against camps of the FARC rebels, BBC News “The idea is to accelerate the negotiations,” he Journal reported. Terms of the transaction reported. Santos’ order came just days after said. Compensation for victims of the confl ict the rebel group started a one-month cease-fi re is also still on the agenda. as part of an effort to speed up the pace of its peace talks with the government, which have been happening since November 2012. “I have Mexican Authorities issued the order to stop, as of today, bombing Find 129 Bodies in raids against camps where there are members of that group,” Santos said at a military event in Clandestine Graves Cartagena. “From now on, this type of bombing will only be done by explicit order of the presi- From October through May, Mexican authorities

Chilton // File Photo: Arthur J. Gallagher dent.” The peace talks resumed on July 23, less found at least 60 clandestine graves containing than two weeks after the government and the 129 bodies during their investigation into the were not disclosed. ARM, which was estab- rebels reached an agreement to de-escalate the disappearance last September of 43 university lished in 2006, specializes in construction, confl ict. The same day that the negotiations students from the city of Iguala in Guerrero energy and mobile equipment risks and restarted in Havana, a soldier was fatally shot state, the Associated Press reported July 26, handles facultative business across terrorism, in a clash with rebels as he worked to remove citing the offi ce of Attorney General Jesús transportation, property, third-party liability what the army called “war material” from a reb- Murillo Karam, which provided the details in and contractors’ machinery and equipment. el base in Meta department. On July 24 during response to a freedom of information request Arthur J. Gallagher entered into an agreement the peace talks, the FARC said it was not seek- from the wire service. None of the bodies have to buy ARM last year, and all regulatory hurdles ing impunity for fi ghters accused of war crimes been identifi ed as belonging to the students, have now been cleared. Grahame Chilton, during Colombia’s fi ve-decade confl ict, Agence and authorities do not believe they will be, the head of Gallagher’s international brokerage France-Presse reported. “We’re not speaking of AP reported. Last year, Murillo Karam said operations based in London, will oversee the impunity in Havana,” FARC negotiator Ricardo corrupt local police handed the students over new operation, which will continue under the Téllez told reporters. “Granting impunity would to members of a drug gang who killed them management of Chief Executive Carlos Rodrí- not be recognizing responsibility.” Last month, and incinerated their bodies. The discovery guez Angulo, Chief Operating Offi cer Fernando the FARC and the government agreed to estab- of the bodies does focus more attention on Tellez and their associates in Bogotá. “Our lish a truth commission to investigate incidents the number of people who have disappeared investment in ARM creates the perfect platform during the confl ict, a move for which Téllez in Guerrero and other nearby states that have upon which to realize our ambitious plans for voiced support. “We repeat: before applying been hard hit by drug violence. More than expansion in one of the strongest performing the criminal justice process, it is imperative 20,000 people are listed as missing in Mexico.

NEWS BRIEFS ECONOMIC NEWS bids that fell short of the minimum requirement for profi t-sharing with the government. A con- Judge Orders Detention of Brazil’s Jobless sortium comprised of Mexican company Sierra Three Guards Connected Oil &Gas, Houston-based Talos Energy and Rate Rises to Nearly Britain’s Premier Oil won both blocks that were to Escape of ‘El Chapo’ awarded, offering to invest 10 percent above A Mexican judge has ordered the detention of Five-Year High the minimum requirement in both blocks and three prison offi cers as an inquiry continues offering the government 55.99 percent of op- into drug lord Joaquín “El Chapo” Guzmán’s Brazil’s unemployment rate rose in June to its erating profi t from one and 68.99 percent from July 11 escape from the high-security Altiplano highest level in almost fi ve years, the latest prison, BBC News reported July 24. The judge piece of bad economic news for the govern- said he is looking more closely into the actions ment of President Dilma Rousseff, Bloomberg News reported July 23. The jobless rate in of an offi cer, who had been in the prison mon- Several of the oil blocks itoring control center, and two prison guards Latin America’s largest economy increased to who failed to answer the phone as the escape 6.9 percent last month from 6.7 percent in May, received no offers. was occurring. according to the country’s national statistics institute. The June fi gure was the highest unemployment rate since July 2010 and was Guatemalan Court Orders similar to the forecasts of 40 economists in a recent Bloomberg survey. Brazil is headed to the other. Winning bidders had to pledge a level Assessment for Ríos Montt its worst recession in 25 years, but persistent- of investment above the government-mandated at Mental Health Hospital ly high infl ation has also forced the central minimum and were those that offered to share bank to increase interest rates. Policymakers the largest amount of operating profi t with the A Guatemalan court has determined that for- increased the benchmark Selic interest rate six government. Other bidders in the auction were mer dictator Efrain Ríos Montt, who has been consecutive times to 13.75 percent. Infl ation Norway’s Statoil, India’s ONGC Videsh, Hunt accused of genocide during his 1982-1983 for the 12-month period through mid-July rose Overseas Oil, Murphy Worldwide and Petronas rule, should be assessed at a mental health to 9.25 percent. Brazilian workers’ average real Carigali International. “The fi rst lesson is that hospital, BBC reported July 24. Ríos Montt two wages declined 2.9 percent in June as com- the government minimums were high by indus- years ago was found guilty of genocide and hu- pared to the same month a year ago. Infl ation try standards, and the second is there could be man rights abuses against indigenous people, and unemployment have been taking a toll on doubts about the subsurface attractiveness,” but the sentence was overturned, and a retrial consumer confi dence, which is in record-low Pablo Medina, an upstream analyst at consult- has been delayed. A new trial date will be set territory. Also, a poll released July 20 by MDA ing fi rm Wood Mackenzie, told The Wall Street on Aug. 3. Ríos Montt’s lawyers have said the showed the approval rating of Rousseff’s gov- Journal. “This is only the fi rst of fi ve auctions, 89-year old is senile and unable to understand ernment at a record low of 7.7 percent, down so I would expect the government to incorpo- the charges against him. from 10.8 percent in March. rate what it’s learned in the next tenders.”

Colombia Considering Mexico Falls Short Venezuela Headed Cuts to Local Bond Taxes in First Oil Auction to Default Next Year: Colombia may cut taxes on foreign investors’ earnings on local bonds from the current Mexico held the fi rst of fi ve public tenders Hausmann rate of 14 percent before the end of the year as part of its Round One oil auction on July Venezuela will have no choice but to default on as the country looks to further its capital 15, and only two of 14 areas available were its foreign debt next year, Ricardo Hausmann, a market integration with the Pacifi c Alliance, auctioned off, falling short of the 30 percent professor at Harvard University, told Bloomberg Deputy Finance Minister Andrés Escobar said, rate the government had said would make the News July 27. Hausmann, the director of the Bloomberg News reported July 22. Colombia auction a success, The Wall Street Journal university’s Center for International Devel- cut the tax rate in 2013, which helped boost reported. Nine companies participated in the opment and a former Venezuelan planning foreign holdings of pesos bonds, and may do auction, seven of which submitted bids for one minister, said last year that the government had so again to remain competitive with Mexico, or more of the shallow-water blocks available “no moral grounds” for paying debt at a time of Peru and Chile, Escobar said. in the southern Gulf of Mexico. A number of blocks received no offers, and others received intense shortages of staple products.

FEATURED Q&A / Continued from page 3 FINANCIAL SERVICES ADVISOR is published biweekly by the Inter-American Dialogue, Copyright © 2015 credit or debit card to initiate a payment. Now, PayPal has jumped into the remittanc- More than 90 percent of family remittances es market with both feet, and the combined Erik Brand are made by un-banked or under-banked entity already has a good remittances Publisher [email protected] individuals. All of these innovators will be volume, and is already huge. To the extent competing for this same ‘top of the pyramid,’ Gene Kuleta Editor banked and tech-savvy customer. Both West- [email protected] ern Union and MoneyGram have online/mo- Megan Cook bile platforms and massive retail distribution This deal will catapult Reporter, Assistant Editor for the un-banked/under-banked customer, [email protected] PayPal fi rmly into the and none of the online/mobile innovators will disrupt their traditional customer busi- remittances world.” ness overnight. What’s more likely is that the — David Landsman traditional players will adopt best-of-breed Michael Shifter, President technologies and compete, for the ‘top of the Peter Hakim, President Emeritus pyramid’ customer business as well. Those Genaro Arriagada, Nonresident Senior Fellow most at risk are the banks, which are not Sergio Bitar, Nonresident Senior Fellow equipped, competitive or service oriented to consumers are more and more willing to pay Joan Caivano, Director, Special Projects handle this sophisticated customer.” and accept payouts through digital channels, Maria Darie, Director, Finance & Administration the new PayPal/Xoom will shake things up Ariel Fiszbein, Director, Education Program David Landsman, executive quite a bit competition-wise.” Claudio Loser, Senior Fellow director of the National Money Nora Lustig, Nonresident Senior Fellow Transmitters Association: Richard Child, member of the Margaret Myers, Director, China and A “Whenever you think of Internet Financial Services Advisor Latin America Program money transfer, the two names that spring board and CEO of Mattrix Group Manuel Orozco, Senior Fellow to mind are PayPal and Xoom. Now, they A “The purchase of Xoom by Pay Jeffrey Puryear, Senior Fellow are one. To recall a phrase Joe Biden made Pal is indeed an interesting acquisition and Lisa Viscidi, Director, Energy Program famous, this is a big deal, the biggest deal in signals Pay Pal’s determination to enter the the remittances world since First Data spun money remittance market. Given Pay Pal’s Financial Services Advisor is published biweekly, with the exception of major holidays, from off MoneyGram. Although seen mostly as a current business model and the fact that it 1211 Connecticut Avenue NW, Suite 510 payments company, PayPal was already a does not rely on brick-and-mortar to under- Washington, DC 20036 pretty big player in the remittances market. take its business leads me to believe that its Phone: 202-822-9002 Fax: 202-822-9553 Some portion of the purchase price can be participation in the remittance market will be www.thedialogue.org attributable to the motivation of killing a disruptive in nature. To date, the remittance ISSN 2163-7962 competitor and to prevent anyone else from business has been built on a very traditional Subscription Inquiries are welcomed at getting Xoom. But the two companies are model and is highly dependent on physical [email protected] not direct competitors; their offerings are acquisition and distribution networks. If complementary. Since Xoom has always PayPal and Xoom can win over customers to The opinions expressed by the members of the Board of specialized in remittances more than PayPal, an electronic medium for transactions and Advisors and by guest commentators do not necessarily represent those of the publisher. The analysis is the sole and they have more receiver-friendly distribu- don’t face signifi cant regulatory hurdles, I view of each commentator and does not necessarily tion channels, this deal will catapult PayPal believe we will see a signifi cant increase in represent the views of their respective employers or fi rms. The information in this report has been obtained fi rmly into the remittances world. But that’s competition and the beginning of a new era from reliable sources, but neither its accuracy and not all. Xoom has plenty of intrinsic value in the remittance industry.” completeness, nor the opinions based thereon, are guaranteed. If you have any questions relating to the (that is, future profi tability) in its customer contents of this publication, contact the editorial offi ces goodwill and in the operation itself. There Editor’s note: The Advisor welcomes of the Inter-American Dialogue. Contents of this report will also, no doubt, be many back offi ce comments on its Q&A section. Readers can may not be reproduced, stored in a retrieval system, or transmitted without prior written permission redundancies that can be eliminated. Never- write editor Gene Kuleta at from the publisher. theless, the Xoom brand should survive well. [email protected].