Financial Crisis Essays (Examples)

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Responses to Financial Crises

Words: 1515 Length: 4 Pages Document Type: Essay Paper #: 17839596

Financial Crisis

Past financial crises provide us with a framework for understanding the best responses to future crises. There are three types of responses, and the best response will contain some form of all three. These are monetary policy, fiscal policy and regulatory policy. The latter is more a long-term response, essentially learning from the crisis and adjusting the legal/regulatory environment to reduce the odds of a similar future crisis emerging. More important from an economic point-of-view are the monetary and fiscal policy responses, and these will be the focus of this paper. In a forward-looking examination, it will be challenging to get much useful from 1907, because the environment then was different in every meaningful way from how it is today, but the responses can still provide some insight into financial crisis response. While all of the crises are different, they all have similar conditions -- there is panic…… [Read More]

References

Chen, L. (2010). Banking reform in a hostile climate: Paul M. Warburg and the National Citizens' League. Harvard University. Retrieved July 5, 2015 from  http://www.fas.harvard.edu/~histecon/crisis-next/1907/docs/Chen-Warburg_Final_Paper.pdf 

Bernanke, B. (1999). Japanese monetary policy: A case of self-induced paralysis. Princeton University. Retrieved July 5, 2015 from  http://www.princeton.edu/~pkrugman/bernanke_paralysis.pdf 

Svensson, L. (2005). Monetary policy and Japan's liquidity trap. Princeton University, CEPR and NBER. Retrieved July 5, 2015 from  http://www.esri.go.jp/jp/workshop/050914/050914Svensson.pdf 

Critchley, B. (2012). Differences in Canada and Australia's approach to financial crisis resolution. Financial Post. Retrieved July 5, 2015 from  http://business.financialpost.com/news/fp-street/differences-in-canada-and-australias-approach-to-financial-crisis-resolution
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Financial Derivatives This Study Emphasized the Importance

Words: 3145 Length: 10 Pages Document Type: Essay Paper #: 53617269

Financial Derivatives

This study emphasized the importance roles of financial derivatives, which has been known for the last decade and its effects on the Global financial crisis. It further analyzes the impact of financial derivatives and how it can be controlled to prevent corporations from incurring a lot of risks. It also explains the existence of financial derivatives since 1970, to the recent Global Financial Crisis which occurred in the 2006.

Risk is a feature associated with all productivity. As a result, financial markets adjust themselves to the fluctuation of exchange and interest rates. Hedging risk, these corporations highlight the importance of risk management tools known as Derivatives. Derivatives are defined as financial tools providing investors with effective solutions when avoiding risk caused from market volatility (Dodd, 2006). Financial derivatives are considered to be an effective risk management tool associated with Financial Engineering creating solutions to financial problems (Marks, 2010).…… [Read More]

Works Cited

Angel, James, and Douglas McCabe. "The Business Ethics Of Short Selling And Naked

Short Selling." Journal Of Business Ethics 85.(2009): 239-249. Business

Source Elite. Web. 1 Apr. 2012.

Barth, Mary E., and Wayne R. Landsman. "How Did Financial Reporting Contribute To
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Crises the Costs of Financial

Words: 3178 Length: 10 Pages Document Type: Essay Paper #: 53321289



If asset bubbles can be leading indicators of recession, that begs the question what assets are the most important? Several studies have shown that housing prices are critical. They were important in Japan and in 2008 in the United States. Babecky (2012) showed that housing prices consistently predict asset bubbles, minus the occasional false positive. Intuitively this makes sense since any sort of bubble will result in more investment in real estate.

There is a further question that is raised in light of the contagion of the 2008-2009 crisis. Prior to that, as Evanoff (2013) notes, several asset bubbles were effectively contained by monetary policy and did little damage. Most bubbles that cause damage do so in the developing world -- Southeast Asia and Russia in the late 1990s for example -- but in the developed world the damage is usually contained. Frankel and Saravelos (2011) examined the indicators that…… [Read More]

Works Cited:

Babecky, J., Havranek, T., Mateju, J., Rusnak, M.,Smidkova, K. & Vasicek, B. (2012). Leading indicators of crisis incidence. European Central Bank Working Papers Series No. 1486.

Chinn, M. & Kucko, K. (2010). The predictive power of the yield curve across time. NBER Working Paper, No. 16398.

Evanoff, D., Kaufman, G. & Malliaris, a. (2013). Asset price bubbles: Lessons from the recent financial crisis. World Financial Review. Retrieved May 1, 2013 from http://www.worldfinancialreview.com/?p=2200

Frankel, J., Saravelos, G. (2011). Can leading indicators assess country vulnerability? NBER Working Paper No. 16047.
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Financial Analysis of Lehman Brother

Words: 2992 Length: 10 Pages Document Type: Essay Paper #: 52231514

Financial Analysis of Lehman rother

Lehman rothers

The history has been full of financial collapses and financial scandals and one of the biggest financial collapses that a company has ever seen was that of Lehman brother. The collapse of a firm as huge as Lehman rother and a firm which has such great experience of over a hundred years lead the world into a shock. It created doubts in the minds of people regarding the condition of other financial institutions. The history of Lehman rother is rich which is further discussed.

The history of Lehman rother dates back to 1844, when a boy named Henry who was a 23-year-old son of a cattle merchant who immigrated to the United States from Germany and he settled in Alabama State of the United States where he opened dry goods store. In 1847, when Henry Lehman's elder brother arrived to Alabama, the firm…… [Read More]

Bibliography

1. Bebchuk, L.A., Cohen, A., & Spamann, H. (2010). The Wages of Failure: Executive Compensation at Bear Stearns and Lehman 2000-2008. Yale Journal on Regulation,27(2), 257+.

2. Blake, D. (2000). Financial Market Analysis. New York: Wiley. Cetorelli, N., Mandel, B.H., & Mollineaux, L. (2012). The Evolution of Banks and Financial Intermediation: Framing the Analysis. Federal Reserve Bank of New York Economic Policy Review, 1+.

3. Dwyer, G.P., & Tkac, P. (2009). The Financial Crisis of 2008 in Fixed Income Markets.Federal Reserve Bank of Atlanta, Working Paper Series, 2009(20), 1+.

4. Fitzpatrick, T.J., & Thomson, J.B. (2011). How Well Does Bankruptcy Work When Large Financial Firms Fail? Some Lessons from Lehman Brothers. Economic Commentary (Cleveland), (2011-23), 1+.
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Financial Structure of Financial Environment Financial Structure

Words: 1561 Length: 5 Pages Document Type: Essay Paper #: 83868905

Financial Structure of Financial Environment

Financial structure is the mixture of financial instruments, financial markets and other financial institutions operating within the economy. ( Fase & Abma, 2003). Financial structure consists of a company's assets, capital and liabilities. Financial structure is also specific equity and long-term debts that firms employ to finance its business operations. Typically, financial structure of a company generally affects the business operations and value of a business. On the other hand, financial structure could also be described as the amount of organization's cash flow that goes to shareholders and creditor. Organizations use their financial structure to finance their short-term and long-term obligations and financial structure is different from capital structure since capital structure only focuses on the long-term source of funds, which include long-term debt, debentures, and equity capital shares.

On the other hand, financial environment constitutes the financial market that includes foreign exchange market, bond…… [Read More]

References

Fase, M.M.G & Abma, R.C.N. (2003). Financial environment and economic growth in selected Asian countries. Journal of Asian Economics 14: 11 -- 21.

Konzelmann, S. Wilkinson, F. Fovargue-Davies, M. et al. (2009).Governance, regulation and financial market instability: the implications for policy. Cambridge Journal Economics. 34 (5): 929-954.

Lee, R. (2010). The Governance of Financial Market Infrastructure. Oxford Finance Group. Princeton University Press. USA.

Levine, R. (1991). Stock Markets, Growth, Tax Policy. The Journal of Finance. XLVI (4): 1444-1465.
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Financial Analysis Mcdonald's Like Many

Words: 2973 Length: 7 Pages Document Type: Essay Paper #: 87490352



Conduct a benchmarking analysis

As explained by Prasnikar, Debeljak and Ahcan (2005) benchmarking depends on comparing between two activities of an organization and another. In our case, we shall compare McDonald's activities and those of its competitors, Burger King and Wendy's.

• Best practices

McDonald's as a main player in the fast food industry is concerned with best practices with the industry. To this end, the corporation has adopted some best practices that include sustainability, nutrition and well-being, employee experience ad environmental responsibility. Accordingly, McDonald's protects the environment by going green and using methods that protect and conserve the environment. McDonald's also encourages its suppliers to uphold effective environmental. The company treats it employees well and offers them good working conditions as a way retaining them. Employees are offered training and promoted accordingly. McDonald's also adheres to ethical conduct its operations and food items are produced ethical. Similarly, the company…… [Read More]

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Financial Research Report on Wyeth

Words: 1451 Length: 5 Pages Document Type: Essay Paper #: 95349124

The projected growth rates are of 7% for 2009, 7% for 2010, 8% for 2011 and 9% for 2012 (Hoovers). Wyeth is expected to increase at higher rates due to its being taken over by Pfizer.

3. Stock Price Analysis

The Wyeth stock is being currently (September 16th, 2009) traded at $47.70, revealing a 0.23 (0.48%) decrease relative to the previous trading session, which closed at $47.93. The day's high value so far is of $47.94, with a low of $47.64. The highest value for the past twelve months is of $48.30, with the lowest of $28.06 (Wyeth Pharmaceuticals Company Website). Compared then to the evolution of the past year, it is obvious that the price of the Wyeth stock option increased. The highest price in its trading history was of $69.75 and it was achieved on the 12th of April 1999. The lowest price was registered on the 17th…… [Read More]

References:

2009, Wyeth Pharmaceuticals, Inc., Hoovers, http://www.hoovers.com/wyeth-pharmaceuticals/--ID__104566 -- /free-co-factsheet.xhtml last accessed on September 16, 2009

2009, Wyeth, Reuters, http://www.reuters.com/finance/stocks/ratios?symbol=WYE.N last accessed on September 16, 2009

2009, Wyeth, Forbes, http://finapps.forbes.com/finapps/jsp/finance/compinfo/CIAtAGlance.jsp?tkr=WYE last accessed on September 16, 2009

2009, WYE, Deep Market, http://www.deepmarket.com/stock/wye last accessed on September 16, 2009
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Crisis Economics by Nouriel Roubini

Words: 508 Length: 2 Pages Document Type: Essay Paper #: 3551329

These funds are now removed from the banking system. Keep in mind that banks use every dollar on deposit to create many more dollars worth of loans, the hit to the banking system and by extension, to the money supply is something approaching 25 to 30 billion dollars. This was a global phenomenon, as the crisis arises interest rates are slashed. So hence, by 2008-2009 the Federal Reserve, Bank of England to many others have pushed interest rates close to zero. He also explains how major players like Mr. Bernake and the Treasury Secretary Henry Paulson affected the crisis and how the steps and how they have left their mark on this financial crisis. He also contends that all crisis have an ebb and flow in their severity and rarely hit once and subside. He vilifies our toxic waste method of having recourse to non-recourse government loans and in the…… [Read More]

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Financial Market in New Zealand

Words: 1808 Length: 6 Pages Document Type: Essay Paper #: 14727278

The decision of investing or not here then depends on the personal adversity to risk of each individual investor. The general theory states that each investor should construct a diversified portfolio, which adequately balances high risk-high gain shares with medium or even low rates of risk and gains (Hagin, 2004). New Zealand could then be assimilated with a medium risk-medium gain share, and as such would be perceived as a valuable addition to one's portfolio. In this order of ideas then, the recommendation would be that of investing in the country.

eferences:

Amadeo, K., 2009, An Introduction to the Financial Markets, About, http://useconomy.about.com/od/themarkets/a/capital_markets.htm last accessed on December 17, 2009

Hagin, ., 2004, Investment Management: Portfolio Diversification, isk and Timing -- Fact and Fiction, John Wiley and Sons

Healy, J., 2001, New Zealand Capital Markets, Ministry of Economic Development, http://www.med.govt.nz/upload/18163/healy.pdf last accessed on December 17, 2009

Malkin, B., 2009, Financial Crisis:…… [Read More]

References:

Amadeo, K., 2009, An Introduction to the Financial Markets, About, http://useconomy.about.com/od/themarkets/a/capital_markets.htm last accessed on December 17, 2009

Hagin, R., 2004, Investment Management: Portfolio Diversification, Risk and Timing -- Fact and Fiction, John Wiley and Sons

Healy, J., 2001, New Zealand Capital Markets, Ministry of Economic Development, http://www.med.govt.nz/upload/18163/healy.pdf last accessed on December 17, 2009

Malkin, B., 2009, Financial Crisis: Australia and New Zealand Guarantee All Ban Deposits, The telegraph, http://www.telegraph.co.uk/finance/financetopics/financialcrisis/3187662/Financial-crisis-Australia-and-New-Zealand-guarantee-all-bank-deposits.html last accessed on December 17, 2009
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Financial Reform in 2009 A

Words: 1428 Length: 4 Pages Document Type: Essay Paper #: 67905578

Bank of America and Merrill Lynch would have to be separated and Goldman Sachs could no longer be a bank holding company. "Commercial banks would take deposits, manage the nation's payments system, make standard loans and even trade securities for their customers -- just not for themselves. The government, in return, would rescue banks that fail. On the other side of the wall, investment houses would be free to buy and sell securities for their own accounts, borrowing to leverage these trades and thus multiplying the profits, and the risks. Being separated from banks, the investment houses would no longer have access to federally insured deposits to finance this trading. If one failed, the government would supervise an orderly liquidation. None would be too big to fail -- a designation that could arise for a handful of institutions under the administration's proposal" (Uchitelle, "Volcker," 2009).

The Volcker proposal seems sensible,…… [Read More]

Works Cited

Dash, Eric. Post-mortems reveal obvious risk at banks. The New York Times.

November 18, 2009. December 5, 2009.

http://www.nytimes.com/2009/11/19/business/19risk.html

"Geithner criticizes Wall Street pay." Bloomberg News. December 5, 2009.
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Financial Analysis and Management at

Words: 3019 Length: 10 Pages Document Type: Essay Paper #: 29318125

Had the organization employed the techniques of activity-based costing, they would have realized the need to change their approach and had started manufacturing small size and fuel efficient engines, as most of the customers were requiring these items. "If Ford [...] had used activity-based costing, they would have realized early on the utter futility of their competitive blitzes of the past few years, which offered new-car buyers spectacular discounts and hefty rewards" (Drucker, 2003).

Unlike absorption costing, marginal costing uses the traditional division into direct, indirect, fixed and variable costs. The accounting method sees that the final marginal cost of a product will be calculated by summing up the direct costs of labor, the direct costs of materials, the direct expenses and the variable overheads (Brown). The applications of marginal costing revealed that Ford was able to support a price advantage relative to General Motors and Chrysler due to its…… [Read More]

References

Bernstein, L.A., Wild, J.J., 1999, Analysis of Financial Statements, 5th Edition, McGraw-Hill Publishers, ISBN 0070945047

Berry, a., 1999, Financial Accounting: An Introduction, 2nd Edition, Cengage Learning EMEA, ISBN 186152479X

Brown, G., Introduction to Costs Accounting: Methods and Techniques, http://www.globusz.com/ebooks/Costinglastaccessed on March 9, 2009

Drucker, P.F., 2003, Peter Drucker on the Profession of Management, Harvard Business Press, ISBN 1591393221
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Financial Management in Multinational Organizations

Words: 2234 Length: 8 Pages Document Type: Essay Paper #: 28138668

Aside the attraction of customers, the money invested in marketing have created the desired outcome of a strong and reputable brand. Another pivotal element in the financial strategies has been that of maximizing the efficiency of managing inventories. This was necessary in order to continually strengthen the brand as well as achieve the profitability goals. Alongside with operating principles, supply-chain renovation and inventory management, financial management represents the pillar of the Nike business model (Filbeck, Krueger and Preece, 2007).

7. Discussion

It is extremely difficult to generalize the approaches of multinational organizations to financial management as each individual entity will employ those courses of action which best suit its needs as well as its characteristics. Whilst Ford continued to invest its resources in the manufacturing of large and luxurious vehicles in an attempt to drive the market, McDonald's has recognized the necessity in satisfying customer needs and has as such…… [Read More]

References:

Adams, B., 2007, McDonald's Strange Menu Around the World, Trifter,  http://www.economywatch.com/finance/financial-management.html  last accessed on July 13, 2009

Filbeck, G., Krueger, T., Preece, D., 2007, CFO Magazine's "Working Capital Survey": Do Selected Firms Work for Shareholders? Quarterly Journal of Business and Economics, Vol. 46

Nizamuddin, A.M., 2007, Multinational Corporations and Economic Development: The Lessons of Singapore, International Social Science Review, Vol. 82

Schindehutte, M., Morris, M.H., Kocak, A., 2008, Understanding market-Driving Behavior: The Role of Entrepreneurship, Journal of Small Business Management, Vol. 46
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Financial and Monetary Economics Since

Words: 3006 Length: 8 Pages Document Type: Essay Paper #: 31835742

During times of extreme pressure from the supply or demand side, the central bank is prepared to go in and support the currency, to help provide stability. This is significant because traders around the world; will use the major currencies as a way to hedge themselves against different risks. Where, they will view the weakness of one country's currency as a sign that they could be facing a number of different economic challenges. (Fixed vs. Floating Exchange Rate, 2007) a good example of this can be seen with the ritish pound, where the ank of England decided to keep interest rates at .5%. This is important, because the increase in rates could be seen as a sign that economic stability could be returning to the country, which would help to reverse the downward pressure on the pound. However, the fact that they decided to keep interest rates unchanged, means that…… [Read More]

Bibliography

12 Myths of International Trade, 1999, Meti, viewed 3 May 2010,

Bank of England's Decision Affects Pounds Performance, 2010, to Forex News, view 3 May 2010,

Bretton Woods Agreement, 2010, Investopedia, viewed 2 May 2010, .

Fixed vs. Floating Exchange Rate, 2007, Article Base, view 3 May 2010,
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Financial Restatement 2009 Was a Stellar Year

Words: 1065 Length: 3 Pages Document Type: Essay Paper #: 85738492

Financial estatement

2009 was a stellar year in terms of corporate financial restatements; just 630 U.S. companies reported 674 accounting problems serious enough to warrant a restatement, a dramatic 24% decline from the number of companies with accounting problems in 2008" (Krantz, M. March 1, 2010). However, for Citizens First Bancorp Inc., 2009 was not a year in which to celebrate. In the first and second quarters Citizens was forced to restate their earnings based on two separate incidents, the first involving "an accounting error on a $7.5 million impairment of its deferred tax valuation allowance" (Barba, . October 20, 2009). Second a regulatory action by the Federal Deposit Insurance Corporation (FDIC), which involved allegations of "inappropriate behavior at the company, including removing unfavorable appraisals from the loan files, in an attempt to avoid the recognition of additional loan losses" (Barba, . October 20, 2009). The FDIC required Citizens to…… [Read More]

References

Alloway, T. (November 4, 2010). The deferred tax asset disaster. Financial Times.

Retrieved December 9, 2010 from http://ftalphaville.ft.com/blog/2009/11/04/81371/the-deferred-tax-asset-disaster/

Barba, R. (October 20, 2009). Regulators' views force restatement. American Banker.

Vol. 174, Iss. 191; pg. 1. Retrieved December 9, 2010 from http://proquest.umi.com.ezp.waldenulibrary.org/pqdweb?index=0&did=1886779431&SrchMode=2&sid=26&Fmt=3&VInst=PROD&VType=PQD&RQT=309&VName=PQD&TS=1291831024&clientId=70192
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Financial Industry Regulation the Recent

Words: 855 Length: 3 Pages Document Type: Essay Paper #: 43712136

Indeed, risk-seeking is pervasive in the financial industry, as competition compels banks to seek higher returns. Regulation such as capital requirements can help to reduce risk-seeking behavior, although the negative affect such regulations have on value can ultimately encourage at least some degree of risk-seeking. Despite this unintended potential consequence, regulation serves to neuter overly aggressive bankers and reduces risk in the banking system. Reducing the risk in the banking system is congruent with the government's objective of making effective use of taxpayer money.

A fourth consideration is that consumers demand regulation. hile this does not constitute an economic case for regulation, it must be understood that governments are not motivated by purely economic considerations. Consumers want to know that their deposits are safe and that they can access money when needed for homes, vehicles and small businesses. Consumer demand, while irrational, is a key driver in the level of…… [Read More]

Works Cited:

Llewellyn, D. (1999). The economic rationale for financial regulation. Financial Services Authority. Retrieved November 13, 2009.

Hellmann, T., Murdock, K. & Stiglitz, J. (2000). Liberalization, moral hazard in banking, and prudential regulations: Are capital requirements enough? The American Economic Review. Vol. 90, 1, 147-165.
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Crisis in Canada Are the

Words: 5697 Length: 17 Pages Document Type: Essay Paper #: 63405314

In 2000 legislation was presented by Ralph Klein to the legislature, demanding that provinces be permitted to allow private hospitals. That same year, more budget cuts slammed the health systems, when the "Federal udget offers 2 cents for health care for every dollar of tax cuts." (Health Coalition) in 2002 the Romanow Royal Commission on the Future of Health Care in Canada was created to investigate the health-care situation in the nation and to foster (and witness) public discussion on the subject. Their report was presented in Ottawa towards the end of the year, and in 2003 some of its suggestions regarding intelligent use of federal funding were implemented. The commission, in general, supported the continuation of universal care. However, the 2003 "Health Accord" did not include any ruling against the use of federal funding contracted out to for-profit institutions (a situation that some critics claim is part of the…… [Read More]

Bibliography

Axworthy, Lloyd & Spiegel, Jerry. "Retaining Canada's health care system as a global public good" Canadian Medical Association Journal, Aug 20,2002; 167 (4), 365-366

Canadian Institute for Health Information. Health Care in Canada.

Canadian Institute for Health Information: Ottawa, 2004.

Choudhry, Sujit. "The Enforcement of the Canada Health Act" McGill Law Journal, vol 41; 462-510
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Crisis Economics by Nouriel Roubini

Words: 1295 Length: 4 Pages Document Type: Essay Paper #: 38992761

In this regard, the author rightfully targets circumscription of the authority of the major agencies that are responsible for rating private credit which allowed banks to approve many mortgage situations with citizens that were tenuous, at best. The most efficacious way of doing so, particularly when one considers that most banks simply pay these agencies, which are primarily Fitch atings, Standards & Poor's, and Moody's Investor Services, oubini asserts is to issue a removal of the agencies' certification by the Securities and Exchange Commission as "nationally recognized statistical rating organizations." This publicly blessed oligopoly, intended to maintain high standards, has only inhibited competition that would bring down the price of security-rating services (Barrett, 2010).

The commission was widely vilified for not playing a more active role in limiting the unscrupulous behavior of banks that lured investors into poor mortgage situations (no author, 2012)

Ultimately, oudini proposes increasingly strident measures of…… [Read More]

References

Barrett, P.M. (2010). "Prophet Making." The New York Times. Retrieved from http://www.nytimes.com/2010/06/27/books/review/Barrett-t.html?_r=1&ref=books

No author. (2012). "Securities and Exchange Commission." The New York Times. Retrieved from http://topics.nytimes.com/top/reference/timestopics/organizations/s/securities_and_exchange_commission/index.html?inline=nyt-org

Roubini, N.; Mihm, S. (2010). Crisis Economics: A Crash Course in the Future of Finance. New York: Penguin Press.

Sunderland, R. (2010). "Crisis economics: A crash course in the future of finance." The Guardian. Retrieved from http://www.guardian.co.uk/books/2010/may/23/crisis-economics-crash-course-review
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Financial Indicators That Can Be

Words: 3811 Length: 12 Pages Document Type: Essay Paper #: 57972656

According to these analysts, "The implicit assumption underlying the price-to-earnings method is that the fair market value of the closely held business can be approximated from the market value of comparable publicly traded businesses. To implement this method, the valuator must be able to identify a set of presumed-to-be comparable publicly traded companies and obtain sufficient information on each to verify the extent of comparability from an economic, management, and financial perspective. No publicly traded company will be precisely comparable to the closely held business being valued, so informed judgment must be exercised" (p. 81). As a general rule, the smaller in size and the more limited the scope of activities of the business being valued, the less likely there will be a set of publicly traded companies that are comparable, or even a single comparable publicly traded company. Publicly traded companies are for the most part large, measured in…… [Read More]

References

Allen, M.F. & Cote, J. 2005, "Creditors' Use of Operating Cash Flows: An Experimental

Study." Journal of Managerial Issues 17(2): 198-199.

"Asset/equity ratio." 2009, Investor Glossary. [Online]. Available: http://www.investorglossary.

com/asset-equity-ratio.htm.
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Financial Derivatives on Sub-Prime Crisis

Words: 9921 Length: 30 Pages Document Type: Essay Paper #: 96070915



The article that was written by Conley (2011) discusses the impact that collateralized debt obligations (CDO's) would have upon the subprime loans. These were created in 1987, by the Wall Street firm Drexel urnham. In this product, the investment bankers would take a number of different articles and combine them together as one investment. The various assets that were used included: junk bonds, mortgages and other high yielding investments from the debt. The idea with these different products is that the investment bank could offer customers a stated return on their investment. The way it worked is the brokerage firm would distribute each investor, the stated amount of returns that they would make off of the tranche (the CDO investment). This was derived using a complex mathematical formula that would divide the total amount of interest that was received, from the various high yielding products that were inside the CDO.…… [Read More]

Bibliography

Case Study, 2011, Investopedia. Available from: [14 February 2011]

Citi Merger a Mistake, 2008, Huffington Post. Available from: [14 February 2011].

Deregulation Redux, 2011, FCIC. Available from: {14 February 2011].

Derivatives, 2011, Financial Dictionary. Available from: [12 February 2011].
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Financial Industry Responsible for the

Words: 916 Length: 3 Pages Document Type: Essay Paper #: 69012167

It was irresponsible for banks to operate from a position of absentee management, and the careless ownership enabled reckless conduct from their "agents" who ran the day-to-day operation. While some blame must be placed on the public for continuing to spend at outrageous rates, the bank itself promoted and enabled such activity. Blankfein's argument that no one had been arrested is irrelevant since the issue at hand is whether the financial industry was responsible, not whether bank officials should be arrested. Banks made profound miscalculations concerning interest rates and loans, and should have been aware that their business practices were not feasible toward long-term success (Murphy).

Issue 7 places the theories of authors oger Lowenstein and obert Samuelson against one another. Lowenstein contends that government should bail out economic institutions; however, he does not argue that bailouts are necessary in order to assist the careless companies, but instead asserts that…… [Read More]

References

Newton, L., Englehardt, E., & Pritchard, M. (2012). Taking Side: Clashing Issues on Business Ethics and Society. New York: McGray Hill.

Murphy, a. (Nov. 4, 2008). An analysis of the financial crisis of 2008: Causes and solutions. SSRN. Retrieved from  http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1295344 .

Andrews, E.L. (2008, Oct. 23). Greenspan 'shocked' that free markets are flawed. International Herald Tribune.
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Financial System Trials Tribulations Starting Early 2008

Words: 541 Length: 2 Pages Document Type: Essay Paper #: 12960468

financial system trials tribulations starting early 2008. Indicate major reasons contributed financial market's collapse. Please leave a space reason. -College Level paperOrder ID

Five major factors that contributed to the financial market's collapse

eason 1: Historically low interest rates

The first major contributor to the collapse of the worlds' financial markets was the housing bubble. The Federal eserve dropped interest rates to historically levels after the September 11 terrorist attacks and the dot.com bubble burst. This was to generate more spending and borrowing and propel the nation out of recession. Low interest rates encouraged people to buy on credit. Many people took out mortgages, thinking that this was a good time to buy a house, and many others took out mortgages hoping to 'flip' a house, or sell it for more than they paid for it, as they were convinced that it was impossible for housing prices to go down…… [Read More]

References

Shah, A. "Global financial crisis." Global Issues. 2010. [May 24, 2011]

 http://www.globalissues.org/article/768/global-financial-crisis 

"The reasons behind the global economic crisis." Fair Loan Rate. 2008.

[May 24, 2011]  http://www.fairloanrate.com/2008/12/02/the-reasons-behind-global-economic-crisis/
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Financial Statements of Marriott Hotels and Discusses

Words: 1322 Length: 4 Pages Document Type: Essay Paper #: 6787111

financial statements of Marriott Hotels and discusses measurement bases they employ. The essay also surveys the literature for current thinking on fair value measurement.

According to the International Financial Reporting Standards (IFRS), measurement "involves assigning monetary amounts at which the elements of financial statements are to be recognized and reported" (Deloitte, 2011). Accounting measurement consists of quantifying financial information in dollars or units. These measurements are then used to report information to internal and external users through the use of financial statements that accountants prepare. Financial accounting measurements may be recorded at historical cost or adjusted to reflect current market values (Conjecture Corporation, 2011).

Generally Accepted Accounting Principles (GAAP) require companies to record balance sheet information using a fair value accounting measurement. Companies must therefore use this measurement technique to value assets and equity investment at the current market rate which thee items would bring if they sold in an…… [Read More]

Works Cited

Barth, M.E. (2006). Including estimates of the future in today's financial statements. BIS Working Paper No. 28. Available at SSRN: http://ssrn.com/abstract=947525

Cairns, D. (2006). The use of fair value in IFRS. Accounting in Europe 3, 5-22. Available at:

ftp://124.42.15.59/ck/2011-03/165/027/066/423/The%20Use%20of%20Fair%20Value%20in%20IFRS..pdf

Conjecture Corporation. (2011). What is an accounting measurement? Retrieved August 30, 2011 from:  http://www.wisegeek.com/what-is-an-accounting-measurement.htm
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Crisis the Causes of the

Words: 570 Length: 2 Pages Document Type: Essay Paper #: 96495048



Many subprime mortgages were made with little documentation of income or ability to repay, or other elements that typically safeguard loans of all types and mortgages especially. There have even been cases of widespread fraud, where documents were falsified in order to approve loans. The reason many lenders were so eager to make these bad loans is that they weren't ultimately going to be responsible for them -- the loans were bundled into groups and sold as "mortgage backed securities," so instead of dealing with many individual loans worth an average of a few hundred thousand dollars, banks and other institutions were dealing with bundled groups of these bad loans worth millions of dollars apiece. Companies like AIG made money in the short-term by providing insurance policies for these mortgage backed securities, as well. Eventually, however, people with loans they couldn't really afford began to default, either because they simply…… [Read More]

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Financial Market of Hong Kong

Words: 6345 Length: 20 Pages Document Type: Essay Paper #: 29195556

He said that the application for Hong Kong Airlines was to list as a so-called "red chip" (overseas registered Chinese company) that had been approved by the State Council. They way, Grand China, which just two years ago called off a share sale plan due to the global economic crisis, is also the parent company of China Xinhua Airlines, Changan Airlines, and Shanxi Airlines ("Two airlines target," 2010)..

Hong Kong Airlines currently operates 18 aircraft and runs more than 30 routes which include routes to Beijing, Denpasar, Shanghai, Tokyo and Moscow. It also planned to use its IPO finances to fund its aircraft acquisitions. The company had ordered some 33 wide body Airbus aircraft for over a sum of $6 billion, according to Yang (ibid).

The Cathay Pacific Airways Slowdown.

Already, we noted above about the planned delivery of two additional 747-8F freighters from Boeing to Cathay Pacific Airways has…… [Read More]

Works Cited

Air lease corporation announces ipo; hong kong aviation capital gets new ceo.. (2011, April 5). Retrieved from Air Lease Corporation announces IPO; Hong Kong Aviation Capital gets new CEO.

Cathay delays 747-8f freighters on weak hong kong air freight demand . (2012, January 02). Retrieved from http://asianbusinessdaily.com/2011/12/cathay-delays-747-8f-freighters-on-weak-hong-kong-air-freight-demand/.

Cathay pacific stays on the course of expansion. (2012, January 02). Retrieved from  http://www.aspireaviation.com/2012/01/02/cathay-pacific-stays-on-the-course-of-expansion/ .

Cathay pacific airways first class and business class seat reviews. (2012). Retrieved from  http://www.flatseats.com/Reviews/cx-j.htm .
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Crisis 2008 a Plethora of

Words: 668 Length: 2 Pages Document Type: Essay Paper #: 89249505



Another significant factor that affected the financial crisis of 2008 was role that Wall Street played in worsening the impact of the financial disaster that was to come. Specifically, a number of prominent Wall Street companies effectively "bought in" to the housing shortage by investing in securities that are financially supported by loans of a dubious nature. A recent report compiled by the Financial Crisis Inquiry Commission alludes to the fact that such investors were well aware of the substantial risk that these investments represented, yet pursued them anyway due to avaricious tendencies (Chan, 2011).

The involvement of banks in the financial crisis goes well beyond issuing loans that were of a suspect nature to people who required subprime loans. To that extent, this degree of culpability on the part of banks can actually be traced to the Securities and Exchange Commission, another federal government entity, that was decidedly lax…… [Read More]

Bibliography

Chan, S. (2011). "Financial Crisis Was Avoidable, Inquiry Finds." The New York Times. http://www.nytimes.com/2011/01/26/business/economy/26inquiry.html

Davis, J.F. (2008). "The Cause of the 2008 Financial Crisis." Aim.org.  http://www.aim.org/guest-column/the-cause-of-the-2008-financial-crisis/ 

Shah, a. (2010). "Global Financial Crisis." Globalissues.org.  http://www.globalissues.org/article/768/global-financial-crisis
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Financial Management and Analysis

Words: 4130 Length: 10 Pages Document Type: Essay Paper #: 20964033

stock market and the Banks promote economic growth and it provides a critique of their functions in transitional economies. Every country depends on its economy for its growth. For a country to be stable it has to be stable in terms of its economy. Bank and stock market contribute to a great extent to the economy growth of every country where it provides firms with opportunity to get funds thus encouraging more investment from the firms. At the same time they give information on the ways resources should be allocated. The development of a financially sound, market-oriented banking system is always considered to be fundamental to a flourishing transition. Arguably, it is important to macroeconomic stability and to positive long-term growth prospects. As documented, bank intermediation in transition economies continues to be stunted after a decade or addition of reform, mainly where advancement in banking reforms is inadequate. The banking…… [Read More]

WORK CITED

Atje, Raymond and Jovanovic, Boyan, (April 1993), "Stock Markets and Development," European Economic Review, 37 (2/3), pp. 632-40.

Bagehot, Walter. (1873) Lombard Street. Homewood, IL: Richard D. Irwin, (1962

Edition).

Bresharan, T., Milgrom, P., and Paul, J., (1992),"The Real Output of the Stock
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Macdonald Financial Analysis

Words: 917 Length: 3 Pages Document Type: Essay Paper #: 69197533

Financial Case Study

Company Overview

McDonald Corporation specializes in the food service globally. The company started operation in 1940, and in 1967, the MacDonald registered its trademark. The primary product of McDonald includes chicken, hamburgers, soft drink, French fries, dessert and milkshakes. Over the years, the company has expanded its menu and included wraps, fish, salads fruits and smoothies. Presently, the company operates its business through either affiliate or franchise globally and the company realizes bulk of its revenues from the fees collected from franchise. Moreover, the company derives its revenues from the royalties and rents. Since MacDonald has started operations, the company has enjoyed rapid growth. At the end of the 2012 fiscal year, the company recorded the annual revenues of more than $25.7 billion with the net profits of $5.5 billion. The company also recorded the market capitalization of $94.5 billion. The company operates in 119 countries and…… [Read More]

Reference

McDonald. (2012) Annual Report, MacDonald Corporation .

Morning Star (2012).McDonald's Corporation MCD. USA.
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Crisis Incidents

Words: 2652 Length: 8 Pages Document Type: Essay Paper #: 19435322

Crisis Incidents

The last decade has been riddled with crisis on the global as well as domestic scale. Crisis on many fronts have been noticed for instance natural calamities, terrorism issues, scandals, technological issues and financial disarray. Even so, most leaders aren't fully up to the task in terms of leading a company or society, in general, out of a crisis successfully. Experts at the start of this decade went hand in hand to eliminate the Y2K bug, which became the first Internet crisis. On September 11, 2001, the terrorist attacks in New York City on World Trade Center threw U.S. off balance. Next, the Katrina Hurricane struck with full vengeance in the gulf region which tore apart communities as we know it. The Tsunami of 2004 was another tragic event which rendered millions of people homeless. Last but the not the least, the recession of 2008 shutdown major corporations…… [Read More]

References

OECD (2011), OECD Reviews of Risk Management Policies, Future Global Shocks, Improving Risk Governance, OECD Publishing.

Dezenhall, E.; Weber, J. (2007). Damage control: Why everything you know about crisis management is wrong. Portfolio Hardcover.

Erickson, Paul A. (2006). Emergency Response Planning for Corporate and Municipal Managers (2nd Ed.). Burlington, MA: Elsevier, Inc.

Barton, L. (2007). Crisis leadership now: A real-world guide to preparing for threats, disaster, sabotage, and scandal. New York, NY: McGraw-Hill.
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Financial Statement Fraud Report Rite-Aid Fraudulent Financial

Words: 1734 Length: 5 Pages Document Type: Essay Paper #: 19594794

Financial Statement Fraud Report: Rite-Aid

Fraudulent financial reporting can really have unfavorable results on companies, as well as, public confidence in capital markets. This paper will examine the financial statement fraud and will also investigate the financial statement fraud that happened at Rite Aid in the beginning of the 2000's. The outcome of Rite Aid's fraud, as well as a lot of other key accounting scandals, led to the formation of the Sarbanes-Oxley (SOX) Act of 2002. SOX help the increasing need to reestablish customer confidence in reporting and accounting practices. AAER No. 1579 on June 21, 2002 discloses to the public the SEC's commands to Rite Aid appropriate to their activity that is fraudulent. Rite Aid's recounted financial statements were misleading and false, and its records and books were imprecise. Rite Aid was told that they to reaffirm stated cumulative pre-tax income by a total of $2.5 billion and…… [Read More]

Works Cited

Anderson, R.T. (2004). Too Good to Be True CEOs and Financial Reporting Fraud. Consulting Psychology Journal: Practice and Research, 51(6), 35-43.

Bell, M. (2007). What Happened to Rite Aid? . Retrieved from http://www3.villanova.edu/.../Mike%20Bell%20-%20Rite%20Aid.doc

Callahan, D. (2004, Janurary 13). Prescription for Disaster. Baltimore SmartCEO. Retrieved from http://smartceo.com/files/issues/Jan%2004.pdf

Federwisch, A. (2007, September 30). Exploring Ethical Lapses During the Rite Aid Crisis . Retrieved from http://www.scu.edu/ethics/practicing/focusarea/business/rite-aid.html
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Financial Accounting Company Overview Microsoft

Words: 689 Length: 3 Pages Document Type: Essay Paper #: 27022022

he only observation that could be made here is that one would expect a larger proportion of the total expenses to be allocated to research and development, given the fact that this is such an important part of Microsoft's activity and essential in order to obtain a competitive advantage on the market.

Asset and Capital Structure

2008

Cash and cash equivalents

$10,339

Accounts receivable

$13,589

Inventories

$985

otal fixed assets

$29,551

he asset structure at Microsoft reflects some of the particularities in the industry, notably the fact that the inventory levels tend to be quite low, as compared to the other assets. his means that the I industry is not one supporting production on stock. At the same time, the value of the total fixed assets is significantly high, which can be partly explained by the size of the company and the investments in land, buildings and equipment.

Part III…… [Read More]

The return on assets at Microsoft was 0.24 in 2008, as compared to 0.22 in 2007. As most of the other profitability and asset management figures, the return on assets also shows a better performance in 2008.

Part IV -- Conclusions and Recommendations

Microsoft's results, both in terms of absolute value from the income and cash flow statements and balance sheet and the ratio analysis, show a solid, extremely competitive company, whose results have improved from 2007 to 2008, despite the global economic crisis. Its capacity to retain low levels of inventory, to gradually increase its efficiency in using assets and to bring new products to the market are some of the positive aspects at Microsoft. As a recommendation, the company could consider allocating a larger proportion of its expenses into research and development.
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Financials Both Nordstrom and H& m

Words: 1375 Length: 4 Pages Document Type: Essay Paper #: 94057434

As noted, the leverage is deliberate, and probably is designed to deliver these ROEs to shareholders.

H&M pays out a large portion of its profits as dividends. Nordstrom's dividend is healthy for an American company, but far less than that of H&M. Nordstrom shareholders must rely on capital gains to a greater extent. Given that both companies are growing, H&M's ability to deliver both growth and dividends is superior for shareholders. These superior outcomes are, not surprisingly, reflected in the share prices of the two firms, with H&M having the better P/E ratio (22.2 versus 15.4).

In addition to the financials, it is important to consider what recent news might affect the viability of working in these firms in the future. There are no major news stories for either company. Essentially, both are still growing firms, with a moderate growth pace. Nordstrom is still focused on the North American market,…… [Read More]

Works Cited:

MSN Moneycentral. (2013). Nordstrom. Retrieved April 20, 2013 from http://investing.money.msn.com/investments/stock-balance-sheet/?symbol=us%3AJWN&stmtView=Ann

MSN Moneycentral. (2013). Hennes & Mauritz. Retrieved April 20, 2013 from http://investing.money.msn.com/investments/stock-income-statement/?symbol=HM

Edgerton, a. (2012). Thousands celebrate H&M's South Beach debut. Miami Herald. Retrieved April 20, 2013 from http://www.miamiherald.com/2012/11/08/3087998/thousands-celebrate-hms-south.html
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Crisis Humanity Has Not Yet

Words: 1271 Length: 3 Pages Document Type: Essay Paper #: 34864277

e. An amount that is about 1% of GDP) to ensure that the current PAYGO system is solvent for the next 75 years. Thus, 10 trillion dollars problem is not as large and scary if we start acting today to fix the current system).

It is totally manageable."

ut the official plan is somewhat different. ush's administration is trying to introduce private account systems where a fraction of payroll tax will be transferred to private accounts and managed by the future retirees themselves, thus, giving them chance to invest this money into stocks, which have proven to give on average higher rates of return than the Treasury ills which generate rather moderate income.

The opponents of this idea state that this is just a shell-game, where no capital is accumulated and investments are not increased. The overall national capital is not increased, but this plan will cause enormous transactions costs…… [Read More]

Bibliography

1) Kinnan, Chris Trustees Report: Social Security Collapse Quickening, 2004 available on web: http://www.cse.org/processor/printer_press.php?press_id=780

2) Allen, Mike Semantics shape social security debate, Article the Washington Post. Washington, D.C. Jan 23, 2005.pg. a. 04

3) Roubini, Nouriel Social Security Privatization as the Mother of All Con-Man Smoke-and-Mirrors Shell-Games, available on web: http://www.roubiniglobal.com/archives/2004/11/social_security_1.html
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Crisis Negotiations Ebert 1986 Believes There Is

Words: 511 Length: 2 Pages Document Type: Essay Paper #: 76354420

Crisis Negotiations

Ebert (1986) believes "there is absolutely no justification for preventing mental health professionals from participating in virtually all facets of hostage negotiation," (p. 580). As Hatcher, Mohandie, Turner & Gelles (1998) point out, most mental health professionals that do participate in any aspect of hostage negotiation do so "by invitation only in police-established hostage negotiation schools," (p. 461). With this training, the mental health professional is thus theoretically prepared to engage the perpetrator directly. However, the mental health professional is only prepared when the training provided is thorough and consistent, and in accordance with the parameters and goals of each crisis situation.

The pros of employing a psychologist as a primary negotiator are clear. Most significantly, the psychologist has expertise in human behavior and cognition and can apply that knowledge to making quick decisions. The psychologist can also provide post-traumatic stress intervention services to the hostage victims and…… [Read More]

References

Ebert, B.W. (1986). The mental health response team: An expanding role for psychologists. Professional Psychology, Research and Practice, 17, 6, 580-585.

Hatcher, C., Mohandie, K., Turner, J. & Gelles, M.G. (1998). The role of psychologists in crisis/hostage negotiations.Behavioral Sciences and the Law, 16, 455-472.