Investment Banking Essays (Examples)

Filter results by:


View Full Essay

A concise Analysis of financial performance of companies

Words: 6238 Length: 17 Pages Document Type: Essay Paper #: 65988591

environmental, social and governance (ESG) performance and financial performance of companies

Investors are increasingly recognizing the fact that ESG (environmental, social, corporate governance) elements can substantially affect companies' security rates and financial performance. The aforementioned components' contribution to financial markets has been growing with the rise in number of ESG opportunities and risks within the contemporary international economy. Timely and improved organizational policy-related data access and the effect of organizational policy on communities have made it considerably convenient for customers to express their dissatisfaction by simply quitting a brand. When international brands' images are sullied by ESG-related problems, the resultant instantaneous backlash has the capacity of abruptly and negatively impacting income and demand (Eccles, Ioannou & Serafeim, 2014).

Organizations having a poor reputation when it comes to ESG related matters are vulnerable to monetary risks, including a very genuine threat of facing lawsuits in the future, greater remediation and regulatory…… [Read More]

View Full Essay

CIBC the Canadian Imperial Bank of Commerce

Words: 1923 Length: 7 Pages Document Type: Essay Paper #: 22709913


The Canadian Imperial Bank of Commerce (CIBC) is one of the "Big Five" Canadian banks. It was founded in 1961 by the merger of the Canadian Bank of Commerce (founded 1867) and the Imperial Bank of Canada (founded 1875). Today, the CIBC is the fifth-largest of these by total revenue, earning $12.09 billion in FY2010 (PWC, 2011). This report will evaluate the CIBC in terms of a number of different factors in order make a judgment about the merits of investing in the bank's stock. The analysis will comprise of an industry analysis, a company analysis, and a valuation analysis.

According to the company's 2011 Annual Report, the CIBC earned total revenue of $12.249 billion in FY2011. This was split between interest income (51.8%) and non-interest income (48.2%). From this, the bank earned a net income of $3.079 billion. The recession years of 2008 and 2009 saw a sharp…… [Read More]

View Full Essay

Chinese Car Market an Analysis

Words: 8417 Length: 33 Pages Document Type: Term Paper Paper #: 26761132

The process would then need to continue so that the changes that can be seen in the environment can also affect the changes in entry strategies.

Environmental factors, economic factors, political/legal factors, social/cultural factors and also technological factors should all be considered. The legal factors that need to be addressed include issues in employee law, monopolies and mergers legislation, environmental protection laws, and wider issues such as foreign trade regulations. The political factors refer to the stability of the government. The taxation policy, the government spending, the relationship that the government has with other countries, and the industrial policy and all issues should be considered.

The economic factors that need to be addressed refer to inflation, disposable income, unemployment, business cycles, GNP growth rates, interest rates, exchange rates, energy, and the basic prices for raw materials. Factors from cultural and social standpoints include population demographics, the income distribution, what levels…… [Read More]

View Full Essay

State-Led Economic Policies in South

Words: 870 Length: 3 Pages Document Type: Term Paper Paper #: 42635261

in the newly formed Ministry of Finance drew from a talented pool of
economists from the Hebrew University in Jerusalem. Privileged positions
were filled from within the bureaucracy and were obtained through
exceptional performance instead of cronyism or nepotism. Of great
importance to their autonomy, officials were able to disconnect themselves
from total reliance on local funding thanks to financial assistance from
the international community and reparations from Germany. Two figureheads
within the government guaranteed a decisive and coherent economic policy:
Levi Eshkol of the Ministry of Finance, and Pinhas Sapir of the Ministry of
Commerce and Industry. They worked hand-in-hand to formulate a unifying
agenda that bureaucrats from both departments could pursue towards a single
common goal.
The end-product of this labor in both nations was a financial
structure in which banks, and by extension the government at large,
controlled the flow of capital. On one hand, banks…… [Read More]

View Full Essay

Ethics & Morals - Business

Words: 2860 Length: 10 Pages Document Type: Research Proposal Paper #: 81245416

The housing market was already strong, but the elimination of practical reasons for validating lender information opened several doors very wide, each with an unpleasant surprise hidden behind it. First, because realtors earn their commissions based on sales and on the relative value of property, they have little incentive to disqualify bad risks of eventual mortgage default. Second, banks became equally unconcerned with the veracity and accuracy of the financial information provided by prospective home buyers and it was no longer in anybody's interest to curb increasing home values. Third, the reliance on credit on the part of so many Americans fueled a housing and property development boom in many areas. Multiple Ethical Violations Provide the Ignition for Economic Disaster:

Lack of concern for verifying lender qualifications became so rampant in the first part of the 21st century that lenders offered "no-doc" loans that required no formal documentation of income…… [Read More]

View Full Essay

Great Depression Was One of

Words: 2537 Length: 8 Pages Document Type: Thesis Paper #: 39716295

Thus, when stricter regulations should have been implemented, they were not, and the avoidable became utterly unavoidable. The president Hoover's initial reaction was to allow the market to fix itself, thus going alongside his lassiez-faire beliefs. Yet, he was forced by Congress to act, but did so minimally (Wilkison 1). Thus, it was not long before the nation was in demand of a more hands on president who was willing to implement new social and economic programs to get the United States back on track to economic prosperity.

When Franklin D, Roosevelt took over the Oval Office, he inherited a multitude of problems still reeling from the onslaught of the Great Depression. In his formulation of a plan, Roosevelt created the New Deal, which "sought to save capitalism and the fundamental institutions of American society from the disaster of the Great Depression," (Wilkison 1). Thus, Roosevelt created a multi-faceted approach…… [Read More]

View Full Essay

Economic Globalization Has the 2008 Financial Meltdown

Words: 2832 Length: 11 Pages Document Type: Essay Paper #: 9572312

Economic Globalization

Has the 2008 financial meltdown in the U.S. And the ongoing economic crisis in Europe have practically ended the era of economic globalization?

Following the financial crisis that marred the U.S. economy along with other global economies as well as the ongoing Eurozone debt crisis, there have been projected concerns that this predicament would end economic globalization. The purpose of this paper is to assess this claim. Going by Immanuel Wallenstein's World Systems Theory, the political economy of Third World economies and developed economies of the West are mutually dependent. Wallenstein's conjecture is that the growth and expansion of Third World economies relies on constant interaction with Western developed economies seeing as the world is characterized by a structural division of labor where the developing nations of the Third World provide cheap labor and raw materials while the developed economies are the holders of capital and controllers of…… [Read More]

View Full Essay

Federal Reserve Bank Is the

Words: 2266 Length: 7 Pages Document Type: Term Paper Paper #: 65871462

It is also worth noting that the Fed must understand how the relationship between its actions and the outcomes changes under different circumstances. For example, open market transactions put more money into the economy; they do not imply that spending will increase. Thus, more money in the economy will not necessarily lead to more growth, lower unemployment or higher inflation, even though the typical relationship is that they will.

The third part of the Fed's mandate is with respect to unemployment. The Fed notes that the central tendency of the unemployment rate in the U.S. is between 5.2% and 6.0%. This is basically the target range that the Fed has for unemployment The Fed only has the ability to influence employment. The employment issue is fairly complex, and there are a number of different variables. Monetary policy instruments are somewhat minor variables compared with some fiscal and trade policy instruments,…… [Read More]

View Full Essay

Operations Management Report -- Community Bank of

Words: 4074 Length: 13 Pages Document Type: Essay Paper #: 57418877

Operations Management Report -- Community Bank of Perth

The Community Bank of Perth has experienced tremendous growth in home loan refinancing in the past two years. This is due in part to continued growth of the Western Australian mining sector, as well as increased consumer interest in more innovative and economical loan terms. With rising competition in the market, more lenders are now aggressively working to boost their market share through a renewed focus on customer service and simple and speedy loan processing (Fluss 2009, p. 12). Faced with an ever-increasing numbers of home loans, Community Bank of Perth has developed new refinancing processes aimed at improving the quality of service to customers. This process was implemented last year and divided loan approvals into five distinct stages with new departments created for each stage.

However, recent customer feedback has indicated that loan approval processing still has room for improvement. Many…… [Read More]

View Full Essay

Too Big to Fail

Words: 4400 Length: 13 Pages Document Type: Essay Paper #: 95087926

fall 2007, the United States economy was rolling along in a healthy fashion having enjoyed 24 consecutive quarters of positive Gross Domestic Product growth. The Standard and Poors Index was over 1,500 and unemployment was below 5%. There was essentially no inflation. These were all good numbers and normally indicative of a health economy (Bloomberg Business Week).

Roughly 12 months later everything had changed. Treasury Secretary Henry Paulson surprised everyone by announcing that the Government was intending to intervene in the U.S. economy by holding reverse auctions where the troubled assets of several domestic financial institutions would be bought (Landler). As matters worsened quickly, the proposed auction concept was expanded to the point that the Government would actually purchase equity positions in some of the country's largest banks. The argument offered by Paulson was that such measures were needed to stabilize the troubled financial markets, avoid bank failures, and prevent…… [Read More]

View Full Essay

Economy of the BRIC Countries

Words: 2753 Length: 10 Pages Document Type: Case Study Paper #: 6606891

Banks in India are required to provide 40% of their net credit to other sectors like agriculture, retail trade, small scale industries and business.Net assets of the banking sector are held by private banks which holds 18.2%, 75% by public sector banks while the 6.5% are held by foreign banks.


China is the largest economic powerhouse of the BRIC countries by both population wise and GDP. It had an estimated foreign reserve of about $2 trillion in 2009. China has become a destination of choice to many multinationals keen to establishing a firm and solid manufacturing base for global competition. The economywatch (2010) describes that China's agricultural sector is driven by a sharp rise in the procurement and semi-privatization of agriculture. In 2010, the agriculture sector accounted for 10.9% of the total GDP while 48.6% and 40.5% came from industry and service sectors respectively.

China's total population totals to…… [Read More]

View Full Essay

Press on Globalization and Its

Words: 5481 Length: 20 Pages Document Type: Term Paper Paper #: 23431412

Not only does this benefit them as a port destination, but the influx of trade goes through Taiwan with the majority of manufactured goods of the Pacific region flowing through their ports. Since Taiwan has a favorable relationship with the Western states, it has been able to absorb the growth of the East Asian region and serve as an effective broker for traffic of goods. Thus it plays a central role within the region as a broker between lesser developed nations and the developed super powers.

Not only does Taiwan hold an enviable position within global trade, but it also has developed its internal capacity to become a manufacturing force. Taiwan has focused its industries on two key developments, high end technology products including semi-conductors and high end technology product development. The Taiwan Semiconductor Manufacturing Company is the world's largest independent semiconductor foundry. As a joint venture through subsidized state…… [Read More]

View Full Essay

Business Ethics Recognizing and Resolving

Words: 2980 Length: 10 Pages Document Type: Research Proposal Paper #: 81658066

The Bank CEO's Role in Defining Ethical Integrity

Based on a thorough review of existing literature of the role of ethics in the banking industry, the role of the CEO as the ethical leader of their organization is next discussion. Based on the concepts presented in the paper to this point as the foundation, these key points provide insights into how CEOs and senior management actively shape the ethical standards of the organizations they manage on behalf of shareholders.

Risk Management Is a CEOs' Ethical Responsibility combination of forces -- changing regulatory expectations that open companies up to intense levels of examination, heightened stakeholder sensitivity to and scrutiny of corporate behavior, and the severity of punishment by financial markets for corporate missteps -- push reputation and ethics management onto the CEOs' and senior managements' agenda. The paradox CEOs face is when to risk the reputation and brand of the company…… [Read More]

View Full Essay

Economic Crisis -- Bankers to

Words: 1166 Length: 4 Pages Document Type: Term Paper Paper #: 60577842

This mindset was made possible by their intensive investments in new technologies that made transactions inherently unauditable and untraceable by the Securities and Exchange Commission and other governance entities. Given the automation of these complex trading workflows and the inability of governance bodies to keep pace with technological advances, coupled with banker's unwillingness to assist governments in tracking increasingly intricate transactions, the bankers could literally make their own rules up as they went along. What has differentiated this global economic downturn from others is how pervasive this attitude has become of offloading risk by aggregating toxic and bad loans together, using technologies to increase speed of transactions while alleviating accountability (Corden, 2009).

An aversion to risk has been replaced by a consolidating, aggregating and re-selling of completely worthless and often called "toxic" loans, with accountability of the performance of investments left by the wayside. Bankers had the most to gain…… [Read More]

View Full Essay

Mutual Fund Disclosure for the

Words: 2891 Length: 9 Pages Document Type: Essay Paper #: 73713751

b) It is required that the "summary prospectus appear at the front of a fund's prospectus." (Security Exchange Commission (b))

c) Amendments have been made so that the Internet can be used to give important 'information' inclusive of "description of the fund's investment objectives and strategies, fees, risks, and performance." (Security Exchange Commission (b))

d) The Form N-1A, for mutual funds, should have the "key information at the front of its statutory prospectus" regarding "the fund's investment objectives and strategies, risks, and costs. The summary will also include brief information regarding investment advisers and portfolio managers, purchase and sale procedures, tax consequences, and financial intermediary compensation." (Security Exchange Commission (b))

d) It is enough to send the summary prospectus for the delivery requirements if all other information is made freely available online. The 'online materials' has to be accessible and 'in a format' which permits easy navigation and all information…… [Read More]

View Full Essay

Demand for Money

Words: 2391 Length: 9 Pages Document Type: Essay Paper #: 58891904

Demand for Money

Money in economics terms can be defined by holding cash or non-interest bearing bank accounts. Since these holdings are less advantages than interest bearing accounts or some form of investment, there has to be some motivation to keep cash or completely liquid assets. There are a range of different motivations that can be used to describe these behaviors. However, most of them use liquidity in one form or another. For example, it is necessary to have liquid assets to make purchases or pay bills for example. So if an individual gets their paycheck they may deposit a portion of the check into some form of investment account, while keeping a portion of it liquid to cover their monthly living expenses.

An individual may also move money to a liquid account if they are planning to make a purchase in the short-term. The demand for holding money can…… [Read More]

View Full Essay

Mobile Computing A Disruptive Innovation Whose Time

Words: 3842 Length: 10 Pages Document Type: Term Paper Paper #: 72360496

Mobile Computing: A Disruptive Innovation Whose Time Has Come

The pervasive adoption of mobile computing devices, combined with cloud computing and the quantum gains in application software are creating a globally diverse collaborative platform. These elements taken together are deliver an exceptionally fast and pervasive level of disruptive innovation across all sociocultural and technology sectors (Bernoff, Li, 2008). The impact of this disruptive innovation is so significant that IT departments have to drastically reorder their policies in smartphones, tablet PCs and other devices that employees are using to streamline their lives (Thomson, 2012). Smartphones, tablet PCs and devices like them are becoming so pervasive today that they are considered a formable cultural and socioeconomic factor in the planning and execution of business and government strategies well into the future (Bernoff, Li, 2008).

This platform of technology is so pervasive, that it requires in-depth support to enable integration of systems to…… [Read More]

View Full Essay

Unemployment UK According to the Office of

Words: 1537 Length: 5 Pages Document Type: Essay Paper #: 72211945

Unemployment UK

According to the Office of National Statistics, the unemployment rate in the UK currently sits at 8%, the highest figure since 1994. The unemployment rate has been in a range between 7.5% and 8.0% since early 2010. The current trends show that youth unemployment is at its highest level since 1992 and that there is no end in sight for the unemployment problem in the UK (Office for National Statistics, 2011). These figures do not include those who are considered inactive -- not actively seeking work. Their numbers have increased as well, to 23.3% of the working age population.

Office for National Statistics

This paper will analyze the current unemployment problem. It is understood that the current problem is related to the recent recession, as the unemployment rate spiked during and after the recession phase. Some of the causes will analyzed, and the paper will then conclude with…… [Read More]

View Full Essay

Tiaro Coal Limited Prospectus --

Words: 2171 Length: 7 Pages Document Type: Term Paper Paper #: 98331355

There are no other material costs related to the Offer is expected.

15. Who is the investigating accountant for this prospectus and what is their role?

Tiaro Coal Limited's investigating accountant is BDO Kandalls Corporate Finance (NSE) Pty Ltd. The purpose of the investigating accountant's appointment is to report on the concerns raised in Australian Securities Investment Commission's (ASIC) application in relation to the Offer. The report must comply with the Australian Auditing Standard (AUS) 804 or at least, the reasonableness of the report can be appropriately verified (Cockburn: 2002: 1).

16. What are the risk factors associated with this prospectus and briefly describe each?

Investing in Tiaro Coal Limited involve embracing the susceptibility to uncertainties and risks. According to Section 10 of the Prospectus, Tiaro Coal's business activities are subject to both business risks and general risks. In relation to the nature of the business, there is the associated…… [Read More]

View Full Essay

Great Depression Today's Global Economic

Words: 2664 Length: 9 Pages Document Type: Thesis Paper #: 72406170

The excessive use of margin had encouraged speculation. Poor governance on the part of banks and brokerages allowed for a market failure where investors were not making rational decisions, resulting in a bubble.

A variety of new taxes were created to offset Roosevelt's social programs. The American psyche had been scarred by the abject poverty of such a wide proportion of the population. There was palpable fear and desperation. This resulted in the creation of a social safety net and massive infrastructure investment. To pay for this, payroll taxes were developed and this was followed by more taxes to pay down. Withholding taxes and broader income taxes also came out of this era.

The gold standard was abandoned as a result of the Great Depression. The rigidity of the standard was considered to be an impediment to recovery. The coming of World War Two resulted in the postponement of monetary…… [Read More]

View Full Essay

Botswana Bond Market the Development

Words: 3039 Length: 10 Pages Document Type: Research Proposal Paper #: 85313680

Domestic debt is also needed for monetary policy purposes including for sterilizing inflows of foreign exchange." (Kahn, 2005) In addition bond markets assist in the provision of interest rates across the maturity spectrum and more efficient pricing of risk. By providing an alternative source of financing they reduce concentration of intermediation in banks. Because lending can be hedged in the bond market, banks have the ability to lend longer." (Kahn, 2005) Kahn notes that PECC (2004) states general requirements for bond market development which include: (1) the simultaneous development of market width, market depth and market infrastructure; (2) effective coordination among government agencies; (3) close public-private sector partnership; and (4) regulation focusing on maintaining and enhancing transparency and the treatment of taxation. (Kahn, 2005) Kahn concludes by stating that if bond markets are to be development in SSA or in other emerging markets, the role of the state becomes critical,…… [Read More]

View Full Essay

Business Environment of Colombia

Words: 2143 Length: 7 Pages Document Type: Research Paper Paper #: 52601037


Once a no-go zone, Colombia has enjoyed something of a resurgence. This paper will examine the business environment in Colombia, highlighting the different issues that matter to businesses. Colombia has recently become the fastest-growing economy in Latin America (The Economist, 2014), which is testament to some key policy changes that have spurred renewed investment. It started with a major security push to stabilize the country and has now left Colombia enjoying a fairly attractive investment environment. This report will outline the country's economic and legal conditions, to provide the relevant background information for anyone considering doing business in Colombia.

Economic Conditions

Colombia is experiencing strong growth at present, something that can be attributed both to improved security and to a shift in economic policies. With 46 million people and a relatively slow growth rate, Colombia is the 30th-largest country in the world. Its economy ranks 32nd, with $642.7 billion…… [Read More]

View Full Essay

Effectiveness of ASEAN

Words: 14078 Length: 37 Pages Document Type: Term Paper Paper #: 84307607


The study will be delving into: What ASEAN constitutes and what remains beyond its scope? The aim of this study will be handing out a wide-ranging presentation of the present stance of ASEAN and its accomplishments till date, along with its challenges. The paper is intended as a suggestion for a master-plan that can be employed as a future pathway where ASEAN political-security support must be going towards in the forthcoming years.

To start with let us have a brief introduction of the organization. The creators of the Association of South East Asian Nations - ASEAN, visualized it as ultimately assembling all the nations of the region and managing them to lend a hand in assuring the peace, permanence and growth of the area. While the area was in a state of turmoil, a lot of nations were under pressure for the existence of the nation or autonomy. First…… [Read More]

View Full Essay

European Union Enlargement When Ten Countries Recently

Words: 4223 Length: 15 Pages Document Type: Term Paper Paper #: 60922932

EUropean Union Enlargement

When ten countries recently joined the 15 existing European Union (EU) member-states, the event represented the largest enlargement of the European Union in its history (Golino, 2003). One of the major perceived benefits of this union is that the countries formed an economic, political and military coalition with a combined population of 450 million people and an economy that produces approximately one-quarter of the world's annual output.

The new members include eight Central European countries -- the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovenia and Slovakia -- plus Malta and the southern Greek-Cypriot part of Cyprus (Golino, 2003). Their inclusion is expected to further shape the future character of the EU, how it governs itself, and the global role it pursues. It is also seen as an affirmation of European identity and of a break from Europe's communist past.

The Eastern European and Mediterranean countries have…… [Read More]

View Full Essay

Customer Relationship Management CRM and Customer Loyalty

Words: 1740 Length: 6 Pages Document Type: Dissertation Paper #: 70081661

Customer relationship Management (CRM) and customer loyalty are successful marketing strategies in banking industry in Hong Kong

The role of customer relationship management is significant to facilitate the customer satisfaction within several industries including banking. Integration of marketing strategy, customer relationship and customer satisfaction processes results into reduced cost and performance improvement. Business allows the optimal use of resources resulting into optimal performance; it is facilitated through several initiatives of customer service and marketing tactics. The assimilation of information systems and customer relationship management processes facilitates effective flow of communication for all the participants of the systems. The increased flow of information allows the organizations to optimize the business processes performance. Cost reduction, shorter lead time, and improved communications are substantial benefits of customer relationship management.

The case of Hong Kong banking industry is investigated in order to understand the impact of customer service and customer satisfaction. The marketing strategy…… [Read More]

View Full Essay

Fiscal Policy in the Global Environment Case

Words: 3107 Length: 11 Pages Document Type: Essay Paper #: 729372

Fiscal Policy in the Global Environment: Case Study on Ireland Economic Policy

The objective of this work is to examine the key aims of fiscal policy and to determine what the appropriate fiscal policy stance is for the Irish economy at the present.

Research questions in this study include those stated as follows:

(1) What are the key aims of fiscal policy?

(2) What is the appropriate fiscal policy stance for the Irish economy at this time?

The Aims of Fiscal Policy

The role played by fiscal policy in economies that are developed include maintaining full employment as well as bringing about stabilization to growth. Also included in the aims of fiscal policy are the following: (1) mobilization of resources; (2) acceleration of economic growth; (3) minimization of the inequalities of income and wealth; (4) increasing employment opportunities; and (5) price stability. (, 2011) Limitations of fiscal policy in developing…… [Read More]

View Full Essay

Financial Crisis of 2007-2009

Words: 2251 Length: 8 Pages Document Type: Essay Paper #: 7342025

Financial Crisis and Its Implications: Events Occurring Between 2007 and 2009

A Critical Literature Review

The Roots of the Crisis

Real Estate Valuation Bubble

Sub-Prime Mortgages

Low Interest Rates

Moral Hazard in Regard to Consumer Spending

Packaging Real Estate Loans as a Commodity (Derivatives)

Market Interrelatedness

Future Implications

The financial crisis, which seemed to be elevated to its greatest extent world-wide between the years 2007 and 2009, is difficult to unravel. The causes, interlink-ages, and effects are so intertwined that it is hard to separate them into a "first cause" or anything else that would resemble a succinct explanation. Although in retrospect, many individual underlying themes are attributed to the underpinnings of the crisis; in reality there are a plethora of variables that must be accounted for in trying to determine the crisis's root cause. Additionally, none of these factors can be considered in a vacuum. That is, none of…… [Read More]

View Full Essay

International Monetary System

Words: 3495 Length: 8 Pages Document Type: Term Paper Paper #: 13803492

International Monetary System

In world trade, varied national currencies are swapped for each other by means of rules and procedures set by a system called the international monetary system. To delineate a general standard of value for the world's currencies, such a system is believed to be necessary.

The global monetary structure has always adhered to the organizational framework of the international discipline. In each stage of the financial capitalism there exists a corresponding monetary approach. The monetary structure during the postwar periods catered to the dominance of the United States. This was applied as a tool during the period to enforce the U.S. dominance over all its allies and the developing countries, irrespective of the socialist countries isolated themselves being unconnected from the influence of the financial and monetary disciplines of the global capitalism.

Gold standard was the first contemporary international monetary system. The gold standard contributed for the…… [Read More]

View Full Essay

Japan's Economic Crisis Following the United States

Words: 3561 Length: 11 Pages Document Type: Term Paper Paper #: 67309337

Japan's Economic Crisis

Following the United States terrorist attacks on September 11 and the outbreak of mad cow disease, economic analysts are predicting the onset of a deepening recession in Japan. Some are even referring to the possibility of a depression in the world's second largest economy, due to the global economic downturn.
Recently released surveys of future trends together with economic data recording economic performance over recent months point at least to the onset of Japan's fourth official recession - defined as two consecutive quarters of negative growth- in the space of a decade. Japan was last in recession in the first half of 1998 following the collapse of major financial institutions. The current downturn will be deeper, with private investment drying up amid slack global demand and bad loans weighing down the domestic economy, say analysts.
The news means the world's three biggest economies - the United States,…… [Read More]

View Full Essay

Global Financial Crisis GFC the Present Global

Words: 2500 Length: 8 Pages Document Type: Research Paper Paper #: 46711777

Global financial Crisis (GFC)

The present Global Financial Crisis (GFC) has been considered by the financial experts and economists as the worst financial crisis apart from 1930s Great Depression. The GFC led to the collapse of large financial institutions and downturns of the major stock markets globally. The crisis led to the failure of several key businesses and s significant decline in the economic activities. The GFC started on the U.S. mortgage markets leading to the significant turbulence and uncertainty in the global capital markets. (Kalinowski, Marcin 2011). The source of the financial crisis was due to the excessive risk taking because of the sustained low interests rates leading investors to maximize their profits. The root cause of GFC started in 2001 when many U.S. financial institutions increase the number of mortgage loans due low interest rates and the issue led to the increase in the prices of residential real…… [Read More]

View Full Essay

Bailouts the Current Recession Was Precipitated in

Words: 1884 Length: 6 Pages Document Type: Essay Paper #: 30742349


The current recession was precipitated in large part by Wall Street, which fuelled an asset bubble in the housing market and repackaged bad loans as good ones. One of the initial consequences of the bursting of that bubble was that the banking system became unstable. This situation led to the first Wall Street bailout in September, 2008. This bailout was priced at $700 billion and was intended to stabilize the financial system, in effect stabilizing the economy (Stout, 2008). While the bailout has ultimately proven to cost less than $700 billion as the result of strong returns (Onaran & Leondis, 2010; Faler, 2010), the plan did not have the desired impact on the American economy at large. While the banking system was more or less stabilized, the GDP shrank and unemployment soared. These are the primary impacts on Main Street and they were not impacted by the Wall Street…… [Read More]

View Full Essay

Federal Reserve There Are Three Purposes of

Words: 940 Length: 3 Pages Document Type: Term Paper Paper #: 17488956

Federal Reserve

There are three purposes of money: to act as a medium of exchange; as a store of value and as a unit of account (Helfield, 2011). Money as a medium of trade facilitates exchange, in that the counterparties are able to trade money for goods, instead of trading goods for goods, which is more complicated. As a store of value, money does not deteriorate (save via inflation), which is not the case with perishable goods. Money is a unit of account, meaning that money has a readily understood value -- we all know what a dollar is, and this makes it easier to track the amount of money one has or the value of something.

A central bank manages a country's monetary system by managing the amount of money in the system. A central bank can do this in a number of different ways, known as monetary policy…… [Read More]

View Full Essay

Strategic Options With Banks the

Words: 622 Length: 2 Pages Document Type: Research Paper Paper #: 4869204

Another bank that provides similar cash management services that the Acme Company could use is represented by HSBC. Its services are differently organized than in the case of Bank of America. Regarding international services, HSBC focuses on checking, borrowing, savings, insurance, cards, and other services (HSBC, 2011). Corporate banking services that are provided by HSBC focus on collections management, financing, foreign exchange, global markets, Internet banking, payments and cash management, trade services, and others.

In addition to this, HSBC provides services regarding trade and supply chain that can be used by the Acme Company in order to increase the efficiency of its supply chain management in South America and Asia. HSBC also provides several services that multinational companies can address in order to manage their business accounts. The bank also focuses on developing foreign exchange solutions.

Citibank is another bank that provides different business banking services. The company's products and…… [Read More]

View Full Essay

Finances Critical Book Reviews America's

Words: 2634 Length: 10 Pages Document Type: Book Review Paper #: 79526987

Sorkin, however, posits no argument per se. Rather, his book offers insight into how the financial crisis manifested from a far more personal perspective of those involved than anything else. The book is informative in nature, and give insight into some of the thought processes and activities those on the outside may not otherwise be exposed to or privy to. The title of the book sums it up best, and the book outlines how the banks and the primary players and stakeholders have become too big to fail. The book highlights the self-interest of those in charge of some of the biggest financial institutions in the world and their blatant disregard for Main Street.

The book has a place in the larger academic debates raised within public knowledge because it adds to the public's real knowledge of those involved in the nation's financial industry and government offices. Instead of speculating…… [Read More]

View Full Essay

Businesses Engaged in the 'Transfer

Words: 3950 Length: 13 Pages Document Type: Term Paper Paper #: 83618278

In contrast with the mutual funds, 'Mutual funds trade hundreds of stocks in many unrelated industries, with very little of the total portfolio in any single stock. By contrast, when a company expands into a new area, its portfolio consists of two stocks, typically 90% in the core operation and 10% in the new businesses' (Tirole, 2005). The diversification in majority of the cases is responsible for lower return and maximal risk factor. Researchers have observed that there is possibility of higher failure rates and lower returns for unrelated acquisitions than for related acquisitions. When the company acquires businesses in their own industry, it is observed that lowest failure rates and highest returns phenomenon occur. The reason why the diversification into unrelated business is considered to be risky is that the corporate is unfamiliar about the industry itself, and therefore the corporate is likely to overlook critical risk factors during…… [Read More]

View Full Essay

Bank for International Settlements Bis

Words: 3026 Length: 10 Pages Document Type: Essay Paper #: 75432570

From its creation to 1988 it undertook banking functions and opined generally on the international banking system.

2. Starting in 1988 it began to assume the role of an unofficial international bank regulator. Although it had no official international status, its members -- central banks of the major banking countries -- were obligated by the nature of their membership to abide by its edicts and the rest of the world took them seriously.

3. Starting in the late 1990s, it began to consider itself the equivalent of an international bank regulator. Every subject of significance was within its jurisdiction and, although its legal powers were no greater, it assumed that it had a right to make rules for local banks to observe in the conduct of their businesses.

4. Sometime in the future there is a widespread anticipation that it will be given, through some treaty mechanism, the power to…… [Read More]

View Full Essay

Political or Economic Globalization Between

Words: 3336 Length: 10 Pages Document Type: Thesis Paper #: 79989807

(Chandrasekhar and Ghosh, 2005)

Chandrasekhar and Ghosh state that the macroeconomic policy in China resulted in macroeconomic mechanisms that "differed substantially from those in predominantly market-driven economies. These differences relate to the availability of monetary or fiscal levers of the kind available in market economies, to the nature of the institutionally determined transmission mechanisms and to the outcomes of what appear to be similar policies. Only inasmuch as "economic reform" results in the generation of features characteristic of market driven economies in centrally planned systems, would the transition result in a gradual process of convergence in the nature of the policies, mechanisms and outcomes being addressed." (2005) It is related that despite the complete control of the Chinese government over the creation of money and fiscal policy "..., in the sense of using deficit financed expenditures to prime the economy, does not appear to have been a major thrust of…… [Read More]

View Full Essay

Budget Deficits and How to

Words: 1132 Length: 3 Pages Document Type: Essay Paper #: 68131838

With a declining economic output, we can not financially export our way out of a government budget deficit situation. Since the oil crunch of the mid-1970s, energy costs have increasingly been a part of this equation. Trade deficits are linked to budget deficits in this way. This is best presented in a May 12, 2010 article, Donna Kardos Yesalovich documented that U.S. stock futures pared earlier gains after data showed that the U.S. trade deficit widened in March of 2010 to its highest level since December 2008 (Yesalavich).

To make matters even worse, the European economic downturn is complicating things just as the U.S. downturn has sent the world economy into an extended deep recession (or depression, before this word became unpopular). Mark Whitehouse in another Wall Street Journal article documented that markets tumbled despite upbeat reports about U.S. shoppers and factories due to the high debt portfolio of European…… [Read More]

View Full Essay

Allied Visions The Success of

Words: 4453 Length: 16 Pages Document Type: Article Paper #: 85512244

In IBM's case, the Department of Justice found that their efforts were mired in failure. Unfortunately, IBM was so central to the economic operations of Germany and occupied Europe that it was necessary to preserve IBM's role in the economy of Europe so as not to jeopardize the postwar occupation.

Part II-Present Corporatist America and Comparisons with Fascist Italy-

When the Wall Street Journal, the United States' newspaper of record for financial affairs makes an explanatory note, it gives us all pause. Gerald F. Driscoll in "An Economy of Liars" takes aim at both the Obama and George W. Bush administrations when he speaks about the present economic reality and asserts "We call that system not the free-market, but crony capitalism. It owes more to Benito Mussolini than to Adam Smith ("An Economy of Liars" 2010)."

If a communist agitator on the proverbial soapbox spouted this statement, it could be…… [Read More]

View Full Essay

Understanding Money Supply and Monetary Policy

Words: 2110 Length: 7 Pages Document Type: Term Paper Paper #: 35187819

Commercial Banks and Money Supply

Money supply in the economy refers to the circulation of currency in the hands of people and institutions within an economy. This is the volume and speed with which money changes hands and moves from one entity to another within the country. This volume and speed affect the growth of the economy and the way it can serve the needs of the people. There are two categories of banks in the economy. These are the commercial banks, which are many, and the central bank, which is only one in any country. The central bank regulates the operations of the commercial banks and influences government policy on finances. This institution also sets the benchmarks for the expenditure levels within the country. However, the commercial banks are the most influential banks when it comes to controlling the supply of money in the economy (Crosse & Hempel, 2012).…… [Read More]