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It was from Pecora's hearings that many of the standards and regulations affecting the financial industry emerged, and continue to govern the way the 'street' does business today. It was also the time of the Glass-Steagall Act.
The roaring twenties gave way to the Depression Era of the 1930's and still J.P. Morgan bore the standard for financial firms on Wall Street. The firm was the first one to be investigated in an attempt to discover what caused the 1929 stock market crash. In 1933, J.P.'s son 'Jack' was called before a Congressional hearing to testify on the bank's behalf. He told the Senators there "If I may be permitted to speak…I should state that at all times the idea of doing only first-class business, and that in a first-class way, has been before our minds" (The History, pg. 13).
With the enactment of the Glass-Steagall act of 1933, Morgan…… [Read More]
It also indicates that to some extent the company's strong growth between 2004-2007 was as attributable to industry-wide expansion. So while on the surface, JP Morgan's numbers look exception, they were merely just riding the wave that carried all of the industry's main players.
Likewise, the struggles of 2008 were more directly related to the industry's struggles as a whole than anything specific to JP Morgan. The trading desk lost over $10 billion, compared with a profit of $9 billion the year before. This proved to be the major difference in JP Morgan's year-over-year performance. A study of competitors would likely reveal a similar trend for last year.
The most exceptional thing about JP Morgan's financials is that the impact of absorbing Bear Stearns and ashington Mutual does not appear to have damaged the company in any way. This means that JP Morgan was able to grow substantially last year,…… [Read More]
JP Morgan Chase
Role of administrative agencies
The securities and the banking system of a country are known to be one of the strongest and the most important foundations of an economy. To ensure that these systems do not move into negative or loss making territories, the government of a country requires keeping a check and control over the functions and operations of entities that are part of these securities and banking system. If the government does not ensure regulation of these systems, the entities involved in these sectors can make decisions that are only beneficial to them, while all other stakeholders are not considered in the process. Such decisions can gravely impact on the economy in general and can result in the uprising of an unwanted influence amongst the powerful entities. In the United States of America, the Securities and Exchange Commission (SEC) is required to perform the task…… [Read More]
The company has avoided the major scandals that have dogged many of its peers, and remains well-regarded in the industry.
Given the global nature of the industry, it is increasingly difficult for investment banks such as JP Morgan to manage human behavior. The Dow Chemical example shows the impact that communication and oversight can have. The U.S. subsidiary was forced to enforce the company's codes of behavior on a foreign subsidiary that clearly did not understand the company's mission or outlook on the issue. The Dow deal would have been sour, and could have earned the company a reputation for putting profit ahead of ethics.
The deal almost happened -- the U.S. company was only alerted to the negotiations out of England by the conflict of interest office. The organizational structure therefore played a strong role. The company is structured around business unit, not geography. This means that New York…… [Read More]
However, JP Morgan's performance has been volatile in this span. Its current level of 64.9% is not its lowest, but is still lower than the 74.5% recorded by its Peer Group. For the past three years, the Peer Group has been substantially higher than JP Morgan, so this outperformance reflects less on JP Morgan's excellence than on the Peer Group's inability to maintain its performance level of four years ago.
A higher level of unused commitments to net loans is desirable. JP Morgan's ratio has declined significantly since 2007 from 2.063 to 1.257. However, JP Morgan has consistently outperformed its Peer Group in this ratio. While the Peer Group figures have not dropped as precipitously as JP Morgan's, they have been worse in each year.
The Net Non-Core Fund Dependence ratio should be lower. In this ratio, JP Morgan has underperformed the Peer Group. Its UBPR is 2.145 compared with…… [Read More]
Bank of America credit is rated Baa2, compared with A2 for JP Morgan Chase. Both of these banks have similar structures and similar product lines. Bank of America is more heavily oriented towards retail, while JP Morgan Chase has a strong investment banking business. The latter factor contributes to the superior stability of JP Morgan's business.
Also contributing to the superior performance of JP Morgan is that the companies it acquired in the 2000s were much stronger than the acquisitions that Bank of America made. Merrill Lynch in particular was a difficult acquisition for Bank of America, and has set the bank's progress back. Moody's has also noted that the business models of global investment banks are inherently risky. Adverse developments, Moody's notes, "can often lead to the rapid deterioration in the creditworthiness of a given institution." The outlook for JP Morgan is also negative, though the reason cited in…… [Read More]
Lehman and JP Morgan, we consider a period of four months as our observation window, for the years starting in 2006 to 2009. We use the KMV definition of debt as short-term liabilities plus half long-term liabilities. The interest rate is given by the 4-mos. LIBOR or swap rates. For illustration purposes, we use 5%. The benchmark index is given by the S&P500 index. The initial asset values are given by the sum of equity market cap plus liabilities and consequently derived via the Merton call option pricing framework described previously.
The table below depicts the range of minimum and maximum values for the component variables, whereby the EW Index score is given by the weighted average of the following indicators: idiosyncratic-specific volatility, default probability (given historical equity stock prices), default probability (given option prices), default probability (given CS prices), market deviation (stock return vs. benchmark index return), country-specific risk,…… [Read More]
Morgan Chase and Bank One Strategic Plan and Human esources ole
Morgan Chase conducts business in two broad spheres of activity: global financial services and retail banking. J.P. Morgan looks for providing the latest training and instruction online for long-term investment of its people. It makes use of E-learning that helps cut training costs J.P. Morgan looks the potential of such strategic plans for broader business impact: tying learning to increased sales, improved employee retention, and better customer service. The importance of human resources has been a high priority in J.P. Morgan, as the management in J.P. Morgan believes that the more the employees know, the more they can accomplish (Swanson, 2001). J.P. Morgan Chase also values E-learning's ability to get across information quickly in an organization. Its recently merged bank and investment company in October introduced 14 hours of online E-business to prepare its employees to create E-business solutions…… [Read More]
JPMorgan Chase, in 2012, announced one of the greatest losses through high-risk gambles in securities investments, which are an essential foundation of the U.S. economy. The incidence that occurred in the summer of 2012 resulted in an estimated of $5.8 billion loss in one of the country's biggest banks. The bank's chief investment officer, Jamie Dimon, announced the loss in May 2012. The losses, according to the CIO, resulted from part of its corporate unit that made trades to hedge against risks. The CIO used traders engaged in bad trades by using derivatives hedge against public debt. Shares of JPMorgan considerably dropped following the incident. The case of JPMorgan bank fail is an example among other similar incidences in the U.S. ecent cases include the court case against the U.S. Bancorp unit over the collapse of Peregrine in 2012. Such incidence raises questions about the role of the administrative agencies…… [Read More]
JPMorgan Chase, the biggest bank in the United States, incurred enormous losses in the summer of 2012 from investment decisions made by its Chief Investment Officer (CIO) worth $5.8 billion. While JP Morgan was the only major profitable bank during the recent economic downturn, the recent losses contributed to intense criticisms since its Chief Executive Officer, Jamie Dimon, opposed stricter regulation in the aftermath of the 2008 economic crisis. However, the bank attributed part of the loss to sloppy but well-intentioned business strategy for managing financial risk. The huge losses demonstrated that big banks are still unable to understand the threats or risks posed by their own speculation. JPMorgan Chase filed falsified first quarter reports to the Securities and Exchange Commission in attempts to cover the loss.
Preventing High-isk Gambles in Securities/Banking:
The Securities and Exchange Commission increasingly focused on the huge losses at JPMorgan Chase and argued that the…… [Read More]
It must be remembered that Morgan Stanley has always considered Sydney an excellent location form which it would be possible to tap directly into Australia's skilled and highly productive multilingual workforce, who would be capable of providing human resources, global processing, and financial services for the region. In the year 2005 Morgan Stanly employed about 140 individuals, while today it employs about 220 people, and the number is expected to rise up to 250 by the middle of the year 2008. ("Investment Success, Morgan Stanley," 2005)
It has often been said that the Morgan Stanley story has at various times been both exhilarating as well as disturbing. The Morgan Stanley has unerringly been able to follow its instincts for garnering and generating more and more profits, by delving into hitherto unexplored areas, and by venturing into more and more risky areas of operations through the years. Although it may be…… [Read More]
s noted on the JP Morgan's own website, the evolution of the credit derivatives market has shifted the entire technology agenda into the banking environment because of the creation of electronic markets. full understanding of how recent changes in technology can be related to international economics and development is thus critical to success in the field of consulting.
I believe I can offer a unique combination of technical, business, and personal skills to JP Morgan that relate directly to the interrelationship of technology, structural development, and international economics. My background in the electrical and structural aspects of engineering, my personal and social education in Europe, and my familiarity with business culture and terms would all make me a valuable asset to JP Morgan.
In September of 2002, I graduated with honors in Civil Electronic Engineering from the Free University of Brussels (V.U.B.). This background in engineering has given…… [Read More]
What differences, if any, do you perceive in the approach each organization presents in its annual performance? Is information and data presented clearly so that the reader can make clear inferences about how the organization performed?
I believe the two organizations, Bank of America, and JP Morgan format their annual reports to reflect the culture of the business. Bank of America, due primarily to the negative sentiments prevailing in the marketplace, structures their annual report to dispel myths regarding company performance. The tone of the report isn't overly optimistic nor is it overly pessimistic. The report reports the facts as they stand at that point in time. Conversely, JP Morgan's report is much more candid, truthful and optimistic, reflecting the company's outstanding performance. The report is filled with success stories, future growth prospects and failures along the way. JP Morgan, presents the facts clearly and in a concise…… [Read More]
Deficiencies in Organizational Management That esulted in the Economic Meltdown
Since the onset of the global financial crisis, everyone wanted to know what happened and what caused the entire situation. Analysts, economists and experts have all come up with many different reasons and explanations for what triggered the meltdown. To some extent many of these are intertwined and connected to another. Organizations such as Bear Sterns, Lehman Brothers, Freddie Mac and Fannie Mae were flawed at similar regions. In other words, there was a common denominator that ultimately led to the crisis for all these corporations. A fundamental error which is present in nearly all of the organizations which were directly to blame for and were directly affected is the problem of governance and management within organizations. As the companies and firms were not managed in a sustainable and healthy manner, their minor everyday errors built up and lead to…… [Read More]
The Order of the Knights Templar (Poor Knights of Christ and the Temple of Solomon) was founded in 1118 to protect Christians on pilgrimage to Jerusalem (Blacktorne, 2011). The Order was sanctioned by King Baldwin II of Jerusalem and he quartered the nine original knights in the old stables at the Temple of Solomon. All members had to give over all of their wealth and goods to the Order and take vows of poverty, chastity, piety, and obedience just like other monks (Langue, 2011). A majority of the members joined for life, although a select few were also allowed to join for specific duration.
The Templars' were considered the first international banking organizations. Although this wasn't there specific title they charge a fee (interest) for issuing letters of deposits (checks). Some also view them as a multinational corporation; however the banking reference seems to hold more…… [Read More]
However there is a huge difference after these lines. Morgan quickly wraps it up saying that controls were deemed effective while Citigroup goes on to add who is responsible in the company for ensuring the effectiveness of the procedures. This additional bit of information gives a reader the feeling that the company cares about its disclosure statement and wants to be seen as a responsible firm. Morgan seemed uninterested in this additional information. Even the ending for both are though similar yet for Citigroup it's more thorough and for Morgan, it ends in two lines.
See how the two companies end their disclosures: Citigroup Inc. says, "The Company's management, with the participation of the Company's Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of the Company's disclosure controls and procedures (as defined in Rule 13a-15 (e) under the Exchange Act) as of December 31, 2005 and, based…… [Read More]
They could not foresee the housing market falling as it did, and the number of foreclosures it would create, and so, they aggressively continued to pursue the market when they should have been cutting back. The top executives left the company, but they were not fired, in fact, Killinger retired, comfortably it would seem. The customers of the bank, especially those with mortgages, are the ones who really will suffer in the long-term. The bank will rebound, but those with foreclosed homes never got the chance for a bailout, and so, they lost everything, while the executives and leaders of the bank are not charged with any wrongdoing. Luckily, the American taxpayers did not suffer, either, because JP Morgan Chase financed the takeover and the continuing operations of the bank.
In conclusion, WaMu's failure came about due to a number of reasons. They invested far too heavily in the sub-prime…… [Read More]
In business law, one of the ways that disputes are resolved is through going to court and presenting evidence to the judge about each party's position. They will render a verdict and award a judgment based upon case precedent and their interpretation of the law. To fully understand what is taking place requires carefully examining one case that is occurring. This is accomplished by: studying the citation of the case, facts, issues, the court's decision and legal reasoning. Together, these elements will highlight how this is affecting the way various statutes is interpreted and how the rule of law is enforced.
Citation of the case: The court case took place in Maricopa County Superior Court in Maricopa County, Arizona. The name of the case that was decided is Moray vs. Toyota Financial Services. Its case number is CV2012-097376. The time of the hearing took place at 10:30 AM…… [Read More]
The creation of the state of Israel in Palestine lent Jews in America a degree of legitimacy. And Jewish-Americans were now on the cusp of a new reality.
Unit IV: 1946-1976
In the 1950s the Anti-Defamation League sought to have the immigration laws of decades prior repealed. President Truman was sympathetic to the millions of displaced persons, a good portion of which were Eastern Europeans of Jewish descent. Even though America was largely outraged at news of the Holocaust, many Americans reserved the suspicion that Jews were crooked bankers secretly poised for world domination. The immigration laws were not repealed.
The 1950s also saw a debate concerning the census of 1960: should it contain religious questions? Here was an issue that embraced social, political and religious points all at once. The way Jewish-Americans faced the issue had repercussions for the entire nation. The book Protestant-Catholic-Jew had helped establish the idea…… [Read More]
The second purpose of the $700 purchase of troubled assets is to create a market for the securitized versions of these assets. As a result of the crisis, the market for these assets became illiquid. The value of securitized debt obligations became near zero, which severely impacted the balance sheet of all banks that held these assets. By creating a secondary market for these products, the government hopes to increase their value. This will improve the balance sheets of the banks.
The second key clause in TARP is that banks selling troubled assets to the government are required to give the government warrants. This, in theory, protects the government from losses. The theory is that the banks will see an increase in value as a result of the government's efforts, allowing the government to profit from the warrants.
Ancillary to TARP was the FDIC's excusing of troubled assets in its…… [Read More]
Potential Concerns about the Consumer Financial Protection Agency
Despite the multitude of benefits revealed by the CFPA, commercial banks and mortgage lenders continually present their growing dissatisfaction with the act. epresentatives of this side include reputable organizations such as JP Morgan Chase or Wells Fargo, as well as a series of independent mortgage brokers and mortgage lenders and local and regional banking institutions. Their most compelling reasons for the dismissal of the Consumer Financial Protection Agency are succinctly presented below:
1. The banks feel that there is no real necessity for new regulatory legislation as the economy is already showing sighs of recovery; these financial institutions feel that the resources would be better spent otherwise. Additionally, the CFPA does not introduce any real new elements, but politically enforces the lessons already learnt from the economic crisis
2. The state could abuse its power through the Consumer Financial Protection Agency in…… [Read More]
6 billion cu m in 2005; natural gas export - 0 cu m in 2004; natural gas imports - 21.73 billion cu m in 2004; natural gas proved reserves - 8.495 billion cu m in 2005; current account balance - -$25.99 billion in 2006; exports - $85.21 billion f.o.b. In 2006; exports commodities - apparel, foodstuffs, textiles, metal manufactures, transport equipment; imports partners - Germany 11.7%, ussia 11%, Italy 6.5%, China 5.9%, France 5%, USA 4.6%, UK 4% in 2005; reserves of foreign exchange and gold - $53.42 billion in 2006; external debt - $193.6 billion in 2006; exchange rates - Turkish liras per U.S. dollar: 1.4286 in 2006, 1.3436 in 2005, 1.4255 in 2004, 1.5009 in 2003, 1.5072 in 2002 (CIA, 2007).
Turkey's agricultural sector
Turkey's agriculture is not one of the modernized sectors of the country's economy. In fact, agriculture is the traditional part of Turkey's economy that…… [Read More]
Fortunately for this sector the main opportunities for ships are in fulfilling existing contracts and the delivery of two Virginia-class submarines in the 2012 timeframe which are on schedule for delivery. As post-Katrina efforts to get production back on schedule continue it's believed the company can generate 8% margin in this specific sector going into FY 2007.
In summary, the table Analysis of Key Business Segments shows the success the company has had in distributing revenue over more segments, thereby alleviating risk while being able to position itself to take advantage of greater market opportunities in the process. The growth Mission Systems and Space technology, while much of the product development is confidential, show strong revenue and income growth which will continue given budgeting for space-based monitoring and defense systems.
Analysis of Key Business Segments
evenues 12/31/2005 (%) 12/31/2004 (%) 12/31/2003 (%) 12/31/2002 (%) 12/31/2001 (%) Electronic Systems 6,042,000 20%…… [Read More]
HSBC is one of the world's largest banks, and it has the third-largest market share among UK retail banks. This massive global footprint supports a differentiation strategy that is encapsulated by the "the world's local bank" slogan. HSBC plays to its strengths with a presence in many major markets around the world, but its strength in retail and commercial banking belies a relative weakness in investment banking.
The banking industry is highly competitive. In the UK at the retail level it is in an oligopoly state. The company also competes among the global banks of the world, which is a business more in a state of monopolistic competition. It has a differentiated strategy, which is loosely based on a broad geographic scope and customer service. The latter is a difficult area in which to differentiate. There have been some problems with the geographic scope, too, and HSBC has recently left…… [Read More]
Marketing in Banking
The topic being researched for this doctoral work is marketing in the banking industry. Before delving into the research too much for this topic, the researcher will first enumerate the goals that are to be attained. These goals, as also suggested by the parameters of the assignment, include meeting proper validity and reliability standards, avoiding bias, not posing hypotheses or ideas that are self-fulfilling prophecies or that have desired answers on the part of the researcher. There is also the consideration of using critical reasoning and strong logic skills so as to avoid making conclusions that are not supported by the evidence and/or that are completely contradicted by that same evidence (Leedy & Ormrod, 2010).
eliability & Validity
eliability and validity are two hallmarks of any good research and they must both be satisfied for the research outcomes to have any staying power or good ongoing reputation…… [Read More]
Global Nova Case Study
A Case Study in Entrepreneurship and Corruption
GlobalNova was conceived by a Brazilian Engineer while working for IBM. He allied himself with a Brazilian Politician from the southernmost State of io Grande do Sul (S). Politician approached a local business Tycoon, whose family controls the largest steel company in Brazil, for start-up financing for "a company to exploit the internet." (Gerdau, 2011) Tycoon, thinking that Politician was looking for the usual political hand out, readily agreed. Tycoon frequently mentioned that his family recognized the realities of making sure that his representative in Brasilia was treated well. Later he was astonished to learn that his money had actually been used to fund the early operations of GlobalNova. (Consultant, 2011)
Voice over the Internet
From the initial "fuzzy" objective, Engineer decided that the best opportunity would be to use the internet to transmit international long…… [Read More]
Since, this one lacks structure means that many employees can become confused about their responsibilities. Once this occurs, it can often lead to employee issues, where this confusion can become an issue of contention between the staff and management. As management is telling them to engage in particular activity, yet they don't understand why they are doing such tasks. Over time, this can cause moral to drop as those employees who do not thrive under such a system, begin to lower the overall positive attitude in the work environment. ("Contingency Theory," 2010)
Despite some of the obvious weaknesses, the contingency theory is effective for those organizations that are small. This is because the in formalized structure allows managers / owners the opportunity to adapt to changes that are occurring in real time. Where, they can use their experience and common sense to adjust to various business conditions. As a result,…… [Read More]
Over the last several years, Wendy's has been facing a number of different challenges. Part of the reason for this, is their profit margins are being squeezed by: intense competition and declining market share. Evidence of this can be seen by looking no further than, their recent earnings report as the company experienced a loss of $1.4 million dollars for the first quarter of this year. During the conference call, executives indicated that they are looking at strategic options for divesting itself of the Arby's chain. ("No eef with Wendy's Earnings," 2011) This is significant, because it is illustrating how the corporation must use different intermediaries to achieve this objective. To fully understand how this is taking place requires: examining two lenders they are using, two investment banks that they are utilizing to issue equity securities, looking at the roles these intermediaries are playing, what government entities are…… [Read More]
Enron could engage in their derivative trading strategy with no fear of government intervention because derivative trading was specifically exempted from government regulation. Due in part to a ruling by the Commodity Futures Trading Commission's (CFTC) chairwoman, Wendy Graham, derivatives remained free of regulatory oversight. Ms. Graham, wife of Texas senator Phil Graham, made this ruling 5 weeks before resigning as chairwoman of the CFTC and joining the Enron oard of Directors in 1993.
Derivative accounting is further complicated because there is no consistent way to fairly report their value and risk in a company's financial report. In 1998 Rule No. 133, "Accounting for Derivative Instruments and Hedging Activities" was developed by the Financial Accounting Standards oard (FAS), an independent agency that sets guidelines for corporate auditors. Rule 133 contains more than 800 pages, which further complicates its adoption and consistent interpretation by various companies. SFAS No. 133 was subsequently…… [Read More]
For example, client X required a dashboard where each of the projects' variables would have been automatically calculated and a red-yellow-green would have been awarded to each of the project, in order to determine the project's status at a certain moment of time. Another client using the same product required that the red-yellow-green grades should be noted manually, with comments and motivations in each case. As such, for a product that basically had the same functionality, two slightly different versions needed to be created.
Assistance for implementation refers to all operations required for the client to be able to start using the UMT application. In many cases, the client purchases not one, but several tens of licenses, for all its employees. Implementation first requires the instalment on the server and, subsequently, installing the application on each of the individual computers. The server and network manager needs to fully understand all…… [Read More]
Gateway Computers SWOT
Gateway was acquired by Acers, Inc., a multinational electronics company that has, through several acquisitions, become the second largest PC company in the world (Satariano, 2011; "Yahoo! Finance," 2011).
March 2004, Gateway acquired eMachines, one of the world's fastest growing and most efficient PC makers. The eMachines brand complements Gateway products in terms of efficient manufacturing processes, and customer-pleasing technical support ("Gateway, Inc.," 2011).
eMachines quality at low prices.
Gateway is sold through leading retailers, e-tailers, and channel partners in the United States, Mexico, Canada, Japan, and China. Acer is expanding market share the South American and Asia-Pacific regions ("Gateway, Inc.," 2011).
The total Asian PC share of worldwide shipments is expected to decline to 16.5% in 2011 from 18.2% in 2010. This is a burden for Acer because of its focus…… [Read More]
The WSJ Treasury rate table is as follows. Note that WSJ doesn' t list the 15 and 20-year Treasury rates on its table; Yahoo was used for those instead.
This gives the following yield curve:
This is a normal yield curve. The yield curve reflects the expectations of future interest rates. At present, the yield curve shows low interest rates in the short-term, then an acceleration of rates in the longer term indicating that these rates are expected to rise slightly in the next few years, before the curve starts to flatten out at its tail. This illustrates the normal relationship that the longer the term is the higher the rate will be.
The portfolio is as follows:
Federal Farm Credit
2.225%…… [Read More]
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]
Strategic Perspectives Sberbank
Over the last several years, the banking industry in Russia underwent a major transformation. As the traditional institutions of the past, have been evolving into global financial centers. This is because they are reaching out to new demographics of customers, in an effort to participate in the rapid growth that is taking place throughout the former Soviet Union. In the case of Sberbank, they have been taking their traditional banking functions and augmenting them with international financing opportunities. A good example of this can be seen by looking no further than, Sberbank playing a major role in helping to revitalize the Russian bond market. Where, 2010 has seen the largest number of offerings ever for Russian companies and the Russian government. (Matermevonsky 2010) This is important, because it shows how Sberbank has evolved from a traditional bank in 1841, to becoming one of the largest employers in…… [Read More]
Types of Takeovers
There are several consequences of whether a takeover is considered hostile or friendly. These consequences are more in the practical business realm than legal ones. Hostile takeovers are riskier for the acquirer than friendly ones. In a friendly takeover, the bidder will have a better chance to examine the company and its health. If the board is amicable to the situation, they will provide a full disclosure of the company's strengths and weaknesses. In a hostile takeover, the bidder only has access to publicly available information. There may be situations within the company that have not been disclosed. This can be good or bad depending on the situation. The acquirer might get a pleasant surprise, or they might find out that they have bought a sinking ship. Due to the risk involved in a hostile takeover, it is often more difficult to obtain financing than for a…… [Read More]
Conclusions -- Was TAP Necessary -- A five member Congressional committee echoed a number of criticisms regarding TAP that many consumers, academics, and fiscal analysts were considering. What exactly was the Treasury's strategy with the $700 billion dollars for the supposed bail out? How can Treasury explain the significant gaps in their ability to find hundreds of billions of taxpayer money? In a nutshell, it appears that the departments that control the money given by the Congress (from the American people) have no ability to ensure that the bailed out banks will do what was needed and lend money; have no real standards of measuring success of failure of the program; and for ignoring pointed and specific questions from Congress about their performance (M. Crittenden).
The fact that many of the institutions bailed out with TAP funds, funds from the American taxpayer, did not distribute these funds back into the…… [Read More]
Sorkin's book does a good job of giving the details on what happened among Lehman Brothers, Barclays, JP Morgan, Goldman Sachs, the Fed, and Big Gov following the collapse. Essentially, everyone had egg on his face -- but some of the bigger powers had the muscle to save face -- and sink competitors at the same time: which is exactly what Goldman Sachs did to Lehman. Goldman had been placing its cronies in the hite House for years -- and it would now go through the hite House to see who got bailed out and who did not. AIG got one -- because it owed a large chunk to Goldman (who had figured out the game ahead of time and started betting against itself by buying insurance through AIG). Sorkin's work is a work full of the kind of details that other writer's like Taibbi and Lewis do not take…… [Read More]
"Yet earnings estimates have acquired a life of their own and often generate more attention from the media and analysts than a company's actual financial results." (Whalen, 2003).
More conservative critics of analyst conflicts rules believe that they are a step in the right direction, but view them as a work in progress. For example, the Sarbanes-Oxley bill, which mandated many improvements in corporate managers' financial practices, did nothing to reduce the unethical practice by many managers of communicating only with those analysts who cooperate with management's forecasts of the future (oni and Womack). This and other rules need strengthening.
Wall Street Journal reported in April 2003 that the brokerage firms of the top investment banks are still more likely to give optimistic research recommendations to their own banking clients, calling to question if new disclosure rules reapply protect investor clients (oni and Womack). With all the hoopla to protect…… [Read More]
anking and financial services includes such firms as investment banks, commercial banks, brokerage firms, and credit card institutions. The common it pulse throughout the daily operations of these organizations involves utilizing systems to communicate between branches and subsidiaries, establishing operations throughout the world, communicating with the end customer in order to facilitate transactions, and analyzing customer and market attributes in order to reduce uncertainties in such aspects as pricing policies" (p. 24). Some of the more salient issues affecting the financial services industry today are described further in Table ____ below.
Examples of utilization of information technology in order to enhance efficiency and productivity by the financial services industry.
Description of Impact
Credit card institutions store, retrieve, and analyze vast amounts of demographic customer information enabling them to more accurately target potential markets for new products and also identify less-attractive, credit-risk customers.
This allows them to…… [Read More]
gender roles in the workplace pre-exist much of what we think defines what work really is; not only do they pre-exist the modern working world of offices and factories, but they also seems older than more basic things, like writing and currency. From the world of the Tasaday tribe in the Philippines to that of such fields as genetic engineering and astrophysics, men and women are compelled to function within the workforce in different ways. In the United States, women dominate fields such as nursing, teaching, and clerical positions, while fields like engineering, programming and accounting are thought to be the domain of men. Some positions, such as those of flight attendants and nurses, are considered so intrinsically "female" that many men refuse to enter these fields for fear that others will question their sexual preference. Other more coveted positions, such as that of the CEO of a large company,…… [Read More]
Secondary Data eview
Solving the Problem of Decreasing evenues
Due to continuing instability in the stock market, the business I originally wrote about, Unit Investment Trust that was part of JP Morgan, had been losing money since 2002. Ultimately, those in charge of such decisions, chose to sell the UIT part of the business.
Over the last few years, many businesses have faced similar problems because of the recession and stagnant economy, and other businesses have gotten into trouble because of other issues.
One such company is featured in an article from the Boston Business Journal. Ultimate Parking Inc. is a Boston-based valet parking company. This company was doing well enough that it was able to spin-off another venture called premier Curbside Valet. Originally the second company did very until the curbside restrictions in the aftermath of 9/11 completely destroyed the second company. In the words of the owner and…… [Read More]
There is no mention of any higher level ethical ideals and is composed primarily of transactional or procedural items.
One item of interest found in the employees ethical code published by Wells Fargo, is that they have established what they call EthicsLine. This allows employees to contact an investigator (employed by Wells Fargo) to report any violations of the ethics code. The line is anonymous under most circumstances; only reports that involve criminal activity are require that the caller states any personal information. This allows employees an avenue to report any unethical behavior safely. This is extraordinarily efficient way to promote ethical behavior. However, Wells Fargo did not implement this item by choice; it is now required by corporations by comply with the Sarbanes-Oxley Act of 2006. Therefore, it is unclear if Wells Fargo would have this option if it was not required of them.
Wells Fargo has…… [Read More]
S. across a diversified offering of three complementary brands (Emerald®, Pop Secret® and Kettle). San Francisco-based Diamond shed 53 cents, or 1.35%, to close at $38.71. The stock has gained 8.9% this year.
United Airlines parent UAL Corp acquires Continental Airlines
Both of these corporations are airlines with well-developed domestic and international components. The airline industry has been hammered in the past two years by volatile fuel prices, low-cost competition and overcapacity. The acquisition will likely help United Airlines it attract more business travelers because the merged company will fly to more international and domestic donations while cutting costs and reducing competition. A JP Morgan Chase & Co analysis estimated the combined company will be able to lop off 8% of their capacity and cut expenses by 5%.
In this stock swap deal, Continental shareholders will receive 1.05 shares of United common stock for each Continental common share they own.…… [Read More]
As banks faltered and default rates rose, rates of consumption and demand plummeted. Unemployment began to increase, and in a predictable Keynesian fashion, as individuals grew more insecure about their job prospects they began to spend less money. The United States has a particularly consumer-driven economy -- Americans are known for having historically low rates of savings and to engage in high rates of spending -- so this was particularly disruptive to the usual rhythms of the economy.
Young people graduating from college suffered some of the worst effects of the recession. "Unemployment rates for individuals younger than 25 are currently 21% in the euro area and 19% in the U.S." (Branchflower 2010). They were competing with older, more experienced workers who had recently lost their jobs. The fear is that today's low starting salaries create a class of permanently low-earning graduates, many of whom have high levels of college…… [Read More]
hat is less certain is the benefits of the bailout -- those can only flow from taking advantage of the bailout to restore credit markets and prevent a repeat of this financial crisis in the future.
Baker, Dean. "Subprime Rescue Plans: Backdoor Bank Bailouts." (2008): 9 pages. EconLit. EBSCO. 10 May 2009
Mishkin, Frederic S. "How Big a Problem is Too Big to Fail?" (2006). 18 pages. Journal of Economic Literature. Vol. XLIV (December 2006) pp.988-1004.
Glasberg, Davita Silfen, and Dan Skidmore.. "The Dialectics of hite-Collar Crime: The Anatomy of the Savings and Loan Crisis and the Case of Silverado Banking, Savings and Loan Association." American Journal of Economics and Sociology 57.4 (Oct. 1998): 423-449. EconLit. EBSCO. [Library name], [City], [State abbreviation]. 10 May 2009 .
Manchester, Joyce, and arwick J. McKibbin.. "The Macroeconomic Consequences of the Savings and Loan Debacle." Review of Economics and Statistics 76.3 (Aug.…… [Read More]
At the core of the economic argument is Schumpeter's theory of creative destruction. In his seminal economic work, Capitalism, Socialism and Democracy, Schumpeter (1942) argued that innovation is the process by which economic growth occurs. At times, this means that old, established technologies and companies must be destroyed, but that the net effect will be beneficial. This sentiment runs counter to the theory that the economy would be better off if GM were saved. The economic costs might be high today -- the $150 billion or more figure is not disputed -- but that in the long-run the benefits would outweigh these costs.
In a later elaboration, it was demonstrated that big business turnover specifically resulted in smaller government, stronger rule of law, less bank dependence, stronger shareholder rights and greater transparency (Fogel et al., 2008). Bailing out General Motors therefore harms the economy because it stifles growth and innovation,…… [Read More]
In 2003, he resigned both posts as news of the twin scandals emerged. The Air Force froze the contract that Druyun had negotiated, precipitating Condit's resignation and retirement.
Condit had joined Boeing in 1965 as an engineer and moved into management in 1973, working on marketing the 727. He completed an MBA at Sloan in 1975 and returned to Boeing, progressing rapidly up the ranks. By 1983, he became VP and General Manager of the 757 division before moving on to other VP posts. In 1996, he moved from President to CEO and a year later was named Chairman.
There is little to indicate that Condit himself was a significant contributor to the governance problems at Boeing. Although he was an engineer by training, he spent much of his time at Boeing in marketing. The hiring manager, Bill Erskine, who had hired Ken Branch in the first place, had just…… [Read More]
As a response to the savings and loans debacle, there have been several attempts by congress and other governmental agencies to assists consumers and some financial institutions alike. The most significant and some say extreme solution thus far came when the Federal government assisted JP Morgan with the purchase of Bear Stearns for $2 per share.
One of the most discussed solutions has to do with baling out the mortgage lenders and assisting borrowers. There are several different remedies that have been proposed. These remedies include everything from a moratorium on foreclosures to the freezing of interest rates.
As it pertains to the mortgage companies it has been suggested that limits should be lifted so that companies can purchase jumbo housing loans. According to one article this type of mortgage relief could help staunch the hemorrhaging in high-priced housing markets...where buyers have had difficulty getting loans and are paying…… [Read More]
Instead, it is seen as an essential tool that can help a variety of organizations to be able to increase their revenues and productivity. (Singh, 2009, pp. 1 -- 10)
At the same time, the use of social software has meant that many corporations have been reaching out to employees. This is because they are seeing how this can help to: improve collaboration and communication. One of the biggest problems that a number of different organizations around the world have faced; is that coordinating their various departments can be challenging. The reason why, is due to the fact that globalization has meant that a number of companies must establish numerous offices around the world. In the past this was problematic, because many organizations had trouble communicating with other offices around the globe from: issues such as differences in the time zones. This made it more challenging to communicate and monitor…… [Read More]
Obvious concerns, such as when a firefighter entering a high-rise building loses communications with his team because tall buildings are not conducive to radio wave transmission and therefore do not allow firefighters' radios to work properly has not been addressed during the recent trend of building higher and higher.
Even something as simple as an external fire on a high-rise cannot be defended with the conventional firefighting techniques used throughout history. Unless helicopters or airplanes are deployed, a simple fire on say the 75th floor could wreak havoc. These concerns regarding safety and building size were logged from fire service representatives long before September 11th. As early as 1995, retired Fire Chief of the FNY, Vincent unn wrote that the World Trade Centers were lacking proper evacuation avenues and that if the buildings ever encountered a serious fire, existing procedures would be useless and that people above a certain threshold…… [Read More]
But it remains uncertain if communications industry stock is a good investment overall, even if the general economy is improving, and Lucent has moved ahead within the framework of its industry. In its competitor environments, communications stock with less of an emphasis on R&D than Lucent, and more of an emphasis on providing competitive rates to customers, such as Vodaphone and Motorola, Lucent lags behind. If Lucent cannot compete with such firms in terms of its rates, nor develop the next 'big thing' in the telecommunications industry, its future may be in jeopardy in the long-term, particularly if it is continued to cut back on retirement benefits for employees, and institute further layoffs to cut costs.
Business ire (October 13, 2004) "
Lucent Technologies' Vital Suite Software Chosen by Japan Telecom for Its Enterprise Network Management Service." Retrieved on October 15, 2004 Yahoo Finance.
Industry Analysts." (October 13,…… [Read More]
However, cursory studies that have been conducted are either biased because they seem to present a biased review of certain products or are insufficient because of their limitations and shallowness. Those studies that have been considered to be useful are mentioned below.
Robert D. oerner, Joanne ourquard, Pam Greenberg (2000) comprehensively elaborates the legal aspect of spam. He provides an in-depth review of the present laws in actions and the future of legislation against spam. He concludes his study by revealing, "Most of the laws target spammers who misrepresent, falsify or forge the point of origin or the routing information of messages. Several states also prohibit the sale or distribution of software that is primarily designed for this type of falsification (Robert D. oerner, Joanne ourquard, Pam Greenberg, 2000)." Also, "Most states have specified that the laws apply only to spam that is sent to or generated from locations within…… [Read More]
Clealy Amex has a majo poblem in the picing aea of thei business today. In tems of pomotion, the company's continual evolution as a band that stesses an aspiational message also pesents a dilemma to the company as well. Attacting consumes who may not have the disposable incomes to fit the aspiational spending that the Amex band potays equies cedit scoing, data mining to alleviate isk, and moe pecise maketing as well. Fom this standpoint, if the aspiational selling of thei band woks too well the company will also find that its image with its coe custome base suffes as well. Fo Amex they must make thei band become pat of the pesonas of thei most loyal customes while also undescoing the aspiational aspects of thei sevices tempeed with eality (Zalaznick, 2008). Of the fou aspects of the maketing mix, Amex continues to stuggle with distibution o place, when taken…… [Read More]
market and innovation in the field of information technology is growing too fast in the United States. Even though a lot has been said for last few decades about the employment shift in the field of IT, however, as stated by McKinsey (2009) the field still remains the most significant sectors of the economy. In Texas the Information Technology is playing a vital role in the development of the City. There are a number of companies offering various IT services within the five cities in Texas, such cities are Dallas, Houston, Austin, San Antonio and Fort Worth (McKinsey, 2009).
This paper however, seeks to analyze the entry and Mid-level information Technology jobs and the top IT companies within Texas. It also seek to highlight what most IT recruiters normally look for in a prospective candidate and the average wages offered in each city. Finally, the study analyzes the average cost…… [Read More]
The market structure of the retail industry is that of monopolistic competition. As its name suggests, monopolistic competition is an environment composed of a large number of firms each with a portion of the market. The firms in this type of market structure have similar products but they are differentiated in some way. Nordstrom's for example has private brands that only Nordstrom's can carry. These brands include Hotel Collection sheets, Martha Stewart cookware, Psycho Bunny for men, INC brand clothes for women, and much more. Even though these product offerings may be similar to competitors in regards to color or value proposition, they are differentiated by the fact they are only offered at Nordstrom's locations. Furthermore, there are many firms competing within the retail environment. For example, Nordstrom's must compete with JC Penny, Target, Wal-Mart, Dillard's, Sears, internet stores, and many other outlets. All of these competitors…… [Read More]
Palm IPO Case
Discuss whether any biases apply in regard to the Palm IPO to the analysts, investors, management.
Yes, biases on multiple fronts were present with all stakeholders involved. I believe it is important to look at these biases in regards to the prevailing market sentiments at the time. During the period directly prior to the IPO, the markets were experiencing excessive optimism in regards to technology stock. Technology stocks during this period were valued very high relative to their intrinsic worth. In fact, many companies during this period were trading at thousands of times their prior year earnings. In many respects, some companies commanded high prices with no earnings what so ever. This mass euphoria created irrational values on most companies in the market. The Palm IPO was a direct response to this mass euphoria surrounding technology stocks. Individual investors believing that stock prices could not come down…… [Read More]
Master's degree in Finance from MIT Sloan. I have embarked on a number of high-level internships that have given me significant financial industry experience. This has been built on a foundation that includes a high-quality undergraduate education, along with several years of working experience.
In terms of competencies, I have the necessary mathematical skills in order to excel in the Finance program. I achieved my B.Sc. In mathematics at Bogazici University in Istanbul, which is one of the top universities in Turkey. I know that advanced-level finance requires not only mathematics but also extensive work with computer software, and I have built my skills in that area as well. Additionally, I have worked to become a talented writer, able to express my ideas with clarity and concision.
One of my greatest strengths is in leadership. I have worked to build my leadership skills as well over the past few years.…… [Read More]
PESONAL & OGANIZATIONAL ETHICS
Personal and Organizational Ethics Values for, for-Profit and Non-Profit Organizations
Ethics is a requirement of the society to both individuals and organizations. Ethics are applied to business and personal behaviors, and are used to determine how companies and individuals abide to policies. To indicate the application of ethical principles in organizations, an analysis is carried out of For-Profit and Non-For-Profit organizations, in this case Bank of America and Boys Club of America. This is by analyzing an ethical dilemma they are experiencing, their approach to the problem, and the legal, political, and social outcomes emerging from this cause of action.
The Boys Clubs of America is a non-for-profit organization founded in 1860s in Harford, Connecticut Formed with the aim of giving boys who roamed the streets a positive alternative. The club has undergone major changes beginning in 191 when several boys' clubs affiliated to…… [Read More]
5% of capacity. The court condemned California governor Brown for insisting that mental health services were not compromised in California prisons due to prison over-crowding.
Your Remarks: Largely a continuation of a prior event, but a worthwhile development nonetheless. Basically, it's a matter of some people in California government having a spat with the courts regarding whether inmates are being treated and otherwise processed effectively given the significant overcrowding in California prisons.
Court Visited: Northern California District Court
Day/Time: April 11th, 2013
Judge: Robert Seeborg
Plaintiff: Joe Quirk
Defendant: Sony Pictures
Issue: Copyright Infringement Accusation
Holding: Summary judgment was given to Sony Pictures and Mr. Quirk's accusations about copyright infringement was dismissed. The ruling was justified on the grounds that Quirk's claim was inherently flawed and that copyright pertains to "expression, not ideas."
Your Remarks: Pretty common nowadays for an obscure/starving artist to claim that a big-time motion picture was…… [Read More]
1980s Affecting Corporate Finance
From about the mid 1980s, the trend has been for companies, especially large ones, in industrialized countries to seek financing directly from financial markets rather than borrowing from commercial banks. This practice was motivated by various changes affecting corporate finance (Topsy-turvy, 1986). The main external source of corporate financing currently can be traced back to these past developments although more recent developments are also important.
Two changes traced to the mid 1980s that affected corporate finance were deregulation and internationalization. Deregulation caused increases in the cost of loans from commercial banks and in the number and types of entities offering financing (Topsy-turvy, 1986). Deregulation of interest rates permitted banks to pay higher rates for deposits, eventually increasing the price for loans. Consequently, it was cheaper for top-rated companies to obtain money by issuing commercial paper than by borrowing from banks. Deregulation also allowed more entities to…… [Read More]