Safe as houses by André Evju Starting by quoting Warren Buffet: “Derivatives are the financial answer to weapons of mass destruction”. So how exactly was this fragile system build up? Since the beginning of the 1980s‚ the US experienced a continuously deregulation of it’s financial markets‚ allowing financial institutions develop complex financial instruments to gain enormous profits. In the late 1990s‚ there was a consolidation of financial institutions in the US‚ contrary to previous legislation
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Master Thesis Topics Finance & Investments 2009-2010 Table of Contents Master Thesis topic 1: The Design of Lockup Contracts in IPO Firms in Europe 4 Master Thesis topic 2: Bank Risk Management 6 Master Thesis topic 3: The Ambiguous Role of Credit Ratings 8 Master Thesis topic 4: Mergers and Acquisitions 9 Master Thesis topic 5: Trading Volume and Asset Prices 10 Master Thesis topic 6: Liquidity in Asset Markets 11 Master Thesis topic 7: The Role of Corporate Governance in Mergers and
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Causes of Financial Crisis There were many antecedents of financial crises that led to the Global Economic Disruption. Many pundits consider Financial Crisis as the cyclic event that recurs after passage of certain interval in Economic Lifecycle‚ but they should consider it only wrongs by the side of human intellectuals. Institutions are made up of human beings or human resource. In order to cater with the rapid changing in the financial engineering in the overall Global Financial Market human resource
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Identify and discuss the interrelationships among the key factors highlighted in the global financial crisis “Inside Job” has identified two main themes that have been typically responsible for the financial crisis of 2008. Firstly‚ extensive deregulation since 1980s has been largely responsible. Secondly‚ the academia has played a pivotal role in legitimizing deregulation and has hence been indirectly‚ if not directly‚ responsible for the one of history’s biggest financial meltdowns. As far
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Notes to Consolidated Financial Statements (continued) complaints‚ which assert varying claims‚ including breach of contract‚ and violations of ERISA‚ state and federal law‚ all allege that the prices BNY Mellon charged and reported for standing instruction foreign exchange transactions executed in connection with custody services provided by BNY Mellon were improper. In addition‚ BNY Mellon has been named as a nominal defendant in several derivative lawsuits filed on various dates in 2011 and 2012
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and what our options are for getting out of it. Unfortunately‚ the vast majority of all writing about the crisis – including this blog – assumes some familiarity with the world of mortgage-backed securities‚ collateralized debt obligations‚ credit default swaps‚ and so on. You’ve probably heard dozens of journalists use these terms without explaining what they mean. If you’re confused‚ this page is for you. Over time‚ we will be adding more explanations and more links to external sources‚ so check
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BAO3309 ADVANCED FINANCIAL ACCOUNTING Semester 1‚ 2013 INDIVIDUAL ASSIGNMENT – 20% (Due date week 9) Please contact your local lecturer. “What was the primary cause of the current financial crisis? Sub-prime mortgages‚ credit default swaps‚ or excessive debt? None of those‚ says Steve Forbes‚ chairman of Forbes Media and sometime political candidate. In his view‚ mark-to-market accounting was "the principal reason" that the U.S. financial system melted down in 2008. Do accounting rules actually
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housing market in the USA to find out that there is a bubble in the market and anticipates the market to crash in the second quarter of 2007. Not only that‚ he also foresees a way to gain profit form this event by shorting housing bonds and buys credit default swaps from several banks. While Burry
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Table of Contents List of Figures iii List of Tables iv List of Abbreviation v Abstract vii 1 Introduction 1 2 The Money Market 3 2.1 General Description of the Money Market and its Instruments 3 2.2 Participants and their Main Activities 4 2.3 Trading‚ Clearing and Settlement 6 2.4 Risks and Risk Mitigation 7 3 Collateral Management 9 3.1 General Description of the Collateral Management Function 9 3.2 Quality and Risks of Collateral 10 3.3
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commercial and real estate loans were very high in good times in the year 2005 and 2006‚ but it started to decrease at the inception of the financial crisis in 2007. Normally ALL/NPL should increase at the beginning of crisis due to the massive loan default‚ but we cannot see this in the table‚ indicating the procyclicality of Zions’ loan loss provisioning system. Besides‚ the ALL/NLCO ratio represents how many years of future charge-offs a bank has reserved for. We can see that the ratio was around
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