THE 2007-2008 FINANCIAL CRISIS: CAUSES‚ IMPACTS AND THE NEED FOR NEW REGULATIONS The initial cause of the financial turbulence is attributed to the U.S. sub-prime residential mortgage market. The sustained rise in asset prices‚ particularly house prices‚ on the back of excessively accommodative monetary policy and lax lending standards during 2002-2006‚ increased innovation in the new financial instruments‚ unusual low interest rates resulted in a large rise in mortgage credit to households; particularly
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3. Explain what the leverage effect consists of‚ relating it to the credit risk market development previous the crisis (see Exhibit 1 in “The financial crisis of 2007-2009: the road to systemic risk”) Leverage is the process of obtaining money with loans or financial instruments. This debt may be used to acquire assets or develop a project‚ financing its CAPEX and being payed later with the respective cashflows. And that is the point where risk enters: if the expected cashflows happen to be below
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Satyam Scam – Indian Corporate Fraud THE SATYAM SCAM… (RAJU NOT THE GENTLEMAN) India’s Enron ‚ the biggest corporate fraud of Indian History The recent disclosure by the chairman of Satyam Computers‚ Ramalinga Raju uncovered the biggest corporate fraud of India which by some has been regarded as similar to Enron. The letter sent by Raju to the board of Satyam ‚regulator‚ exchanges shocked the whole country and company’ s share at the exchanges hitted a life low of 30 from the intraday high
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2FIM602 Finance Major Project MERGERS AND ACQUISITIONS: DO THEY CREATE VALUE FOR SHAREHOLDERS Author: Emad Ahmed Student number: 12242676 Supervisor: Dr Abdelhafid Benamraoui A project undertaken as part of BA (Hons) Finance degree‚ University of Westminster‚ London 1 Major Project Table of Contents Statement .......................................................................................................
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1 Is it fine to privatize profits and nationalize losses‚ is it right for organizational development ? The combined revenues of the big five of Wall Street‚ i.e.‚ Freddie Mac‚ Fannie Mae‚ AIG‚ Merrill Lynch and Lehmann Brothers‚ added to $ 322 Billion in the year 2007. Compare it with the fact that GDP of 185 countries‚ including those of fairly developed countries such as Denmark and Greece‚ are less than those figures. These firms were so large that it was widely believed that they are unsusceptible
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TABLE 4.1: Comparison of Birla Frontline equity fund with market indicators (BSE200.) with the calculation of portfolio return & market return‚ Average fund & Index return‚ Standard deviation of fund & index return and Beta. NAV BSE200 Year Opening Closing Rp Rp^2 Opening Closing Rm Rm^2 2004 20.01 23.94 19.64 385.73 769.67 886.55 15.18 230.60 2005 24.46 33.94 38.75 1502.11 890.48 1186.23 33.21 1103.06 2006 33.98 50.13 47.52 2258.90 1188.78 1655.74 39.28 1542.96 2007 50.86 81.34 59.92 3591.51
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that proved to be the most resilient during the hard economic times. LPL Financial came to the forefront relatively recently‚ in 2008-2009‚ when many financial giants like Lehman Brothers and Bear Stearns went belly up‚ and the companies like Merrill Lynch and Goldman Sachs went through some very turbulent times. LPL Financial‚ the largest independent broker dealer in the US‚ 5th based on the annual revenue in excess of 3.3 billion dollars and well over 12‚000 Consultants managing over 260 billion
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INSIDE JOB‚ DOCUMENTARY 1. Two pages summary of the movie. The movie is divided into five parts. The first part (How we got here): the movie explains how the economy used to be after the great depression. At first the financial industry was highly regulated. Banks were prohibited from speculating in depositors’ savings and investment banks were small and private partnerships hence‚ this structure reduced the risky activities. However‚ the Reagan administration started a 30 years period of financial
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ORGANISATION STRUCTURE:- Bank of America Corporation (NYSE: BAC) is a financial services company‚ the largest bank holding company in the United States‚ by assets‚ and the second largest bank by market capitalization. Bank of America serves clients in more than 150 countries and has a relationship with 99% of the U.S. Fortune 500 companies and 83% of the Fortune Global 500. The company is a member of the Federal Deposit Insurance Corporation (FDIC) and a component of both the S&P 500 Index and the
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Ronald Alger‚ Tatiana Reed‚ Angela Dupree‚ Blake Bowen‚ and Ina Obasi Organizational Leadership 3090 - 001 Case Study # 1 02/22/2015 The Prime Minister’s Powerful Better Half This case is about Ho Ching‚ a business women who in 2002 became the chief executive officer (CEO) for Temasek Holdings‚ a Singapore based state owned Investment Company that presently has 490 employees and a 223 billion dollar portfolio‚ focused primarily in Asia. (Temasek‚ 2015) This case will discuss Ho Ching’s approach
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