About CRAB: Credit Rating Agency of Bangladesh Limited (CRAB) was established in 2003 at the initiative of some leading personalities in private sector and institutions of the country with the commitment to contribute to the development of the capital market by providing quality ratings and comprehensive research services. CRAB was incorporated as a public limited company in 2003 and received its Certificate for Commencement of Business in the same year. In 2004‚ CRAB was granted license by the
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municipality which include schools‚ streets and highways‚ bridges‚ hospitals‚ public housing‚ sewer and water systems‚ power utilities‚ and various public projects. HISTORY OF MUNI BONDS Officially the first recorded municipal bond‚ a general obligation bond was issued by the City of New York for a canal in 1812. In India‚ The Bangalore Municipal Corporation was the first municipal body to raise funds by issuing bonds‚ backed by state government guarantee in 1997. The Bangalore Municipal
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What the Heck Just Happened. The Causes of the Financial Meltdown in 2008. Paul J. Mahoney Brandman University The Government of the United States‚ in an attempt to appease everyone and level a playing field‚ as well as stave off a recession created the biggest reasons for the financial meltdown of 2008. “US. Housing policies are the root cause of the current financial crisis. Other players‚ greedy investment bankers; foolish investors; imprudent bankers; incompetent rating agencies; irresponsible
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in interest rate in coming years on the mortgage loans the banks had leant‚ the poor rating system that was implemented for rating these mortgages‚ the unrealistic loans that were being given out‚ and the creation of synthetic collateralized debt obligation‚ or CDOs. Another successful thing Lewis does in this book is how simple he makes it to understand what
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Movie Review of “INSIDE JOB” “Earth provides enough to satisfy every man ’s needs‚ but not every man ’s greed‚” said Mahatma Gandhi and this is somewhat the crux of this movie. Inside Job is directed by Charles Ferguson‚ and it highlights the reasons and the consequences of the global financial crisis of 2008. This movie is basically related to recession that was caused by the inefficiency of the industry and the unfavourable banking practices. The director has conducted several interviews and
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Credit Rating Agencies Credit rating agencies play a crucial role in the financial system‚ and played an important one in the events that led to its near-collapse in 2008. The business is dominated by three firms – Moody’s‚ Standard and Poor’s and Fitch Ratings -- whose job is to provide an objective analysis of the risk posed to investors by bonds‚ companies and countries. During the housing boom‚ the system broke down‚ as several billion dollars worth assets‚ later shown to be worthless‚ received
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for marketing complex securities to its investors without telling them that a major hedge fund had taken a short position against these securities. The so-called sophisticated investors lost about $1 billion in this synthetic collateralized debt obligation (CDO). The SEC investigation of Goldman Sachs has emphasized that even institutions rely on sellers and may be misled just like anyone else. This is particularly‚ but by no means only‚ the case for highly complex products‚ which “you need
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system‚ what the banks did was sell all the mortgages to the investment bankers. From here the investment banks collated all the loans (house loans‚ car loans‚ personal loans etc.) into single entity/derivatives called as Collateralized Debt Obligations (CDO). The investment banks sold these CDOs to investors. These CDOs had a high rating given to them by rating agencies. The rating agencies were paid by the investment banks to give these derivatives a high rating. These CDOs were then sold
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LESSONS LEARNT The study of history and the eventual collapse of Lehman Brothers‚ will help us learn some mistakes made by Lehman Brothers. This might enable us to be very keen in future. We should be watchful not to repeat because it may lead to other problems such as global crisis. If we are keen we might understand that this was the largest failure of an investment bank since Drixel Burnham Lambert collapsed amid fraud allegations 18 years pror. Managerial oversight and accountability Claims
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Rachel Carson’s “The Obligation to Endure” was a successful persuasive approach to opening society’s eyes to environmental issues. In “The Obligation to Endure”‚ Rachel Carson writes about the earth and how it has adapted to environmental changes in the span of millions of years. “Only within the moment of time represented by the present century has one species-man- acquired significant power to alter the nature of his world” (Rachel Carson 267). Carson states that mankind has done some irreversible
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