Essays on Subprime

Introduction

The financial crisis of 2007/9 was the worst in the U.S. since the Great Depression of the 1930s. It was the cause of the failure of some of the biggest financial institutions including Washington Mutual which was closed in 2008, and its assets transferred to JP Morgan. In 2008, the crisis reached its peak with loans dropping dramatically to the lowest levels to be witnessed in a half a century. For example, new loans to large borrowers fell by 47 percent in the fourth quarter of 2008 as compared to the previous quarter and by 79 percent relative to ...

CHAPTER II

This chapter will seek to conduct an absolute inquiry into what makes up security interest laws in the United States. In order to lay the foundation for comparisons in subsequent chapters, the three main elements of the study of the Saudi system will be reviewed here in the context of U.S laws with an emphasis on California state law. The features of the California legal system will include the assessment of foreclosure rules and patterns in California. This will include a detailed fact-based evaluation of CCP580 (b), CCP580 (d) and CCP726 (a). The different components will enable the study ...

2007 Economic Crisis Review

Abstract

This article is an academic review of the economic crisis that struck in 2007 whereby the world economy experienced deep and long prolonged recession with the crisis being considered as the worst to be experienced since the Great Depression . This article largely lies its basis on the U.S experience during that period with the effects, which resulted from the crisis in the overseas markets outlined. Also, the article brings an understanding of some of the conceptual underpinnings of the issues lying at the heart of the economic crisis. The underlying causes of the economic crisis ...

Adopted Derivative and Function in the Financial Markets

Derivatives are important tools in the financial markets because they help reduce investment losses resulting from the fluctuating interest rates. For example, Societe Generale lost about $7 billion following the 2008 property market crisis, which could have been much higher if the company did not hedge its funds. Credited default swaps (CDS) or credit derivative contracts on mortgage-backed securities played a major role in the development of the housing bubble in the American property markets. The swipes were widely used to insure debts using subprime housing securities in the property markets. Swap derivatives can be defined as a series ...

Post Crisis Change Management in Business Organizations

Business Organizations are often confronted by situations which induce their owners to re- examine their policies and processes. These situations are termed as crisis and needs reformulation of organizational processes, in absence of which the existence of the organization may be threatened. These situations may erupt from failure to anticipate the internal and external consequences from economic, political, ethical and technological changes related to organizational activities. Even if they are anticipated, crisis may not be altogether averted; only it helps in formulating contingency plans that are used to address post crisis situation and calls for initiating changes in the ...

INVESTMENT ANALYSIS OF VIETNAM

INVESTMENT ANALYSIS OF VIETNAM

Summary

Vietnam has changed in the last thirty years from an agrarian country to a service and manufacture country leader in the world in growth and economic activity. The country has a communist system legally but, in the practice, the country has a liberal policy in the economy signing the Trans-Pacific Free Trade Agreement but maintaining the political control under the rule of one party. The country offers opportunities and risks for individual and corporation with the intention to invest.

Introduction

Vietnam is known in the world as the country where United States of America lost a ...

2008 Financial Crisis 2008 Financial Crisis The Financial crisis in the year 2008 affected globally. The onset of the recession started with the huge flow of money in the American economy. During the year 2001 U.S faced  recession but for a short span of time. In order to recover the economy the Federal Reserve lowered the interest rate from 6.5% in May 2000 to 1.75 % in December 2001. Money was cheaper and investors invested more money in the economy. This was the beginning of the problem. The trigger of the crisis was the housing bubble.

As credit was easily ...

Introduction

In late 2007, the Dow Jones Industrial Average (DJIA) closed at a record low. Stock markets around the world nose-dived alongside the DJIA. Turbulence in the sub-prime segment of the US housing market, paralysis of the credit markets, excessive lay-offs in organizations, steep decline in investments etc. were all some of the indicators that the world was heading for a massive credit crunch. In the words of Mr. Strauss-Kahn, head of IMF, “Intensifying solvency concerns about a number of the largest U.S.-based and European financial institutions have pushed the global financial system to the brink of systemic meltdown” (BBC ...

Q1. The Matthew effect in Robert Holmes project

The Matthew effect refers to the situation in which the richer get richer while the poor continue to be poorer (Gladwell, 15). The lives and prospects of the people of Robert Holmes coupled with the exposition of Gladwell in his book “Outliers” tend to justify the Matthew effect. They lend credence that it is extra ordinary opportunities that we are faced with in life that shape us rather than extra ordinary talents. It is therefore no surprise that the people of Robert Holmes, who are predominantly black, are stuck with poverty no matter their tacit attempts to escape from ...

PART 1:

Using the draw tools in Word, show what happened to the demand for housing by drawing the demand for housing in 2005, 2006, and 2009. This means you draw lines for the demand and supply of housing in 2005, 2006, and 2009 to the supply and demand graph and match what happens to the price in those years with what is show in the chart. Explain what caused demand to change over this period.

The graph below shows the demand of housing in 2005, 2006 and 2009 and how the price fluctuates. The demand for houses rose rapidly during ...

The film Too Big To Fail (2011) tells a story of the events that took place in 2008 in the financial industry in the USA when several largest financial service companies including Lehman Brothers faced bankruptcy due to the subprime mortgage crisis that hit the USA. Lehman Brothers was the fourth largest bank in the USA and it was surprising to see that the Federal Reserve did not help this bank to survive by offering extensive financial support. Instead the Federal Reserve wanted to make the other largest banks like Goldman Sachs, Merrill Lynch, etc. to purchase Lehman Brothers ...

Introduction

In 2008, the entire world was rocked by the biggest financial crisis since the Great Depression. The crisis first affected the entire financial system of the United States before then quickly spread globally. The casualties of the crisis included the whole investment banking industry of the US. Other casualties were the US largest insurance company, largest mortgage lender, among other firms in the financial services sector. The US auto industry was severely hit leading to loss of jobs. The US unemployment rate increased by 4.9% points from the third quarter of 2007 to the third quarter of 2009. The ...

Abstract

This study used Al Ahli Bank of Kuwait to complete research on the effects of the global economic crisis on the financial performance of conventional banks in Kuwait over the period from 2000-2015. The study results show that the global economic crisis does not have a statistically significant impact on the financial performance of conventional banks in Kuwait. However, the study finds out that some macroeconomic conditions such as equity and bank size are very crucial to traditional banks’ profitability. Increasing the owner's equity was found to decrease the impact of the financial crisis on the conventional banks in ...

Introduction

Money plays a vital role in the determination of income and employment . interest rate are a significant determinant of aggregate spending ad the Federal Reserve which controls the money growth and the interest rates is the first institution to be blamed when the economy of in trouble. Now the question arises what is money.

Money Definition

Money is a medium of exchange. Money is divided into commodity money and token money. To some economist there is difference between commodity money and token money. A commodity money is a medium of exchange which has a commodity value as distinct from a value ...

Introduction

The year 2007-08 brought nightmares for the US economy and its participants because least anyone had expected that the world’s biggest economy will cripple and face the worst ever recession after the Great Depression of 1929-1930. While Wall Street lost more than trillion dollars in value, thousands of Americans were left unemployed and the businesses, even the one who had more than 100 years of their presence in the United States, were filing for bankruptcy. On the other hand, Federal Reserve Bank, which once cited economic bubble as the natural event that cannot be prevented( courtesy the ideology ...

Introduction

For many years, financial crises have been pervasive. According to Collardi (2012), the frequency of occurrence of financial crises in the recent decades has doubled the occurrence during the Bretton Woods Period and the Gold Standard Era. Nevertheless, the occurrence of the 2007-2008 financial crisis came as a great surprise to many individuals. Initially, the crisis was seen as difficulties that were being experienced in the United States subprime mortgage market. This, however, spilled rapidly to the financial markets before spilling over to the real economy. This paper discusses the causes of the financial crisis and the measures that ...

Introduction

The global financial crisis of 2007-2008 changed business and political outcomes in the United States. The desire by the United States government to ensure that its citizens get affordable housing led to a concerted government and business effort that led to the housing bubble and then bust. The new housing policy had its basis in the idea of American exceptionalism. The term "American Exceptionalism," coined by Alexis de Tocqueville in 1831, has historically referred to the perception that the United States differs qualitatively from other developed nations, because of its unique origins, national creed, political philosophy, and religious institutions. ...

Introduction

The capitalism and socialism debate have been conflict-ridden as the left-wing rarely does agree with right-wing. In the United States, the Democrats are referred to as left wing while the Republican is referred to as right-wing. Most of the right wing policies are geared towards pure capitalism while the left-wing is socialism or communism inclined. The left wing support capitalism with a human face while the right wing desires to have a fully supported freedom to do things be it business or politics. It is in this regard that fault socialist capitalist for ills happening in the world.

Capitalism and Socialism Supporters views about 2008Financial Crisis

The ...

Global Financial Crisis in the US

Introduction It was hard for the economists, professional analysts and policymakers among other players in the financial industry to foresee the crisis in the US mortgage lending industry in 2007 that resulted in the world's worst economic recession in two years' time (Sher and Iyanatul 2010). Initially, there was a housing bubble characterized by high house prices, low-interest rates, more support for subprime mortgage and increased speculation by the buyers (Acharya and Schnabl 2010). Eventually, there were decline of house market prices, increased lending rates and increased default and foreclosures by the mortgagors (John 2009). Notably, by mid-2008 the ...

Introduction

The severity and suddenness of the financial crisis of 2008-09 had taken the world in surprise. It had an immense impact on the economies around the world. A major casualty was the labor force. Unemployment had increased alarmingly. The astounding fact about the great depression was that the economists and financial analysts failed to predict a crisis that took such a great proportion to engulf the almost the entire world. It raised doubts on the effectiveness of Economics as a predictive science and made the profession of economists questionable in the intellectual spheres. The depression have been mitigated with ...

Goldman Sachs, an American multinational investment bank, managed to flourish in its business by amassing the trust of its customers and keeping a profound work ethic in the field. The road to this excellence was paved by the sound decisions taken by its management and the amount of investment the company made in building a cultural capital that is quite hard to replicate. It could be seen that even its competitors reserved an amount of respect towards Goldman Sachs . This case study is an attempt to explain why. The first and foremost element that helped Goldman Sachs to stand ...

About the paper

The year 2007-08 was a nightmare for the US economy. It was after 80 years of the Great Depression that the United States was facing a financial carnage that was eroding billions, leaving people unemployed and creating a junk in the cash vault of the economy. With back to back failure of the monetary policies of the Federal Reserve and bankruptcy filings by the biggest companies in the country, the eminent economists and members of the Federal Reserve were evaluating the reasons for the economic impotency and discussing the best possible ways to counter the situation. However, amidst all ...

Corporate Social Responsibilities and Ethics

The concept of (CSRs) means that companies, organizations and/or societies have both societal and ethical responsibilities stretching beyond their existing economic responsibilities (Tuan, 2012). It requires these organizations to elaborate how they understand their responsibilities in efforts to including other stakeholders like customers, employees, local communities, customers, state governments, suppliers, international organizations among others. CSR stresses the need for organizations to behave like good corporate members of the society or citizens, by not only complying with laws and policies but also conducting their activities in ways protect the environment and other resources. Ethics may be seen as the fundamental ...

The subprime mortgage crisis was due to house prices decline and a crisis in the banking industry due to diminished liquidity at a time was going through a period of recession (Demyanyk & Hemert, 2008). Demyanyk & Hemert (2008) argues that the subprime mortgage crisis had its genesis from the high loan delinquencies and mortgage foreclosures inherited between the years 2001 and 2006 with the year 2006 being the most notorious culprit. Wilse-Samsony (2010) claims that the high cases of delinquency and foreclosure may have been caused by caused by resets in the interest rates, poor consumer loan product information and ...

2007 Housing Market Bubble 2007 Housing Market Bubble

Introduction

The 2007 housing crash was the worst bubble burst experience that has ever been encountered in the U.S. history, an occurrence that led to financial crisis. It is important to appreciate the fact that different factors led to the housing bubble of 2007, with some of the primary causes being the credit crunch that was caused by the housing bubble. Nathsanson & Zwick (2015) assert that irrational exuberance is among the aspects that led to the development of a ripe environment for the growth of housing bubble hence contributing to the financial ...

The savings and loans crises did not occur until the 1980’s. Sudden deregulation, competition and market volatility in the late 1970’s started the crises. In 1979 there were sudden changes to traditionally low interest rates because the Federal Reserve doubled the interest rate to combat inflation. The savings & loans associations (S & Ls) made most of their money from low interest mortgages and tried to increase their interest rates to make up the shortfall. Furthermore, The S & Ls was restricted by regulation Q that capped the amount of interest that they could pay to depositors; they could not ...

Articulate why an export business would prefer a rising or declining exchange rate for their domestic currency.

Exchange rate shows the price of one currency in terms of another one. Modern economies are open to international trading and business, thus the value of the national currency is regularly monitored and interpreted in terms of the foreign currencies. Mostly, a direct exchange rate is used, which defines the price of a unit of the foreign currency in terms of the national one. However, sometimes. An indirect quote is used to express the price of a unit of the domestic currency in terms of the foreign one. Most economies now use floating exchange rates that determine currency rates ...

Introduction

The Great Depression of 2008 was one of the most impactful among all the recessions that took place in the world till date. The subprime recession of 2008 can only be compared with the Great Depression of the 1930s in terms of negative GDP (gross domestic product) growth, job loss, deterioration in wage rate, and decrease in total economic value for private and public organizations. The impact of the 2008 recession was felt all across the globe even though the recession started in the USA. The United Kingdom that largely followed the same expansionary fiscal policies like the USA ...

Today, almost seven years after the financial crisis that threw America into upheaval in 2008, the effects are still being felt. In September 2008, the collapse of Lehman Brothers, a global bank, nearly caused the collapse of the financial system of the entire world. What resulted was the worst economic downturn seen by the world since the Great Depression, 80 years ago. The event has been called the Global Financial Crisis and the 2008 Financial Crisis; the period following the collapse became known as the Great Recession.

While the ...

Introduction

The recent financial disaster was not a natural disaster since it is something that could been prevented. As a result of these crisis, many people lost their jobs while others lost their houses due to foreclosure. Although the US economy is still recovering, many people are yet to recover from this crisis. Failure to apply business ethics by those in charge government and businesses resulted to this crisis (Burden, 2010, p.385).

Those people in authority had political, ethical and social responsibilities to avert the occurrence of the crisis.

Fed failure One of the main causes of the stormy 2008/2009 financial crisis is failure of the banking regulator to perform its regulating role. The banks ...

Introduction

Housing bubbles have happened in different economies around the globe. The most recent and most publicized was the subprime mortgage crisis in the United States of America. Understanding what a housing bubble entails in very important in determining whether any economy is experiencing a housing bubble. In economic terms, a housing bubble is the unprecedented increase in the prices of houses because of an increase in demand for housing units, speculation on the prices and the belief that the recent trends in demand and price are surefire forecasts of future trends in the housing market.

A housing bubble starts when the demand ...

1.) Bank of America’s Acquisition of Merrill Lynch

This article talks about the serious financial losses that Merrill Lynch incurred in the year 2007 to2008, amounting to $8.4 billion by running its business of subprime mortgages. The subprime mortgages turned out to be high risk as housing prices dropped and subprime securities lost value. In order to augment its losses, Merrill Lynch decided to sell $31 billion worth of subprime securities for pennies on a dollar. However, such management decision was doomed which impelled the company to start merger talks with Bank of America. Bank of America agreed to buy Merrill Lynch for $50.3 billion in stock of $ ...

In the Business Ethics course, we encounter philosophies dealing with the appropriate decisions and actions in the face of business circumstances. It is often that business practices solely prioritize raking in money that is possibly disregarding economic impact. To expound on this issue, we would discuss the infamous 2008 Subprime crisis.

The year 2008 made a critical impact to the world of business, especially to the economy of a powerful nation, the United States of America. The economic downfall or in other terms, the financial crisis, that took place in the late 2000s made a lot of people pay for the unfortunate ...

Part 1

- In what ways did the video "The Crisis of Credit" demonstrate the failure of the banking industry's Fiduciary Relationship to investors and home owners?

The video explains a worldwide financial disaster that effected everyone. It started on the burst of the dot com bubble when the federal reserve of the United States decreased the interest rate to 1%. This value dramatically dropped the investment level because of the reduced ROI. This action made banks to take more and more loans from the Federal Reserve. The leverage increased as it became very easy to return a loan, so the demand for credit increased rapidly.

The banks took a lot of credit, and they were easily able to payback and made a lot of profits. Investors saw this as ...

CITE: USA Today, Oct. 2, 2013, page 34.

FACTS: Katherine Jackson, mother to Michael Jackson brought a suit on negligence against AEG Live LLC. AEG Live LLC was a concert promotion company that produced Jackson’s comeback concerts. Katherine argued that AEG Live LLC acted negligently in hiring the physician responsible for administering the medication that killed Michael. Conrad Murray, the physician, was found guilty of involuntary manslaughter in November 2011 for administering a propofol overdose that lead to the death of the singer.

In their negligence claim, the family sought to show that AEG Live LLC was responsible for hiring the ...

The crisis of 2008 was the moment of truth for global economics pointing out new possibilities for developed countries to challenge their financial system. This world phenomena was one of the most discussed and controversial during the recent decade. Crisis events, which we observed in American financial system in the second quarter of 2008 affected the majority of countries all over the world and were so drastic and huge while measures of regulators stabilizing the situation so unprecedented, that it allowed to question the effectiveness and resiliency of American financial capitalistic model on global world market (Ershov, 2010). Some ...

Subprime mortgage is type of mortgages usually issued to borrowers with low credit rating. As a result the borrower isn’t offered with standard mortgage terms because the lender assesses the risk of default on such borrower much more above the average. Lending institutions often charge interest on subprime mortgages at a higher rate, compared to the standard mortgage to compensate for a greater level of risk. In 2004 the interest rate was 1%. Money was almost free of charge, which led to a fundamental change in the behavior of banks. Customers had no longer to convince banks to give them money. ...

The US Subprime mortgage crisis was a banking and financial emergency situation that led to a recession not only in the US but spread to many parts of the world. The disastrous effects of a crisis in the domestic subprime market on the rest of the world beg questions about the interconnectability and interdependence of the international economy as well as the financial institutions. The international financial crisis also revealed how vulnerable the global financial system was. Not only did the subprime crisis have a direct effect on global markets and countries that held a huge number of US mortgage backed securities and were ...

Introduction

General Motors, popularly known as GM, is one the largest automobile companies in the world. Founded in 1908 in Flint, Michigan, the company is currently headquartered in Detroit, Michigan. GM occupied the number one position in the automobile industry for 77 consecutive years from 1931 to 2007 ("General Motors Company and Subsidiaries" 2015). Currently, it is the 3rd largest automaker in the world. In 2009, due to operational inefficiencies, slowness in the automobile market in the USA and huge overhead costs, GM filed bankruptcy. However, it restored its operation within a year and came back to profitability within 2 years. ...

The US Subprime mortgage crisis was a banking and financial emergency situation that led to a recession not only in the US but spread to many parts of the world. The disastrous effects of a crisis in the domestic subprime market on the rest of the world beg questions about the interconnectability and interdependence of the international economy as well as the financial institutions. The international financial crisis also revealed how vulnerable the global financial system was. Not only did the subprime crisis have a direct effect on global markets and countries that held a huge number of US mortgage backed securities and were ...

The adventure of Countrywide Financial Corporation in the American mortgage market implies a sinuous evolution, marked by the legal and illegal exploitation of the U.S. loaning legislations, which affected both the beneficiaries of the loans and the American overall economy. The organization has taken advantage of various market situations to boost its presence in the mortgage and subprime mortgage markets, being nevertheless itself the victim of the real estate market collapse that it caused historical losses, putting CFC in the position of being sold to Bank of America for avoiding bankruptcy (Eastburn, 2011). Achieving rapid growth in United States ...

INTRODUCTION

In this information age, the digital revolution has transformed the industry to an information based economy. Since the late 1970s, the day to day evolution of technology has shaped the modern society by introducing globalized communication. The UK mobile phone network industry is developing day by day by introducing the new-tech systems in the market. O2, Vodafone, EE, T-Mobile, and Orange are the biggest mobile phone network providers in the UK (Rushton, 2012). This report has presented a thorough economic analysis of mobile phone network industry in the UK, considering the biggest network providers in the country.

ANALYSIS OF MOBILE PHONE OPERATORS IN UK

Mobile Phone Network ...

Thesis

The global financial crisis was a period during which downturns were experienced in the stock markets, economic activities as well as losses in the housing market all over the world. During this period, banks had to be bailed out by national governments and consumer wealth declined significantly. The result was a major recession between 2008 and 2009 . This paper looks at the global financial crisis in the world, its effect in the US and measures taken by the US to manage it. This financial crisis was experienced in the world in the late 2000’s and the US was hit ...

Introduction

Racism continues to be a complex and controversial issue to the American society because it has diverse facets. Racial inequality is discrimination, which is based on the races of people, particularly in the socioeconomic advancement. Over the years, racism has commonly featured in the US society. Its forms may have changed overtime, but there are issues such as infant mortality rates, unemployment, poverty rates and incomes showing that it remains as an unresolved issue. The Marxist theory shows that racism affects the potential unity between the capitalist and working classesRacism and Racial Discrimination There have been major events ...

Lehman Brothers Holdings Inc. was ranked as the fourth largest bank in the US before it declared bankruptcy in 2008. The company was dealing in investment banking, equity and fixed income-income sales and trading, research, investment management, private equity, and private banking. A significant number of clients withdrew their accounts from Lehman Brothers and the share price of the stocks fell at an exponential rate. Consequently, on September 15, 2008 the company filed for bankruptcy under Chapter 11. Lehman Brothers played a major role in the recession of the late 2000’s which drastically affected the entire country. The company ...

1.2 RELEVANCE OF THE STUDY TO KUWAIT Making responsible decisions in real estate lending is a concern that is largely relevant to the economic setup of Kuwait. The economy of Kuwait, firmly founded on industries related to oil and gas, business and commercial services, and real estate, largely rests on its strong banking system. Kuwaiti banks are known for high capitalization and derive strength from government support via policies and intervention via the Central Bank of Kuwait. However, it is noteworthy to emphasize that the real estate and investment sectors of Kuwait have been exposed to the economically hazardous effects ...

In the early years of the 21st century, accounting scandals usually involved major private organizations such as Enron. However, all that changed when Federal Home Mortgage Corporation (also called Freddie Mac), the second largest financer of mortgages, came under the microscope of the authorities including the United States Justice System. The SEC believed that Freddie Mac had irregularities in its accounting procedures, and therefore, decided to investigate the mortgage giant. Freddie Mac was a government sponsored organization that came into being in the year 1970. The organization was set up to promote home-ownership, and, at first, Freddie Mac functioned very ...

Wells Fargo between 2004 and 2009

Introduction: Fair lending practices have been in question since 2004 within what has been known as the housing crisis in the United States. Fair lending refers to any persons with qualified credit standings receiving the same mortgage loan rate percentage of interest to be repaid as the next person. Unfortunately, large loan companies such as Wells Fargo have been accused of inequality in their lending practices in that a person of white, non-Hispanic origin is being offered a better mortgage interest rate and/or paying less in fees than someone of Latino or African-American descent. The fact that this sort of ...

The study of Bear Stearns abrupt fall and demise reveal the importance of credibility for a financial institution in a specific sense irrespective of its robustness. A business in general could fall if credibility and illiquidity become questionable. Bear Stearns is the first ever major investment bank to fail during the global financial crisis (Li and Mizrach, 2010). The 85 years old firm has survived a number of economic turmoil and recession, yet it fell when it was least expected to fall. A number of factors become apparent when studying the Bear Stearns demise, and these include the role of management, illiquidity, ...

Introduction

Financial crises are generally protracted affairs. In most cases, the periods after a severe financial crisis have three similar characteristics. The first characteristic is that there is a deep and prolonged collapse of asset market. This means that the real prices of housing declines at an average of 35 percent. This decline is stretched over a period of more than six years. The price of equity also collapses at an average of 55 percent for over a period of three years. Secondly, there is a decline in the country’s output and employment. In this case, unemployment rate rises at a rate of 7 percent ...

“The Jungle” is a novel by Upton Sinclair, an American Socialist with the intention to address the plight of meat packers in the hands of the beef trust. The setting of the novel is in Chicago; a town where Upton traveled while he was just twenty-six years old with the grand vision to help in sensitizing and pushing for better working conditions of the meat workers. The meat industry seemed to weave together all the misfortunes experienced by all other workers in the American society in the early 1900s. Upton's novel The Jungle was first published in 1906 and became a ...

The tale of the Great Recession is one that has been told and retold countless of times. In the years following the 2007-2008 financial crisis, much has been said in retrospect, and numerous conversations have been initiated with the key players that have made a significant impact in the event. And yet, the story of the financial crisis, and the recession that followed it, is still rife for exploration, particularly in considering the steps which are to be taken to prevent it from happening again. In this regard, it is important to question the matter of accountability. Who were the ...

Executive summary

The recent global financial could be attributed to a number of factors. These factors include the general cyclical economic development; overheating of the credit market and who appeared his consequence of the mortgage crisis; high commodity prices (including oil); overheating of the stock market. The US mortgage crisis was the predecessor in occurred in two waves, first in 2007 and then in 2008. The 2008 crisis were not unique from the previous crises though it had many unique characteristics. Although the crisis started in the United States, it engulfed almost all countries of the world, and hardly any of them ...

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AIG has been among the leading companies in the insurance industry ranked 14th in the Fortune 500 companies, operating over a decade globally offering various insurance options for companies and individuals including 98% of the Fortune 500 companies, 96% of Fortune 1000, and 90% of Fortune Global 500, and insures 40% of Forbes 400 Richest Americans. With a strong history and reputation in the industry and persistent operations around the world, AIG was believed to be resistant to any crash or collapse. Huge amount of funds in terms of institutional investors, mutual funds, pension ...

Question 1 (Appendix A):

Government interventions in the financial markets have been and will always be an issue of ethical dilemma (Stiglitz, et.al, 1993). Therefore, it may be worthy to understand beforehand, what an ethical dilemma is. In YourDictionary, ethical dilemma is defined as “situation in which there is a choice to be made between two options, neither of which resolves the situation in an ethically acceptable fashion. In such cases, societal and personal ethical guidelines can provide no satisfactory outcome for the chooser. Ethical dilemmas assume that the chooser will abide by societal norms, such as codes of law or religious teachings, in ...

Introduction

In 2008, the world's beginning of the financial and economic crisis that emerged in the form of a strong reduction of the main economic indicators in most advanced economies, later grew into a global recession economy. The emergence of the crisis is associated with a number of factors: the general cyclical economic development; overheating of the credit market and who appeared his consequence of the mortgage crisis; high commodity prices (including oil); overheating of the stock market. The predecessor of the 2008 financial crisis was the US mortgage crisis, which in early 2007 affected the subprime mortgage. Second wave of mortgage ...

Background

Bulgari is a leading Italian brand of jewelry. Headquartered in Rome, Bulgari was founded in 1884 as a single jewelry shop by the silversmith SotirioBulgari. Over the years, the company has diversified its product range by carefully entering into the product lines of luxury bags, skincare, fragrances, watches, accessories,and even hotels. In 2011, the company has been bought by the number 1 luxury group of the world LVMH Moët Hennessy Louis Vuitton SA (LVMH). In 2011, Bulgari reported a turnover of more than 1 billion Euros (Rathore, 2013). Bulgari has 295 stores worldwide. 45% of its revenue comes from Asia, ...

Apparent from the case is the fact that the United States government and their financial institutions have been working to make the dream of owning a home become a reality. In essence, the financial institutions have been continually adjusting their interest rates and easing access to loans in a bid to attract as many customers as possible. The American government, on the other hand, provide significant tax incentives in an effort to foster the achievement of this dream. Being the Senior Vice President for Mortgage Lending Mary Taggert has convinced the Citywide bank to extend its services by engaging in subprime home ...

International Financial Accounting Standard 13

International Financial Accounting Standard 13

Abstract

It is without a doubt that the fair value accounting faces numerous reproaches resulting to the never ending debate about its applicability as well as effectiveness. Although un-common, the issue of fair value accounting has been taken over by the political observers, as well as politicians themselves, business front-runners, and the professional associates. Such a move would be attributed to its significance in the current market of recent times. Because of the notion that the knowledge of the market plays a significant role in the success or failure of a company, it was imperative for each and every ...

Chapter Two: Real Estate Lending Decision in Kuwaiti Banks

Literature Review

The five Cs of credit model – character, collateral, capital, conditions and capacity, all serve as important indicators for gauging the inclination and aptitude of debtors in fulfilling the obligations they have to their respective creditors (Sraeel, 2005, p. 40, par. 5; Strischek, 2009, par. 2). It is thus advisable for creditors to make their decisions based on the five Cs of credit model in order for them to assess the creditworthiness of their respective debtors properly (Strischek, 2011, par. 1). The prominence of the five Cs of credit model resurged most recently during the 2008 global financial ...