J.P. Morgan shares slump after $2 bln trading loss

Description: Bank’s loss is embarrassment for CEO, fodder for regulators

Source: Marketwatch.com

Date: May 11, 2012

Link: http://www.marketwatch.com/story/jp-morgan-shares-slump-after-2b-trading-loss-2012-05-11?siteid=nwtwk

Questions for Discussions:

• Summarize the reasons for the loss.
• What do you believe this event will mean for the company, management, and regulators?

 

CT:   Financial Analysis, Company Analysis, Industry Analysis, Management Issues, Governments & Regulators – Investing Strategies, Stocks, Risk Management, Derivatives

MGM bid deadline passes, most bids yet to come

Description: First-round bids for the debt-ridden MGM studio were due Friday afternoon, but most of the bids are expected to trickle in through the weekend, sources familiar with the matter said.

Source: Reuters.com

Date: 01/15/2010

Link:  http://www.reuters.com/article/idUSN1517371220100116

Questions for discussion: 

• Which of the possible bidders would enjoy the greatest degree of synergy with MGM?
• Given the information provided in the article, what would you say bidders should be most concerned with, financially speaking?

Bove: ’2010 a great year for banks’

 Description:  Banking analyst Dick Bove thinks that this year will be a boon for battered banks.

Source: CNNMoney – video report
 
Date: 01/04/2010

Link: http://money.cnn.com/video/markets/2010/01/04/mkts_dick_bove_2010.cnnmoney/

Questions for discussion: 

• Do you agree with the analysis and predictions presented by Dick Bove? Explain your thinking.
• Would you be a buyer or seller of the banks? Explain your answer.
• What would you suggest bank managers do at this time?

Kraft’s cheesy math

Description: In the strange but true department, a recent securities filing by Kraft Foods seems to stretch the value stock investors are willing to place on the company.

Source: CNNMoney.com

Date: 01/08/2010

Link:  http://money.cnn.com/2010/01/08/news/companies/kraft.proxy.fortune/index.htm

Questions for discussion:

• Do you think there is anything inappropriate going on in this situation? Explain your thinking.
• Do you think Kraft’s strategy was a good one?
• What would you do if you were Warren Buffett? Explain your thinking.

Former AIG chief takes shot at Goldman Sachs: report

Description:  The former head of American International Group Inc is urging a closer look at the actions of Goldman Sachs Group Inc, claiming the investment bank contributed to the insurer’s near-collapse, the Wall Street Journal reported on Saturday.

Source: Reuters.com

Date: 01/09/2010

Link: http://www.reuters.com/article/idUSTRE6081IB20100109

Questions for discussion:

• What is your view of this exchange between parties to the financial collapse?
• Where do you believe the blame lies? Explain your answer.

U.S. Stocks Rise Most in Two Months as Factory Orders Increase

Description: U.S. stocks advanced, sending the Standard & Poor’s 500 Index to the biggest weekly gain in two months, as the nation’s manufacturing increased more than forecast and metal and oil prices surged.

Source: Bloomberg.com

Date: 01/09/2010

Link: http://www.bloomberg.com/apps/news?pid=20601103&sid=a.YfWoX7if4E

Questions for discussion: 

• What does the article suggest is an important indicator of stock market performance?
• Do you believe the news reports suggest more stock market increases over the next quarter? Explain your thinking.

London’s Investment Banks Double Pay to Lure Back City Talent

Description: London’s investment banks are luring back traders and analysts they lost to brokerage firms during the credit crisis, compensating for lower bonuses by as much as doubling base salaries.

Source: Bloomberg.com

Date: 01/08/2010

Link: http://www.bloomberg.com/apps/news?pid=20601109&sid=aCYBE_nDS.Ys

Questions for discussion: 

• What does the article suggest to you about the financial services industry’s dealings with compensation?
• Do you think it is a correct approach? Explain your thinking.

High-speed computerized trading

Description:  High frequency trading offers opportunities by the millisecond and a bundle of regulatory issues.

Source: CNNMoney – video report
 
Date: 12/30/2009

Link: http://money.cnn.com/video/markets/2009/12/30/mkts_high_frequency_trading.cnnmoney/

Questions for discussion: 

• What are the primary reasons for the fast growth in market share for this software?
• Do you believe that this sort of software presents any special problems for financial managers or regulators? Explain your thinking.

Companies Google should buy in 2010

Description: Google CEO Eric Schmidt said in September that the search leader will buy up to one company a month in 2010. Here’s a look at some of the leading contenders.

Source: CNNMoney.com

Date: 01/02/2010

Link:  http://money.cnn.com/galleries/2009/technology/0912/gallery.google_acquisitions/index.html

Questions for discussion:

• Do you agree or disagree with the assessments made favouring these acquisitions? Explain your thinking.
• Are there alternative acquisitions that you think are superior? Explain your choices.
• In general terms, is the acquisition route a good way for Google to go? Explain your thinking.

Kraft to raise Cadbury bid in next 2 weeks -report

Description:  Kraft Foods (KFT.N) is preparing to sweeten its hostile 10 billion pound ($15.9 billion) takeover bid for British confectionery maker Cadbury (CBRY.L), reported the Sunday Times.

Source: Reuters.com

Date: 01/03/2010

Link: http://www.reuters.com/article/idUSLDE60207X20100103

Questions for discussion:

• Do you believe the bid is overpriced? Explain your thinking.
• How would you assess the bidding process thus far and how high do you think the price can go for Cadbury? Explain your answer.

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