FDIC: Bonus culture needs to change

Posted by & filed under Governments & Regulators, Industry Analysis.

Description:  FDIC Chairwoman Sheila Bair is concerned with the lack of real change in big banks’ operations and compensation. Source: CNNMoney – video report   Date: 01/22/2010 Link: http://money.cnn.com/video/news/2010/01/22/n_fdic_bair_bank_bonuses.cnnmoney/ Questions for discussion: Summary the ideas put forward by Sheila Bair. Do you support her position? Explain your thinking. How do you think the investment industry… Read more »

Obama proposes new limits on big bank risky trading

Posted by & filed under Governments & Regulators, Industry Analysis.

Description: In his toughest response yet to the financial crisis, Obama proposed Thursday that strict limits be imposed on the size and trading activities of the nation’s biggest banks. The proposal aims to deter commercial banks from becoming so large that they put the broader economy at risk and distort normal competitive forces. The president… Read more »

Decline in U.S. Stocks Pays Options Traders 75% Profit on VIX

Posted by & filed under Growth & Valuation, Market Analysis.

Description:  The biggest sell-off in the Standard & Poor’s 500 Index since March is rewarding options traders who bet on a surge in volatility with gains of 75 percent. Source: Bloomberg.com Date: 01/23/2010 Link: http://www.bloomberg.com/apps/news?pid=20601103&sid=aZOPq7yDKhng Questions for discussion: What sort of risk is involved with these instruments? Who would be interested in them? Do you… Read more »

Investors brace for earnings, Bernanke vote

Posted by & filed under Economic Analysis, Governments & Regulators.

Description: Stocks could see choppy trading next week with the latest batch of earnings and uncertainty over Ben Bernanke’s Senate confirmation for another term as Federal Reserve chairman. Source: Reuters.com Date: 01/23/2010 Link:  http://www.reuters.com/article/idUSTRE60M09920100123 Questions for discussion:  Follow up this article with a summary of corporate earnings reported this week? How did markets react? Why… Read more »

Goldman’s image crisis

Posted by & filed under Company Analysis, Industry Analysis, Management Issues.

Description:  The elite Wall Street firm is criticized for doling out $21 billion in bonuses this year and having sold toxic assets. Source: CNNMoney – video report   Date: 01/13/2010 Link: http://money.cnn.com/video/news/2010/01/13/n_goldman_public_attention.cnnmoney/ Questions for discussion: What are your impressions of the report with respect to the presentation of the culture of the firm and the… Read more »

JPMorgan Chase books $3.3 billion profit

Posted by & filed under Company Analysis, Financial analysis, Growth & Valuation.

Description: JPMorgan Chase showed it was close to making a full recovery from last year’s crisis after the company reported better-than-expected quarterly profits of $3.3 billion Friday. Source: CNNMoney.com Date: 01/15/2010 Link:  http://money.cnn.com/2010/01/15/news/companies/JPMorgan_Chase_earnings/index.htm Questions for discussion: Summarize the key points made in the report. What does the recovery by JPMorgan suggest about the financial future other financial institutions and stock… Read more »

Ackman Buys 2% Kraft Stake, Urges Cash for Cadbury

Posted by & filed under Company Analysis, Growth & Valuation, Industry Analysis.

Description:  Billionaire investor William Ackman bought a $950 million stake in Kraft Foods Inc. and urged its Chief Executive Officer Irene Rosenfeld to limit the amount of stock she uses to bid for Cadbury Plc. Source: Bloomberg.com Date: 01/16/2010 Link: http://www.bloomberg.com/apps/news?pid=20601103&sid=aSMnsSKPDuMk Questions for discussion: Do you think Ackman’s decision is a smart move? Do you… Read more »

MGM bid deadline passes, most bids yet to come

Posted by & filed under Uncategorized.

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… Read more »

Bove: ‘2010 a great year for banks’

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 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… Read more »

Kraft’s cheesy math

Posted by & filed under Uncategorized.

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… Read more »