S&P, Moody’s and Fitch Are Sued by Ohio Over Ratings

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Description: Standard & Poor’s, Moody’s Corp. and Fitch Inc. were sued by Ohio Attorney General Richard Cordray, who said the three companies disregarded their responsibility to provide “accurate credit ratings of investments.” Source: Bloomberg.com Date: 11/20/2009 Link: http://www.bloomberg.com/apps/news?pid=20601103&sid=aSfRXwQ.8m5Q Questions for discussion: Summarize the arguments for and against the defendants in this case? Do you agree… Read more »

Google’s new mobile ad plan

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Description:  By acquiring upstart AdMob, Google improves its position while admitting flaws in its original approach to mobile ads. Embedded video from CNNMoney.com Video Source: CNNMoney – video report   Date: 11/10/2009 Link: http://money.cnn.com/video/technology/2009/11/10/tm_google_ad_mov.fortune/ Questions for discussion:  Do you believe this acquisition by Google is a good deal, financially speaking? Explain your thinking? What are the… Read more »

Intel settlement: The power of emails

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Description: How emails played a role in Intel’s $1.25 billion settlement with AMD nine days after they were made public. Source: CNNMoney.com Date: 11/13/2009 Link:  http://money.cnn.com/2009/11/13/technology/intel_settlement_emails.fortune/index.htm Questions for discussion: Summarize the basis of the AMD’s lawsuit against Intel. Do you believe Intel is financially better off because of the settlement with AMD? Explain your thinking.

U.S. regulators squeeze banks on future tax assets

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Description: U.S. regulators are looking hard at banks’ expected future tax benefits and the result for some financial institutions could be more writedowns. Source: Reuters.com Date: 11/13/2009 Link: http://www.reuters.com/article/ousivMolt/idUSTRE5AC5MW20091113 Questions for discussion: Summarize the reasons for bank writedowns. How would these banks be expected to be affected financially?

Bair Says Using TARP for Bank Capital Helped Fuel Public Outcry

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Description: Federal Deposit Insurance Corp. Chairman Sheila Bair said using the Troubled Asset Relief Program to pump capital into banks was “not a good idea” and helped erode confidence in the regulatory system. Source: Bloomberg.com Date: 11/14/2009 Link: http://www.bloomberg.com/apps/news?pid=20601103&sid=ajKGz8NRQipM Questions for discussion:  Do you agree with the concerns expressed by Sheila Bair? What alternatives exist… Read more »

Prechter`s Predictions

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Description:  A perspective on the markets, with Bob Prechter, Elliott Wave International Founder & CEO and CNBC’s Maria Bartiromo. Source: CNBC – video report   Date: 11/04/2009 Link: http://www.cnbc.com/id/15840232?video=1319011626&play=1 Questions for discussion:   How do you think a dramatic change in stock market value suggested by Prechter would affect future financial planning in businesses? Explain your… Read more »

Berkshire Hathaway for $68? Sweet!

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Description: Stock splits don’t change the value of a company. But a lower share price for Warren Buffett’s firm (and other triple-digit stocks) could attract more investors. Source: CNNMoney.com Date: 11/06/2009 Link:  http://money.cnn.com/2009/11/06/markets/thebuzz/index.htm?postversion=2009110616 Questions for discussion: What are the reasons offered for creating stock splits?  What do you think motivated the decision to create a… Read more »

J&J to slash 7,000 to 8,000 jobs

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Description: Johnson & Johnson plans to cut up to 7 percent of its workforce in order to generate cost savings needed to finance increasingly costly drug research and to weather future challenges, the diversified healthcare company said on Tuesday. Source: Reuters.com Date: 11/03/2009 Link: http://www.reuters.com/article/newsOne/idUSTRE5A229D20091103 Questions for discussion: Summarize the reasons for the cost cutting… Read more »

Stanley, Black & Decker to Combine on Fourth Try

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Description: Stanley Works agreed to purchase Black & Decker Corp. yesterday for $3.5 billion in stock after on-and-off talks that spanned almost three decades. Source: Bloomberg.com Date: 11/03/2009 Link: http://www.bloomberg.com/apps/news?pid=newsarchive&sid=ai7WJ.67rcVE Questions for discussion:  Summarize the financial reasons that motivate this merger. Why do you think a merger was agreed to at this time, after so… Read more »

Stimulus money behind GDP growth

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Description:  Fortune’s Andy Serwer says that third-quarter economic growth was fueled mostly by government dollars. Source: CNNMoney – video report   Date: 10/30/2009 Link: http://money.cnn.com/video/fortune/2009/10/30/f_sl_recovery_illusion.fortune/ Questions for discussion:  Summarize the arguments presented for economic optimism as well as pessimism. Are you optimistic or pessimistic about the current situation? How do you think financial managers view… Read more »