Volcker says must let big financial firms fail

Posted by & filed under Governments & Regulators.

Description: Large financial institutions that engage in speculative activities for profit should be allowed to fail if they get in trouble, White House advisor Paul Volcker said on Sunday. Source: Reuters.com Date: 02/014/2010 Link:  http://www.reuters.com/article/idUSN1414676420100214?type=marketsNews Questions for discussion:  Do you agree with Paul Volcker’s argument? Explain your answer. What would the impact be on risk… Read more »

Europe’s economic catch-22

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

Description:  Facing massive national debts, some European nations are planning to cut spending even as unemployment continues to rise. Source: CNNMoney – video report   Date: 02/05/2010 Link: http://money.cnn.com/video/fortune/2010/02/05/f_sl_euro_default.fortune/ Questions for discussion: What is the connection between the economic problems in Europe and the Euro? How is the economic and financial crisis in Europe different… Read more »

Glass-Steagall crash course

Posted by & filed under Financial analysis, Governments & Regulators.

Description:  Obama and Volcker want to limit big banks. Readers of ‘The Buzz’ think it’s a good idea but are skeptical regulation will pass Congress. Source: CNNMoney – video report   Date: 02/02/2010 Link: http://money.cnn.com/video/news/2010/02/02/n_bz_glass_steagall.cnnmoney/ Questions for discussion: Should Glass-Steagall be returned? Why or why not? How much blame for the crisis is rightly placed… Read more »

Liquor store privatization could be boon for Big Booze

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

Description: With their finances on the rocks, states that control the sale of liquor to the public are looking at handing the job to private enterprise, a move that could raise revenue, streamline government, and prove a boon to the spirits industry. Source: Marketwatch.com Date: 02/06/2010 Link:  http://www.marketwatch.com/story/liquor-store-privatization-a-boon-for-big-booze-2010-02-06 Questions for discussion: How will this move… Read more »

Corporate Bond Spreads Rise Most Since November: Credit Markets

Posted by & filed under Governments & Regulators.

Description:  Corporate borrowing costs are rising at the fastest pace in more than two months on concern that worsening government finances will slow the global economy and make it harder for companies to meet debt payments. Source: Bloomberg.com Date: 02/08/2010 Link: http://www.bloomberg.com/apps/news?pid=20601103&sid=auWwLKPsLRFM Questions for discussion: Summarize the report and the impact this trend will have… Read more »

Geithner’s bailout burden

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

Description:  Treasury Secretary Tim Geithner says he will always feel legitimate pressure from the public even though the bailout wasn’t ‘under his watch. Source: CNNMoney – video report   Date: 01/29/2010 Link: http://money.cnn.com/video/news/2010/01/29/n_geithner_stimulus_bailout.cnnmoney/ Questions for discussion: Do you share the views put forward by Treasury Secretary Tim Geithner? Explain your answer. In which ways do… Read more »

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 »

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 »