Description:  Paul A. Volcker is a giant of financial history. He played a behind-the-scenes role when the United States abandoned the gold standard in 1971. He restored credibility to the Federal Reserve and slew inflation a decade later. Source: NYTimes.com  Date: 01/20/2011 Link: http://www.nytimes.com/2011/01/21/business/21norris.html?ref=business Questions for discussion: Summarize the report and the meaning of… Read more »
Posts Categorized: Governments & Regulators
SecondMarket trading doubles in private company stock
Description:Â Investors spent $158 million snapping up shares of privately held companies like Facebook on SecondMarket’s platform last quarter — twice the volume the exchange had just one quarter earlier. Source:Â CNNMoney.com Date: 01/22/2011 Link:Â http://money.cnn.com/2011/01/21/technology/secondmarket_q4/index.htm Questions for discussion: What does this report suggest about the Secondmarket environment and the firms on the list? Would… Read more »
Corporate tax reform: Talk grows louder
Description:Â There’s the sweet deal for companies that make Puerto Rican rum. Or the tax break intended to promote U.S. manufacturing but that’s so broad it can include the making of hamburgers. The list goes on. Welcome to the American corporate tax code, which is front and center for a possible overhaul. Source:Â CNNMoney.com Date:… Read more »
Ernst & Young Is Nuts to Say Lehman Was Clean: Jonathan Weil
Description: Two weeks before New York Attorney General Andrew Cuomo’s office sued Ernst & Young LLP, a prominent U.S. consulting firm issued a press release touting its ability to help others manage the risk of fraud. Source: Businessweek.com Date: 12/23/2010 Link: http://www.businessweek.com/news/2010-12-23/ernst-young-is-nuts-to-say-lehman-was-clean-jonathan-weil.html Questions for discussion: What are the commentary leveled at the industry in this… Read more »
Cerberus’s Feinberg Said to Recoup 90% of 2007 Bet on Chrysler After Sale
Description: Cerberus Capital Management LP’s bet on Chrysler survived bankruptcy and the 2008 financial crisis to recoup about 90 percent of the original investment, said two people with knowledge of the matter. Source: Bloomberg.com  Date: 12/22/2010 Link: http://www.bloomberg.com/news/2010-12-22/cerberus-is-said-to-recoup-90-of-chrysler-investment-after-loan-unit-sale.html Questions for discussion: Evaluate the net value of the deal to Cerberus today. Who are the… Read more »
Stocks Rising 17% Since Bernanke Disclosed QE2 Disarms Fed’s Worst Critics
Description: Republican leaders in Congress say they have “deep concerns†about Ben S. Bernanke’s second round of quantitative easing. The U.S. stock and credit markets don’t share those reservations. Source: Bloomberg.com  Date: 12/17/2010 Link: http://www.bloomberg.com/news/2010-12-17/stocks-rising-17-since-bernanke-disclosed-qe2-disarms-fed-s-worst-critics.html Questions for discussion: Why have the markets reacted as they have since the beginning of quantitative easing by the… Read more »
Taxing the Rich: It’s All Relative
Description: IT’S not just Tea Party activists who are angry about taxes. A much larger and more diverse group appears outraged that Congress is considering allowing the Bush tax cuts to expire at year-end for families earning more than $250,000 and for individuals earning more than $200,000 Source: NYTimes.com Date: 11/27/2010 Link: http://www.nytimes.com/2010/11/28/business/28view.html?ref=business Questions for… Read more »
Big arrest in insider-trading investigation
Description: First employee of ‘expert network’ in custody on conspiracy charges Source: Marketwatch.com  Date: 11/24/2010 Link: http://www.marketwatch.com/story/arrest-in-insider-trading-investigation-2010-11-24 Questions for discussion: What are the concerns here? Is there a way to truly control the dissemination of confidential information? How should the industry and regulators deal with this concern?
Investors on thin ice
Description: LPL Financial’s chief market strategist warns of ‘below average’ economic growth heading toward the New Year. Source: CNNMoney.com – video report Date: 11/19/2010 Link: http://money.cnn.com/video/news/2010/11/19/f_kleintop_holiday_market.cnnmoney/ Questions for discussion: Summarize the opinions expressed in the report. Do you agree with the arguments presented? Why do you think retail investors are continuing to flee equities? What… Read more »
Bernanke turns up heat on China currency policy
Description: Slow pace of adjustment has thrown off natural rebalancing Source: Marketwatch.com  Date: 11/18/2010 Link: http://www.marketwatch.com/story/bernanke-turns-up-heat-on-china-currency-policy-2010-11-18?siteid=nwtwk Questions for discussion: Explain the basis of Bernanke’s complaint. Do you agree with his position? What do you expect the Chinese regulators to do? How should investors and financial managers react to this report?
