Description: On today’s “Bloomberg University,” Dominic Chu explains “too big to fail.” He speaks on Bloomberg Television’s “Bottom Line.” (Source: Bloomberg) Source: Bloomberg.com – video report Date: Apr 26, 2013 Link: http://bloom.bg/11Jq2YW Questions for Discussions: Summarize the lesson presented. Do you believe risk increases with the size of the organization? How should regulators deal with… Read more »
Posts Categorized: Management Issues
George Soros Isn’t Dead, and Neither (He Hopes) Is J.C. Penney
Description: The news that George Soros has taken a 7.9 percent passive stake in J.C. Penney (JCP) brings to mind an old TV commercial from my childhood. In it, two boys stare with disgust at a bowl of Life cereal that their mother naively mentioned was good for them. They then push it in front… Read more »
KPMG rocked by alleged insider trading
Description: KPMG resigned Tuesday as the auditor of Herbalife and Skechers after the partner in charge of the accounting firm’s Los Angeles audit practice was alleged to have engaged in insider trading. Source: Marketwatch.com Date: Apr 09, 2013 Link: http://www.marketwatch.com/story/kpmg-steps-down-as-herbalife-auditor-2013-04-09?siteid=nwtwk Questions for Discussions: Summarize the highlights in this report. What can management and regulators do… Read more »
Low-Cost Drugs in Poor Nations Get a Lift in Indian Court
Description: People in developing countries worldwide will continue to have access to low-cost copycat versions of drugs for diseases like H.I.V. and cancer, at least for a while. Source: NYTimes.com Date: Apr 01, 2013 Link: http://www.nytimes.com/2013/04/02/business/global/top-court-in-india-rejects-novartis-drug-patent.html?_r=0 Questions for Discussions: What is the basis for the decision? Do you think this will become a growing financial… Read more »
The Troubling Return of Credit Bubble Factors Like CDOs
Description: Data point No. 1: Banks are back to hawking complex derivatives that magnify bets on corporate debt. Data point No. 2: For the first time since the financial crisis, JPMorgan Chase (JPM) is set to resume selling securities tied to home loans that aren’t backed by the government. Add a third development—the feverish revival… Read more »
When David Einhorn Talks, Markets Listen—Usually
Description: It was shaping up as an especially good episode of The David Einhorn Show. The founder of the $8.8 billion hedge fund Greenlight Capital was speaking in May 2012 at his favorite venue, the Ira W. Sohn Investment Research Conference, held that year at New York’s Lincoln Center, to a packed audience of money… Read more »
Spinoff of Time Inc. Rattles Employees
Description: It was an elite reception at a glittery Manhattan setting: prominent media figures like Gayle King and Lesley Stahl gathered on the 10th floor of the Time Warner Center on Monday night to toast Sheryl Sandberg, the Facebook executive who recently released a book about her life. Source: NYTimes.com Date: Mar 13, 2013 Link:… Read more »
How Big Losses Distorted JPMorgan’s Sense of Reality
Description: Time-tested wisdom on Wall Street is that when a trade you made is losing money, you should swallow hard and get out of the position before things get even worse. Cut your losses. But when JPMorgan Chase (JPM) started losing big on its London Whale trade last year, traders and executives all the way… Read more »
Google Is Replacing Apple as Most Owned Stock
Description: RBC Internet Analyst Mark mahaney looks at the performance of internet stocks. He speaks on Bloomberg Television’s “Street Smart.” (Source: Bloomberg) Source: Bloomberg.com – video report Date: Mar 08, 2013 Link: http://bloom.bg/X4Agof Questions for Discussions: Explain the reasons for Google’s stock movement. Based on the factors discussed in the report, would you be a… Read more »
Imagining a Swap Meet for E-Books and Music
Description: The paperback of “Fifty Shades of Grey” is exactly like the digital version except for this: If you hate the paperback, you can give it away or resell it. If you hate the e-book, you’re stuck with it. Source: NYTimes.com Date: Mar 07, 2013 Link: http://www.nytimes.com/2013/03/08/technology/revolution-in-the-resale-of-digital-books-and-music.html?hpw&_r=0 Questions for Discussions: How will the new sharing… Read more »
