Description: The Securities and Exchange Commission may create a “fraud college†to train staff in detecting market abuses after the agency failed to stop Bernard Madoff’s $65 billion Ponzi scheme, Chairman Mary Schapiro said. Source: Bloomberg.com Date: 9/03/2009 Keys: SEC, stock market, fraud Link: http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aO6As7nsq.wo Questions for discussion: Do you think this effort will help… Read more »
Posts Categorized: Uncategorized
Dainippon to buy US drug firm Sepracor for $2.6 bln.
Description:Â Â Dainippon Sumitomo Pharma Co Ltd (4506.T) agreed on Thursday to buy U.S. drugmaker Sepracor Inc (SEPR.O) for $2.6 billion, giving the Japanese firm a big, local sales force in the world’s largest drugs market. The deal is the latest in a string of overseas acquisitions by Japanese drugmakers keen to grow outside a mature… Read more »
Deficit in critical condition
Former US Comptroller David Walker says the cost of health care reform will increase the long-term deficit. Source: CNNMoney – video report  Date: 8/26/2009 Keys: Economy, taxes, business expenses, HR Link: http://money.cnn.com/video/news/2009/08/26/n_walker_deficit.cnnmoney/ Questions for discussion: Summarize the comments made about the state of the economy and taxation. How might a national health tax and… Read more »
AIG stock up 264% in August
AIG’s stock closed at $47.84 on Thursday. At the start of the month, shares were trading at a mere $13.14. What’s going on here? Source: CNNMoney.com Date: 8/27/2009 Keys: Banking, economy, investing Link: http://money.cnn.com/2009/08/27/news/companies/aig_stock/index.htm?postversion=2009082716 Questions for discussion: Summarize the reasons given for the remarkable rise is AIG’s stock market value? What do you think of… Read more »
Applying Roubini Wisdom to Stocks Means Missing Out (Update3)
Making money on the thinking of Nouriel Roubini isn’t what it used to be. The New York University professor, who in 2006 foretold the worst financial unraveling since the Great Depression, has yet to say the economy is worth investing in again. “There is a big risk of a double-dip recession,†wrote Roubini, also known… Read more »
Consumer spending up, but morale at 4-month low
Worries over high unemployment pushed U.S. consumer confidence to a four-month low in August, while spending rose modestly in July, indicating the economy’s recovery from recession would be lethargic. Source: Bloomberg. com Date: 8/28/2009 Keys: Economy, inventory planning Link: http://www.reuters.com/article/ousiv/idUSN2835824120090828 Questions for discussion: As a corporate finance manager planning inventories and projected cash flows for… Read more »
Costs of the minimum wage hike
The new minimum wage may mean higher prices for consumers as companies pay for higher payroll costs. Source: CNNMoney – video report Date: 7/24/2009 Keys: Budgeting, cash flow, expenses, working capital Link: http://money.cnn.com Questions for discussion: How might management of the food store respond to the rise in the minimum wage? Rank your choices starting… Read more »
Get ready for banking’s next headache
A weak economy and frozen financing markets could spell trouble for regional banks with big commercial loan portfolios. Source: CNNMoney.com Date: 7/27/2009 Keys: Finance, economy, investing Link: http://money.cnn.com Questions for discussion: Banks reflect the economic conditions that exist through the state of their loans to businesses and consumers. Summarize the reasons given for concern over… Read more »
Schumer Presses SEC for Ban on ‘Unfair’ High-Frequency Trades
Charles Schumer, the third-ranking Democrat in the U.S. Senate, asked the Securities and Exchange Commission to ban so-called flash orders for stocks, saying they give high-speed traders an unfair advantage. Source: Bloomberg.com Date: 7/25/2009 Keys: Stock market, valuation, trading, environment Link:Â http://www.bloomberg.com Questions for discussion: Do you think these new technologies should be regulated by… Read more »
Ericsson to Acquire Nortel Unit for $1.13 Billion
Ericsson AB, the world’s largest maker of wireless phone networks, will buy the wireless equipment unit of insolvent Nortel Networks Corp. for $1.13 billion after beating bids from Nokia Siemens Networks and MatlinPatterson Global Advisers LLC. Source: Bloomberg. com Date: 7/25/2009 Keys: Asset acquisition, bankruptcy, valuation, planning Link: http://www.bloomberg.com Questions for discussion: Why would Ericsson… Read more »
