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Description:  PIMCO CEO Mohamed El-Erian explains how collapse of Lehman Brothers destroyed confidence in the economy.

Source: CNNMoney – video report
 
Date: 12/10/2009

Link: http://money.cnn.com/video/fortune/2009/12/08/f_cs_pimco_food.fortune/

Questions for discussion: 

  • Summarize the reasons given for the financial crisis.
  • Do you believe the fear expressed by El-Erian was experienced by everyone? Explain your answer.
  • How do you think financial managers will handle risk in the future, now that we have experienced this period of unrest?

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Description: Kenneth Feinberg limits pay to 500,000 for hundreds of employees at AIG, General Motors, Citigroup and GMAC.

Source: CNNMoney.com

Date: 12/11/2009

Link:  http://money.cnn.com/2009/12/11/news/companies/feinberg_compensation/index.htm

Questions for discussion:

  • What are the arguments put forward that favour limiting the pay of executives at these firms?
  • Do you agree with these arguments?
  • What are possible consequences of this approach?
  • Do you believe this represents micro-managing by government? Explain your thinking.

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Description:  There is nothing wrong with the IPO market that a few quality companies could not cure. That is what analysts insisted after a week of disappointing offerings that seemed to deflate a budding recovery in the market.

Source: Reuters.com

Date: 12/11/2009

Link: http://www.reuters.com/article/idUSN1126572920091212

Questions for discussion:

  • Summarize the arguments given for the weak response to recent IPOs.
  • Do you agree with the explanations? Explain your answer.
  • What financials would you look for in an IPO? Explain your thinking.

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Description: Goldman Sachs Group Inc., which took $10 billion in U.S. bailout funds last year, shouldn’t get taxpayer support if the firm focuses on trading over banking, according to former Federal Reserve Chairman Paul Volcker.

Source: Bloomberg.com

Date: 12/12/2009

Link: http://www.bloomberg.com/apps/news?pid=20601103&sid=a.O8G_pyd5ZE

Questions for discussion:

  • Summarize the highlights of the story.
  • How might this impact the operations of the financial services industry and regulatory bodies? Explain your thinking

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Description:  Fortune’s Andy Serwer is skeptical that the proposed Comcast-NBCU deal will work better than previous media mergers.

Source: CNNMoney – video report
 
Date: 12/02/2009

Link: http://money.cnn.com/video/fortune/2009/12/02/f_sl_nbc_comcast.fortune/

Questions for discussion: 

  • Summarize the reasons given for the acquisition of NBC by Comcast.
  • Do you believe this was a good financial deal? Explain your answer.

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Description: Taken all in all, Dubai’s debt crisis is the most significant financial development of 2007. Here in late 2009 it amounts to far less.

Source: Reuters.com

Date: 12/01/2009

Link:  http://www.reuters.com/article/idUSN3058513220091201

Questions for discussion:

  • Summarize the opinions presented in this article.
  • Do you agree with these views? Explain your thinking.

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Description: European banks are emerging from the credit crisis bigger than before, posing more risk to their national economies.

Source: Bloomberg.com

Date: 12/02/2009

Link: http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aRDrzOAWRekc

Questions for discussion:

  • Summarize the arguments given for concern?
  • Do you share those concerns? Explain your answer.
  • Should the banks be regulated more? Explain your thinking.

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Description: The world’s most expensive office markets got a little cheaper this year. More than 130 cities worldwide had declines in rent expenses in the year ended Sept. 30, CB Richard Ellis Group Inc. said in a report today. Almost 50 cities reported declines of more than 10 percent. Rental costs fell about 30 percent in Midtown Manhattan, 53 percent in Singapore and 41 percent in central Hong Kong. Overall, rents fell an average 7.7 percent across 179 markets worldwide.

Source: Bloomberg.com

Date: 12/01/2009

Link: http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aB6krhuvVZbU

Questions for discussion: 

  • Summarize the highlights of the story.
  • How will this impact the operations of businesses that own real estate for rental and those that do the renting?
  • Explain why Brazil’s financing situation is different and how it has impacted business in that country.
  • Are there financial lessons to be learned from Brazil? Explain your answer.

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Description:  President and CEO Terry Lundgren says sales are slowly increasing as the department store chain trims excess inventory.

Source: CNNMoney – video report
 
Date: 11/27/2009

Link: http://money.cnn.com/video/news/2009/11/27/n_macyceo_quest.cnnmoney/

Questions for discussion: 

  • Summarize the reasons for expected financial improvements over last year?
  • Do you share these beliefs? Explain your thinking.
  • How else can retailers act to improve their financial performances?

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Description: Although there’s little direct exposure to Dubai World’s default risk, U.S. financial institutions could take major indirect hits.

Source: CNNMoney.com

Date: 11/27/2009

Link:  http://money.cnn.com/2009/11/27/news/companies/Dubai_bank_risks/index.htm

Questions for discussion:

  • Summarize the reasons for concern about how this problem might affect U.S. banks.
  • Do you believe this concern is justified? Explain your thinking.
  • What would justify the debt created by Dubai in the past?
  • Is that argument still justified for the future? Explain your thinking.