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Description: Standard & Poor’s, Moody’s Corp. and Fitch Inc. were sued by Ohio Attorney General Richard Cordray, who said the three companies disregarded their responsibility to provide “accurate credit ratings of investments.”
Source: Bloomberg.com

Date: 11/20/2009

Link: http://www.bloomberg.com/apps/news?pid=20601103&sid=aSfRXwQ.8m5Q

Questions for discussion:

  • Summarize the arguments for and against the defendants in this case?
  • Do you agree with the tenets of this lawsuit? Explain your thinking.

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Description:  By acquiring upstart AdMob, Google improves its position while admitting flaws in its original approach to mobile ads.

Source: CNNMoney – video report
 
Date: 11/10/2009

Link: http://money.cnn.com/video/technology/2009/11/10/tm_google_ad_mov.fortune/

Questions for discussion: 

  • Do you believe this acquisition by Google is a good deal, financially speaking? Explain your thinking?
  • What are the pluses and minuses for Google in this deal and their respective monetary values? 

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Description: How emails played a role in Intel’s $1.25 billion settlement with AMD nine days after they were made public.

Source: CNNMoney.com

Date: 11/13/2009

Link:  http://money.cnn.com/2009/11/13/technology/intel_settlement_emails.fortune/index.htm

Questions for discussion:

  • Summarize the basis of the AMD’s lawsuit against Intel.
  • Do you believe Intel is financially better off because of the settlement with AMD? Explain your thinking.

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Description: U.S. regulators are looking hard at banks’ expected future tax benefits and the result for some financial institutions could be more writedowns.

Source: Reuters.com

Date: 11/13/2009

Link: http://www.reuters.com/article/ousivMolt/idUSTRE5AC5MW20091113

Questions for discussion:

  • Summarize the reasons for bank writedowns.
  • How would these banks be expected to be affected financially?

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Description: Federal Deposit Insurance Corp. Chairman Sheila Bair said using the Troubled Asset Relief Program to pump capital into banks was “not a good idea” and helped erode confidence in the regulatory system.

Source: Bloomberg.com

Date: 11/14/2009

Link: http://www.bloomberg.com/apps/news?pid=20601103&sid=ajKGz8NRQipM

Questions for discussion: 

  • Do you agree with the concerns expressed by Sheila Bair?
  • What alternatives exist for the banks involved?

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Description:  A perspective on the markets, with Bob Prechter, Elliott Wave International Founder & CEO and CNBC’s Maria Bartiromo.

Source: CNBC – video report
 
Date: 11/04/2009

Link: http://www.cnbc.com/id/15840232?video=1319011626&play=1

Questions for discussion:  

  • How do you think a dramatic change in stock market value suggested by Prechter would affect future financial planning in businesses? Explain your answer.
  • How does the technical analysis advocated by Prechter jive with other methods discussed in the textbook? 
  • Do you agree with his assessment of the stock market and his advice for investing?

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Description: Stock splits don’t change the value of a company. But a lower share price for Warren Buffett’s firm (and other triple-digit stocks) could attract more investors.

Source: CNNMoney.com

Date: 11/06/2009

Link:  http://money.cnn.com/2009/11/06/markets/thebuzz/index.htm?postversion=2009110616

Questions for discussion:

  • What are the reasons offered for creating stock splits? 
  • What do you think motivated the decision to create a stock split of this magnitude at Berkshire Hathaway?  Explain your answer.
  • How might Buffett`s decision to split the stock be related to the acquisition of the Burlington Northern Santa Fe railroad?

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Description: Johnson & Johnson plans to cut up to 7 percent of its workforce in order to generate cost savings needed to finance increasingly costly drug research and to weather future challenges, the diversified healthcare company said on Tuesday.

Source: Reuters.com

Date: 11/03/2009

Link: http://www.reuters.com/article/newsOne/idUSTRE5A229D20091103

Questions for discussion:

  • Summarize the reasons for the cost cutting measures?
  • Do you believe these decisions will result in long-term profitability? Explain your thinking.

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Description: Stanley Works agreed to purchase Black & Decker Corp. yesterday for $3.5 billion in stock after on-and-off talks that spanned almost three decades.

Source: Bloomberg.com

Date: 11/03/2009

Link: http://www.bloomberg.com/apps/news?pid=newsarchive&sid=ai7WJ.67rcVE

Questions for discussion: 

  • Summarize the financial reasons that motivate this merger.
  • Why do you think a merger was agreed to at this time, after so many years of discussions?

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Description:  Fortune’s Andy Serwer says that third-quarter economic growth was fueled mostly by government dollars.

Source: CNNMoney – video report
 
Date: 10/30/2009

Link: http://money.cnn.com/video/fortune/2009/10/30/f_sl_recovery_illusion.fortune/

Questions for discussion: 

  • Summarize the arguments presented for economic optimism as well as pessimism.
  • Are you optimistic or pessimistic about the current situation?
  • How do you think financial managers view the current state of the economy?  Explain your answer.