Enduring TARP woes

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Description:  Elizabeth Warren, chairwoman of the TARP oversight committee, shares her two biggest worries looking forward.

Source: CNNMoney – video report
 
Date: 11/20/2009

Link: http://money.cnn.com/video/news/2009/11/20/n_la_warren_tarp_concerns.cnnmoney

Questions for discussion: 

  • Summarize the concerns expressed in this interview.
  • Do you share in these concerns? Explain your thinking.

Small business loans: $10 billion evaporates

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Description: Reports to the Treasury confirm what small business owners have known all year: Banks are cutting back on Main Street lending. Eight months after President Obama began prodding the nation’s banks to increase their small business lending, the loan numbers continue to move in the opposite direction.

Source: CNNMoney.com

Date: 11/17/2009

Link:  http://money.cnn.com/2009/11/16/smallbusiness/small_business_loans_evaporate/index.htm

Questions for discussion:

  • Summarize the situation for small businesses as outlined in the article.
  • What are the future consequences for small businesses? Explain you answer.
  • How should this credit issue be addressed by government and the banks? Explain your thinking.

Ferrero, Hershey mull Cadbury bid, Kraft seen No.1

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Description: Italy’s Ferrero and U.S.-based Hershey Co are considering a bid for chocolatier Cadbury Plc (CBRY.L), but Kraft Foods Inc (KFT.N) is still seen as the front-runner with its $16.8 billion hostile offer.

Source: Reuters.com

Date: 11/18/2009

Link: http://www.reuters.com/article/ousivMolt/idUSTRE5AH14V20091119

Questions for discussion:

  • Summarize the financial reasons favouring the acquisition of Cadbury by Ferrero and by Hershey.
  • Which firm do you believe would derive the greater financial benefit from the acquisition? Explain your thinking.

S&P, Moody’s and Fitch Are Sued by Ohio Over Ratings

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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.

Google’s new mobile ad plan

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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? 

Intel settlement: The power of emails

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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.

U.S. regulators squeeze banks on future tax assets

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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?

Bair Says Using TARP for Bank Capital Helped Fuel Public Outcry

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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?

Prechter`s Predictions

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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?

Berkshire Hathaway for $68? Sweet!

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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?