Description: News that JPMorgan Chase would pay a $13 billion fine, the largest government penalty levied on a single company, initially led to calls that CEO Jamie Dimon should step down. That’s not going to happen. Board members have rallied around Dimon. What’s more, it’s unlikely that Dimon had any direct involvement in the troubled… Read more »
Posts Tagged: Bankruptcy
BlackBerry Comeback Hampered by Vanishing Cash
Description: Investors are no longer wondering if BlackBerry Ltd. (BBRY) will run out of cash. For some, it’s now a question of when. Source: Bloomberg.com – video report Date: Nov 05, 2013 Link: http://bloom.bg/1iJ4iT1 Questions for Discussions: Do you think John Chen can successfully turn the firm around? Are the concerns over cash flow justified… Read more »
Is JPMorgan Getting a Bad Deal?
Description: In resolve a handful of state and federal investigations, JPMorgan Chase (JPM) has tentatively agreed to pay $13 billion—more, as my colleague Nick Summers points out, “than the combined salaries of every athlete in every major U.S. professional sport, with enough left over to buy every American a stadium hot dog.” Thirteen billion is also… Read more »
Default would be catastrophic for big banks
Description: If you think the JPMorgan and Wells Fargo earnings reports were disappointing, just wait until the fourth quarter if the shutdown continues and a debt default occurs. Source: Fortune.com Date: Oct 11, 2013 Link: http://finance.fortune.cnn.com/2013/10/11/shutdown-default-banks/?iid=SF_F_River Questions for discussion: Explain the reason for the dire predictions if the current government shut down continues. What does… Read more »
Meredith Whitney Wants to Invest Other People’s Money
Description: Meredith Whitney, the bank analyst who became famous for identifying problems at Citigroup (C) and other institutions ahead of the financial crisis, has shut down the brokerage and research arms of the firm she founded with her newfound prominence. The news, first reported by Bloomberg’s Max Abelson and Michael J. Moore, comes after a… Read more »
BlackBerry shares sink amid layoffs, expected $1B loss
Description: BlackBerry says it will cut 4,500 jobs across its operations, and expects to report a second-quarter loss of between $950 million to $995 million US when it issues its financial results next week. Source: CBC.ca – video report Date: Sep 20, 2013 Link: http://www.cbc.ca/player/News/TV%2BShows/The%2BNational/Technology%2B&%2BScience/ID/2407696489/ Questions for discussion: Summarize the collapse of BB share value. Is… Read more »
Obama’s Wall Street Bank Rescue Stabilized Economy at a Political Cost
Description: When Barack Obama took office, the economy appeared to be on the brink of catastrophe. Despite the previous administrations commitment of several trillion dollars from every available arm of government to prop up the reeling financial system, nothing seemed to have worked. Banks were still hemorrhaging cash, and it was feared some would go… Read more »
A Social Entrepreneur’s Quandary: Nonprofit or For-Profit?
Description: In 2002, at the age of 18, Saul Garlick started a program to fight poverty by building schools in rural South Africa. Source: NYTimes.com Date: July 10, 2013 Link: http://www.nytimes.com/2013/07/11/business/smallbusiness/a-social-entrepreneurs-dilemma-nonprofit-or-for-profit.html?ref=smallbusiness Questions for Discussions: What are the financial advantages and disadvantages of the switch to for-profit in this case? What would your advice be?
BlackBerry buyout unlikely
Description: Smartphone maker BlackBerry Inc. (BBRY) is “open” to going private, according to Reuters. How delightful. In related news, my toddler is “open” to getting a pony for her next birthday. Source: Fortune.com Date: August 09, 2013 Link: http://finance.fortune.cnn.com/2013/08/09/blackberry-buyout-unlikely/ Questions for Discussions: Summarize the financial conditions at the firm. Why is a buyout unlikely, according to… Read more »
It’s dawn of the dead for J.C. Penney
Description: Commentary: Kraft exec won’t make zombie story any less cheesy Source: Marketwatch.com Date: August 07, 2013 Link: http://www.marketwatch.com/story/its-dawn-of-the-dead-for-jc-penney-2013-08-07?siteid=nwtwk Questions for Discussions: What is the financial state of the firm and the reasons given for its condition? How critical is “management” of the firm to any chance of recovery? Would you be an investor today?
