FDIC: Bonus culture needs to change

Posted by & filed under Governments & Regulators, Industry Analysis.

Description:  FDIC Chairwoman Sheila Bair is concerned with the lack of real change in big banks’ operations and compensation. Source: CNNMoney – video report   Date: 01/22/2010 Link: http://money.cnn.com/video/news/2010/01/22/n_fdic_bair_bank_bonuses.cnnmoney/ Questions for discussion: Summary the ideas put forward by Sheila Bair. Do you support her position? Explain your thinking. How do you think the investment industry… Read more »

Obama proposes new limits on big bank risky trading

Posted by & filed under Governments & Regulators, Industry Analysis.

Description: In his toughest response yet to the financial crisis, Obama proposed Thursday that strict limits be imposed on the size and trading activities of the nation’s biggest banks. The proposal aims to deter commercial banks from becoming so large that they put the broader economy at risk and distort normal competitive forces. The president… Read more »

Investors brace for earnings, Bernanke vote

Posted by & filed under Economic Analysis, Governments & Regulators.

Description: Stocks could see choppy trading next week with the latest batch of earnings and uncertainty over Ben Bernanke’s Senate confirmation for another term as Federal Reserve chairman. Source: Reuters.com Date: 01/23/2010 Link:  http://www.reuters.com/article/idUSTRE60M09920100123 Questions for discussion:  Follow up this article with a summary of corporate earnings reported this week? How did markets react? Why… Read more »

Goldman’s image crisis

Posted by & filed under Company Analysis, Industry Analysis, Management Issues.

Description:  The elite Wall Street firm is criticized for doling out $21 billion in bonuses this year and having sold toxic assets. Source: CNNMoney – video report   Date: 01/13/2010 Link: http://money.cnn.com/video/news/2010/01/13/n_goldman_public_attention.cnnmoney/ Questions for discussion: What are your impressions of the report with respect to the presentation of the culture of the firm and the… Read more »

JPMorgan Chase books $3.3 billion profit

Posted by & filed under Company Analysis, Financial analysis, Growth & Valuation.

Description: JPMorgan Chase showed it was close to making a full recovery from last year’s crisis after the company reported better-than-expected quarterly profits of $3.3 billion Friday. Source: CNNMoney.com Date: 01/15/2010 Link:  http://money.cnn.com/2010/01/15/news/companies/JPMorgan_Chase_earnings/index.htm Questions for discussion: Summarize the key points made in the report. What does the recovery by JPMorgan suggest about the financial future other financial institutions and stock… Read more »

Ackman Buys 2% Kraft Stake, Urges Cash for Cadbury

Posted by & filed under Company Analysis, Growth & Valuation, Industry Analysis.

Description:  Billionaire investor William Ackman bought a $950 million stake in Kraft Foods Inc. and urged its Chief Executive Officer Irene Rosenfeld to limit the amount of stock she uses to bid for Cadbury Plc. Source: Bloomberg.com Date: 01/16/2010 Link: http://www.bloomberg.com/apps/news?pid=20601103&sid=aSMnsSKPDuMk Questions for discussion: Do you think Ackman’s decision is a smart move? Do you… Read more »

Bove: ‘2010 a great year for banks’

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 Description:  Banking analyst Dick Bove thinks that this year will be a boon for battered banks. Source: CNNMoney – video report   Date: 01/04/2010 Link: http://money.cnn.com/video/markets/2010/01/04/mkts_dick_bove_2010.cnnmoney/ Questions for discussion:  Do you agree with the analysis and predictions presented by Dick Bove? Explain your thinking. Would you be a buyer or seller of the banks? Explain… Read more »

U.S. Stocks Rise Most in Two Months as Factory Orders Increase

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Description: U.S. stocks advanced, sending the Standard & Poor’s 500 Index to the biggest weekly gain in two months, as the nation’s manufacturing increased more than forecast and metal and oil prices surged. Source: Bloomberg.com Date: 01/09/2010 Link: http://www.bloomberg.com/apps/news?pid=20601103&sid=a.YfWoX7if4E Questions for discussion:  What does the article suggest is an important indicator of stock market performance?… Read more »

High-speed computerized trading

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Description:  High frequency trading offers opportunities by the millisecond and a bundle of regulatory issues. Source: CNNMoney – video report   Date: 12/30/2009 Link: http://money.cnn.com/video/markets/2009/12/30/mkts_high_frequency_trading.cnnmoney/ Questions for discussion:  What are the primary reasons for the fast growth in market share for this software? Do you believe that this sort of software presents any special problems… Read more »

Bernanke Says Low Rates Didn’t Cause Housing Bubble

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Description: Federal Reserve Chairman Ben S. Bernanke said the central bank’s low interest rates didn’t cause the past decade’s housing bubble and that better regulation would have been more effective in limiting the boom. Source: Bloomberg.com Date: 01/03/2010 Link: http://www.bloomberg.com/apps/news?pid=20601087&sid=auCLZh_HZf9E&pos=1 Questions for discussion:  Do you agree with Ben Bernanke’s views about the cause of the… Read more »