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 »

Decline in U.S. Stocks Pays Options Traders 75% Profit on VIX

Posted by & filed under Growth & Valuation, Market Analysis.

Description:  The biggest sell-off in the Standard & Poor’s 500 Index since March is rewarding options traders who bet on a surge in volatility with gains of 75 percent. Source: Bloomberg.com Date: 01/23/2010 Link: http://www.bloomberg.com/apps/news?pid=20601103&sid=aZOPq7yDKhng Questions for discussion: What sort of risk is involved with these instruments? Who would be interested in them? Do you… Read more »

How the financial system fell apart

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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… Read more »

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.

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… Read more »

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. Embedded video from CNNMoney.com Video 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… Read more »

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… Read more »

McDonald’s Closes in Iceland After Krona Collapse

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Description: Iceland’s McDonald’s Corp. restaurants will be closed at the end of the month after the collapse of the krona eroded profits at the fast-food chain, McDonald’s franchise holder Lyst ehf said. Source: Bloomberg.com Date: 10/26/2009 Link: http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aNNKbYNHF_Og Questions for discussion:  Explain why businesses that are dependent on imported materials are at greater financial risk… Read more »