mortgages they represented. As the “Giant Pool of Money” shows, one major bias exemplified by the individuals was “confirmation trap”. Credit rating agencies rated MBS as “AAA” implying they were as safe as US Treasury Bonds which were the traditional investment choice of the global pool of money. The data used for this rating was based on relatively recent history of mortgages with low foreclosure rates. However this data did not apply to the new kinds of mortgages that were being issued. [1] The use of
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Journal of Banking & Finance 27 (2003) 1297–1321 www.elsevier.com/locate/econbase Corporate governance, dividend payout policy, and the interrelation between dividends, R&D, and capital investment Klaus Gugler * Department of Economics, University of Vienna, WP No. 9803, Br€nnerstrasse 72, 1210 Vienna, Austria u Received 12 October 2000; accepted 5 November 2001 Abstract This paper investigates the relationship between dividends and the ownership and control structure of the firm. For a panel
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of its emergency aid to troubled financial firms, setting a course that could culminate with the government nationalizing some of the country's largest banks by taking a controlling ownership stake. Administration officials said the change, which allows banks to repay the government with common stock rather than cash, is intended to give banks more capital to withstand a continued deterioration of the economy, and not to nationalize the banking system. But in seeking to bolster investor confidence
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UK Govt are planning to put forward a regulation reform that will force the banks to separate their retail banking from the rest of their businesses and above all the riskier investment operations and to increase the amount they have to keep in capital in the bank as a buffer against future shocks. However not all stakeholders agree with the UK government proposed reforms. Many industries has added their voices to the banks in claiming that structural reform will reduce lending volumes and also render
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| |Timeslot | | |Credit Rating For Module |15 | Module Summary CODE: FS3032C TITLE: Capital Markets: Investment & Portfolio Management BRIEF DESCRIPTION: The world of finance has changed tremendously in the last few decades. Domestic financial markets are integrating more and more and businesses are becoming global. As the core component of the world
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that the high interest rates imperil the ability of the domestic firms and banks to pay back the external debt and thereby reduce the probability of repayment. As a result, high interest rates lead to capital outflows and thereby depreciation of the currency. The exchange rate regime in our country has undergone a significant change during 1990s. Until February 1992, exchange rate in India was fixed by the Reserve Bank of India. Thereafter a dual
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of any other degree or diploma of another Business school or University. The findings and conclusions of this report are based on our personal study and experience. PRATISHTHA GAUR Introduction of the company State Bank of India Financial Services company State Bank of India is a multinational banking and
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Impact of Investment in Human Resource Training and Development on Employee Effectiveness in Nigerian Banks Khadijat Adenola Yahaya (Mrs. ) Department of Accounting and Finance, University of Ilorin Abstract The success of any organization depends on the ability of its human resource to utilize other resources such as capital, equipment and land for the achievement of organizational objectives. Human resource thus requires the necess ary attention in order t o achieve corporate objectives
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gearing ratio further 2. Make clear recommendations to the company on how to finance their expansion? Raven Construction PLC now requires £1.2m for its current planned expansion. Raven may find it very difficult to borrow more money from the bank and will need to consider all options to generate the finance it requires. Finance can either be generated from internal and external sources. Internal sources include retained profit and potential sale of assets while external sources could either
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Bernard Madoff’s ponzi scheme was the largest in the history which defrauded investors out of as much as $65 billion. David Friehling, the leading auditor of Bernard L. Madoff Investment and Securities’ (BLMIS), was sentenced for aiding Madoff with investment advisor fraud, and filing false audit reports with the SEC. Since then, people are paying more and more attention to auditors’ and accountants’ legal liability. This document will describe the ways in which BLMIS auditor disregarded his responsibility
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