9-711-015 REV: DECEMBER 13, 2010 GUNNAR TRUMBULL ELENA CORSI ANDREW BARRON Santander Consumer Finance Centralization only makes sense if the final result is better than the simple sum of the parts. — Magda Salarich, CEO, Santander Consumer Finance Introduction On March 25, 2008, Magda Salarich Fernández de Valderrama, the Chief Executive Officer (CEO) of Santander Consumer Finance (SCF), a division of Grupo Santander, looked out across the bank’s shining new campus, the Ciudad Financiera
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citizens has been a major problem for a few years now that is greatly affecting our economy. The problem of the rise in the unemployment rate in the U.S can be solved by big business’ creating more jobs in their companies, banks approving more business loans for small businesses, and the government giving out stimulus packages to the people to help boost the economy. This is a problem that must be solved if the United States wants to move forward in a better economy. The spike in unemployment has
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Money versus capital markets: Money markets are markets where money is borrowed for short time periods, usually less than a year. Here the loans are used mainly to manage cash in a corporation. If a firm has excess cash, it will lend it to a firm who need cash for a short time period. Money markets are known for their low risk participants. The loans in the money market are low risk, low interest, and short-term. Capital markets are long-term financial markets. Here companies raise funds
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Applying John Kotter’s 8 step change model on the recent change management success at SBI Yogesh Kamath Assistant Professor – Marketing & HR, Rustomjee Business School, Mumbai Freelance Journalist – Point-of-Purchase magazine, V J Media Works Publications ------------------------------------------------- E-mail: yogesh.rbs2010@gmail.com ------------------------------------------------- For Conference: Peter. F. Drucker Memorial 4th National Seminar on “Opportunities & Challenges
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firm or other equity investor, your Business Plan should emphasize their return on investment when the business performs well. On the other hand, if your audience is a bank lender or other debt investor, your Business Plan should emphasize how the loan is protected in the event the business performs only moderately or fails. Lenders often require collateral and want to see forecasts of stable cash flows needed
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TASK 1 The recession has left many people without jobs. Assuming that you have been laid off by your company and you have personal savings of £50,000. You have been contemplating what to do next and your friend has advised you to start your own business and be your own boss. You decide to carry out research on which business to engage in and how to raise the required finance. You are required to start a new business as a sole trader, or partnership or company with start-up capital of at least
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They were more concerned about maximizing volume and getting fee out of it. Mortgage loans nearly quadrupled and the cost of homes doubled. Leverage limits were lifted on the investment banking industry which allowed them to borrow more money. Investment banks begin using credit default swaps to bet against the same mortgage securities that they are selling as extremely safe. They preferred subprime loans because they carried higher interest rates, which lead to an increase in predatory lending
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mk-to $250,000 in 2006. The maximum loan that Metropolitan would makl' to any onc borrower was $250,000, and Jones had been able to stay within thc Iimit only by relying very heavily on trade credit from the manufacturers from whom Jones purchased the ek'Ctrìcal products it sold to its customers. Nelson Jones, sole owncr and president of the company, was thcrcfore looking clsewhere for a new banking relationship that would allow him to negotiate a larger loan. Jim lyons, a homebuilder who was a friend
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questions. We can do that by having our financial statements and our analysis notes on hand to present. We want to show how all of our payments have been paid in a timely manner. We want to explain why additional loans were taken out and what the terms of the loan is such are; the length of the loan and the interest rate. We want to show how the company is generating money by comparing this year’s cash activities with last year’s. We will also want to show how solvent the company is and that the company
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how much the borrower is truly borrowing and how much the lender is receiving. When the borrower repays the principle loan, they lender may not be able to purchase as much goods and services, then when originally loaned. This is because when the loan was initially issued the money was worth more than when the borrower repaid the loan. Once the borrower receives their loan, they should purchase goods and services before prices rise, an inflationary premium. On the other hand, the real rate of
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