Law: Legal Environment Online Commerce, Business Ethics and International Issues. (Seven Edition) New Jersey, NJ. Pearson Prentice Hall Case 16.10 Intentional interference with contractual relations Pacific Gas and Electric Company (PGEC) v Bear Stearns & company deals with a long term agreement between PGEC and Placer County Water Agency. Where Placer County
Words: 1203 - Pages: 5
Relations The case between PG & E v. Bear Stearns is an example of “a tort that arises when a third party induces a contracting party to breach the contract with another party.” (Cheeseman 257) PG & E can sue Bear Stearns based on the basis of the intentional interference with contractual relations tort. PG & E entered into a contract with Agency and Bear Stearns induced Agency to breach the contract with PG & E. PG & E and Bear Stearns have approximately 15 – 20 years left before
Words: 714 - Pages: 3
Bankruptcy of Lehman Brothers Causes CAUSES Malfeasance A March 2010 report by the court-appointed examiner indicated that Lehman executives regularly used cosmetic accounting gimmicks at the end of each quarter to make its finances appear less shaky than they really were. This practice was a type of repurchase agreement that temporarily removed securities from the company's balance sheet. However, unlike typical repurchase agreements, these deals were described by Lehman as the outright
Words: 405 - Pages: 2
derivatives were thwarted by the Commodity Futures Modernization Act of 2000, backed by several key officials. In the 2000s, the industry was dominated by five investment banks (Goldman Sachs, Morgan Stanley, Lehman Brothers, Merrill Lynch, and Bear Stearns), two financial conglomerates (Citigroup, JPMorgan Chase), three securitized insurance companies (AIG, MBIA, AMBAC) and the three rating agencies (Moody’s, Standard & Poor's, Fitch). Investment banks bundled mortgages with other loans and debts
Words: 584 - Pages: 3
2009). The circumstances revolving around the fraudulent issues for JPMorgan began in 2008. It was involved in a massive fraud of residential mortgage backed securities in the billion of dollars. It was widespread fraud leading to the financial collapse of 2008. “Which lead to JPMorgan Chase facing class action lawsuits that claims it defrauded New Jersey residents who applied for the Home Affordable Mortgage Program, a federal program that is designed to help homeowners in danger of defaulting
Words: 584 - Pages: 3
yield on the benchmark 10-year note rising to 5.249%. June 14 -- Bear Stearns reports a 10% decline in quarterly earnings as the mortgage market shows signs of cracking. Chief Financial Officer Sam Molinaro says, ``We are impacted in a weaker mortgage market until that industry turns around.'' June 18 -- Reports say Merrill Lynch seized collateral from a Bear Stearns hedge fund invested heavily in subprime loans. June 22 -- Bear Stearns commits $3.2 billion in secured loans to bail out its High-Grade
Words: 2135 - Pages: 9
In the spring of 2008, the world was hit by the worst Financial Crisis since World War 2. The crisis began during the Reagan administration and concluded a couple decades later with the collapse of the housing bubble. Behavioral Finance defines the term “bubble” as an event occurring before a market crash due to overvalued market prices (Ricciardi 2000). The housing bubble, which grew alongside the stock bubble in the mid 90’s, eventually burst, and a financial meltdown ensued. Initially, one bank
Words: 1345 - Pages: 6
surpassed those of previous bankrupt giants such as WorldCom and Enron. Lehman was the fourth-largest U.S. investment bank at the time of its collapse, with 25,000 employees worldwide. Lehman's demise also made it the largest victim, of the U.S. subprime mortgage-induced financial crisis that swept through global financial markets in 2008. Lehman's collapse was a seminal event that greatly intensified the 2008 crisis and contributed to the erosion of close to $10 trillion in market capitalization
Words: 1770 - Pages: 8
LEHMAN BROTHERS: TOO BIG TO FAIL? WILLIAM RYBACK LEHMAN BROTHERS: TOO BIG TO FAIL? Copyright by the Toronto Leadership Centre. This case was prepared exclusively for a class discussion at a Banking, Insurance or Securities session offered by the Toronto Centre. Information has been summarized and should not be regarded as complete or accurate in every detail. The text should be considered as class exercise material and in no way be used to reach conclusions about the nature or behaviour
Words: 4616 - Pages: 19
MGMT 597 Week 2 Assignment: Cases 14.2, 16.10, 18.2, 20.3 Ifeyinwa Onyekwena Keller Graduate School of Management 14.2 - Real Property Robert Briggs and his wife purchased a home located at 167 Lower Orchard Drive, Levittown, Pennsylvania. They made a down payment and borrowed the balance on a 30-year mortgage. Six years later, when Mr. and Mrs. Briggs were behind on their mortgage payments, they entered into an oral contract to sell the house to Winfield and Emma Sackett if the Sacketts would
Words: 1319 - Pages: 6
