Subprime lending

Two unsuccessful mergers/acquisitions were Bank of America’s acquisition of Countrywide and the AOL and Time Warner merger. Bank of America made the decision to acquire Countrywide at what was considered a low price of $2.5 billion dollars. AOL and Time Warner merged their company together as “AOL would own 55 percent of the new company and Time Warner, 45 percent. But the new board would have an equal number of AOL and Time Warner directors” (Arango, 2010, para. 25). Both of these deals are…

The job I had accepted assumed directorship of a 50-man comprehensive information technology department with a history of perennially poor management, incoherent staff development, technologies, internal policies and procedures. However, no sooner than concluding the first day on the job, the chief operating officer had apparently gone snooping around my office only to discover an inadvertent disregard for one of their key rules - all desks must be clean before leaving. Had I been informed?…

reappear, the effects to the worlds economies is to high. Financial markets are not continually self-adjusting or self-regulating, the effects of the early 1980’s recession, Black Monday, the 1994 Mexican Peso crisis, the dot-com bubble, the 2008 subprime mortgage crisis in the US and the European Sovereign debt crisis, should have been enough of a warning sign, including the now infamous 1998 bailout of the hedge fund Long Term Capital Management. However, nevertheless with all these cautionary…

Executive Summary This assignment aims at analysing the latest problem facing South Africa: The Eskom power breakdowns. This problem has become continuous over the long run and could lead to a great deal of economic loss for the country. The highlight of the assignment is to critically identify what went wrong in the management of Eskom, identify the possible departments that were responsible for this problem and what were the responses to the power cuts that have been impacting the nation.…

The 2008 meltdown had taught lessons to essential market actors, such as banks, governments and nations worldwide of interconnected actions and following consequences of financial hardships. The introduction of Emergency Economic Stabilization Act of 2008 and the fact of actually surviving the meltdown had slowly earned back Americans’ trust in real estate market investments as of today. Real estate seems to be a great method for people to invest their money in until obtaining an ownership or…

In 2007 the financial market plummeted along with the housing market. This event overwhelmed the economy and the real estate market as a whole. Millions faced foreclosure and short sales; thousands lost their homes. Many had to relocate while others faced homelessness. There was a domino effect; vacant homes created increased crime and as a result buyer confidence declined for those who were financially able to buy. Homeowners were underwater; their mortgages were greater than what their homes…

When a mirror is broken, the guilty party is in for seven years of bad luck; similarly, when a home undergoes foreclosure, the homeowner is in for seven years of bad credit. Nearly 2 million homes went into foreclosure during the real estate and mortgage meltdown. After seven years of piecing together their credit, many of these former homeowners qualify for a mortgage again. These potential buyers are referred to as boomerang buyers. Despite the repair of their credit, the shattering of…

billion. Many focused on AIG’s Financial Product Group because they had written credit default swaps and other derivatives that totaled $2.7 trillion” (Ferris, S., 2013). By 2008, the group had unrealized losses of more than $30 billion due to the subprime debt crisis. Many of AIG organizations were demanding the margin calls on derivatives and AIG do not have the cash to do so. So,…

of debts WEAKNESSES (W) W1 Significant reliance only one business W2 Sluggish marketing strategy OPPORTUNITIES (O) O1 Technology advancement O2 Globalization O3 Population growth O4 WTO O5 AFTA S1,O2 W1,O1 THREATS(T) T1 Inflation T2 Tainted money lending industry reputation due to loan shark activities T3 Interest rate uncertainty S1,T3 S3,T1,T3 W1,W2,T2 6.0 RATIO ANALYSIS 1. Liquidity Ratio • Short-term liquidity measures Hwang Capital does not incur current liabilities to sustain its business…

The Penny Saver Supermarket business started (28) twenty eight years ago. The company evolved from the businesses which was called Warner Supermarket and a Hardware called “Luwar” that was run by Luther Warner. Luther Warner has a credit issues due to outstanding debts from customers and the business became unmanageable. He left the country and went to the United States to seek higher education and sold books on the streets part-time to survive while he studied. In the 1970’s bookselling did…