Subprime lending

The fall of Citi bank and rise of Standard Chartered: Standard Chartered initially saw Citi bank as the leader in the banking industry. Citi bank gave a lot discountsto their customers in terms of collection of money .In turn they made a lot of loss in their portfolio. They were told by the government to reduce their losses for which instead of making the next sales better Citi bank opted for a poor strategy which backfired. Citi bank doubled their portfolio by giving free cards to existing…

relationship and do not expose us to unacceptable losses outside of our risk appetite. (Deutsche Bank, 2012) Irish Banks took on considerable Market Risk during the Celtic tiger era when there was significant pressure from competition to grow their mortgage lending books and market share. There was strong competition with a number of foreign owned banks entering the market due to the high returns available from property investment. Bank of Scotland Ireland’s (BOSI) entry into the Irish market…

2) Brief Summary of Margin Call The film is about an investment firm that is facing financial difficulties. The firm embarks on a retrenchment initiative to try and improve viability. It retrenches the head of risk management who was working on an important analysis regarding certain mortgage-backed security valuations being ‘overstated’ and the company’s overexposure to these securities. Before leaving, he hands the file over to one of his junior risk analysts with the words: “Be careful”. The…

378 How did the Great Recession impact racial disparities? When the housing market collapsed in 2008, it sent all Americans into a spiral. People lost value on their homes, their stocks went down, unemployment went up, and many people had to dip into their savings accounts to help them. This time became known as the Great Recession, or as many like to call it, the worst economic time for America since the Great Depression. In a Utopian society, if something like this were to happen, everyone,…

President Grant was considered a Civil War Hero by many in the Union and his opinions were held high and looked to for guidance in the political world. Grant like many military men distained politics, which is true even in today’s worlds, but found himself thrusted into it none the less. Grant openly disagreed with President Johnsons polices of a moderate Reconstruction and he quickly gained support from the Radical Republicans who also desired a more aggressive approach. With the support from…

REVIEW OF LITERATURE Economic literature is well documented with causes and effects of capital flight and external debt. According to Walter (1986) and Kindleberger (1987), capital flight is a capital that flees. When these resources are being lost in form of capital flight, there are various long term effects. Owing to out flow of capital there exists a shortage of liquidity in the economy which leads to the exertion of upward pressure on the interest rates. Similarly, the shortage of…

Introduction The tourism industry is one of the most important industries for developing countries worldwide and Grenada is absolutely no exception. As stated by Annie Kelly (2008), “Since the hurricane the government has been struggling to rebuild the island’s bankrupt economy and has been increasingly looking to tourism development as the answer to its woes.” As expressed above, hurricane Ivan has negatively affected the country of Grenada; killing dozens of people, damaging 90% of the…

In the case of Bernard Madoff, the problem was to learn how to avoid unethical behavior amongst businesses. Bernard "Bernie" Madoff's Wall Street career began in 1960 and ended Dec. 11, 2008, when he was arrested amid allegations he operated a $50 billion Ponzi scheme. He pleaded guilty to 11 felony counts on March 12, 2009, and was sentenced on June 29, 2009, to the maximum sentence of 150 years behind bars. The “Ponzi Scheme,” named after the 1920’s swindler Charles Ponzi, is a ploy where…

The United States healthcare system is facing serious financial issues that are causing many hospitals to either have to file bankruptcy or even shut down. In the past 6 years, over 50 hospitals has closed down, with many more following. One major issue for healthcare would be financial fraud. Many organizations are losing big money from the amount of fraudulent insurance claims being filed. According to The National Health Care Anti-Fraud Association( NHCAA), the estimated financial lost from…

Occupy Wall Street is a modern day historical ode to Thoreau-like civil disobedience. The occupiers were protesting the fact that Wall Street caused the 2008 financial crash, but were not held accountable. In fact, while average citizens suffered, Wall Street received bailouts. The occupiers saw a world where the interests of every day Americans were being ignored in favor of those who benefit from globalization. Much like Thoreau, the occupiers saw a government who was ignoring the needs…