Study Document
Introduction
The bank business sector is enormously impacted by the perceptive and imperceptive factors in an intensely competitive environment. In recent times, this competition has stiffened … environment. In recent times, this competition has stiffened all the more with the advancement of globalization. In each regard of their business operations, bank ought to take effective measures in order to diminish risk by pinpointing the prospective causes based on real-world circumstances. Imperatively, the bank sector is deemed to be a significant source of financing for several companies and entrepreneurs. In the past decade, there have been dramatic … of financing for several companies and entrepreneurs. In the past decade, there have been dramatic changes concerning the management of risk in the bank industry. Progressively more financial institutions and managers have augmented the focus on the significance of risk management. In delineation, risk management encompasses the … events or to capitalize in……
References
Bhattarai, Y. R. (2016). Effect of credit risk on the performance of Nepalese commercial banks. NRB Economic Review, 28(1), 41-64.
Das, A. and Ghosh, S. (2007). Determinants of Credit Risk in Indian State-owned Banks: An Empirical Investigation. Economic Issues, 12(2): 48-66.
Derelio?lu, G., & Gürgen, F. (2011). Knowledge discovery using neural approach for SME’s credit risk analysis problem in Turkey. Expert Systems with Applications, 38(8), 9313-9318
Garr, D. K. (2013). Determinants of credit risk in the banking industry of Ghana. Developing Country Studies, 3(11), 64-77.
Gizaw, M., Kebede, M., & Selvaraj, S. (2015). The impact of credit risk on profitability performance of commercial banks in Ethiopia. African Journal of Business Management, 9(2), 59-66.
Johnson, B., & Christensen, L. (2008). Educational research: Quantitative, qualitative, and mixed approaches. New York: Sage.
Kithinji, A. M. (2010). Credit risk management and profitability of commercial banks in Kenya. (Doctoral dissertation, University of Nairobi).
Limam, I. (2001). Measuring technical efficiency of Kuwaiti banks. Kuwait: Arab Planning Institute.
Study Document
… on the other hand have seen business dry up due to mandated quarantine orders. Small business owners and large corporations have filed for bank. All of this impacts the bank sector and Wells Fargo specifically because of its role in managing loan products, using interest rates to attract savers, and offering investment advice. … creditors began defaulting on loans and the price of credit default swaps skyrocketed. Moral hazard came back to bite a number of high-profile bank that were left with millions if not billions in mortgage-backed securities for which…[break]…premium is determined by the market and is usually priced according … is an international competitor of Wells Fargo and tends to succeed more than it its competitors because of a healthy risk culture. The bank does not seek to avoid risk but rather embraces and takes risks. It does so knowing that it has strong protections in place,……
References
Beasley, M. (2020). How to Leverage ERM Principles to Better Respond to COVID-19-Related Risks. ERM Professional Insights.
Derysh, I. (2020). Watchdog questions why Wells Fargo reported giving only one large PPP loan to a Black-owned business. Retrieved from https://www.salon.com/2020/07/22/watchdog-questions-why-wells-fargo-reported-giving-only-one-large-ppp-loan-to-a-black-owned-business/
English, C. (2020). Wells Fargo Forced to Cut Its Dividend After Fed Stress Test. Here’s What Other Banks Did. Retrieved from https://www.barrons.com/articles/wells-fargo-forced-to-cut-its-dividend-after-fed-stress-test-51593467664
Hall, J. (2007). Internal Auditing and ERM: Fitting in and Adding Value. Retrieved from https://global.theiia.org/about/about-the-iia/Public Documents/Sawyer_Award_2007.pdf
Kaplan, R. & Mikes, A. (2012). Managing risks: A new framework. Harvard Business Review, 3.
Lewis, M. (2010). The Big Short. NY: W. W. Norton.
Lundqvist, S. (2014). Abandoning Silos for Integration: Implementing Enterprise Risk Management and Risk Governance. Lund University.
Morgenson, G. (2020). More Wells Fargo customers say the bank decided to pause their mortgage payments without asking. Retrieved from https://www.nbcnews.com/business/personal-finance/more-wells-fargo-customers-say-bank-decided-pause-their-mortgage-n1234610
Study Document
… their self-interest too (Kuypers, 2011). However, in most cases it is argued that the goals can never be fully aligned in the real world, creating agency problem (Kuypers, 2011).
Since, the nature of this relataionship is such that scandals have arisen in the past due to these … (Pennsylvania, 2017). Wells Fargo have gone through this problem in the past where the agents have acted in their self-interest and caused the bank to suffer hugely through opening of fraudulent accounts, not just once, but millions of times and raised the concern to the public as … of times and raised the concern to the public as well as the principle as to the conduct and internal environment of the bank, threatening the position of the bank.
Firstly, the decision involving risk has a conflict of interest where the agency theory impacts it. The managers have the tendency to not……
References
Demsetz, R. S. (1997). Agency Problems and Risk Taking at Banks.
Heath, J. (n.d.). Uses and Abuses of Agency Theory. Business Ethics Quarterly.
Kuypers, A. (2011). How is dealt with the agency problem and what is the role of the board of directors in it?
Lumen. (n.d.). Agency and Conflicts of Interests. Lumen. Retrieved from https://courses.lumenlearning.com/boundless-finance/chapter/agency-and-conflicts-of-interest/
Murray, I. (2016, September ). Wells Fargo and the Principle Agent Problem. Competitive Enterprise Institute.
Palia, D. (2007). “Agency Theory in Banking: An Empirical Analysis of Moral Hazard and the Agency Costs of Equity. Banks and Banks System.
Pennsylvania, W. U. (2017, August 08). Wells Fargo: What It Will Take to Clean Up the Mess. Wharton University of Pensylvannia.
Study Document
… from the 2007 subprime mortgage scandal at the heart of the financial crisis of 2007-2008 (SEC, 2010). The specific charge was that the bank and Tourre made material misstatements and omissions in connection with a synthetic collateralized debt obligation that the bank had structured, marketed and sold to investors. The synthetic CDOs were linked to the performance of the subprime housing mortgage market—i.e., the subprime … subprime housing mortgage market—i.e., the subprime mortgage-backed securities identified by Lewis (2010) as triggering the wave of financial distress that led to central bank intervention (unconventional monetary policy—also known as quantitative easing) and the inflation of asset bubbles currently seen today (Huston & Spencer, 2018). Goldman Sachs … seen today (Huston & Spencer, 2018). Goldman Sachs settled with the SEC and agreed to pay $550 million on the condition that the bank not be required to admit any wrongdoing. Tourre refused to settle……
References
Baer, J. (2014). Former Goldman Trader Tourre Won't Appeal Fraud Verdict. Retrieved from https://www.wsj.com/articles/former-goldman-trader-tourre-wont-seek-appeal-of-securities-fraud-verdict-1401221556
Huston, J. H., & Spencer, R. W. (2018). Quantitative easing and asset bubbles. Applied Economics Letters, 25(6), 369-374.
Lewis, M. (2010). The Big Short. NY: W. W. Norton.
McDonald, R., & Paulson, A. (2015). AIG in Hindsight. Journal of Economic Perspectives, 29(2), 81-106.
Murray, N., Manrai, A. K., & Manrai, L. A. (2018). The role of incentives/punishments, moral hazard, and conflicts of interests in the 2008 financial crisis. The bi-annual academic publication of Universidad ESAN, 22(43).
SEC. (2010). Litigation Release No. 21489 / April 16, 2010. Retrieved from https://www.sec.gov/litigation/litreleases/2010/lr21489.htm
Weisenthal, J. (2009). Goldman Sachs made billions shorting AIG. Retrieved from https://www.businessinsider.com/goldman-sachs-made-billions-shorting-aig-2009-3
Study Document
… foreign companies have grown in the insurance industry thanks to the globalization of insurance but also to the spread of wealth throughout the world. Insurance companies and finance go together as the former depends upon the latter for return on investment (ROI). Part of the problem with … (ROI). Part of the problem with the globalization of insurance is that everything has been globalized—right down to investable markets. Since 2008, central bank around the world have lowered rates to the point that it is impossible for insurance funds to obtain a targeted ROI without investing in risk assets. … tend to thrive—until the risk catches up with the marketplace and the bubble that is blown pops, as it did in 2008 the world over). Governments want increased regulation to protect themselves, as the 2008 global economic crisis showed what can happen when oversight is insufficient.
However, … buybacks and……
References
Egan, M. (2018). Tax cut triggers $437 billion explosion of stock buybacks. Retrieved from https://money.cnn.com/2018/07/10/investing/stock-buybacks-record-tax-cuts/index.html
Flegm, E. H. (2008). The Need for Reliability in Accounting. Why historical cost is more reliable than fair value. Journal of Accountancy, 205(5), 34.
Healy, P. M., Palepu, K., & Serafeim, G. (2009). Subprime Crisis and Fair-Value Accounting. HBS Case, (109-031).
Laux, C., & Leuz, C. (2010). Did fair-value accounting contribute to the financial crisis?. Journal of economic perspectives, 24(1), 93-118.
Light, L. (2019). More than Half of All Stock Buybacks are Now Financed by Debt. Here’s Why That’s a Problem. Retrieved from https://fortune.com/2019/08/20/stock-buybacks-debt-financed/
Reda, J. (2018). How Stock Buybacks Can Affect Executive Compensation. Retrieved from http://clsbluesky.law.columbia.edu/2018/08/03/how-stock-buybacks-can-affect-executive-compensation/
Young, M. R., (2008). Both sides make good points. Journal of Accountancy, 205(5), 34.
Vaughan, E. J., & Vaughan T. M., (2013). Fundamentals of Risk and Insurance, 11th Edition.
Study Document
… look at the labor market, wage growth and income inequality may help to explain why the president is so worried about the central bank maintaining loose monetary policy.
Introduction
While President Trump has often insisted that this is the best economy ever (BBC, 2019), there are signs … labor market data (unemployment vs. labor participation rate), wages vs. inflation, and income inequality. Since the Federal Reserve along with the other central bank of the world engaged in unconventional monetary policy aka quantitative easing in response to the global economic crisis of 2007-2008, asset prices have increased exponentially—whether one … wage hikes will only lead to more layoffs and the greater implementation of automation. Income inequality will remain so long as the central bank remains the buyer of last resort. The labor market will continue to offer mainly jobs in services, as this is all that will ……
References
BBC. (2019). US economy under Trump: Is it the greatest in history? Retrieved from https://www.bbc.com/news/world-45827430
Bernstein, J. (2019). A tight job market is a potent force against inequality and wage stagnation. Retrieved from https://www.washingtonpost.com/outlook/2019/02/01/tight-job-market-is-potent-force-against-inequality-wage-stagnation/?utm_term=.0a531cf24efb
Cox, J. (2019). Private payroll growth tops estimates as job market shows signs of tightening. Retrieved from https://www.cnbc.com/2019/07/31/private-payrolls-up-156k-in-july-vs-150k-est-adpmoodys.html
Harwood, J. (2019). 5 reasons why income inequality has become a major political issue. Retrieved from https://www.cnbc.com/2019/06/05/5-reasons-income-inequality-has-become-a-major-political-issue.html
Study Document
… across Europe to help American companies enter these markets (Export.gov, 2019). Furthermore, European markets are among the most mature and sophisticated in the world. For an American company seeking expansion, they will find that Europe has robust legal systems, the opportunity to employ a land and expand … fast-mover was a strong competitive move for KFC, and allowed it to capture substantial market share in a lot of countries around the world.
5. Financial institutions might prefer to provide credit in financial markets outside of their country because they want to gain the benefits of … it feels that market is growing more rapidly. Credit is typically one of the best ways to start expanding internationally.
Many of the world’s largest bank are international in nature. Part of this is just wanting a bigger footprint, and pursuing growth wherever that growth lies. But part of … bigger footprint, and……
References
CE Intelligence. (2019) EU – market entry strategies. CE Intelligence.com. Retrieved December 5, 2019 from http://www.ceintelligence.com/content_manager/contentPages/view/eu-market-entry-strategies
Chapman, K. & Edmond, H. (2010) Mergers/acquisitions and restructuring in the EU chemical industry: Patterns and implications. Regional Studies. Vol. 34 (8) 753-767
Conyon, M., Girma, S., Thompson, S. & Wright, P. (2003) The productivity and wage effects of foreign acquisitions in the United Kingdom. The Journal of Industrial Economics. Vol. 50 (1) 85-102.
EF.com (2019) English proficiency index. EF.com. Retrieved December 5, 2019 from https://www.ef.com/wwen/epi/
Export.gov (2019) European Union – market entry strategy. Export.gov. Retrieved December 5, 2019 from https://www.export.gov/article?id=European-union-Market-Entry-Strategy
Girma, S. (2002) The process of European integration and the determinants of entry by non-EU multinationals in UK manufacturing. DOI:10.1111/1467-9957.00305
Girma, S. (2005) Technology transfer from acquisition FDI and the absorptive capacity of domestic firms: An empirical investigation. Open Economies Review. Vol. 16 (2) 175-187.
Lamson, M. (2016) 5 things you need to know before doing business in Europe. Inc. Magazine. Retrieved December 5, 2019 from https://www.inc.com/melissa-lamson/5-things-you-need-to-know-before-doing-business-in-europe.html
Study Document
Introduction
The elderly population, like every other population in the world today, can benefit from changes that have occurred in the world thanks to technological revolutions. The Internet, for instance, has allowed a virtual world to emerge that rivals the real world in terms of social opportunities. News spreads instantly thanks to the Internet, and people can communicate with one another and retrieve information more … moves into assisted living and combating isolation and depression, which can occur in this population. Likewise, because of the nature of the globalized world it is more likely that this population will be more diverse than it has been in the past, which means there will be … own lives. A new environment can be a major change for the elderly.
Diversity in the Community
As a result of the globalized world that technology and the ability to travel has brought, the elderly population……
References
Aging and Disability Services. (2013). Promote Healthy Aging. Retrieved from http://www.agingkingcounty.org/healthy_aging.htm
Baker, T. A. (2014). The importance of aging studies: Understanding the influence of diversity and culture. Age Culture Humanities: An Interdisciplinary Journal (1). Retrieved from http://ageculturehumanities.org/WP/the-importance-of-aging-studies-understanding-the-influence-of-diversity-and-culture/
Banks, M. R., Willoughby, L. M., & Banks, W. A. (2008). Animal-assisted therapy and loneliness in nursing homes: use of robotic versus living dogs. Journal of the American Medical Directors Association, 9(3), 173-177.
Brojeni, S. A., Ilali, E. S., Taraghi, Z., & Mousavinasab, N. (2019). Lifestyle and its related factors in elderly. Journal of Nursing and Midwifery Sciences, 6(1), 32.
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Landeiro, F., Barrows, P., Musson, E. N., Gray, A. M., & Leal, J. (2017). Reducing social isolation and loneliness in older people: a systematic review protocol. BMJ Open, 7(5), e013778.
Liu, S. J., Lin, C. J., Chen, Y. M., & Huang, X. Y. (2007). The effects of reminiscence group therapy on self-esteem, depression, loneliness and life satisfaction of elderly people living alone. Mid-Taiwan Journal of Medicine, 12(3), 133-142.
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Study Document
… and have their pockets padded by insiders and lobbyists of various big businesses. Democracy is the buzzword of many an authoritarian government the world over today, yet democracy is hardly seen in reality. Both Mansbridge and Dahl talk about a free market system—and Friedman essentially advocates for … a free market system—and Friedman essentially advocates for this because it is a system in which capital best thrives—but the reality of the world today is that the markets are not free, interventionism has run amok, and the world is now living under a global command economy whose terms are dictated by a triumvirate of central bank, government leaders and big business owners. Everyone else is simply told what to do and expected to like, and one should need no … hedge funds across the board this April, with the pretense for this corporate bailout being COVID 19. The challenge facing……
Works Cited
Dahl, Robert. On Democracy.
Ferejohn, John. Is Inequality a Threat to Democracy?
Friedman, Milton. Capitalism and Freedom. University of Chicago Press.
Mansbridge, Jane. On the Importance of Getting Things Done. PS, 2012.
Runciman, David. The Confidence Trap. Princeton University Press.
Study Document
… 3) the open borders policy, 4) the problem of NATO, 5) the ultra-high and potentially catastrophic levels of debt that the European Central bank (ECB) has made possible through its easy credit and low interst rates monetary policy, and now 6) the COVID-19 coronavirus pandemic, this paper … more than two dozen European nations for the first time since 1973. Not only was this a shocking new development that showed the world the UK was going to reassert its sovereignty on the world stage, it was also an invitation for other nations to follow suit. Since Brexit was first voted upon in 2016, other nations’ leaders ……
References
Amadeo, K. (2019). Eurozone debt crisis. Retrieved from https://www.thebalance.com/eurozone-debt-crisis-causes-cures-and-consequences-3305524
BBC. (2020). Brexit. Retrieved from https://www.bbc.com/news/uk-politics-32810887
Chadwick, L. (2020). Recession could tip EU. Retrieved from https://www.euronews.com/2020/02/27/could-covid-19-coronavirus-trigger-a-european-economic-recession
Grose, T. (2020). Coronavirus tests Europe’s open borders. Retrieved from https://www.usnews.com/news/best-countries/articles/2020-03-02/europes-open-border-agreement-may-become-casualty-to-coronavirus
Herszenhorn, D. (2019). Europe’s NATO problem. Retrieved from https://www.politico.eu/article/europe-nato-problem-defense-procurement-training-research/
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Wirtz, B. (2019). The Beginning Of The End Of Open Borders In Europe. Retrieved from https://www.theamericanconservative.com/articles/the-beginning-of-the-end-of-open-borders-in-europe/
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