...Trident University (Student Name Here) Module 1 Case 1 ETH 501 Business Ethics (Professor’s Name Here) (Date Here) First and foremost, I will introduce the two companies or parties: Bank of America and Wikileaks. Bank of America is the nation’s largest bank holding company and financial company that serves individual consumers, small and middle market business, corporations and governments. The services provide range from banking, investing, and asset and risk management. (Bank of America) On the other hand, Wikileaks is an international non-profit organization that publish private, secret, and classified media derives from anonymous news sources, leaks, and whistleblowers. (2011, Wikileaks) According to Webster’s (1996) ethics is defined as the study of standards of conduct and moral judgment. The manner in which a company does business tells how competent and trusty worthy people can deal with the company. A company that not only promotes an ethical environment, but that lives the company’s goals, policies, and values is a company that when controversy and tough times occur will make the right decisions and weather the storm. If the company not only promotes a fair and positive environment, but also values and foster this environment, the company will be around a long...long time. If Bank of America were to use the words that define what ethics is as a basis for their decision whether to process payments and...
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...Case Studies in Management MGMT 0475 10/20/12 Bank of America Corporation Cohesion Case Harris-Stowe State University Bank of America Corporation has been one of the leading banking companies in the United states with over 5,800 banking locations and another 300 abroad. One of the reasons that they are leading the front is because of the IT system that they have implemented. BoA has so many opportunities for online banking, whether it be from your laptop, mobile device or tablet. Also, with their new ATM systems you can deposit cash or a check without ever talking to an employee. One of the largest reasons for Bank of America’s success as a leading banking organization is their ability to attract customer relationships. There are many ways to attract the eye of a customer but the aspect that Bank of America uses to perfection is their Internet and online technologies. With over 18,000 ATM’s across the U.S. you can withdraw money at anytime with ease. Also with their ATM check deposit you can deposit check’s or cash at anytime with the 24 hour ATM service. Along with that they have mobil banking that I use daily. With the simple download of the Bank of America app you can check your statements, pay bills, or transfer funds right on your phone. If that hasn’t caught the customer’s eye then this will. You can take a snap shot picture of your check with your mobil device and Bank of America app you can deposit it on the...
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...20, 2010 Two years ago, Ken Lewis, the former CEO of Bank of America, was confronted with an enormous predicament when Ben Bernanke and Henry Paulson requested that his company immediately acquire Merrill Lynch to save them from declaring bankruptcy. With the financial system of the United States on the verge of collapsing, how do you say no to the Federal Reserve Chairman and the Secretary of the U.S. Treasury? Thus, Lewis agreed. Now fast forward one year later to September 2009. At this time, Lewis has agreed to step down as CEO. He has also been indicted for fraud for “deliberately misleading his shareholders about the ballooning losses at Merrill Lynch” before the bank bought the firm, which includes failing to disclose the year-end bonuses that were paid out to Merrill executives (Fitzpatrick and Eckblad). Furthermore, this begs two questions: what ethical dilemma was Lewis facing during this crisis and how could he have better handled the request from Bernanke and Paulson? Assuming I was Ken Lewis when Bernanke and Paulson requested me to acquire Merrill Lynch, I believe I would have gone through with the acquisition as well. According to House Republican staffers in a memo obtained by Bloomberg, “the Federal Reserve and U.S. Treasury overstepped their authority and pressured Bank of America to complete its Merrill Lynch purchase” (Lanman and Torres). The memo also stated that: “a gun was placed to the head of Bank of America [Lewis] to go through with the merger. Government...
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...Unit 5 ‘Complete” 1. In a narrative form, discuss the key facts and critical issues presented in the case. Specifically, highlight the critical issues facing the Bank of America's I & D team. The case study of Bank of America as presented in the Harvard Business Review, Bank of America (BoA) experienced many issues found in organizations as they interject change in efforts to continually evolve. BoA, in the early 2000’s, was a juggernaut in the global banking and financial industry. Being one of the world’s largest financial institutions, it had to continuously pursue ways to improve, innovate, and remain the leader in its class. As banking competition increased, the number of branches began to decrease. Recognizing this, BoA set out to create a team that would be charges with the task of keeping the bank evolving, account holders growing, and to find innovations that kept them the leader of in the industry. The Innovations & Development (I&D) team was created. The I&D team reviewed the banks history of growth and acquisitions, evaluated its competition, and developed ideas and innovated programs that would theoretically keep the bank moving forward. As these ideas evolved, they needed to be tested in the market prior to implementing the new programs company wide. The leadership of the bank decided to create a small number of test sites that would allow the I&D team to implement their improvement strategies while having a minor effect on the...
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...1 Jamelle Reeves Assignment 1: Bank of America or McDonald’s Case Study Valencia Westray-Miller HRM532 Talent Management 2 Bank of America's talent management program led to success for the company Bank of America's executive performance and retention strategy breaks down into the objectives set out in Figure 2.1 (Fisher and Congel, 2009, p. 22), 'attract, retain and develop great leaders.' This process occurs in distinct phases over the first 36 months of executive promotion but begins even before the new hire, if 'attracting great leaders' requires adequate compensation, with "clear and calibrated" (Fisher and Congel, p. 25) criteria screened by recruitment specialists. This includes more than business skill, extending to integration into the existing executive team as well as the total human resource silo the executive will ultimately oversee. This overall fit is assessed in order to prevent "derailment" (Fisher and Congel, 2009, p. 24) through conflict or loss of credibility at the head of a changing and challenging culture. Job development takes place prior to selection and incorporates the needs and objectives of the stakeholders who will depend on the new executive, presumably reducing the likelihood of revolt during and after transition and facilitating success before individual talent...
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...moral philosophy. It is a way of reformation and used extensively in government decision making. This will be discussed further in the Bank of America-Merrill Lynch merger. Utilitarianism is considered a scientific system of ethics and not just a philosophical theory of ethics. Utilitarian ethics follows the belief of maximizing the greatest good for the largest number of people. As utilitarianism is identified, one needs to learn that the greatest good could be based on aggregate principle or a distributive principle. The Bank of America-Merrill Lynch merger will be assessed in regards to who, what and how the greater good will be affected in this merger. Within utilitarianism, a moral philosophy is developed that focuses on the consequences of specific actions. An action is done, then observed and then analyzed. After identifying all the people that were involved, one needs to ask the question, “Do the sum of good consequences outweigh the sum of the bad consequences?” Quantify all the good and bad consequences in the scenario and if the good consequences are greater than the bad consequences then the action was moral and vice versa. In this paper, the actions of the Bank of America-Merrill Lynch merger will be discussed, evaluated and quantified with the Richard DeGeorge Utilitarian perspective. Pinpointing the stakeholders in this case will show who was direct and indirectly affected and how they were affected. Furthermore, it will be discussed the overall affect it had...
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...11/28/12 Case Analysis Bank of America Mobile Banking - College Essays - Yibin2000 Log In | Essays Book Notes Citation Generator More Sign Up Search 850 000 Essays Henkel Business Challenge Create a new product or technology for a sustainable world with Henkel www.henkelchallenge.com/studentgame Savings Account Experience Great Savings with Standard Chartered Savings Account standardchartered.co.in/Savings Equity Market Read Financial News Anytime Online On Economic Times™ Official Site! EconomicTimes.Indiatimes.com Essays » Computers & Internet Case Analysis: Bank of America: Mobile Banking By yibin2000, May 2012 | 5 Pages (1,202 Words) | 677 Views| Report | Sign Up to access full essay This is a Premium essay Case Analysis: Bank of America: Mobile Banking Company Overview: Bank of America is the largest US bank founded in 1904, it has expanded through several acquisitions. By the end of 2009, Bank of America was the market leader serving 82% of the US population and over 53 million customers. They are positioned as number one in online and mobile banking. Their mobile banking services were launched in 2007 and have gained 4 million customers in less than three years. Acquisitions made by Bank of America prior to the financial crisis caused a very strong drop in their stock price. Customers: In 2009, 10 million customers used mobile banking and this is expected to grow to 37 million by 2014. Customers that use mobile banking are not the same as online...
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...Project Milestone # 3 Bank of America tries to charge debit card fees Introduction: The main purpose of the case study is to demonstrate organizational studies, organizational theories, and organizational behavior of Bank of America trying to charge $5 debit card fees. The case study will implant the systematic study and careful application of knowledge about how people –as individuals and as group will act upon this issue. Moreover, we will encompass the study of organization from multiple viewpoints, levels of analysis and methods may be used to resolve it through prediction and explanation of some hypothesis. Company profile: Bank of America was first opened on July 5, 1784 under the name of its earliest predecessor, the Massachusetts Bank (Bank of America). As the second of the original three banks in the late eighteenth century United States, Bank of America is the country's most extensive bank, with 6100 locations covering over thirty states coast to coast (Hoovers Online). Bank of America specializes in most banking services including checking and savings accounts, credit cards, loans, investment banking and brokerage, asset management, loans, line of credits, retirement accounts, roths, and mortgages. With such excellent customer service, Bank of America has a very large customer base consisting of all different logistics of people. The Company Organizational Structure: Organizational structure is a concept in the field of Organizational studies and management which...
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...to $7.25 per hour. Eight years later, the minimum standard remains the same which is an issue for most American’s considered to be middle class today. Actually, today’s minimum wage is lower than any rate during the years between 1956 and 1985. Nearly a quarter of America’s working adults are laboring for wages that do not support families at the minimally acceptable level (Curry). A person working full-time at the federal minimum wage earns $290 in a week, around $15,080 for the year (Gillibrand). With an annual salary of $3000 less than the nation’s poverty level line, an average family of three will struggle to make ends meet. These low-income families will need government assistance, for basic living needs. At this rate of pay, even an average family who has two working/supporting parents will still have financial burdens. They will be considered a poor family, with house-hold income of equal or just at the country’s poverty level line. It seems that America’s workers are falling behind, in that the middle class is in a state more of regression rather than progression. Some 3.8 million workers were paid at or below the federal minimum wage of $7.25 in 2011 (“Udall: Raising…”). Today’s minimum wage, in most cases, does not cover basic necessities of life. Which causes...
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...ABCD COSO case study Case study – Parmalat The situation - - - - - - - - Parmalat is a multinational Italian dairy and food corporation The company was founded by Calisto Tanzi, a university dropout who transformed a family business, Calisto Tanzi & Sons - Salamis and Preserves into an organisation hailed as one of Europe's biggest corporate success stories. In 1997 Parmalat jumped into the world financial markets in a big way, financing several international acquisitions with debt. By 2001, many of the new divisions were producing losses , and the company financing shifted largely to the use of derivatives. Parmalat had determined that their company wide objectives was to become the leading global company in production of UHT, however, a risk assessment of financing several international acquisitions with debt and derivatives was not performed. There was also a concern that the managers who were making the accounting decisions, were also posting the journals to the general ledger. Furthermore, they were reviewing and signing off on the reconciliations and reporting In February 2003, CFO Fausto Tonna unexpectedly announced a new €500 million bond issue. This came as a surprise both to the markets and to the CEO, Calisto Tanzi. Tanzi fired Tonna and replaced him as CFO with Alberto Ferraris. Ferraris was surprised to discover that, though now CFO, he still didn't have access to some of the corporate books, which were being handled...
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...Table of Contents Case Summary 2 Affected Stakeholders 3 Ethical Dilemma 4 Why would a $500,000 salary cap prompt personnel to leave for other banks? 5 Was stripping of Lewis’ chairmanship a significant move on the part of BoA shareholders? 6 How could Thain justify spending $1.2 million on his office when Merrill Lynch was on the verge of bankruptcy? 7 What did Ken Lewis hope to gain by claiming that he was “pressured” into completing the Merrill Lynch deal? 9 Of all decisions made by Ken Lewis in this case study, which one do you think did the most damage to his reputation? And why? 10 What should Lewis have done? 12 Conclusion 13 References 14 Case Summary Bank of America (BoA), founded in 1998 is an American multinational banking and financial services corporation. They were notably a key player in the global financial crisis that struck in 2008. Ken Lewis, a former CEO acquired Countrywide Financial and Merrill Lynch. To his dismay, the acquisitions turned out to be disastrous as the first week of January 2009 enlightened the problems that existed within Countrywide Financial and Merrill Lynch; they were bankrupt with assets in their balance sheet that set a new mark for toxicity in the financial market. This required attention and direct aid from the Federal Government itself. However, following this month BoA fell by 65 percent. Just a month after the first quarter of 2009, Ken Lewis was made CEO and stripped off chairmanship by the shareholders’...
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...Vol. 3, Issue 3 January 2012 India’s ‘Look East’ and America’s ‘Asia Pivot’: Converging Interests March 2013 What’s in a name? Asia-Pacific or Indo-Pacific? In a speech to the Indian parliament in 2007, Shinzo Abe, the then-prime minister of Japan, became one of the first Asian leaders to call attention to a dawning geopolitical reality: “We are now at a point at which the Confluence of the Two Seas is coming into being…The Pacific and the Indian Oceans are bringing about a dynamic coupling as seas of freedom and of prosperity. A ‘broader Asia’ that (breaks down) geographical boundaries is beginning to take on a distinct form.” Abe was a little ahead of his time in acknowledging the “distinct form” of the IndoPacific region. Many believe that day has now arrived. Former Secretary of State Hillary Clinton used the term in her seminal 2011 Foreign Policy article “America’s Pacific Century.” More recently, India’s ambassador to the United States and former foreign secretary, Nirupama Rao, made the case for the Indo-Pacific in a speech at Brown University: “There is a seamless stretch of oceanic space that links the Indian and Pacific Oceans. The earlier concept of the Asia-Pacific had sought to exclude India— today the term Indo-Pacific encompasses the subcontinent as an integral part of this eastern world. We are glad that the mental map of the Asia Pacific has changed and that the center of gravity has moved westward to include India…The task before us is to concretely define...
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...author discusses that another financial indicator that suggests the region has a significant progress to make is the interest rate spread which is the margin between rates paid on liabilities and those received on assets. This chapter provides new evidence on the extent of firms’ access to financial services in the Latin America and Caribbean region and the relationships between access and selected policy-relevant variables. Moreover, the chapter explores the determinants of access by firms in the Enterprise Surveys sample. Also, the chapter studies the relationship between quality of courts and access to financial services. According to the Enterprise Surveys, the analysis of access focuses on the following six principal measures: First, Checking, which is an indicator variable that equals 1 if the enterprise has a checking account. Second, credit, is an indicator that equals 1 if the enterprise has overdraft, loan, line of credit, or any bank financing for working capital or investment. Third, Unconstrained which is an indicator variable for those enterprises that are not constrained. This indicates if the firm has applied for a loan but has been rejected of that the firm has not applied for a loan before. Moreover, Access index...
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...At least Bank of America got its name right. The ultimate Too Big to Fail bank really is America, a hypergluttonous ward of the state whose limitless fraud and criminal conspiracies we'll all be paying for until the end of time. Did you hear about the plot to rig global interest rates? The $137 million fine for bilking needy schools and cities? The ingenious plan to suck multiple fees out of the unemployment checks of jobless workers? Take your eyes off them for 10 seconds and guaranteed, they'll be into some shit again: This bank is like the world's worst-behaved teenager, taking your car and running over kittens and fire hydrants on the way to Vegas for the weekend, maxing out your credit cards in the three days you spend at your aunt's funeral. They're out of control, yet they'll never do time or go out of business, because the government remains creepily committed to their survival, like overindulgent parents who refuse to believe their 40-year-old live-at-home son could possibly be responsible for those dead hookers in the backyard. It's been four years since the government, in the name of preventing a depression, saved this megabank from ruin by pumping $45 billion of taxpayer money into its arm. Since then, the Obama administration has looked the other way as the bank committed an astonishing variety of crimes – some elaborate and brilliant in their conception, some so crude that they'd be beneath your average street thug. Bank of America has systematically ripped off...
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...Do Bank Mergers Create Shareholder Value? An Event Study Analysis Varini Sharma Introduction to Econometrics December 17, 2009 Professor Gary Krueger Macalester College I. Introduction Since the 1980s, the U.S. banking industry has experienced a large increase in the level of mergers and acquisitions. Between 1980 and 1998, approximately 8,000 bank mergers occurred, involving about $2.4 trillion in acquired assets that can be attributed to deregulation in the1980s and the removal of legal restrictions on intrastate and interstate banking (Rhoades, 2000). One basis for these mergers is the assumption that such consolidations lead to improvements in efficiency and profits amassed through increased market power, economies of scale, reduced earnings volatility, diversification, and other financial and operational synergies. While proponents of bank mergers argue that these gains are substantial, Coase (1937) tells us that tradeoffs exist between economies of scale (size) and ability to manage. In addition to the significant increase in mergers we have witnessed the collapse of countless financial institutions in the past 3 years due to bad lending practices. While the Coase theory applies to firms in general, how well does it apply to financial institutions? Additionally, has the increased size of financial institutions contributed to the financial crisis of 2008? This paper investigates the economic role of bank mergers in creating shareholder...
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