...Planning and Measuring Performance Brandi Charette MGT 521 February 11, 2013 Linda Kulka Planning and Measuring Performance Fannie Mae is a lending company who has been providing mortgage lending options to working families for over 70 years. Their mission is to “ensure that working families have access to mortgage credit to buy homes they can afford over the long term or that they can secure quality rental housing” (Fannie Mae, 2013). Strategic and operational plans help an organization plan out their goals and how they are going to achieve those goals. The main objectives of strategic plans are to look at the vision of the organization and their priorities in regards to an evolving environment and to make sure that the organization’s members are aiming for the same goals. Operational planning is outlining the day-to-day activities of the company. Both of these need to compliment each other in order for the organization to be successful. One of the strategic goals is to demonstrate shareholder value. Fannie Mae can demonstrate this by showing that they are creating revenues that are above all costs. They are “one out of three companies to have produced double-digit growth in operating earnings per share in each of the last 15 years” (Fannie Mae, 2013). A standard for this goal would be maintaining a clear profit yearly without extending the budget. Financial controls would be in order to monitor the financial well being and activities throughout the...
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...process by which assets with generally predictable cash flows and similar features are packaged into interest-bearing securities with marketable investment characteristics. Securitized assets have been created using diverse types of collateral, including home mortgages, commercial mortgages, mobile home loans, leases, and installment contracts on personal property. The most common securitized product is the mortgage-backed security (MBS). The following types of mortgage loans are most suitable for securitization. 406 M A N A GI N G T H E C R I S I S Conforming Residential Loans Conforming residential loans are single-family, performing (one-to-four family) mortgage loans that conform to Federal National Mortgage Association (Fannie Mae) and Federal Home Loan Mortgage Corporation (Freddie Mac) guidelines and/or standards. In 1997, these agencies had more than $3 trillion of outstanding mortgage securities backed by conforming residential loans. Nonconforming Residential Loans Nonconforming residential loans are single-family, performing (one-to-four family) mortgage loans that do not conform to...
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...borrow in a perfect capital market in order to fund a project” (p. 408, ¶12). In the City of Oasis scenario, the City of Oasis wants to fund the project of building a main bridge over the Tamarra River. The new project will costs $5 million for the new bridge that will be built within 6 months. For the City of Oasis this means that the city needs to create a Capital Projects Fund along with a Debt Service Fund. The City of Oasis also needs to create budgets and issue bonds for public debt. The City of Oasis must determine any restrictions that exist under state law. The City of Oasis must also identify their short and long-term goals. This identification is important in that the City of Oasis defines short-term strategic goals of capital planning for the long-term comprehensive goals. In determining debt capacity in the City of Oasis, the city must look to “indicators such as...
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...CAPSTONE PROJECT Project Title: APPLICABLE FINANCIAL POLICIES CHANGES THAT CAN BE USED TO ENCOURAGING HOUSE AND HOME OWNERSHIP IN MICHIGAN Submitted by: Submitted to University MBA/MS Program [list one] Capstone Mentor: [name] For University Use Date Received: ______________________________________________ Reviewed by: _______________________________________________ Approved/Disapproved: ______________________________________________ Signature: ______________________________________________ Date: ______________________________________________ Comments: ______________________________________________ ______________________________________________ _______________________________________________ _______________________________________________ Abstract The need to encourage house or homeownership has been in the government’s strategic plan since 1934, however, the current financial policies and practices in the housing finance and the mortgage market has characterized by minimum flow of capital in the secondary mortgage market, confusion on the main control authority and various ill practices. This fact has necessitated various changes in the house and homeownership financial. This study collected both primary and secondary data, and found out that the government must set the right policies that will empower house and home...
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...at a profit, and the Treasury Department is selling off stakes in smaller institutions at an admirable pace. Taxpayers are being compensated for stabilizing the economy at a critical time. Four years after the worst phase of the financial crisis, however, it is time to end the most costly bailout of all: the government takeover of Fannie Mae and Freddie Mac. Keeping the two housing-finance firms alive has been expensive. Treasury has invested $187 billion in the companies and has received $46 billionin dividends, for a net cost of $141 billion so far. This support has allowed the two companies to continue to service the $4.5 trillion in guarantees against mortgage default and $900 billion in debt that they had racked up before the crisis, and to underwrite trillions of dollars in new mortgage credit. As a result, Americans have been able to get mortgages to buy homes and (especially) to refinance at lower interest rates. he crisis lasted for several years, and some speculate that it is still not entirely over. The financial traumas that AIG experienced were exploited all across newspapers and media outlets, mainly because their risk management solutions can be blamed with the company’s quick downfall. Credit Default Swaps and AIG AIG was a company that was involved with CDS and the writing of it. This contract, protecting both the buyer and the seller, offers protection from the seller in the event of default of an underlying entity. In exchange for that protection the...
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...information FASB conceptual framework PCAOB COSO Professional certifications in accounting AICPA code of professional conduct Personal benefits of accounting skills Skills Analysis Analysis Analysis, judgment Analysis Analysis Analysis, research Analysis, ethics Analysis Analysis, ethics Analysis Exercises 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 1.11 1.12 1.13 1.14 1.15 1.16 Topic You as a user of accounting information Real World: Boeing Company, California Public Employees Retirement System, China Airlines Users of accounting information What is financial reporting? Generally accepted accounting principles Accounting organizations Investment return Accounting terminology Accounting organizations Financial and management accounting Management accounting information Accounting organizations Purpose of an audit Audits of financial statements Ethics and professional judgment Careers in accounting Home Depot, Inc. general information Learning Objectives Skills 1 Analysis, judgment 3, 4 Analysis, research 3 6 6 3 3-5, 7 6 3, 4 4 6 5 5 7 8 1, 3, 5 Analysis, judgment Analysis Analysis, communication Analysis Analysis Analysis Judgment Communication, judgment Analysis, judgment Analysis, judgment Analysis Analysis, communication, judgment Judgment, communication Analysis, judgment, research © The McGraw-Hill Companies, Inc., 2012 Overview Due to the introductory nature of this...
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...Team #5: Fernando Puiggari, Afiya Williams, and Yu Tang MBAA 505: Economic Environment Of Business Prof. Victor Petenkemani Case 3: Due 10/30/2014 Quantitative Easing in the Great Recession. 1. You will consider the various impacts of QE1, QE2, and QE3. What accounts for the differences in the market reactions to these three policy actions? What the Fed did * On Sept. 8, 2008, the U.S. Treasury seized control of mortgage giants Fannie Mae and Freddie Mac and pledged a $200 billion cash injection to help the companies cope with mortgage default losses. * About a week later the government bailed out American International Group Inc with $85 billion. * The Fed refused to save Lehman Brothers and the company was forced to file for bankruptcy. Some of the largest financial institutions were on the verge of collapse as the mortgage market melted down. As the crisis hit the global market, the credit freeze spread. * The Treasury and the Federal Reserve began working on a $700 billion bailout plan. * President George W. Bush signed the bailout plan into law Oct. 3. * Weeks later, on Oct. 29, the Fed cut the key interest rate to 1 percent. What was expected? The government claimed the bailout was necessary to provide stability in the economy and prevent disruption in the financial system. The interest rate cut aimed to revive the economy, help free up credit and make loans cheaper to consumers and businesses. What happened The financial...
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... During this period lending practices became less strict and we saw a move to less traditional lending patterns and unsound lending practices. Banks were lending with less documentation and a smaller required down payment, bringing homeowners perilously close to 100% loan-to-value ratios. Another cause for concern was the complex mortgage-backed securities and subprime mortgages of Fannie Mae and Freddie Mac. The last interesting argument for the cause of the bubble is housing starts and land-use regulations, which I want to discuss further. THE HOUSING BUBBLE In assessing the causes of the housing bubbles, many scholars have focused on the demand-side factors, such as low interest rates, zero down payments, and easy lending terms. However, as Randal O’Toole argues, the demand-side factors were more or less equal across all states, but a more severe bubble was observed in a few states (O’Toole 188-192). O’Toole argues that land-use regulation was the most important factor in the housing bubble of 2006. He supports this argument by finding a strong correlation between growth management planning and housing bubbles (O’Toole 193-205). Although the land regulations have played an enormous role in...
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...Ilona Oganesyan 10905 Ambergate Ln Frisco, TX 75035 214-543-2190 ilonchik15@yahoo.com Education * Bachelor of Science in Computer Science – University of Texas at Dallas * Master of Science in Management and Administrative Sciences – Finance Concentration – University of Texas at Dallas Professional Certifications * Certified Project Management Professional Professional Skills * Microsoft Project, MS SQL development, MS SQL Server 2008, 2005, 2000, 7.0 design and administration, backup and recovery, T-SQL stored procedures, Query Analyzer; Oracle PL/SQL, Oracle Forms and Reports, Toad 9.0; SSRS reports development, Visual Basic 6.0, C+ +, C#; AS400 Advanced knowledge of Excel, including complex macros, VBA, Pivot Tables and Graphs; Access Form Design, Access Report Design, ADO; Visio Professional, JIRA, Remedy, Clear Quest,Clear Case SharePoint Professional Experience Fannie Mae May 10 – Present Project Manager II * Application Development team lead responsible for managing project delivery of multiple Adobe Flex applications * Provide project management services for the Credit Loss Management division * Identify and engage appropriate technical and business resources needed for successful project execution. * Manage project resources. * Provide technical and analytical guidance to project team * Prepare project execution plans and ensure projects are completed on schedule, within budget and meet all...
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...Executive Seminars Executive Action Learning Seminars CEO Club Executive Courses International Institute of Management Executive Education Courses Harvard Balanced Scorecard Review Med Jones International Institute of Management iim-edu.org International Institute of Management (IIM) iim-edu.org IIM Open Courseware (OCW) Copyright International Institute of Management (www.iim-edu.org) This work is the intellectual property of the authors. Permission is granted for this material to be shared for personal and educational purposes. IIM also grants the rights to disseminate otherwise or to republish in full or in part, provided that a statement of the source referencing the author(s) and “International Institute of Management” appears on the reproduced materials. As courtesy, please provide us with a notice of use by contacting us at: IIM Open Courseware (OCW) International Institute of Management 10161 Park Run Dr. #100 Las Vegas, NV 89145 USA Email: contact_us(at)iim-edu.org International Institute of Management (IIM) iim-edu.org Strategy International Institute of Management iim-edu.org Harvard Balanced Scorecard (BSC) Strategy Alignment & Performance Measurement Tool International Institute of Management iim-edu.org Executive Challenge Business Strategy Alignment & Performance Control International Institute of Management iim-edu.org Strategy Execution • In the 1980s, less than 10% of the strategies were successfully implemented...
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...FINANIAL CRISIS 2008 AND CORPORATE GOVERNANCE The business world is questioning whether Corporate Governance has become a mere catchphrase, divorced from the contentious problems it is supposed to solve… MEMBERS: AYUSH KUMAR-030 NIPEKSH I MAHAJAN-082 PRABHAV MISHRA-0 PRATEEK KUMAR-096 VAIBHAV JAIN-164 “Why should a financial engineer be paid four, four times... to a hundred times more than the real engineer? A real engineer build bridges, a financial engineer build, build dreams. And when those dream turn out to be nightmares, other people pay for it.” - Andrew Sheng “Contrary to the vulgar belief that men are motivated primarily by materialistic considerations, we now see the capitalist system being discredited and destroyed all over the world, even though the system has given men the greatest material comforts” - Ayn Rand “In fact, there is ultimately a limit to how much regulation can do. In the final analysis, you could write all the rules you want, but there has to be a philosophy of ethical behaviour that comes from human beings operating in a professional way” – William H. Donaldson, CFA “The global crisis was caused by “the over-50s not knowing what the under-30’s were doing” – Johann Rupert, Remgro Chairman “The first casualty of a downturn is truth” - Financial Times Columnist 30 Sept 2008 Introduction- The banking crisis was triggered by largely unregulated trading of complex financial instruments, including mortgaged-backed...
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...MODULE 1: Introduction to S&L 3 Benefits of studying S&L, challenges and criticism, CPA thinking 5-6 Emergence of strategy (Ownership, globalisation, structure) 6-7 Leadership and its role, leadership vs. management, role of the accountant is S&L 8-9 Accountant’s role, financial aspects of value creation 10-12 Drivers of globalisation (competitive, techno, social, political forces) 12-15 Challenges of globalisation (Competition, distribution, macroeconomic, socioeconomic, financial, legal, physical, political, sociocultural, labour, risk) 15-16 Benefits of globalisation (cost, timing, learning, arbitrage), value of localisation 17-20 Approaches to strategy (rational vs.processual) and assumptions 21-22 Evolutionary, systemic and fuzzy approaches, implications 22-25 Strategy process, mission & vision, external & internal env. 25-27 Strategic thinking, strategic planning (3 Q’s and 3 issues), criticism, value of both 27-30 Strategic stretch and fit, strategy equation (Bendigo bank) 30-32 Levels of strategy (corporate, business, functional) 32-34 Strategic leadership, approaches to leadership (traits, behavioural, situational, transformational & transactional) 34-36 Importance of leadership (Q. 1.7) 36-39 Leadership and Ethics (questions, classical and socioeconomic views of ethics) 39-40 CSR, strategy, leadership and ethics MODULE 2: The external environment 4-5 Definition, reasons of difficulty in analysis, analysing an industry 6-13 Sources of data for analysis...
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...chapters. I articulate that this slight disorder is because of the limitations of making 15 experts agree. This disjoint attribute has not prevented the report from being very constructive and direct in addressing very important policies and sensible issues relevant to reform. The paper has two central principles that the recommendation have been built on. The first is that policymakers have to consider how new regulations will affect not only individual firms, but also the financial setup as a whole. The second principal states that firms should be responsible for the costs of their failure and excessively risky positions. This principal aims at protecting taxpayers, the innocent bystanders, from the wrong doings of irresponsible corporate planning on the behalf of greedy market participants. These two principles can be considered the core of what is really the Squam Lake Group’s philosophy. Yet the report has its shortcomings. The...
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...operations to achieve economies of scale and standardization of processes. Mergers and acquisitions occur when a company buys, sells, or combines with another company within the same country or across borders (Luthans & Doh, 2009). Government regulation is constantly present in our lives. This paper is a continuation from assignment two and will look at how government regulations affect expansion and merger in the retail industry. “Mergers can be competitive strategies, or they can be attempts to create firms large enough to exercise market power” (Michaels, 2011). Successful mergers are a combination of four critical components: culture, business practices, technology, and time. Bringing these elements together requires careful planning and coordination. The longer it takes the more costly it will be, and the potential for failure will be greatly increased. Explain why government regulation is needed, citing the major reasons for government involvement in a market economy. Government regulation is needed in the retail industry to make sure that the public’s interests are...
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...characteristics. The authors surveyed more than 1,500 managers nationwide and they concluded that honesty(credibility) was the most admired characteristic in a leader (Kouzes & Posner, 2011, p.4). Credible leaders make positive impact in people’s life. If employees trust their leader and they feel they are working toward a same vision that the company has set, then the followers will be motivated and they will work hard as a team and produce results for the company that the employees never thought were achievable. On the other hand, if there is a big distrust towards the leadership, then the lack of motivation and unity can cause a company to go bankrupt and consequently bring the economy to a recession, as we saw in the case of Enron, WorldCom, Fannie Mae etc. In order to understand how did leaders earned trust and credibility, the authors asked the managers to provide specific examples of what their most admired leaders did that made them want to follow, and from their empirical data emerged the six disciplines of sustaining credibility. In order to create and sustain credibility, one must 1. Discover themselves-, 2. Appreciate...
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