...he causes of global financial crisis 1、Boom and burst in the housing market Low interest rates and large inflows of foreign funds created easy credit conditions. Subprime lending contribute to increase the housing demand.This fueled rising house prices.This housing bubble resulted in quite a few homeowners refinancing their homes at lower interest rates. This led to a building boom. Easy credit encouraged borrowers to obtain ARM. If borrowers could not make the payments ,they would try to refinance. Refinancing became more difficult, when house prices began to decline in USA. Borrowers found themselves unable to afford higher monthly payments ,then default. This places downward pressure on housing prices. 2、Speculation Speculation in residential real estate has been a contributing factor. Media widely reported condominiums being purchased while under construction, then being sold for a profit without the seller ever having lived in them. Speculative bubbles are fueled by "contagious optimism, seemingly impervious to facts, that often takes hold when prices are rising." Speculative borrowing has been cited as a contributing factor to the subprime mortgage crisis. 3 、High-risk mortgage loans and lending /borrowing practices Lenders began to offer more loans to higher-risk borrowers. The risk premium required by lenders to offer a subprime loan declined. Lenders have offered increasingly risky loan options. Mortgage brokers, while profiting from the home loan boom...
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...1. Why is AXA bidding for MONY? Does the deal make sense for AXA; for MONY sharehold-ers; for management? As a MONY shareholder, what are your concerns about the deal? * The addition of MONY’s 1,300 sales agents would increase AXA’s U.S. sales force ny approx.. 25%, a level of growth that would be very difficault to achieve organically. * The two companies’ distribution systems were geographically complementary. MONY were stronger in important growth structures such as San Fran, Salt Lake and Phoenix, as well as in wholesale distribution. * The companies’ product ranges were also somewhat complementary, with AXA stronger in the variable annuity marketplace and having some new life products that could be offered by the MONY sales force * MONY has been underperforming -> depressed stock price. Low P/B of 0.7 (70 cents on the dollar) 2. How did AXA finance the takeover bid? Explain the structure that AXA used. Why did AXA use this structure? What effects, if any, do you think this method of financing has on the likelihood of the deal succeeding? * Financed by issuing 110,245,309 ORANS * In recent years many insurance companies has been forced to issue equity due to regulatory reasons. This is not the case for AXA, they therefor want to insure the market that they don’t need extra equity on their books. The ORAN`s in structure in a way that if the deal fell through the ORAN`s would pay of their nominal value or face value of £12.75 plus interest at...
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...Fayetteville State University’s academic affairs allocates monies to various schools and colleges housed within the university’s system. The provost allocates a specific amount of money to the Elementary Education Department that is housed in the School of Education. Once the money is released to academic affairs the Dean of the School of Education disperses the allocated money to various departments. The Dean of School of Education relinquishes the money to the Elementary Education Department where the Chair divides the money to address three areas, to include departmental bills, supplies for faculty, and money to professional development and travel for full-time faculty members. Monies part of the budget are used to aid in the functioning of the department. The Elementary...
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...A contract is defined as a legally binding agreement made between two or more persons. It is necessary that certain elements be fulfilled for a contract to be legally enforceable, that is, an unequivocal offer and acceptance between the contracting parties, applicable consideration, intention to create legal relations and sufficient capacity. The first issue to be resolved is whether the doctrine of frustration would discharge the contract between Edmund and Fiona and secondly, whether any monies paid or payable could be recovered. Anticipatory breach describes a declaration by the promising party to a contract that he does not intend to live up to his obligations under the contract. Communication of the anticipatory breach can be expressly or impliedly made. There could be the possibility of anticipatory breach by Fiona for delaying the start of work. Edmund, having received communication of an anticipatory breach can treat the contract as discharged despite no actual breach occurring, provided he communicated his intention to Fiona to accept the breach and terminate the contract as per Hochester v De La Tour (1853). Edmund will thus be able to claim his expenses incurred if his claim of anticipatory breach by Fiona is successful. A contract is rendered impossible to perform, illegal or radically different from what was originally agreed to due to an unforeseen event under the doctrine of frustration. The doctrine of frustration lightens the plausible harshness of the absolute...
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...b) Discuss in details Consolidated Fund Section 39(1) of the Constitution Act 1902 provide ‘ Except as otherwise provided by or in accordance with any Act, all the public moneys… collected, received or held by any person for or on behalf of the State shall form one Consolidated Fund. The Consolidated Fund is the account into which the government deposits taxes, tariffs, excises, fines, fees, loans, income from Crown assets and other revenue once collected, together with transfer from the commonwealth, and from which it withdraws the money it requires to cover its expenditure. Before going further, the Accountant General of Malaysia in compliance with Section 16(1) of the Financial Procedure Act 1957 prepared The Federal Government Financial Statement and audited by the Auditor General before being tabled in the Parliament in compliance with Section 16(2) of the act. The preparation of The Federal Government Financial Statement is constructed to show the financial position, cash flow and financial performance of the government. These Financial Statements report all financial transaction pertaining to the sources and applications of the financial resources as appropriated by the parliament for respective financial year. Statement of Financial Position of the Federal Government shows the amount of cash and investment held in respect of three accounts of the Consolidated Fund which is Consolidated Revenue Account, Consolidated Loan Account and Consolidated Trust Account...
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...Financial Statements Patty Reagan ACC/561 September 24, 2012 Bethany Kessel Financial Statements The financial statements of a company give the reader a view of the financial health of the company. The four major reports are the income statement, balance sheet, cash flow statement, and the statement of shareholders’ equity. By understanding the statements and how they relate to one another can help any individual to understand the financial position of the company and will aid in making good decisions when relating to the company. Each report is of importance to the management, creditors, and the investors. Income Statement The gains, revenues, losses, and expenses of a company are listed on the income statement (Johnson, 2012). The money that a company earned from the usual business operations is the revenue. The costs that are associated with earning revenue are expenses. If a company were to sell an asset, it will be considered to be either a capital gain or loss. The amount of net income is found on the cash flow statement as well. This report will be important to investors, creditors, and management. All involved parties want to see if the company is making money or if it is losing money. Balance Statement The balance sheet is a summary of a company’s assets, liabilities, and shareholders’ equity for a particular period (Balance Sheet, 2012). The three segments will give an investor a view of what a company owns and owes and the amount that shareholders...
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...increase funds, the representative has the responsibility to the actual buyer for these securities. The investment banker in turn would purchase securities from business and arrange a speedy resell of the securities to the investor’s bankers in order to, investigate research, analyze, distribute and underwrite. Typically, an investment banker will perform all of these functions, although some investment bankers are experts in certain areas. Investment banking assist in businesses with raising monies. It offers investment opportunities to the person or group of people. Most of the businesses develop consultative services from the investment banker in regards to mergers, divestiture and acquisitions. Additionally, due to the importance of the roles that are played of investment banker, the commercial banks do not execute these roles. (Morrison A. 1997). A stock market is an open market that trades the businesses stock or shares. The stock markets function is where the businesses can raise monies for their business by allotting shares to the investor. Furthermore, whereas the investor can buy or sell these shares. Business in turn will benefit from this due to the value of the market for their shares are high, and they will have the capability to raise added capital if need be. The stock market is an important share of the economy of a state. The stock market plays a critical role when it comes to the growth of the industries and trades within their capacity. The aim is that the management...
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...Drug Testing Welfare Recipients: Scandal or Solution Welfare programs as we know today were created in the 1930’s during the great depression to aid unemployed and under employed people in supporting their families. (“The”) It was not intended to be a government funded crutch for substance abusers. Often tax payers complain about tax monies being spent to support the habits of drug users who receive welfare. The fix to this problem is simple, drug testing. Drug test everyone on welfare and when the welfare recipient tests positive, take away the benefit. Problem solved. But is it? The consideration of testing welfare recipients for drug use has been debated since welfare reform in 1996. Subsequently, “at least eight states have passed legislation regarding drug testing or screening for public assistance applicants or recipients (Arizona, Florida, Georgia, Kansas, Missouri, Oklahoma, Tennessee and Utah)”. (United, par. 2) Legislators in twenty other states have also proposed drug testing for people who receive welfare. (Prah) However, drug testing welfare recipients is an ineffective use of tax monies because drug abuse is not common in welfare recipients, it is expensive and unproductive, and it is a violation of personal rights. It is easy to believe that most people who receive welfare have some sort of drug abuse problem; nevertheless this could not be further from the truth. The reality is, of the 310 million people living in the United States in 2011, only 1.95 million...
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...wealthiest and nations poorest is widening, trickledown economics is failing this country and, WHEREAS, providing equal opportunities to goods, services, education, governmental supplements, and programs directed towards offering loans for lower income brackets as well as those at higher brackets with the incentives for promoting Fijian tourism and goods would benefit the nation as a whole and, WHEREAS, investing in the people of Fiji could bring about economic stability through community based savings/banking programs that keep Fijian monies flowing through the hands of more Fijians, thus decreasing the number of impoverished citizens without access to financial institutions for self employment purposes and, WHEREAS, eradicating the divisive walls of inaccessibility by placing opportunity in the hands of the average citizen and, THEREFORE IT BE RESOLVED, that the United Nations promotes an economic plan to provide access to Fijian taxpayer monies to citizens rather than studies on poverty. The UN Financial Assistance Program (FAP) will facilitate a project to initiate all aspects of private small business ownership from education to finance, through these steps: 1. Research and Development: A committee shall be formed to research the causes of the failed prior attempts to understand the...
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...Accrual vs. Cash Thomas Warren Brow 2 October, 2014 HSM/260 Sara Stevens In cash accounting you only show transactions that are cash in or cash out transactions, and for a non-profit agency that does not show enough. The accrual method shows all transactions whether they are cash, credit, insurance, or check. In this system it keeps all monies out in the open, and stops any hidden monies from appearing out of nowhere and shows all monies and what is being done with them and how they are generated. The accrual takes the steps necessary to ensure that the agency has a clear and accurate account of any spending the agency does. In the accrual system you taken into account and record any revenue when the transaction occurs or a deal is made even in the event that there is no cash received, and more often than not the revenue and cash will not equal each other when this method is used. If the method of payment is cash when the service is rendered than it will be recorded the same, but if it is a credit payment that makes your revenue go up but your cash is the same then this is a case where the revenue and cash do not equal each other. ("Does Revenue Equal Cash In An Accrual System?", 2014) It is vital because statement of cash flow is the last document that is done for the finances and gives a flow of information which adds validity and accountability to financial records of the company. All people who fund an agency use these records to see what they are funding and...
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...02(`yB) eQ‡ii AwfÁZv | ‡eZb g UvKv 257501000Ø8-33750/3 (K) †Kvb ¯^xK…Z BbwówUDU n‡Z PvU©vW© GKvD‡›U‡›U/AvBwmGgG 2. wdb¨vwÝqvj Gbvwjó mvwU©wd‡KU; Ges ‡eZb g UvKv 22250(L)mswk−ó †¶‡Î Ab~¨b 02(`yB) eQ‡ii AwfÁZv | 900Ø10-31250/334 (K)†Kvb ¯^xK…Z wek¦we`¨vjq n‡Z mœvZ‡KvËi/mggvb/04(Pvi) eQi 3. EaŸ©Zb Kg©KZ©v †gqv`x mœvZK/mggv‡bi wWMÖx; Ges ‡eZb g UvKv 11000-490Ø7(L)†evW©/wek¦we`¨vj‡qi †h †Kvb 2wU cix¶vq 1g wefvM/ 14430-Bwe-540Ø11†kªYx/mggv‡bi †MÖW c‡q›U _vK‡Z n‡e Ges wk¶v Rxe‡bi †Kvb ¯—‡i 20370/3q wefvM/†kªYx/mggv‡bi †MÖW c‡q›U MÖnY‡hvM¨ n‡e bv | 349 (K) †Kvb ¯^xK…Z wek¦we`¨vjq n‡Z mœvZK/mggv‡bi wWMÖx; Ges 4. Kg©KZ©v (L)†evW©/wek¦we`¨vj‡qi †h †Kvb 1wU cix¶vq 1g wefvM/ ‡eZb g UvKv 8000-450Ø7†kªYx/mggv‡bi †MÖW c‡q›U _vK‡Z n‡e Ges wk¶v Rxe‡bi †Kvb ¯—‡i 11150-Bwe-490Ø11-16540/3q wefvM/†kªYx/mggv‡bi ‡MÖW c‡q›U MÖnY‡hvM¨ n‡e bv | (02) cÖv_©x‡`i‡K Kw¤úDUvi cwiPvjbvq Ávb _vK‡Z n‡e | (03) eqmmxgv t (31.10.2011 wLªt Zvwi‡L) t (K) PvU©vW© GKvD‡›UU cÖv_©x‡`i m‡e©v”P 40 eQi (Gwd‡WwfU MÖnY‡hvM¨ bq) (L) wdb¨vwÝqvj Gbvwjó cÖv_©x‡`i m‡e©v”P 38 eQi (M) EaŸ©Zb Kg©KZ©v Ges Kg©KZ©v c`؇qi cÖv_©x‡`i m‡e©v”P 30 eQi (gyw³‡hv×v‡`i mš—vb Ges bvwZ-bvZwb‡`i Rb¨ m‡e©v”P 32 eQi ) (N) Kg©KZ©v c‡`i Rb¨ wefvMxq cÖv_©x‡`i eqmmxgv wkw_j‡hvM¨ (04) AvMÖnx cÖv_©x‡`i‡K Av‡e`bc‡Îi mwnZ wbgœewY©Z KvMRcÎvw` mshy³ K‡i `iLv¯— Dc-gnve¨e¯’vcK, Kg©x e¨e¯’vcbv wefvM-1, evsjv‡`k K…wl e¨vsK, wR,wc,I e· bs 697, XvKv-1000 GB wVKvbvq AvMvgx 08.12.2011wLªt Zvwi‡Li g‡a¨ ïaygvÎ WvK‡hv‡M †cŠuQv‡Z n‡e | mivmwi,...
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...Indian Black Money Abroad In Secret Banks and Tax Havens Second Report Of The Task Force on the steps to be taken by India Members Shri Gurumurthy, Chartered Accountant, Chennai Shri Ajit Doval, former Director Intelligence Bureau, Delhi Prof R.Vaidyanathan, Professor of Finance Indian Institute of Management, Bangalore Shri Mahesh Jethmalani, Senior Advocate, Mumbai Submitted to BHARATIYA JANATA PARTY 1 I. The First Interim Report The first Interim Report of the Task Force appointed by the Bharatiya Janata Party was released to the public on 17-04-2009. Afterward different world governments, particularly those in the West, have increasingly begun targeting tax havens and intensely began pursuing black money. The US, and France particularly began a huge campaign against the evil of black money. The estimates black money lodged in tax havens by global financial institutions like the International Monetary Fund reached as high as $18 trillion. The instability in the global financial order itself was traced to the evil money. So the issue has now acquired a totally different dimension. In the first Interim Report, the Task Force had suggested broad national and global strategy for dealing with the menace of black money out of the country. The substance of the recommendations of the Task Force in the First Interim Report is summarized here: Global Strategy: • Creating a powerful public opinion and broad national consensus on the issue. Those who do not...
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...The Gold Mine Version 2.1 Your Step by Step System for Finding, Securing and Obtaining Surplus Funds From Mortgage Foreclosures, Tax Sales, Unclaimed Estate Monies, and Bankruptcy Courts. **Please NOTE – the Videos that will help you understand the written information that follows are now all on one page with titles describing what they address. Please be sure to check those videos out at http://www.surplusfundsriches.com/coursevids.htm YOUR BROWSER MUST BE OPEN IN THE BACKGROUND FOR THIS TO WORK! If you’re internet browser is open in the background while you are reading this, you can click the above link and go straight to the page. If not, cut and paste it into your browser. WATCH AT LEAST THE INTRODUCTORY – FIRST – VIDEO PLEASE! Also – if you are going to function as a researcher, using our funding, you are responsible for using this book to get the list of monies held, doing the research as outlined in the pages that follow, and sending that information in. The last part of this portion of the book has the Independent Contractor’s Agreement, the Referral Form and additional information. You do not do the negotiations or contact the individuals if you wish to function in this capacity. Please, before you ask for help on acquiring a list, follow directions to do so with the emails to the bookkeepers. GETTING THE LIST IS PRIORITY – USE THE VIDEO LINK ABOVE TO WATCH VIDEOS, IN ADDITION TO READING THIS BOOK! Finally, I get a lot of calls regarding new statutes/laws passed in each...
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...Antonio Raimundo Montana (“Tony”) was once the office manager of Captain Kirk, P.A. (“Firm”). A few of Tony’s duties involved client billing and managing the Firm’s accounts, both the operating and trust accounts. Tony had been at the Firm for over 20 years and was a trusted employee, so much so that the managing partner, Spock, rarely supervised Tony’s actions. When Tony first started at the Firm he would provide Spock a monthly report that detailed the activity of the trust account. Spock required this report as means to comply with the Florida Bar Rule 5-1.1, which mentions that a lawyer must maintain and supervise the trust account. However, as the Firm rapidly expanded and the workload increased, Tony asked Spock to eliminate such “busy” work like that of the monthly report of the trust account. Spock agreed to cease the monthly reports since he had developed a strong sense of trust and loyalty to Tony over the years. Also, Tony had never done anything in the past to make Spock suspicious of Tony’s actions. Spock had to go out of state for a month’s time for a trial. Before leaving, he asked that Tony be on the lookout for a $1 million dollar wire transfer that was expected to be coming in the next couple of days and is to be held within the Firm’s trust account. Tony obliged and said that everything would be taken care of and that the accounting records would be updated once received. While Spock was out of town, he emailed Tony on several occasions inquiring...
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...your monthly payment to pay off your loan in 20 years instead of 25. Considering the housing bust of 2008 and the current state of the U.S. economy, this is a situation that far too many of us have found ourselves facing. To premise, when considering paying off a simple interest loan or mortgage before its maturity date, one must also understand that your Principal and Interest (P&I) payment is still based on the original amount financed at the original interest rate. Paying monies over and above P&I will subsequently reduce the term in which you finance the loan; yet, without penalty. If your current P&I is $706.12 at 5.75% fixed for 30 years and you want to pay off your mortgage five years early, then you would need to pay $143.40 over and above your current P&I payment. Explain whether or not it would be reasonable to do this if you currently meet your monthly expenses with less than $100 left over. It is neither reasonable nor feasible to consider paying additional monies to pay off your mortgage before its maturity date if it will cost you more than an additional $100 per month and you have less than $100 per month in discretionary income. Identify the highest interest rate that you could refinance at in order to do this and determine the interest rate that would require a monthly total payment that is less than your current total payment. Considering that in order to refinance your mortgage, you would have to provide $2000 out of pocket for...
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