It appears that the world is so concerned about the impending collapse of GM and Chrysler and how the U.S. government will act on the matter. Last week, when officials of the federal government said the collapse of the Big 3 is investibale, a mixed reaction came up. Auto makers Toyota and Honda do not favor a Big 3 falldown. Several experts also agreed with Treasury Secretary Henry Paulson that bankruptcy might be the solution.
However, when the government announced that it will shell out some money ($17.4 billion) to save the GM and Chrysler, most of the stock markets today in Asia dipped. It seems that this bailout is not effective anyway in easing the already turbulent global situation. But what is apparent is that the auto industry bailout is not actually what makes the world worry. How the ongoing financial crisis will be solved is the most troubling issue. In fact, how will the U.S. economy recover is the main cause of concern among the businessmen.
Posted by Jones on January 5th, 2009 :: Filed under
$$$ COMPANIES,
$$$ CRISIS,
SIMPLY SCANDALOUS
As the investigation on the Madoff scandal is still ongoing, those affected by the scheme has turned their eyes not on Bernard Madoff but on their auditing firms. FairField Greenwich Corp, which is the most affected firm currently known, sued its auditing firm PriceWaterhouseCoopers for the latter’s failure to detect the alleged fraud. The New York Law School, meanwhile, is seeking legal action against Ascot Partners LP and its officials over the investment with the Madoff firm. Such actions show the immense effect of the alleged Ponzi scheme run by Bernard Madoff. It’s only ridiculous that the scheme has been discovered just now, almost ten years since it was started by the Madoff.
Posted by Jones on January 4th, 2009 :: Filed under
Uncategorized
Fannie Mae and Freddie Mac have agreed with New York Attorney General Andrew Cuomo to let banks and lenders do their own appraisals on mortgaged homes. This move allows for private home appraisals to be done by the lenders themselves which was previously prohibited. The agreement came after the attorney general’s office opened an investigation on the mortgage sector, which has been experiencing internal bleeding due to the subprime crisis brought by an increase in foreclosures.
Well, the agreement might contribute in stopping the hemorrhage in the mortgage industry. Fannie Mae and Freddie Mac’s decision to let independent home appraisals would surely boost the confidence of lenders in issuing mortgages. This new system will then be used to determine the value of a property being mortgaged and repacked for securities investments.
Posted by Jones on January 3rd, 2009 :: Filed under
$$$ CRISIS,
EVERYDAY MONEY STUFF
About 63 labor cases against Wal-Mart were finally settled when the retail giant agreed to pay its employees around $352 million to $640 million. The company might have realized that it is better to settle the long-running case to prevent further damages in the future, financially and morally. These cases have been running for decades and Wal-Mart officials finally realized that it would be better to pay the agreed sum than pay potentially higher damages that could be imposed by the courts. Apart from that, the legal battle might affect the company’s reputation, especially now that Wal-Mart is remodeling itself.
That is a good idea by the Wal-Mart officials. Besides, the $352-$640 million settlement agreement is only a penny compared to what the company is earning out of the labor done its employees. What is $640 million if the company’s reputation will be destroyed? On that note, Wal-Mart deserves to be applauded. However, there are still a number of unsettled labor disputes faced by the retail chain. The company ought to settled those cases as well.
Posted by Jones on January 2nd, 2009 :: Filed under
EVERYDAY MONEY STUFF,
SIMPLY SCANDALOUS
As Wall Street executives tighten their belts due to the financial crisis, the State of New York is also experiencing a financial hemorrhage. The recent decision by Goldman Sachs not to pay bonuses to its executives could prove to be costly to the state government as well.New York Gov. David Paterson said the move by Goldman Sachs and other companies to forego its bonuses could cost $178 million in tax revenues for the state.
Well, that is a little money to spare if the benefit would be for the common good. The businesses’ decision to give up the executives’ bonuses for this year would certainly help their organizations, and alleviate the impact of the financial turmoil. That would be better than these companies would end up in bankruptcy. However, the governor even said that the state is already in fiscal trouble. If this crisis would last a little longer and the state would be bankrupt. That would be the challenge now for the governor; how to look for other sources of income besides tax generation.
Posted by Jones on January 2nd, 2009 :: Filed under
$$$ CRISIS,
EVERYDAY MONEY STUFF,
STOCK MARKET
BusinessWeek has just released its list of the world’s most influential companies. What can be seen from this list is that the usually dominant companies such as Procter & Gamble, General Electric and even the once-venerated Lehman Brothers were no longer included. Newcomers like Facebook and Google are noticeable. But what is more noticeable is the inclusion in the list of companies from emerging markets such as China Mobile, Li & Fung Ltd. and Huawei, mostly Chinese companies. Wal-Mart seems to be the best performing company this year, topping BusinessWeek’s list, aside from clinching the No. 1 spot in Fortune’s list for several years already.
The name of the game appears to be changing. The formerly unshakeable and industry-leading firms are slowly bowing down to newcomers with fresher marketing strategies and dynamic management plans.
Posted by Jones on January 1st, 2009 :: Filed under
$$$ COMPANIES