1. Banking Business In order to understand how the governance of RBS influenced the performance of the bank in the period 2000-2008, the fundamental incentives and responsibilities of banks in general must be known. Banks are financial institutions that are licensed to be the receiver of deposits (Investopedia). RBS is by foundation a commercial bank and is thus mainly concerned with management of deposits as well as supply of loans to individuals. In return, the bank uses the deposits for lending activities to earn a profit.
I have chosen to analyze Branch Banking & Trusts financial ratios and compare them to industry averages. It is extremely important to analyze the financial statements of a banking institution. Financial ratios for banks are analyzed in order to determine a bank’s unique risks. There are many different classifications of financial ratios. They are classified according to the information that they provide.
Equally critical is the ability to respond and to communicate financial information clearly and concisely in a courtroom setting. Forensic Accounting is a rapidly expanding field within the field of accounting. Although this field has been around for a long time it has become increasingly popular in the past few years for various reasons. For example more attention was brought to this field because of a number of corporate scandals, stricter reporting regulations for companies and internal control regulations involving public awareness. With the state of the world’s economy Forensic Accountants are in high demand.
SAN DIEGO STATE UNIVERSITY College of Business Administration Finance 656 Fall 2013 Impact of Dodd-Frank Wall Street Reform and Consumer Protection Act on Goldman Sachs Group, Inc. II Contents Contents 1 2 Introduction ................................................................................................................. 1 Impact Analysis ........................................................................................................... 2 2.1 2.2 2.3 2.4 Transparency and Accounting for Derivatives.................................................... 2 Improvements to Bank and Thrift Regulations ................................................... 3 Ends too Big to Fail Bailouts .............................................................................. 5 Securitization ....................................................................................................... 6 References ............................................................................................................................ 8 1 Introduction 1 Introduction The Goldman Sachs Group, Inc. (further mentioned as GS) is a leading global investment bank, securities and investment management firm that provides a wide range of financial services to a substantial and diversified client base that includes corporations, financial institutions, governments and high-net-worth individuals. GS reports activities in the following four business segments: Investment Banking, Institutional Client Services, Investing & Lending and Investment Management. The institution provides mergers and acquisitions advice, underwriting services, asset management, and prime brokerage to its client. The bank also engages in market making and private equity deals, and is a primary dealer in the US Treasury security market.1 The Dodd–Frank Wall Street Reform and
This also includes establishing a private-sector regulator to oversee the auditing profession to combat accounting fraud, and enhancing financial disclosures. Companies are under more pressure to comply with SEC and Sarbanes-Oxley Act after recent and growing concerns about their ethical behaviors. Role of Ethics and Compliance in the Financial Environment Starbuck’s role of Ethics and Compliance in the financial environment applies to the Chief Executive Officer (CEO), Chief Financial Officer (CFO), comptroller, and other financial leaders. The company’s code of ethics encompasses
“The Tip of the Iceberg; JP Morgan Chase and Bear Stearns (A)” 1. Consider a traditional commercial bank. What would each side of its balance sheet have looked like? The financial statements used by banks are extremely different from the final statements you would normally see being used by most companies. When examining the balance sheet of a typical company you would see categories such as inventory, accounts payable, or accounts receivable, in a commercial bank balance sheet under assets you would find areas like loans and investments, and under liabilities you would find categories such as deposits and borrowings.
Citigroup Global Markets’ case Name: Affiliation: Discuss how administrative agencies like the Securities and Exchange Commission (SEC) or the Commodities Futures Trading Commission (CFTC) take action in order to be effective in preventing high-risk gambles in securities / banking, a foundation of the economy. The role of the Securities and Exchange Commission (SEC) is to maintain an orderly, fair and efficient market, protect investors as well as to facilitate capital formation. It is the responsibility of the SEC to ensure that companies make full disclosure of financial information in order to protect investors and the general public. The disclosure of meaningful financial information allows investors to make sound decisions on which firms to invest in. On the other hand, the Commodity Futures Trade Commission (CFTC) promotes competitiveness and efficiency in futures and options markets.
Macro Environment Using the PESTEL framework, the analysis is divided as follows: The Graham-Leach-Bliley Act opened competition between banks, insurers and brokers. It allowed investment and commercial banks to consolidate. This was a major opportunity for Fargo because the firm was doing business in every segment of the industry. However, government interventions and mortgage issues for instance, are considered generally as major threats to the financial services business. Concerning the economic issue, there were a lot of big mergers in the United states in 1998.
Consider the following: • What kinds of accounting, audit, and tax services does the firm provide? • Who is their target market(s) by industry and company? • Why would prospective clients give serious consideration to have KSM handle their accounting, audit and tax services? 3. Working in an ever changing accounting, audit and tax environment that is driven by change and strict regulatory adherence, how does the managing partner (David Resnick): • Ensure strict employee compliance to federal and state regulation and the company’s high ethical standards?
Abstract This essay is mainly analyze the contention raised by the corporate law professor Justin O’Brien, which is, changes to the regulation of financial system participants will not mitigate a future global financial crisis, but rather a change in ethical standards is required. Moreover, follow by the discussion of O’Brien’s statement, there is a judgment that whether it is possible to devise a global regime of ethical behavior that will adequately address the problems exposed in the global financial market. 1. Introduction Along with the development of globalization, everything in this world is connected more closely especially the economy, such as the global financial crisis is evolving from the American financial crisis in 2008. Most of the economists considered that, it is the worst financial crisis after the Great Depression in 1930s.