The Federal National Mortgage Association, commonly known as Fannie Mae, was founded in 1938 during the Great Depression as part of the New Deal. It is a government-sponsored enterprise, though it has been a publicly traded company since 1968. The corporation's purpose is to expand the secondary mortgage market by securitizing mortgages in the form of mortgage-backed securities, allowing lenders to reinvest their assets into more lending and in effect increasing the number of lenders in the mortgage market by reducing the reliance on thrifts. In the 1968 change, Fannie Mae's predecessor was split into the current Fannie Mae and the Government National Mortgage Association "Ginnie Mae". Ginnie Mae had the federal backing while Fannie Mae appeared to have federal backing.
Enron Saga – An Ethical Point of View A sketch of Enron The Enron financial rout, is fascinating because it reveals that the ‘invisible hand’, which is meant to bring rationality into the market forces, may have no shadow, much like the character of a German novel, who had sold his own shadow to the devil thinking it was of little value, until it made him a monster banned from any human society. At the time of its filing for bankruptcy in December 2001, there were 2,800 offshore units and 54 page list of people and companies who owed money from Enron. This was a far cry from the firm which, in the 1980s, specialized in the provision of natural gas pipelines and related services. But Enron rapidly expanded into trading activities in 1,800 products or contracts, the great majority of which were not subject to the regulatory oversight of the United States Commodity Futures Trading Commission (CFTC). Birth of Enron Enron Corporation was created in 1985, after the federal deregulation of natural gas in North America.
April 8, 2012 Tax File Memorandum From:., CPA. M.A.F.M Subject: Mr. Jones Taxpayer Engagement On today April 5th, 2012 I met with Mr. Jones regarding our Previous Meeting on April 2nd, 2012 to discuss some questions and possible outcomes about potential future financial investment decisions, and the tax ramifications of these decision and possible outcomes. Facts: Mr. Jones is considering the purchase of a manufacturing company Smithton Widgets which is very profitable. Mr. Jones is a majority shareholder in another C-Corp. Known in this case as Johnson Services which has accumulated significant losses.
The Sarbanes- Oxley Act is an act that came into affect July 29, 2002. The act was sponsored by Paul Sarbanes, senator for the state of Maryland, and Michael Oxley a representative from the state of Ohio. The act goes by the term SOX, it is a federal law that enhanced the standards for the public trading board and accounting and management firms. Some firms may also recognize the act as ‘Public Company Accounting Reform and Investor Protection Act’ or the ‘Corporate and Auditing Accountability and Responsibility Act’. The act is into place because of the scandals that happened with corporate America.
One could argue though, that receiving a five year employment borderlines financial benefits especially given the worsening financial position of Pharma. Adams and Barker also lacked diligence in investigating the proposal, decision, and transaction and never consulted outside experts. “Directors’ and officers’ decision-making procedures must be set up in a way that allows careful decisions to be made regarding the best interests of the corporation”. (The Legal Environment of Business, 2011) The argument could be made both ways about protection by the business judgment rule concerning rational belief. For Pharma to survive and become viable it was obvious that some decisions had to be made, but was the sale of the assets in the best interest of the corporation, or was it in the best interest of Adams and Barker?
Jack Welch was the CEO of General Electric between 1981 and 2001. During his tenure at GE, the company's value rose 4000%. In 1961, Welch planned to quit his job as junior engineer because he was dissatisfied with the raise offered to him and was unhappy with the bureaucracy he observed at GE. Welch was persuaded to remain at GE by Reuben Gutoff, an executive at the company, who promised him that he would help create the small company atmosphere Welch desired Welch was named a vice president of GE in 1972. He became senior vice president in 1977 and vice chairman in 1979.
In 1951, the company moved from Chicago to its current site in Morton Grove, IL. In 1987, Crane Packing Company was purchased by TI Group PCL. In spite of a series of acquisitions and divestitures, the companies in the USA and in the UK were once again united under the name of John Crane. Since 1987, JC provided superior service to customers and was the technological leader in the sealing industry. In 1998, JC acquired three other sealing companies, Sealol, Safematic and Flexibox.
Insurance project History of Allianz Group Allianz is a German multinational financial services company headquartered in Munich, Germany and is one of the leading insurers and financial services providers worldwide. The founding years – 1890 Allianz was founded in Berlin on 5 February 1890 by Carl von Thieme and Wilhelm von Finck. The company originated as a transport and accident insurer. The first step to become an international company started with the opening of a branch office in London in the late 19th century, by providing transport insurance to German customers with ownership abroad. Growth and rationalization – 1918 Despite inflation and the global economic crisis, Allianz becomes Germany’s largest insurer.
Cost of Capital at Ameritrade CAPM Cost of Capital at Ameritrade ● ● ● Introduction to Case Calculate CAPM Calculate WACC Company Background ● ● Ameritrade is formed in 1971 pioneer in the deep-discount brokerage sector. In Mar 1997, Ameritrade raised $22.5 million in IPO ● Company Background ● - Source of revenue from Transaction and Net interest Business Question Joe Ricketts (CEO) is thinking cut cost, invest in advertise or invest in technology - Expect return 30-50% - Expect return 10-15% ● What type of Ameritrade Business? ● Who are Ameritrade’s Competitors ● ● ● ● E*Trade Waterhouse Investor Service Charles Schwab Quick & Reilly Other Information that we have? ● Ameritrade Annual Income, Balance sheet Capital Market return data Ameritrade & Competitors Stock price Stock return from NYSE ● ● ● What do we need to answer question ● CAPM (Capital Asset Pricing Model) ◦ Risk Free Rate ◦ Beta (unleverage) ◦ Risk Premium ◦ Expected Market Return ● WACC (Weighted Average Cost of Capital) ◦ E/V ratio ◦ Re ◦ Rd ◦ D/V What do we need to answer question ● CAPM (Capital Asset Pricing Model) ● WACC (Weighted Average Cost of Capital) CAPM - Capital Asset Pricing Model Ke = Rf + B (Rm-Rf) ◦ Risk free rate ◦ Beta ◦ Expect Market return ◦ Market risk premium (Rm-Rf) CAPM - Capital Asset Pricing Model Risk free rate We pick up 30-years bonds Rf = 6.61% Why? Ameritrade is going to make a substantial investment in technology Ameritrade’s mission is to be the largest brokerage firm worldwide(Long term investment) CAPM - Capital Asset Pricing Model Market Risk Premium Historic Average Total Annual Returns on US government securities and Common Stocks(Exhibit 3) We consider Ameritrade is a large company - in 1997, Ameritrade(NASDAQ: AMTD) raised 22.5 million in an initial public offering
Second, the paper will analyze the change process initiated by Schulmeyer and specifically evaluate the Change Agent Program. Third, the paper will discover what actions Schulmeyer should have taken as Chief Executive Officer. Introduction SNI merged with Siemens in 1990 to become the largest European manufacturer of computers and information systems. “Despite its size and a strong market presence in Europe, SNI had not posted a profitable quarter since the merger (Cummings & Worley, 2009).” As a result, the Chairman of Siemens AG decided to bring in a new CEO, Gerhard Schulmeyer. Schulmeyer’s plan was to implement sweeping organizational change.