It would be my advice for Mr. Jones to not buy the stock because of the liability of current and future tax obligations which Mr. Jones would incur from the purchase of the stock. Since the tax identity of Smithon corporation would have not ceased, it is not a favorable purchase for Mr. Jones. Ina a case where the tax identity of a firm does not cease not to exist, the tax aspects will remain the same and so will the existing tax schedule. So in this case it would mean that Mr. Jones would not be allowed to change the financial year to end on December 31. The buyer in cases where he can’t change the legal entity is in a non -benefice situation, the buyer is limited to follow the current tax basis on the company’s assets even if the buyer paid more for the
The much more divisive question is whether the government should preserve the benefits that the companies provide to middle-class borrowers, including lower interest rates, lenient terms and the ability to get a mortgage even when banks are not making other kinds of loans. Douglas J. Elliott, a financial policy fellow at the Brookings Institution, said Congress was being forced for the first time in decades to grapple with the cost of subsidizing middle-class mortgages. The collapse of Fannie and Freddie took with it the pretense that the government could do so at no risk to taxpayers, he
Stockman finds these banks “too big to exist.” Ryan believes the taxpayer’s money deposit should be handled by the states not the federal. Stockman disagrees, he finds it to difficult to manage internally and externally; he believes the bank should broken up by a higher authority. He thinks it would be better if Ryan looked back to the times of restoration of “Glass-Steagall, Depression-era legislation that that separated commercial and investment banking.” Stockman brings up the ideal way to reduce or eliminate Social insurance benefits. He strongly believes the government should make changes on the income based eligibility test to reduce or eliminate the need to give Social insurance to millions of people. This would avoid tax increase issue.
Breach of Contract is one of the most common defenses raised by a party to a negotiable instrument. If there is a breach of contract and there was in this case this particular personal defense is effective only against an ordinary holder. Since Mortgage Finance is a holder in due course the Mahaffey’s cannot assert any personal defenses against Mortgage Finance. The Mahaffey’s can sue Five Star but will probably lose because the Mahaffey have no leverage against Five Star and the court action can be expensive and time consuming. However, the FTC rule which eliminates HDC status with regard to negotiable instruments arising out of certain consumer credit transactions can be asserted to prevent enforcement of a note that arose from a covered
Business Management 2425 The Dodd-Frank Act 1. What is the Dodd-Frank Act and how it’s implemented? The Dodd-Frank Act is a Wall Street Reform and Consumer Protection Act. It is a big part of the financial reform legislation which was passed in 2010 by the Obama administration as a reply to the financial crisis in 2008. The Act is designed to decrease any risks in the US financial system by overseeing Wall Street, regulating credit cards, loans, and mortgages.
If this was not the case, Congress would not have enforced the Sarbanes-Oxley Act. In 2002, the financial scandals that occurred by multiple corporations proved that the accounting profession was in dire need of some regulation by the government. I predict that corporate fraud will remain the same based on the research produced during the writing process for this assignment. There is no fool proof way to completely diminish financial fraud or to protect investors. As people as a whole have proven time and time again, there are rules and laws and there are people whom break those rules and laws for personal gain.
The question we all as taxpayers should be asking is whether or not we will see a good return on our investment. The Democratic proposal is a bit more negotiable since the taxpayers would at least own an equity interest in these companies. However, even that modified plan seems too expensive and way too intrusive. We should consider alternative plans that are not quite as intrusive to market mechanisms such as the Lindt plan. The Paulson plan also seems to signal a dangerous shift away from liberal market mechanisms into an age of neo-mercantilism.
This is our major flaws in the credit report. There is not enough education to the society and consumers. If society as a whole knew the dangers of low credit scores early in their lives, then they would take care of their credit better. If everyone had access to their credit report 24 hours a day 7 days a week free of charge then they would know where they stand and would better manage their credit. Just like a bank account, if you can see on-line where your money is going then you can better avoid overdrawing your account.
Banks focused mainly on making profits rather than regulations, so they did not pay premium for F.D.I.C. when they were in good time, then they suffered in bad time that they could not pay back. Bair asked the banks to pay premium and fund building. Basel II advocated banks to self-regulated, which made banks keep a low capital, thus Ms. Bair disagreed with Basel II and later facts of deeper crisis proved she was right. With regarding to bailout by several banks, Ms. Bair held different views from Geithner`s.
Interoperability is dangerous to the concept of Federalism because although New Orleans was granted money to fund the system by the national government, at the state level, it was never implemented. The dangerous part comes in when the public asks whose fault it was that the system wasn’t in place when it really mattered. The state believes the national government should have been more involved to mandate deadlines and be more proactive in the implementation. The public and many other professionals involved believe the local government could have ironed out all the ethical issues and implemented the system with only the financial help from the national government. Unfortunately for Katrina victims, that’s not what took