Case1 final revised Essay

4- The committee and Ms Beckel decided to include a religious studies curriculum in the program. The principal approved of it. However, Ms Wright one of the community members did not. She threatened to show up at the committee meeting with the media. On the day of the meeting, Ms Wright showed up with a placard protesting the use of the bible in public schools.

Intermountain has also benefitted from an AA+ bond rating which reduces their borrowing costs. It is critical that the organisation maintains a healthy financial performance so as to retain the rating. A lower rating would add to their financial pressure.

This case is talking about an executive retreat. It was introduced by John Matthews who was a executive had been selected to attend the two-and-a-half-week retreat. The retreat was more like a competition about academic and athletic. The team members should not only get know each other and cooperate with teammates but also need to compete with others. The whole participants were broken into five groups and their aim was to win the competition. There are several sessions about academic and athletic that the participants should complete. After the introduction part the case showed the experience of John. Before the group meeting John was wondering and worried about this retreat. When he was taking the first group meeting, he tried to learn

The court deciphering between criminal negligence and recklessness. Criminal negligence being a person failing to perceive a substantial and unjustifiable risk that the result will occur or that the circumstance exists. The risk must be of such nature and degree that the failure to perceive it constitutes a gross deviation from the standard of care that a reasonable person would observe in the situation.

Table no 8 shows the credit rating, Image rating and the Investor confidence index. The credit rating of the company has been ranging from B+ to A+. The best in industry score is 20 while the overall credit rating is 20.The image rating is 59 with best in industry and overall rating being 20. The investor confidence index is fair as compared to competitors A and C who have an excellent rating.

The regulation that I have chosen for this paper is amendment in the Regulation X i.e. “Real Estate Settlement Procedures Act” and Regulation Z which is for “Truth in Lending”, for establishing the new disclosure requirements and forms in Regulation Z for the most closed-end consumer credit transactions secured by the real property. This regulation is controlled by the Bureau of Consumer Financial Protection. The role of the Consumer Financial Protection Bureau (CFPB) is to provide consumers information related to the terms of their agreements with financial companies during their application for a mortgage, choosing among credit cards, or using any number of other consumer financial products. The mortgage market is the single largest market for the consumer of financial products and the services in the United States, with approximately $10.4 trillion in loans outstanding. Since last decade, market went through an unprecedented cycle of the expansion and the contraction that was fuelled in the part by securitization of mortgages and the creation of increasingly sophisticated derivative products. This led to the collapse of financial system in 2008 and sparked the most severe recession in United States.

On a snowy January evening, the Midwestern Medical Group (MMG) management team held a retirement party for Judith Olsen, MMG president. During the evening, Olsen reflected back on the years she had worked for MMG with mixed feelings about her experience. Over the course of their eight-year integration

The stakeholders in this case include investors, shareholders, and investment banks. At first they benefited because they were receiving high returns from the growing profits of Moody’s. Eventually, however, the demand for securities grew to the point where the banks could not create enough. This caused the stakeholders to suffer, and due to high interest rates, they could never recover.

The oldest credit rating agency, Moody, was founded 108 years ago in 1909 by John Moody. This corporation was established when the popularity of corporate bonds grew. John Moody recognized that his investors needed trustworthy information about the issuer's’ creditworthiness. This corporation is composed of two business units, Moody’s investors service being one and Moody’s KMV, now it’s called Moody’s analytics being another. Moody’s investors service make profits by rating bonds. Moody’s analytics basically did the same job as Moody’s KMV. They both provided credit analysis tools and financial modeling and consulting. Additionally, they analyze the risk for the government and corporations. They also made money from charging fees from those

Credit crises - Global cluster F&^# involving: Sub prime mortgages, collateralized debt obligations, frozen credit markets, credit default swaps.

S&P as a rating agency has been improving and changing their methodology of how to revise financial institutions’ performance after the bankruptcy of Lehman Brothers Holdings Inc. and Bear Stearns Cos. After changing their criteria about financial institutions’ credit ratings, they announced the downgrade. S&P is a research company which evaluates stocks and bonds, and it earns revenue from subscribers and financial assets issuers. S&P’s main objective is to provide reliable creditworthiness research to the investors or subscribers, however issuers also have to pay an amount of money to them for doing research, therefore a conflict of interest might exist. Investors and regulators may worry about this credit-rating agency to bias their report, because they might upgrade the rating to attract more business. In this case the downgrade may also involve conflicts of interest, which made this credit assessment quality to decline and increase the asymmetric problem that affect the financial market.

The main conflict that has plagued Moody's was they were paid by the same institution that issued the bonds it rated. The core of Moody's business was rating the safety and the security of the bonds issued by companies, government, and the public agencies alike. Their main goal was to satisfy the bond issuers who naturally would seek out the highest possible rating. However, this conflicted with investors who were more interested in seeking out a naturally accurate rating that was not false. Moody's was also tasked to rate to the creditworthiness of the various branches of the mortgage-backed security. Investors had no ideas as to how to assert the safety and security because products were grouped and sold in multiple shares to other investors. To resolve the conflict the relationship between the issuer of bonds and rating agencies should be better handled. This can occur in the form of the Securities and Exchange Commission to determine the best possible approach for this to occur. As well as for the house of representative to audit credit rating companies, investors, and

Threat The leading ratings agencies, Moody’s, Standard & Poor’s and Fitch — a triumvirate some liken to an oligopoly, almost dominate the whole market. Their long history operations, great reputation and customers’ loyalty in the industry lead them incomparable to new entrants. Furthermore, Kroll also faces competition from new entrants like Meredith Whitney, a banking analyst who is getting into the ratings business, and Morningstar, of mutual fund fame, and the Chinese municipal rating agency Dagong with huge capital. Therefore, it is tough for Kroll to break into this new industry where the three dominant incumbents have 97% of all ratings.

It is a paradox phenomenon that other developed economies like the European Union or Japan, failed or not taken care of creating similar companies, so they became preys in the moods of the American rating agencies both in their enterprises and their public sectors.

Rating agencies play a vital role in converting illiquid assets in to marketable securities. This paper