The Financial Industry : An Essential Element Of Society And The Economy

In this case study, Vancity’s CEO, Vrooman, is faced with making the tough decision of deciding if her organization is in a position to reprice its line of credit offerings, in order to stay afloat and competitive, and at the same time, not loose the trust of its customers, who also happens to be the owners. Furthermore, the study showcases how Vancity’s innovative value to adapt to the changing needs in their community gives them a competitive advantage amongst other financial institution. This case is important as it explains tough decisions that top executives and organizations as a whole, are often faced with making, in order to stay competitive and profitable. It also discusses the financial impacts of the recession in the late 2000s on the Canadian economy, particularly the financial industry. This paper will begin with an introduction to this case, discussing the financial industry, and its impact on the Canadian economy, also to be accompanied with some background information on the case study. This will be followed with an analysis of the case study and I will then determine possible decisions that could be taken, and the merits/drawbacks of each decision. At this point, I will elaborate on what decision I think would be ideal and provide the best outcome of benefitting both the organization and its customers.

The previous uncertainty is enhanced by a lawsuit that alleged that UST had violated antitrust and advertising laws and participated in anti-competitive conduct. Should UST lost the suite, it will be more vulnerable with competitors.

1. Describe the different kinds of financial institutions that make up the US financial system.

BOOK REVIEW: Foster, J. B., & Magdoff, F. (2009). The great financial crisis: Causes and consequences. New York: Monthly Review Press.

In 2008, the global financial industry experienced dramatic changes when the global financial crisis came furiously. In the United States, the historical changes appeared in the structure of investment banking. These changes included the fifth-largest US investment bank, Bear Stearns and the third-largest US investment bank, Merrill Lynch was acquired respectively, and the fourth-largest US investment bank, Lehman Brothers declared bankruptcy. In addition, the Goldman Sachs and the Morgan Stanley had no choice but to transform separately into the bank holding company. Moreover, the American government took over the Fannie Mae and the Freddie Mac and held a major share in the American International Group. There were also various events about the bankruptcy and merger of the other financial institutions. In the wider world, some banks in Belgium, Britain, Switzerland and Germany also got into the dilemmas and troubles, and these banks accepted the government aids without choices.

Whitney Tilson, a noted analyst, warns investors in an article in The Motley Fool that more than any other type of company, financial companies have immense discretion regarding what earnings to report. The key is the rate of loan losses that they expect to experience, which must be estimated at the end of every period. By changing this estimate, which in turn changes one of the largest expenses on their income statement, financial companies can manage net income. Tilson specifically cites Farmer Mac, the agency created by the federal government to provide funds in the agricultural lending market, which many analysts believe smooths its earnings across time by simply changing its estimate on loss rates.

BTEC HND Qingdao Center | | | | | | | | | | | | | | | | | |Assignment Brief and Feedback Form | | | | | | | | | | | | | | | | |Learner name |　 |　 |　 | | | | | | | | | | | | | | | |Course title |Financial Systems and Auditing | | | | | | | | | | | | | | | |Assessor name |XIAOLIN WANG |　 |　 | | | | | | | | | | | | | | | |IV name |Hu Dalong | |　 | | | | | | | | | | | | | | | |Unit number and title |Unit11: Financial Systems and Auditing | | | | | | | | | | | | | | | |Assignment title |Financial Systems and Auditing Assignment 1 | | | | | | | | | | | | | | | |Outcome number(s) |11. 1 & 11.2 | | | | | | | | | | | | | | | |and statement(s) | | | | | | | | | | | | | | | | |Date set |Mar. 14th , 2011 |Hand-in date |Mar. 28, 2011 | | | | | | |

The stock market is essential to the financial industry, as stocks are a source of funding for public corporations. In order to increase equity efficiently and cheaply, corporations issue stocks to the public who supply the funds. In return, the suppliers receive dividend payments and partial ownership in the company which classifies them as shareholders (Saunders & Cornett, 2015). Since, shareholders play an important role in the corporations funding, it is necessary for organizational leadership to be mindful of corporate policy changes, as certain changes may drastically impact the existing shareholder base. Moreover, corporate policy changes alter the appeal of a company’s stock, giving the public more or less incentive to purchase stocks. As a result, the implications of an organization issuing additional shares of common stock, announcing a new share repurchase program and increasing quarterly dividends per share, can all impact an existing shareholders view of the company and the market. Therefore, discretionary policy changes are fundamental, due to the signals certain announcements can indicate within the financial industry.

The Financial sector makes up 15.94% of the S&P 500 second-largest to in size to Information Technology . The Financial sector is a category of stocks containing firms that engage in financial transactions and create, liquidate, purchase, and sell financial assets such as securities, bonds, and insurance. This sector includes banks, investment funds, insurance companies and real estate. Major finance and insurance companies include Bank of America, JPMorgan, Wells Fargo, Citigroup, American International Group (AIG), MetLife, etc. The financial markets in the United States are the largest and most liquid in the world. There is no argument that the Financial sector carries a lot of weight in S&P 500 index value. Over the

There are over 46 companies that exist within the banking industry. Citigroup, Wells Fargo, Bank of America, J.P Morgan Chase and several others. The competitors are relatively equal in size, however, they have different ranging revenues. The four major competitors consist of Citigroup, Bank of America, J.P Morgan Chase, and Wells Fargo. Revenues for Citigroup Inc. were reported at $76 billion in 2014, Bank of America was reported at $100 billion, and $96 billion for J.P Morgan Chase. Wells Fargo lags behind with $26 billion in revenues. Each banking company had roughly around 200,000 employees. Another competitor includes the Commercial Bank of China with revenues totaling $2.8 billion. Each bank has an average of $2 billion in assets, so not one bank has more than the other.

The term financial education is consented to be general and clearly recognized. In an effort to develop sound financial decision making amongst consumers, under which financial literature from current ongoing financial education programs is analyzed, education is the main delivery route. Under several databases, this research narrowed itself when used the terms financial education, financial education research and community impact; the National Institute of Health darted this National Bureau of Economic Research report.

There is no consensus on how best to define financialization. Although the concept emerged within the Marxist tradition, there are conflicting views about the relationship between finance and the real economy. Baran and Sweezy (1966) explain that advanced capitalist states face a surplus absorption problem that inevitably leads to stagnation. To prevent the latter, unproductive consumption rises and the remaining surplus enters the sphere of circulation, particularly, financial activities. This is a stark contrast to Orthodox Marxists (cite), who explain the rise of finance as a consequence of the falling rate of profit in the sphere of production. The essential contention is that poor profitability in

In today’s financial world, the banking sector is the pillar supporting the modern world’s commerce, trade, and industry. With a multitude of services provided on the personal, business, and institutional level, careers in a sector this broad are just as variable. In this essay I will discuss the history, workplace, job description, future developments, and my personal experience regarding the banking career. More specifically, it will focus on two occupations -- financial planners and accountants. A bank is broadly defined as a financial institution that provides a range of services to its customers. Banks play an integral role in the financial future of virtually every Canadian, including individuals, businesses, investors, governments,

The system of banking in India is very extensive. The value of Indian banking sector is US$270 billion. And the deposit of the Indian banking sector is US$220 billion. Now the Indian banking sector has changed. Nowadays using of things like internet banking and core banking have made the daily operations of bank more easy to use. Mumbai is also known as the trade and commerce capital of India. These are the few basic things which are related to the Indian economy like Indian rupee is equal to 100 pause, the fiscal year is from 1 April-31 March, the trade organisations are WTO,SAFTA,BRICS,G2O and others. The current GDP growth is 5.8%.If we see the GDP in sectorial wise then in agriculture the GDP is 13.7%, in the industry sector the GDP is 21.5% and in the service sector it is64.8%The unemployment percentage in the urban areas is 3% and in the rural areas it is 2%.and in the numbers I id 10.8 million. The main industries in India are agriculture, petroleum products, chemicals, pharmaceuticals, software,

In this project the different techniques adopted by the company towards this effect have been identified. ICICI PRUDENTIAL, which is multinational company, has been chosen for studying their methods of recruitment and