scholarly journals A financial risk and fraud model comparison of Bear Stearns and Sehman Brothers: was the right or wrong firm bailed out?

2013 ◽  
Vol 11 (1) ◽  
pp. 68-87
Author(s):  
Hugh Grove ◽  
Maclyn Clouse
Keyword(s):  
Financial Reporting ◽  
Financial Risk ◽  
Model Comparison ◽  
The Us ◽  
Lehman Brothers ◽  
Us Government ◽  
Crisis Conditions ◽  
The Stability ◽  
The Right ◽  
Bail Out

In March 2008, the US government bailed out a failing Bear Stearns by arranging a sale to JP Morgan Chase, with US government guarantees for many Bear Stearns’ toxic assets that came with the acquisition. In September 2008, the US government failed to bail out a failing Lehman Brothers, which then went into bankruptcy. Soon thereafter, the US government established a bailout program for many other failing financial institutions. This paper uses financial risk and fraud models to attempt to answer the question as to why Bear Stearns was bailed out, but Lehman Brothers was not. Based on the analysis, was the right or wrong firm bailed out? In summary, these financial risk and fraud models show potential for developing effective risk management monitoring and stronger corporate governance in order to enhance relationships between management, financial reporting, and the stability of the economic system in crisis and post-crisis conditions.

US sanctions pressure on Russia will not let up

2019 ◽  
Keyword(s):  
International Economic ◽  
Content Type ◽  
The Us ◽  
Us Government ◽  
The Stability ◽  
The Eu

Significance One bill would prohibit the US government from ever recognising the 2014 annexation of Crimea. Two others instruct the Director of National Intelligence to report on President Vladimir Putin's wealth and on Russian efforts to spread disinformation and undermine the stability of European allies. The fourth is a resolution condemning Putin and subordinates for the 2015 killing of opposition politician Boris Nemtsov. These measures come as larger sanction packages are under discussion. Impacts A proposed US boycott of the St Petersburg International Economic Forum in June will mark a further downward turn in relations. The EU will retain existing sanctions but new measures mirroring US actions are unlikely. Moscow will focus on replacing Western technological imports with Chinese alternatives and domestic manufacture.

New Global Institutions

2010 ◽  
pp. 178-195
Author(s):  
Robert A. Schultz
Keyword(s):  
Global Economy ◽  
Infinite Regress ◽  
Checks And Balances ◽  
Global Institutions ◽  
The Us ◽  
Public Recognition ◽  
Us Government ◽  
Principles Of Justice ◽  
The Right ◽  
Enforcement Activity

How do we decide which new global institutions should be created to implement the Global Economy Principles of Justice? It would be tempting to create authorities whenever wrongs and injustices need to be prevented or corrected. As I noted in Chapter 8, The Ethical Status of Globalized Institutions, the difficult question is, who oversees that an authority is using its power appropriately? We don’t want to create institutions with unchecked power, yet we don’t want to create any more authorities than absolutely necessary for the implementation of the Global Economy Principles of Justice. For if each new institution requires oversight, we apparently create an infinite regress: We need someone to oversee the oversight, and someone else to oversee whoever is overseeing the oversight, and so on. There are two possible ways to avoid this infinite regress. As I suggested in Chapter 10, public recognition of the existence of a social contract itself lessens the need for oversight and enforcement activity. Most people obey the law even when they are sure a policeman is not watching. The other way to avoid the regress, as I suggested in Chapter 8, was to use the checks and balances system of the branches of the US government. Effectively, each branch has oversight on the others. Three seems to be the right number of branches,1 and executive, judicial, and legislative branches are plausible.

SEC amends rules on financial reporting of business acquisitions and dispositions

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Richard J. Parrino
Keyword(s):  
Financial Reporting ◽  
Securities And Exchange Commission ◽  
Financial Statement ◽  
Content Type ◽  
Reporting Framework ◽  
Depth Analysis ◽  
The Us ◽  
Rule Changes ◽  
The Right ◽  
The Impact

Purpose This article examines the comprehensive amendments recently adopted by the US Securities and Exchange Commission (SEC) to its accounting and other rules that govern financial statement filing requirements for significant business acquisitions and dispositions. Design/methodology/approach The article provides an in-depth analysis of the rule changes in the context of the SEC’s attempt to balance the right of investors to obtain adequate information about the impact of an acquired or disposed business on an SEC registrant against the filing burdens that can result from over-identification of acquisitions or dispositions as material to the registrant based on the SEC’s “significance” tests. Findings The rule amendments bring enhanced coherence to a reporting framework that has been characterized in part by inconsistencies, gaps, unreliable valuation principles, and ambiguities. The amendments contribute to the SEC’s ongoing disclosure effectiveness initiative by updating, clarifying, and codifying many requirements that had developed piecemeal in market practice or through guidance issued by the SEC’s staff. Originality/value This article provides expert guidance on a major SEC disclosure requirement from an experienced securities lawyer.

scholarly journals Safe Haven Currencies

2020 ◽  
Vol 26 (4) ◽  
pp. 579-591
Keyword(s):  
Financial Risk ◽  
Swiss Franc ◽  
Global Risk ◽  
Safe Haven ◽  
Number Of Factors ◽  
The Us ◽  
Us Dollar ◽  
Japanese Yen ◽  
The Stability ◽  
Safe Haven Currency

As other safe haven assets, safe haven currencies are sought by investors to mitigate financial risk when economic turbulence hits. Three major safe haven currencies are the US dollar (USD), the Japanese yen (JPY) and the Swiss franc (CHF). The euro is now in competition as an alternative safe haven currency. US dollar will remain the best safe haven currency in the short term and the best investment currency in the medium term. In every uncertainty of the US equity market as well as in the case of a decline of the US dollar, the investor may consider investing in a safe haven currency like the yen or the Swiss franc. Given the stability of Swiss government and financial system of the country, the increased foreign demand for the currency usually pushes the Swiss franc upward. There are number of factors, characterizing the dynamics in which the investors fall, rushing to the Japanese yen during periods of global risk aversion. Traders looked for refuge in the cryptocurrency because they cannot find refuge elsewhere.

scholarly journals Application of Data Mining Technology in Financial Intervention Based on Data Fusion Information Entropy

2022 ◽  
Vol 2022 ◽  
pp. 1-10
Author(s):  
Cong Gu
Keyword(s):  
Decision Tree ◽  
Stratified Sampling ◽  
Normal Operation ◽  
Decision Tree Algorithm ◽  
Financial Policies ◽  
Long Run ◽  
The Us ◽  
C4.5 Algorithm ◽  
Us Government ◽  
The Stability

Finance, as the core of the modern economy, supports sustained economic growth through financing and distribution. With the continuous development of the market economy, finance plays an increasingly important role in economic development. A new economic and financial phenomenon, known as financial intervention, has emerged in recent years, which has created a series of new problems, promoting the rapid increase both in credit and investment and causing many problems on normal operation of financial bodies. In the long run, it will inevitably affect the stability and soundness of the entire economic and financial system. In order to maximize the effect of financial intervention, in response to the above problems, this article uses a series of US practices in financial intervention as the survey content, combined with the loan data provided by the US government financial intervention department, and mines the data of the general C4.5 algorithm of the decision tree algorithm. Generate a decision tree and convert it into classification rules. Next, we will discover the laws hidden behind the loan data, further discover information that may violate relevant financial policies, provide a reliable basis for financial intervention, and improve the efficiency of financial intervention. Experiments show that the method used in this article can effectively solve the above problems and has certain practicability in fiscal intervention. With stratified sampling, the risky accuracy rate increased by 10%, probably because stratified sampling increased the number of high-risk samples.

Part 1 The Cold War Era (1945–89), 36 The US Intervention in Panama—1989

2018 ◽  
Author(s):  
Tsagourias Nicholas
Keyword(s):  
Cold War ◽  
International Law ◽  
Use Of Force ◽  
Panama Canal ◽  
The Us ◽  
Us Government ◽  
Legal Arguments ◽  
The Right ◽  
The Cold War ◽  
Us Intervention

This chapter examines the legality of the 1989 US intervention in Panama and assesses its impact on the use of force regime. After recalling the facts of the incident, it goes on to analyse the legal arguments provided by the US government to justify its action. More specifically, the US invoked its right to protect American citizens abroad as part of its right to self-defence; the right to intervene to protect the Panama Canal provided by the Panama Canal Treaties; and the invitation of the democratically elected Leader of the Opposition. The chapter then presents the reactions of states and the views of legal commentators. It concludes by saying that the incident affirms existing law but also contributes to the development of the rules regulating the use of force in international law.

scholarly journals Measuring Technological Innovation over the Long Run

2021 ◽  
Vol 3 (3) ◽  
pp. 303-320
Author(s):  
Bryan Kelly ◽  
Dimitris Papanikolaou ◽  
Amit Seru ◽  
Matt Taddy
Keyword(s):  
Nonprofit Organizations ◽  
Technological Innovation ◽  
Subsequent Work ◽  
Public Firms ◽  
Long Run ◽  
The Us ◽  
Us Government ◽  
Long Time ◽  
Private And Public ◽  
The Right

We use textual analysis of high-dimensional data from patent documents to create new indicators of technological innovation. We identify important patents based on textual similarity of a given patent to previous and subsequent work: these patents are distinct from previous work but related to subsequent innovations. Our importance indicators correlate with existing measures of patent quality but also provide complementary information. We identify breakthrough innovations as the most important patents—those in the right tail of our measure—and construct time series indices of technological change at the aggregate and sectoral levels. Our technology indices capture the evolution of technological waves over a long time span (1840 to the present) and cover innovation by private and public firms as well as nonprofit organizations and the US government. Advances in electricity and transportation drive the index in the 1880s, chemicals and electricity in the 1920s and 1930s, and computers and communication in the post-1980s. (JEL C43, N71, N72, O31, O33, O34)

The Political and Legal Force of the Prohibition of Force: Assessing State Behaviour

2008 ◽  
Vol 21 (4) ◽  
pp. 995-1003
Author(s):  
ALFRED VAN STADEN
Keyword(s):  
Effective Control ◽  
Military Force ◽  
The Us ◽  
Un Security Council ◽  
Us Government ◽  
State Behaviour ◽  
The Right ◽  
Military Campaign ◽  
The Military ◽  
Self Defence

Recent political developments on the global scene have shed new light on established rules concerning the employment of military force while giving rise, among other things, to a reappraisal of the scope and limits of the right of self-defence. The terrorist attacks of September 2001 raised the question of whether actions by non-state actors can fall within the concept of ‘armed attack’. Those attacks were defined by UN Security Council Resolution 1368, under Article 39 of Chapter VII of the UN Charter, as ‘a threat to international peace and security’, but the ambiguous formulation left sufficient scope for upholding the prevailing view that Article 51 may only be invoked in the case of conflict between states. According to this view, which meanwhile has been contested, any resort to self-defence for legally justifying unilateral military action against terrorist organizations operating in other countries needs to be supported by evidence or argumentation that attacks perpetrated by those organizations can be attributed to a state. In defending the military campaign conducted to oust the Taliban regime in Afghanistan, the US government could credibly argue that this regime, exercising effective control over the country, was to be held accountable since it was harbouring members of al Qaeda on its territory and was actively supporting them.

Sign in / Sign up

Export Citation Format

Share Document