Analysis of:
Gold Plummets by Record $59 on Fed's Interest-Rate Decision (www.bloomberg.com)
Implications: 1.Expectations - "Awareness of a Correction", which MAY lead to a sharp price downside for a prolonged period of time. 2.The role of the U.S. Central Bank - a reduction of the Federal Funds Rate,credit market losses and Sub-Prime Mortgage market are , indeed, viable indicators of the Financial...
Analysis of:
Did JPMorgan overpay? (dailybriefing.blogs.fortune.cnn.com)
Implications: 1.A MATERIAL Gain for the firm by the ability to acquire a solid Securities Clearing business and a more than adequate Headquarters' Building for less than fair - market value. 2. A Time period will have to pass before a clear assessment of the transaction can be a quantified. 3....
Analysis of:
Standard Insurers Nab More Nonstandard Auto Biz (www.propertyandcasualtyinsurancenews.com)
Implications: 1.Core elements consists of the low- income and the immigrant population. 2.A New Standard for the non-conforming risk will cause a Drastic shift in the Risk Profile of the marketplace. 3.There is NO clear definition of the nonstandard insured - A Blue Print for Failure and , additional...
Analysis of:
Moody's to assign muni bonds corporate ratings (www.guardian.co.uk)
Implicatons:
1.A Cash windfall exceeding expectations using Common Stock vs Preferred Stock.Incentives for the Shareholder - unknown.Incentive for the Capital Markets - control.
2.A Credit Card Association restructuring in a downward spiral market May Be the ONLY chance for survival.
3.Global Operations...
Analysis of:
MBIA turning the tables (money.cnn.com)
Implications: 1.Inadequate Capital is properly sustained by Financial Rating Criteria. 2.The Institution moves toward splitting its' Municipal Bond and Structured Finance Businesses - A proper reflection of inadequate Capitalization. 3.Under Capitalization is due risky Financial Structered Financial...
Analysis of:
Ambac's Callen Sees Confidence Returning This Year (www.bloomberg.com)
Implications: 1.A reported loss of 90% of Market Capitalization implies a threat to the Institutions' credit rating - market positioning may have Financial Impact on future Decision Making relating to the form's capacity to be a Competitor amongst peers. 2.Causation: the subprime - mortgage securities...
Analysis of:
Aberdeen Fund to Redeem Auction-Rate Securities (www.bloomberg.com)
Implications: 1.A failure of Decision-Making and Strategy with an objective of higher retirns. 2.An error of Financial Judgement by assuming that the use of auction rate marketplace might be taped to finance additional investments in government and corporate bonds. 3. This Financial option was proposed...
Analysis of:
Diebold announces delay in 2007 annual-report filing (www.atmmarketplace.com)
Implications: 1.A COMPLETE review and compilation of ALL Financial Data over the past two (2) years: Extensive review of Operational Capitalization. 2.A complete analysis of the Firm's Revenue and Expense Recognition policy and procedures of the firm. 3.An entire re-statement of Financial Data for years...
Analysis of:
Ambac Drops Breakup, Plans To Raise $1.5B (www.propertyandcasualtyinsurancenews.com)
Implications: 1.Debt risk is the , primary, motivating factor.Such risk causes the need for additional capital and elimination of dividends for investors. 2.Rating firm's confirm the risk assessment and lower the institution's standing rate: Affect on the firm - Either higher interest rates or the inability...
Analysis of:
The Nasdaq Welcomes SPACs (www.iddmagazine.com)
Implications: 1.Shell companies for the sole purpose of raising capital through Initial Public Offerings - A Void Entity. 2.Initial Capitalization must be HIGH to acquire one or more PROFITABLE operating companies. 3.All listings on the AMEX have been transferred to the Nasdaq - a highly liquid electronic...