Financial Institution
Statement for the Shareholders
Several events have occurred over the past few months that will have an impact on our commercial and investment activities in Germany and the United States. We will discuss each of the events and the likely result on the bank's profitability, strategic business direction, and asset and liability consequences. The events to be analyzed are the raising of short-term rates by the European Central Bank, the United States Securities and Exchange Commission (SEC) requiring separation of underwriting services and stock research, declining reserves held at the United States Federal Reserve, the downgrading of credit ratings for corporate clients, and Berlin searching for an underwriter of municipal bonds.
The latest price indices from Europe indicate an acceleration of inflation in the European Union countries. To address the inflationary pressures the European Central Bank recently increased the equivalent of the United States discount rate. In the United States little inflationary pressure allows the U.S. To maintain its short-term rates at historically low levels. It appears that short-term rates will remain at their current levels. Such changes in European short-term rates will have minimal impact on the bank's profitability as most of the bank's assets are denominated in U.S. dollars. If the European Central Bank continues to raise rates, the situation requires reevaluation as currency risk increases. We can further lessen the impact of interest rate relationship changes by currency hedging. Purchasing currencies that we have assets valued in should minimize our currency risk. We will also be looking to make strategic acquisitions to gain a presence in other geographic markets lessening...
Financial Statement Analysis Westpac (WBC) Westpac banking corporation is one of the largest banking organizations in Australia, and the largest bank in New Zealand. Westpac provides arrays of banking and financial services in Austria, which include institutional banking, retail banking, and wealth management services. Established in 1817, Westpac is the first bank established in Australia. Since its formation, Westpac has increased in its strength, and at present Westpac has the market capitalisations
By May 2012, MedAssets long-term debts are approximately $959.94 Million. Additionally, MedAssets secures loans that carry interest rates. With significant amount of loans that the company has secured and notes that the company has issued, the company faces interest rates risks. To mitigate the effect of risks associated with the fluctuation of the interest rates, the company enters into the series of financial instrument to guide against the risks from
Clearly, Republic holds very low inventory levels. Waste Management holds high inventory levels, with the industry average falling in between. This relatively inefficiency has certainly not hurt Waste Management, though, judging by the other aspects of its financial performance. Analysis of External Environment While nationwide there are 15,000 firms in the waste services industry, in any given market Waste Management will have only a small handful of competitors. Most of these
Had the organization employed the techniques of activity-based costing, they would have realized the need to change their approach and had started manufacturing small size and fuel efficient engines, as most of the customers were requiring these items. "If Ford [...] had used activity-based costing, they would have realized early on the utter futility of their competitive blitzes of the past few years, which offered new-car buyers spectacular discounts
Goal setting works well for simple jobs -- clerks, typists, loggers, and technicians -- but not for complete jobs. Goal setting with jobs in which goals are not easily measured (e.g., teaching, nursing, engineering, accounting) has posed some problems. Goal setting encourages game playing. Setting low goals to look good later is one game played by subordinates who do not want to be caught short. Managers play the game of setting
The only ones who will gain from these measures are the CEOs, managers, and Board of Directors. Shareholders will suffer through the actions of the few. Due diligence will be rewarded with dwindling returns for the shareholder. Does Shareholder Value Matter Any More? The old theory was that if banks took care of shareholder value, everything else would fall into place (Nocera 2009). Shareholders were considered one of the most important
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