This makes the affiliates banks achieve the same status of the subsidiary banks because the latter will be least affected in relation to the turmoil. If the crisis was hard on their parent banks, then the affiliates banks would have required to stand on their own. The domestic banks in contrast could receive financial bails during the financial crisis hence offsetting the difference that existed between them and subsidiary of the foreign banks (Mihaljek, 2011, p.44). During the global financial crisis, both the local and the foreign owned banks had to reduce their profit target hence, the diminishing factor of whether one is an affiliate or the other is a subsidiary. Therefore, the financial crisis affected all the banks independent of whether they were subsidiary or affiliates.
3. What are the strengths and weaknesses of the capital positions of Australian

and German banks in the wake of the GFC?

The establishment of…...

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Bibliography

Kyoon, B. & Sheridan, N. 2012. International Monetary Fund: Bank Capital Adequacy in Australia. WP/12/25,

Bordo, M., Redish, a., Rockoff, H., 2011. Why Didn't Canada Have a Banking Crisis in 2008 (or in 1930, or 1907, or ...)? Working Paper 17312

Mihaljek, D. 2011. Domestic Bank Intermediation in Emerging Market Economies During the Crisis: Locally Owned vs. Foreign-Owned Banks. BIS Papers No 54

International Monetary Fund, 2011. Germany: Technical Note on Banking Sector Structure. IMF Country Report No. 11/370

Global Financial Crisis
Since the early 2008, financial institutions started to go through chaos all over the globe. The stock markets were beginning to crash, businesses were shutting down, and investors were losing their money. This was to indicate that the entire globe had been hit by a period of economic crisis leading to a large number of corporate collapses of banks, investment companies, multinational corporations, etc. This downfall of economic markets is more commonly known as the 'The Global Financial Crisis' or the 'Global Recession of 2009' (IMF, April 2012). These times of crisis led to an increase in unemployment, as jobs were being terminated by laying-off employees to cut costs which led to an increase in poverty. Oil prices and prices of other commodities increased by tenfold, making affordability difficult for the average population. This was followed by a steep fall in international trade. Since the Great Depression of…...

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Bibliography

Andrews, E.L. (2008). Greenspan concedes error on regulation. New York Times.

APESB. (2010). APES 110 Code of Ethics for Professional Accountants. Accounting Professional and Ethical Standards Board.

Brown, C., & Davis, K. (2010). Australia's Experience in the Global Financial Crisis.

Davis, K. (2011). Regulatory Reform Post the Global Financial Crisis: An Overview. Melbourne: Melbourne APEC Finance Centre.

Global financial Crisis (GFC)
The present Global Financial Crisis (GFC) has been considered by the financial experts and economists as the worst financial crisis apart from 1930s Great Depression. The GFC led to the collapse of large financial institutions and downturns of the major stock markets globally. The crisis led to the failure of several key businesses and s significant decline in the economic activities. The GFC started on the U.S. mortgage markets leading to the significant turbulence and uncertainty in the global capital markets. (Kalinowski, Marcin 2011). The source of the financial crisis was due to the excessive risk taking because of the sustained low interests rates leading investors to maximize their profits. The root cause of GFC started in 2001 when many U.S. financial institutions increase the number of mortgage loans due low interest rates and the issue led to the increase in the prices of residential real estate.…...

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References

Crotty, J. (2009). Structural causes of the global financial crisis: a critical assessment of the 'new financial architecture'. Cambridge Journal of Economics, 33, 563 -- 580.

Douglas, A.W.(2009). The Global Credit Crisis of 2008: Causes and Consequences. International Lawyer, 43(1). Issue 1.

Cheung, W. Fung, S and Tsai, S.(2010). Spillover effect of credit risk and Global capital market interdependence and evidence from the 2007 -- 2009 global financial crisis. Applied Financial Economics, 20: 85 -- 103.

Kalinowski, M. (2011).Over -- the Counter Derivatives Market in view of the Global Financial Crisis 2007-2009. Economics and Banking:16.

Given that, they must take the steps necessary to ensure this health. This is a profound shift in priorities -- the banking sector was normally governed on the basis that the best outcome was increased profit-making opportunity. The Obama administration, with its predilection for increased regulation, realizes that the best outcome for the banking industry, its executives and its shareholders is not necessarily the best outcome for the nation as a whole.
It is interesting that the only major change to Fed policy was with respect to its bailout of AIG. The Federal Reserve Bank of New York funneled AIG $85 billion to keep that company out of bankruptcy, a move seen as essential to the preservation of the global financial system. Necessary or not, the move was unprecedented and marked new territory for Fed policy. The Fed's approach to monetary policy, on the other hand, has not changed. They…...

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Works Cited:

Knowledge @ Wharton: The Subprime Crisis website. Retrieved May 12, 2009 from  http://knowledge.wharton.upenn.edu/special_sections/subprime/ 

No author. (2009). Overview. New York Times. Retrieved May 12, 2009 from  http://topics.nytimes.com/topics/reference/timestopics/subjects/c/credit_crisis/ 

Boeri, Tito & Guiso, Luigi. (2007). Subprime Crisis: Greenspan's Legacy. Vox. Retrieved May 12, 2009 from  http://www.voxeu.org/index.php?q=node/488 

Trehan, Veeta. (2007). The Mortgage Market: What Happened? NPR. Retrieved May 12, 2009 from  http://www.npr.org/templates/story/story.php?storyId=12561184

Global Financial Crisis: An Examination of One Company's Performance Indicators
The global financial crisis of the recent past has been the subject of much commentary, investigation, and debate from people around the globe and from all walks of life. Despite the fact that politicians and armchair policy makers have gone round after round in debates regarding the causes and the ultimate effects of this worldwide economic downturn, the real effects of the recession on individual organizations can be difficult to ascertain. Different companies are impacted in different ways and to varying degrees based on a variety of factors, of course, but it is still quite useful to examine some particular instances of the recession's impact in order to come to a more concrete understanding of what a financial crisis and tightening of capital means for business organizations around the globe, operating in various sectors.

An examination of The Hour Glass, Ltd.…...

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References

Chor, D. & Manova, K. (2011). Off the cliff and back? Credit conditions and international trade during the global financial crisis. Journal of International Economics

Gilman, S. (2011). Analyzing Financial Statements. New York: BiblioBazaar.

Hour Glass Ltd., The. (2005). Annual Report. Accessed 4 February 2012.  http://www.thehourglass.com/annual.asp 

Hour Glass Ltd., The. (2006). Annual Report. Accessed 4 February 2012.

The banks repackaged their risks "into complex financial products and sold these to other financial institutions.
pril 2007 witnessed the collapse of sub-prime lender New Century Financial and this collapse was only the first of many casualties. The British government nationalized the mortgage lender Northern Rock and soon afterwards Bear Stearns collapse due to subprime loans. Fannie Mae and Freddie Mac were nationalized in September 2008 because of the great losses suffered due to mortgage defaults. Soon afterwards Lehman Brother, the United State's fourth largest investment bank collapse and this is stated to have "greatly intensified the financial crisis." (Jawai, 2008, p.2)

V. TIME SEQUENCE OF THE GLOBL FINNCIL CRISIS

Month

Year Event

July

2007

Financial crisis begins with the United States subprime mortgage crisis

ugust

2007

US financial crisis reaches global proportion due to interaction between the world banks and Hedge Funds with subprime mortgage backed securities.

ugust

2007

The European Central Bank injects 95 billion euros into the European banking…...

Organization Behavior
Global Financial Crisis

The most recent financial crisis has badly affected the Global economy. Individuals, businesses, and Governments; every entity has taken its impacts in one way or another (Burger, Coelho, Karpowicz, & Tyson 2009). Since its arrival, financial crisis has posed big threats to the world markets. The countries are trying to overcome the bad impacts of this crisis but have failed to recover their positions due to severe recession and worsening economic conditions (U.S. Department of the Treasury 2012). Economists and Financial Analysts have discussed various reasons for this Global financial crisis; a big downturn in the financial and housing mortgage sector is said to be the biggest reason of all (Donath & Cismas 2009). The Global financial crisis has hit almost all the sectors of the economy which have not only hampered the industrial growth in the countries, but also caused serious challenges and issues for the…...

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REFERENCES

Barth, J.R. 2009, the rise and fall of the U.S. mortgage and credit markets: a comprehensive analysis of the market meltdown. Hoboken, N.J: J. Wiley & Sons

Burger, P., Coelho, M.D., Karpowicz, I., & Tyson, J. 2009, the effects of the financial crisis on public-private partnerships. Washington, DC: International Monetary Fund working paper

Chorafas, D.N. 2009, Financial Boom and Gloom: The Credit and Banking Crisis of 2007-2009 and Beyond. U.S.: Palgrave Macmillan Studies in Banking and Financial Institutions

Corker, B. 2012, Senate Banking Committee Hearing on Financial Crisis. Available from [Accessed August 4th, 2012]

SEC that features a short background on what the SEC is and when it was formed. It has interview questions and responses and a mini literature review to provide context from which to examine and recommend steps for the SEC to maintain control of major banks to avoid the Global Financial Crisis that happened in 2008.
The Great Depression and the turmoil that 1929 brought to the United States contributed to various changes within the financial market. Such effects are still experienced and felt today. The crises of that time caused public confidence to plunge key areas of the market with the only remedy being the passing of the Securities and Exchange Act in 1934 and the Securities Act in 1933. These two laws had three basic intentions that offered investors a more reliable way to collect information. The first was forcing public companies that offered capital in exchange for…...

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References

Ciro, Tony. 2016. The Global Financial Crisis: Triggers, Responses and Aftermath. Routledge.

Ferran, Eili-s. 2012. The Regulatory Aftermath of the Global Financial Crisis. Cambridge: Cambridge University Press.

Francis, Theo. 2008. "SEC's Cox Catches Blame for Financial Crisis." Bloomberg.Com.  http://www.bloomberg.com/news/articles/2008-09-19/secs-cox-catches-blame-for-financial-crisisbusinessweek-business-news-stock-market-and-financial-advice .

Global Financial Crisis and esurgence of Keynesian Economic Model
The 2007-2008 global financial crises have been identified as the worst financial crisis apart from the 1930s Great Depression. The collapse of Lehman Brothers and two Bear Stearns in 2007 had been attributed to subprime mortgage crisis that led to the credit crunch, dry up of liquidity, bank failures, massive layoffs and private defaults. Moreover, the crisis threatens the collapse of many large financial institutions, which the national government prevented through the bailout operations. In the contemporary economic environment, global economy is interdependence making the U.S. financial crisis to contribute to the European debt crisis. The crisis has been the primary cause of failure of key businesses, prolonged unemployment and foreclosure. Financial crisis is the disruption of financial markets where markets fail to channel fund efficiently, which consequently prevent productive investment opportunities.

Several factors have been attributed to the global financial crisis.…...

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Reference

Bianco, K.M.(2008). The Subprime Lending Crisis: Causes and Effects of the Mortgage Meltdown.CCH Mortgage Compliance Guide and Bank Digest.

Chomsisengphet, S, and Pennington-Cross, A, (2006), The Evolution of the Subprime Mortgage Market, Federal Reserve Bank of St. Louis Review, 88(1), pp. 31-56.

Genetski (2011) Links the global financial crisis to the Keynesian economic theory by pointing out that policy making mistakes have contributed to the financial crisis. Afro Articles.

Investopedia (2009), What is a subprime mortgage, Accessed 07 July 2015, From  http://www.investopedia.com/ask/answers/07/subprime-mortgage.asp

This is a poor use of the company's capital, since the global economy remains weak and since Qantas faces intense competition on numerous fronts. hile increasing the debt component of the capital structure would lower the overall cost of capital, it would also increase the risk that the company faces. The operating environment is turbulent, not just from competition but from high fuel costs as well. This implies that any additional risk would compromise the security that Qantas currently has with respect to meeting its debt service obligations.
hile Qantas' balance sheet looks remarkably unchanged as the result of the global economic crisis, this is only because of the proactive measures the company took at the outset of the crisis. The equity issue allowed the company to maintain its capital structure at a time when profits (and therefore retained earnings) were declining sharply. The company also made a number of…...

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Works Cited:

de Bruyn, C. (2009). Global airline industry to suffer $4.7 billion loss this year. Engineering News. Retrieved October 9, 2011 from  http://www.engineeringnews.co.za/article/global-airline-industry-to-suffer-47bn-loss-this-year-iata-2009-03-24 

Eslake, S. (2009). The global financial crisis and its impact on the Australian economy. ANZ Bank. Retrieved October 9, 2011 from  http://www.anz.com/singapore/en/resources/f/9/f9da17804d6914aa9fa09f17f89c601a/Saul-Eslake-Presentation-Singapore-Mar-2009-en.pdf?CACHEID=8b6320004d66a42f9899f9aabbf9c43a 

Ghosh, P. (2010). Global airline industry poised to soar in coming decades. International Business Times. Retrieved October 9, 2011 from  http://www.ibtimes.com/articles/63951/20100920/airlines-recession-pilots-boeing.htm 

Govindasamy, S. (2009). Qantas cuts to tackle crisis. Airline Business. Retrieved October 9, 2011 from  http://www.flightglobal.com/news/articles/qantas-cuts-to-tackle-crisis-325425/

Global Financial Strategy
Critical assessment of the proposal to raise capital locally rather than in the UK

In the analysis of the proposal of raising capital locally rather than in the UK, it is essential to consider four critical aspects: costs, risks, benefits/advantages, and limitations/disadvantages. In the presentation of this critical assessment, the focus will be on the four factors or aspect in order to offer reliable analysis of the situation.

Costs

In the process of raising capital locally rather than in the UK, the organization must incur several costs. One of the essential costs is the professional cost. This refers to the amount of money or financial resources paid to the legal advisors, auditors, and reporting accountants in order to execute the process of raising the capital effectively and appropriately. Another important aspect of cost is the trading cost. These are direct costs including the brokerage commissions and financial resources paid by investors…...

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References

Burnham, P 2010, 'Class, Capital and Crisis: A Return to Fundamentals', Political Studies Review, 8, 1, pp. 27-39,

Carvalhal, A, & Camara Leal, R 2013, 'The World Financial Crisis and the International Financing of Brazilian Companies', Brazilian Administration Review (BAR), 10, 1, pp. 18-39,

'Chad' 2013, Columbia Electronic Encyclopedia, 6Th Edition, pp. 1-3,

Chana Kok, T, & Yap Voon, C 2011, 'Risk Factors of Commercial Banks in Malaysia', Journal Of Modern Accounting & Auditing, 7, 6, pp. 578-587,

Investors from all over the world sunk money into Dubai-based projects, including those of Dubai orld. The global financial crisis, however, has slowed the Dubai economy to such a degree that it can no longer meet its debt obligations. Global investors who had been counting on high returns at relatively low risk are now seeing the value of their debt holdings diminish.
The fluid movement of capital around the world has allowed for thousands of powerful investors to put money into Dubai's economic development, which spreads the risk of such development around the world. Thus, when Dubai's economy falters and the state-run company cannot pay its debts, it reverberates around the global financial markets, which now must deal with Dubai's apparent lack of creditworthiness.

orks Cited:

Giddy, I. (1993). Global Financial Markets. Boston: South-estern College Publishing.

No author. (2009). Standing still but still standing. The Economist. Retrieved November 27, 2009 from http://www.economist.com/businessfinance/displayStory.cfm?story_id=14977157...

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Works Cited:

Giddy, I. (1993). Global Financial Markets. Boston: South-Western College Publishing.

No author. (2009). Standing still but still standing. The Economist. Retrieved November 27, 2009 from  http://www.economist.com/businessfinance/displayStory.cfm?story_id=14977157

International Lending and Financial Crisis
One of the major global financial crises is the financial crisis of 2007-2009. The financial recession that occurred between 2007 and 2009, encompasses the housing bubble that instigated the financial crisis, federal expenditure, and foreign exchange rates. Also, referred to as the 'Great recession', this global financial crisis had adverse impacts not only on the financial markets but also on the economies of nations across the globe, being the worst financial crisis in history. The financial crisis emanating from the U.S. affected other nations owing to financial globalization and led to discussions regarding restructuring of the international financial system (Ozkan, 2012). In particular, the global financial crisis originally started in and adversely impacted the financial sector of developed nations, especially in the United States, and subsequently had a detrimental impact of the real sector of affected nations as the financial institutions in the United States allowed…...

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References

Ahid, M., & Augustine, A. (2012, August). The impact of global financial crisis on Jordan.

 http://www.ccsenet.org/journal/index.php/ijbm/article/view/16475/13021 

Argandona, A. (2012). Three ethical dimensions of the financial crisis. Retrieved from:  http://www.iese.edu/research/pdfs/di-0944-e.pdf 

Boundless. (2016). Limitations of Monetary Policy. Retrieved from: https://www.boundless.com/economics/textbooks/boundless-economics-textbook/monetary-policy-28/impacts-of-federal-reserve-policies-119/limitations-of-monetary-policy-473-12569/

The second purpose of the $700 purchase of troubled assets is to create a market for the securitized versions of these assets. As a result of the crisis, the market for these assets became illiquid. The value of securitized debt obligations became near zero, which severely impacted the balance sheet of all banks that held these assets. By creating a secondary market for these products, the government hopes to increase their value. This will improve the balance sheets of the banks.

The second key clause in TARP is that banks selling troubled assets to the government are required to give the government warrants. This, in theory, protects the government from losses. The theory is that the banks will see an increase in value as a result of the government's efforts, allowing the government to profit from the warrants.

Ancillary to TARP was the FDIC's excusing of troubled assets in its loss-share plan.…...

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Works Cited:

Dash, E. & Sorkin, a. (2008). Government seizes WaMu and sells some assets. New York Times. Retrieved November 3, 2009 from  http://www.nytimes.com/2008/09/26/business/26wamu.html 

Smith, a. & Yandle, B. (2009). Too big to fail, read, count or stop. Cato Institute. Retrieved November 3, 2009 from  http://www.cato.org/pubs/regulation/regv32n2/v32n2-11.pdf 

McIntire, M. (2009). Bailout is a windfall to banks, if not to borrowers. New York Times. Retrieved November 3, 2009 from  http://www.nytimes.com/2009/01/18/business/18bank.html?_r=2&pagewanted=1 

White, L. (2009). Federal Reserve policy and the housing bubble. Cato Journal. Retrieved November 3, 2009 from  http://www.cato.org/pubs/journal/cj29n1/cj29n1-9.pdf

Qantas Airlines
Strategic Management of Qantas in the Light of Global Financial Crisis

The Global Economic/Financial Crisis, also known as GFC has influenced the performance of all organizations negatively in the current business environment. Besides increasing the costs of operations, GFC threatens the use of human resources in different organizations. With such a premise, this study analyzes the influence of the crisis on the performance, sustainability, and competitiveness of most of the airline companies. In specific, it analyzes the effects of the crisis on the performance of the Qantas Airlines, an Australian carrier known globally for its high quality services. As such, adopting the stated recommendations in the analysis will help reduce the threats facing the Qantas Airlines significantly because of the Global Financial Crisis.

Background

The worldwide economic crisis has influenced the performance of all sectors of the economy negatively in the current global business environment. Among the highly affected sectors is the…...

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References

Baum, J.A.C., & Lampel, J. (2010). The globalization of strategy research. Bingley:

Emerald.

Berlatsky, N. (2010). The global financial crisis. Detroit, Mich.: Greenhaven Press.

Glaesser, D. (2006). Crisis management in the tourism industry (2nd ed.). Oxford: Butterworth-Heinemann.

Local Governments: Challenges and Innovations

Introduction

Local governments play a critical role in delivering essential services, fostering economic development, and addressing community concerns. However, they also face a myriad of challenges that can hinder their ability to effectively meet the needs of their constituents. This essay will explore some of the key challenges confronting local governments and discuss innovative approaches to address them.

Fiscal Constraints

One of the most pressing challenges for local governments is fiscal constraints. Many municipalities are experiencing stagnant or declining revenue streams due to factors such as the global financial crisis, population shifts, and reduced state and federal aid. This....

Have Our Priorities Shifted Away from Ambitious Goals like Space Exploration?

In the wake of humanity's profound achievements in space exploration during the 20th century, an inquiry arises: have our priorities shifted away from these ambitious endeavors? While competing global challenges and evolving societal concerns may have tempered our aspirations for space travel, it is crucial to assess the present state of space exploration and consider its future trajectory.

The Zenith of Space Exploration

During the Cold War, the United States and the Soviet Union engaged in a fierce rivalry that catalyzed unprecedented advancements in space technology. The launch of Sputnik 1 in....

The BRICS Currency and Its Implications on International Finance: Exploring Causes, Effects, and Global Financial Dynamics Introduction In the wake of the global financial crisis of 2008, the BRICS (Brazil, Russia, India, China, and South Africa) nations have emerged as a formidable economic force. With their combined economic weight and growing political influence, the BRICS have sought to challenge the dominance of the US dollar in international finance. In 2014, the BRICS established a New Development Bank (NDB) and a Contingent Reserve Arrangement (CRA) to promote economic cooperation and reduce reliance on the US dollar. The creation of a common BRICS....