Did Credit Rating Agencies do good work Research Paper

Did Credit Rating Agencies do good work - Research Paper Example This part of the study suggested why the credibility of credit rating agencies came into the scrutiny. Following that, a detailed study was done regarding the agency costs and its effects on the value of a company. It was seen that, agency cost mostly arises due to the principal agent problem. The principal agent problem is nothing but the situation that is characterized by a conflict of interest between the principal and the agent who are the managers and the shareholder respectively. This conflict of interests leads to agency costs and thereby decreases the value of a firm. Thereafter, the information asymmetry and its implications on the financial services industry have been explained. It has been seen that this factor has led to severe economic downturns in the recent times. One such example was the 2007-08 financial crises where huge extent of information asymmetry existed between the financial institutions and their potential investors which acted as a catalyst triggering the f inancial crisis. The following sections explained the reason for the credit crunch and its implications in the economy of Qatar. It was reported that Qatar was expected to be resilient to the global financial crisis. Thereafter a final conclusion has been provided. ... Credit Rating agencies played a critical role by certifying most of the CDO tranches created by financial institutions with investment grade ratings that assured the potential investors about their safety. Furthermore, CDO tranches appealed more to the investors particularly because they offered higher returns compared to the similarly rated corporate bonds. The ratings which were certified to those CDOs appealed to the investors who assumed that the ratings represent a general and vigorous indication of default risks (Griffin & Tang, 2011). However, the rating based approach failed completely in the year 2007-08 with the collapse of the CDO market. In fact the ratings were such inappropriately done that some of the triple-A rated CDO tranches lost 90% of their value and were consequently downgraded as junk (Wojtowicz, 2013). This idea will serve as the ground work of this research. The following sections will explain the involvement of the credit rating agencies in the 2007-08 globa l financial crisis and comments will be made regarding the credibility of these agencies. These facts will be related to agency costs and the effects of such agency cost on the value of the firm will be explained. Thereafter, another topic that will be described in detail is information asymmetry and its consequences in the financial markets. Finally the reasons for the credit crunch and its implication on Qatar’s economy will be discussed followed with a conclusion. Credit Rating Agencies and the financial crisis The rapid development of the international financial markets over the last two decades would have been impossible without the credit rating agencies.

Golden Age of Poverty Reduction Essay Example for Free

Golden Age of Poverty Reduction Essay The presentation of the article related to poverty reduction does not seem too optimistic whether the global aim was actually achieved. Basically, the main argument is that poverty reduction provides only the rate of presented resolutions to alleviate the problem. However, the real figures of people under poverty are not really reflected. As time forwarded from the late 19th century up to the present, there was an actual development of social welfare services especially in the health care sector. This prompted world populations to increase and obtain extended life expectancies. But the issue of disparity between the rich and the poor was not really reduced but worsened. The main factor to blame is the capitalists’ attitude towards profitability. They fuel growth in economies but also become the catalyst for the social inequalities to expand. To summarize the main argument, general poverty incidences could have been reduced more if economic inequality had not worsened (The Free Library, 2006). References The Free Library. 2006. Todays golden age of poverty reduction: the story the World Bank and other agencies dont want you to know. International Economic Publications. Retrieved January 27, 2008 from http://www.thefreelibrary.com/Todays+golden+age+of+poverty+reduction:+the+story+the+world+bank+and+-a0146175404

Symbolism of Trains in Novel Anna Karenina by Leo Tolstoy

Symbolism of Trains in Novel Anna Karenina by Leo Tolstoy   Anna Karenina, written by Leo Tolstoy, follows the accounts of Anna who begins an affair with another man, as a result of their affair falls from moral decency and eventually commits suicide by throwing herself in front of train. Tolstoy was a firm believer in punishing his female characters for falling into passions of disgracing romance and sexual desires. The theme of trains and railroads is found throughout the novel and it is very apparent that Leo Tolstoy had a distinct dislike of the railroads. Tolstoy was not a fan of the new advancement of trains in Russia and even went as far to say, The railroad is to travel as a whore is to love (Jahn 1). Anna Karenina is full of important scenes on trains and in train stations, but they also serve as a means of progressing the story line. Tolstoy felt that trains were destroying the old Russian way of life in favor of a new industrial and capitalistic Russia, while moving away from traditions and simplicity. Anna Karenina is a victim of her love affair, committing suicide by throwing herself under a train, while the theme of trains and railroads pierces the entire story. Tolstoy incorporates the symbols of railroads and trains as motifs of tragedy brought by the advancing progress of Western technology in Russian society, the destructive nature of trains, and how characters such as Levin serve as a reminder of how trains are destroying closeness to nature and old true values. The imagery of trains reappears through the entire plot, playing a significant role in the novels course of events as well as having a great impact on the atmosphere of the novel. Annas life of restlessness and travel is tied to trains, all the main meetings happening in trains or at train stations. Her little son Seryozha also takes a keen interest with trains and is seen, carrying something which served as a train (8). By having the children in the novel taking an interest in trains, it is showing how the railways and trains have already become popular even with the next generation of Russians, as well as foreshadowing how the railways will become the future means of transportation in the country. Tolstoy also makes an important addition by Annas brother Stepan mentioning to Alexei how he, would very much like to get [the] vacant post as a member of the commission [of] the United Agency for Mutual Credit Balance of the Southern Railway Lines (Tolstoy 721). Tolstoy includes this det ail due to the fact that working in the railways was a very coveted and desirable in Russia since railroads were so popular and in such high demand. For Tolstoy, trains are creations of both iron and technology which represent a brute force of sin, darkness and passions that break the human spirit and lead individuals to fall from moral decency. Anna and Vronskys romance begins and ends at the train station, the arrival of the train kills the watchman at the station and sets Annas first interaction with Vronsky is overlaid with death and foreshadows Annas eventual demise. After the, watchman, [who was] either too drunk or too bundled up had not heard the train and had been run over by the train Anna feels that this was a bad omen and is the first sign of the inevitable and tragic destiny of Anna Karenina (29). This scene is very important due to the imagery of the train itself as it pulls into the station. The train has a foreboding and dark presence when pulling into the station, as those could feel, something heavy causing the platform to tremble slowing down and shaking the platform still more and once it pulled in those could see, the coupling rod of the middle wheel slowly and rhythmically turning and straightening the vivid description of the train in this scene gives it an evil and unnatural aura it as it pulls into the station (60).   Tolstoys incorporation of describing the imagery of the train as an almost evil and foreboding presence sets the tone for the eventual death and demise of Anna, her path to her own death left the station as soon as she began her affair with Vronsky. Anna and Vronskys fateful affair began and ended at the train station. For instance when Vronsky sees Anna off to St. Petersburg on the train, he admits his love for Anna at the station, confessing to her how, Not one of your words, not one of your movements will I ever forget I cannot. The very spark of their relationship is tied to this scene as Anna [clutched] at the cold door post and entered the [entrance] of the [train] carriage at the moment she felt the, magical, strained condition that had tormented her had not only renewed itself, but grew stronger (103). This scene at the train station is one of the most crucial aspects of the novel as this almost magical explanation of Anna falling for Vronsky is symbolic of Anna succumbing to the dark passion of adultery and the beginning of her fall from decency and morality.   In the end of the novel just seconds before Anna dies under the wheels of the train, something huge and implacable pushed at her head and dragged her ov er it is almost as if she was crushed by the force of her own sins (768). Their fateful relationship can be compared to that of a train leaving the station, it begins slowly, but once it gains momentum it quickly escalates to a speed that is out of both Anna and Vronskys control. Tolstoy, is able to express his dissatisfaction with railroads and trains through the characters and words of Oblonsky and Levin, as a way to demonstrate how Russia is slowly moving away from tradition and old values and moving more towards an industrial and capitalistic society. Levin is seen many times throughout the novel showing a distaste for the railroads and blames criticizes them for the disastrous condition of agriculture in Russia which was disrupting the traditional the use of agriculture throughout Russia (483). Levin also criticizes the railroads when he was, writing a new chapter on the reasons for the unprofitable state of agriculture in Russia due to the incorrect use incorrect use of land through the railways and instead of contributing to agriculture the railways had outstripped agriculture and halted it (483-484). Tolstoy blamed Europe in spoiling Russia with a strive for modern technology and disrupting the normal way of life. Tolstoy also uses characters such as Lafitte as an example of how greed and   other dishonest merchants without whom there would have been no railways, he feels that trains and merchants are destroying the old Russian way of life in favor of a new industrial and capitalistic Russia (506). Tolstoy describes those who work in the railroads as those with little to no morals and are extremely greedy, furthering his dislike of the railroads. The analysis of train and motifs in Anna Karenina requires mentioning the opposite symbols of wood and nature. Tolstoy uses the power of nature as an opposite to images of the new coming era of progress, the warmth of wood opposes the coldness of iron. The generosity of poor peasants who share their bread and vodka with Veslosvky and how [they] absolutely refused to take money which contrasts the greediness of the merchants (568), peasants use wooden carts instead of iron trains which shows their closeness to nature and simplicity. Tolstoy believed that living in big cities corrupts the soul, and that is why Kitty and Levin are such an exemplary couple of this when they finally move into a country estate and are near the peasants, because they embody the ideal of a good family and thus must be close to the ground. Tolstoy describes in the novel the peasants methods of agriculture and the burden of their labour unites them. Tolstoy praises hard work and values the work of a peasant o r a learned profession much more than the activities of capitalists (588). They are bound to earth and oppose progress with railways and trains, that tear the ties with the land and cross it painlessly, the peasants represent closeness to nature and fidelity to traditions. The well-known novel of Leo Tolstoys Anna Karenina raises numerous moral questions and vividly represents authors opinions concerning, moral purity, decency and traditions. The images and themes of trains and railways are ones of the most significance in the entire novel, they start the story of Anna Karenina and finish it. However, the trains are what begins the ill-fated affair of both Anna and Vrosnky and cause Annas fall from moral decency and grace.   Through the character of Levin, Tolstoy is able to convey his beliefs that the railway are to blame for the disruption and ruin of Russian agriculture. Throughout the novel trains are seen as foreboding and unnatural and are seen as unstoppable in converting the country to a new means of transportation. Railways and trains are the symbols of progress, which according to Tolstoy is evil, he opposes the artificial coldness of iron to warmth of nature. Tolstoy believes that decency and goodness appear only in following traditio ns, hard labour, upholding moral decency proximity to ground and nature. Works Cited Jahn, Gary R. The Image of the Railroad in Anna Karenina. The Slavic and East European Journal, vol. 25, no. 2, 1981, pp. 1-10., www.jstor.org/stable/307952. Tolstoy, Leo, and Translated by Richard Pevear and Larissa Volokhonsky. Anna Karenina. NY: Penguin, 2004. Print.

Taking Our Freedom for Granted Essay -- United States History Historic

Taking Our Freedom for Granted Our country was founded on the idea of freedom: freedom from a king, freedom to believe in whatever one wants to believe in and freedom to openly express these beliefs with others. Through careful examination of what the authors during this period of history were expressing, I have found a greater respect for our freedoms. Thomas Jefferson, Benjamin Franklin and Thomas Paine are all familiar names to high school students in the United States. However, their principles are not familiar and I was shocked to learn that I had not previously read a majority of the works these men created to provide a foundation for our country’s belief system. Due to these works, I realize how much I have taken our freedom for granted. These men had radical ideas: the government can’t impose a religion on us, religion has nothing to do with the church and questioning one’s beliefs is vital to their faith. While learning where our country’s religious roots were first planted, I’ve also learned just how important it is to question and probe everything we’re told. Why do I go to church? Because I’m supposed to, because my parents do, because that’s the â€Å"rule† set by my religion. If I were to stop attending church, I would be a bad Christian. However, isn’t it true that if I attend church yet do not truly believe in what I’m doing, this is just as bad? Paine wrote, â€Å"When a man has so far corrupted and prostituted the chastity of his mind, as to subscribe his professional belief to things he does not believe, he has prepared himself for the commission of every oth er crime† (644). I believe Paine is saying that to tell yourself that you do believe in attending church when you know deep inside you are having doubts and... ... would be found deeply embedded in freedom and equality. The British government’s hostile ways in forcing a religion upon the people can be seen as horrible and yet, it was the very thing that allowed our country to strive so purposefully towards the freedom to believe anything one wants. Certain situations that seem bad can also â€Å"†¦bring things and men to light, which might otherwise have lain forever undiscovered† (966), as Paine wrote. And without these discoveries, we would be a people bound to a leader and dependent on everything that is told to us. Instead, we have become a people of great diversity, in both culture and belief, appearance and demeanor, and we refuse to give up this freedom that our founding fathers established. For, as Paine wrote, â€Å"†¦he whose heart is firm, and whose conscience approves his conduct, will pursue his principles unto death† (969).

Bidding For Hertz: Leveraged Buyout Essay

TO ACCESS THIS DOCUMENT This is a protected document. The first two pages are available for everyone to see, but only faculty members who have verified faculty status with Darden Business Publishing are able to view this entire inspection copy. Username: Submit VERIFIED FACULTY If you have verified faculty status with Darden Business Publishing, simply enter the same username that you use on the Darden Business Publishing Web site, and then click â€Å"Submit.† Please note that this is an inspection copy and is not for classroom use. Faculty Register UNVERIFIED FACULTY If you are teaching faculty and do not yet have verified faculty access with Darden Business Publishing, please click on the â€Å"Faculty Register† link and submit your information requesting verified faculty access. Buy Case Now OTHER USERS If you would like to read the full document, click on â€Å"Buy Case Now† to be redirected to the Darden Business Publishing Web site where you can purchase this and other Darden cases. If you have any questions or need technical help, please contact Darden Business Publishing at 1-800-246-3367 or email sales@dardenbusinesspublishing.com Document Id 0000-1402-9024-00009159 The protectedpdf technology is  © Copyright 2006 Vitrium Systems Inc. All Rights Reserved. Patents Pending. UVA-F-1560 Rev. April 17, 2009 BIDDING FOR HERTZ: LEVERAGED BUYOUT Overview In late summer 2005, Greg Ledford, managing director and head of automotive and transportation buyouts at the Carlyle Group, found himself examining his BlackBerry atop the Great Wall of China. Though he had planned to be sightseeing with his daughter, his immediate focus was to finalize the terms of the second-largest leveraged buyout in history. The target in question was Hertz, a subsidiary of the Ford Motor Company, which was up for sale. Ledford needed to decide the price he and his co-investors would offer for Hertz as well as assess the potential returns and risks of the deal. Already months of work, many dollars of due diligence, and arrangement of tentative financing had gone into the bid. Complicating matters, he knew he faced tough competition from a rival buyout group, no doubt engaged in a similar process. The race to win Hertz had been set in motion several months earlier, when William Clay Ford Jr., the chairman and CEO of Ford, announced plans to explore â€Å"strategic alternatives† for Hertz in April 2005. That announcement was followed in June 2005 by the filing of an S-1 registration statement setting up a â€Å"dual track process† that would result in a Hertz IPO should other sale prospects fail. Ledford, who spoke to senior Ford managers on a regular basis, had gleaned that there was interest on Ford’s part for an outright sale of Hertz. He believed a private sale that was competitive with an IPO would be viewed favorably by Ford due to its greater upfront cash proceeds and certainty of execution. When no strategic buyer surfaced, Carlyle, Clayton, Dubilier & Rice (CD&R), and Merrill Lynch Global Private  Equity (collectively â€Å"Bidding Group†) joined forces to bid on Hertz. It faced competition from another buyout consortium that included Texa s Pacific Group, Blackstone, Thomas H. Lee Partners LP, and Bain Capital LLC. This case was prepared by Susan Chaplinsky, Professor of Business Administration, Darden Graduate School of Business, and Felicia Marston, Professor, McIntire School of Commerce. It was written as a basis for class discussion rather than to illustrate effective or ineffective handling of an administrative situation. Copyright  © 2008 by the University of Virginia Darden School Foundation, Charlottesville, VA. All rights reserved. To order copies, send an e-mail to sales@dardenbusinesspublishing.com. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without the permission of the Darden School Foundation. Rev. 4/09. UVA-F-1560 Hertz Ownership History Hertz’s ownership history was characterized by a series of sales, public offerings, and leveraged buyouts (Exhibit 1).1 The company was first established in 1918 by 22-year-old Walter L. Jacobs as a car rental operation with a modest inventory of 12 Model T Fords that Jacobs personally had repaired and repainted. The venture was immediately successful, leading Jacobs to expand and generate annual revenues of approximately of $1 million within five years. At the $1 million mark, in 1923, Jacobs sold his company to John Hertz, president of Yellow Cab and Yellow Truck and Coach Manufacturing Company, who gave his name to the company, creating â€Å"Hertz Drive-Ur-Self System† and a brand name that had endured ever since. John Hertz sold his investment three years later to General Motors (GM). In 1953, GM in turn sold the Hertz properties to the Omnibus Corporation, which simplified the company’s name to â€Å"The Hertz Corporation† in connection with a public stock offering on the New York Stock Exchange (NYSE). In late 1987,  together with Hertz management, Ford Motor Company participated in a management buyout of the company. Hertz later became an independent, wholly owned subsidiary of Ford in 1994. Less than three years later, Ford issued a minority stake of shares through a public offering on the NYSE on April 25, 1997. In early 2001, Ford reacquired the outstanding shares of Hertz and the company again became a wholly owned subsidiary of the Ford Motor Company. Hertz Financial History and Business Segments The large investor interest in Hertz over time was due in part to the company’s proven financial ability. In fact, the company had produced a pretax profit each year since 1967. During the period 1985 to 2005, revenues had grown at a compound annual growth rate of 7.6% with positive year-over-year growth in 18 of those 20 years. Over the past same period, Hertz had emerged as a truly global enterprise; it had car rental operations in 145 countries, and more than 30% of its total revenues were from outside of the United States. Hertz was among the most globally recognized brands and had been listed in BusinessWeek’s â€Å"100 Most Valuable Global Brands† (limited to public companies) in 2005 and every year since it was eligible for inclusion. Hertz currently operated in two business segments: car rental (â€Å"Hertz Rent A Car† or â€Å"RAC†) and equipment rental (â€Å"Hertz Equipment Rental Company† or â€Å"HERC†). In 2005, it was estimated that RAC would comprise 81% of company revenues and HERC 19%. RAC was supported by a network of franchises that together with company-owned facilities operated in more than 7,600 airport and local locations throughout the world. The company led its competition in the airport car rental market in Europe with operations at 69 major airports. Hertz owned and leased cars from more than 30 manufacturers, most of which it had long-term leasing.

Ecstasy essays

Ecstasy essays Sometimes when Im watching the news or flipping through newspapers I stop and realize how many sick and deranged people there are in this world. If you open a newspaper or turn on the news any day of the week there is always some situation going on that just makes you sick or makes you wonder how could a person do this sort of thing to another person. There are many crazy people in this world who do things for no other reason other than because they feel like it or the fact that there is something mentally wrong with them. At least this is what we think, but is there other reasons? Other answers? Could there be something we dont know something inside these people that disturbs them so much to the point where they act out in horrible ways? Well by using Ecstasy which is known to open the mind and break down mental barriers(Kusinitz 43). Then maybe we can find out whats really wrong with the mentally ill and the people who commit horrid crimes. Therefore it should be legalized for th ose purposes but for those purposes only. It should still remain illegal to the general public because it does have numerous short term and long term side effects. If Ecstasy were legalized we could use it to find out what is really wrong with these people. Obviously there are some people who grow up in a bad home situation and they arent taught right from wrong but what about the ones who come from good homes? Or the people who seem like descent people who almost seem to just go bad? Well there must be something disturbing them and through the use of Ecstasy, we would be able to find out what it is. According to Marc Kusinitz the author of Drug abuse around the world that Ecstasy stops emotional and psychological barriers, relaxes inhibitions, and enhances communication (43). These three things could help us a lot in the research about how deep the human brain and mind actually is. This could also help the people who are suffer...