Essay about The 2008 Financial Crisis - 3160 Words

Have banks responded to the public accusation that the 2008 financial crisis was caused by a â€Å"crisis of character† in their industry by actively seeking candidates of integrity and character? There are two components to this research question: The first draws on strategic management research and the notion of organizational legitimacy and to what degree organizations operationally respond to public opinion; the second is the concept of â€Å"character,† what it means, how it is conceptualized, measured and operationalised through the selection of new employees. I hypothesize that, since September 2008, banks: 1. have changed the qualities they seek in employee candidates; 2. and are now actively seeking candidates with higher levels of†¦show more content†¦National Public Radio (NPR) in the US has suggested there is â€Å"moral rot† on Wall Street. In all, an acute level of pressure has befallen the global banking industry, shining a bright spotlight on the role of ethics, integrity and character in organizations. And rightly so. The benefits of hiring and training employees with â€Å"character† and â€Å"ethics† have been shown to relate at an individual level to well being (Park, Peterson Seligman 2004), and at an organizational level to performance and leadership success (Sarros Cooper 2006). Ethics also aids in retaining employees (McDaniel, Organizational Ethics: Research and Ethical Environments, 2004), which is increasingly business-critical as the â€Å"war for talent† intensifies (Michaels, Handfield-Jones, Axelrod, War for Talent, Harvard Business School Press, McKinzie Co, 2001). McDaniel suggests leaders have two ways to instil ethics in their firms -- the selection method and the training method. However, Beer (1998) asserts that selection is really the only reliable method for finding employees with desired characteristics, as unlike skills and knowledge, personalShow MoreRelated2008 Financial Crisis: Icelands Then Now Essay examples1558 Words   |  7 PagesCauses of the Crisis On September 15, 2008, the American bank Lehman Brothers, with holdings over 600 billion USD, filed bankruptcy. This was by far the biggest bankruptcy in U.S history and it marked the beginning and the largest financial crisis ever. How can one of the biggest banks in the world fail? How can a bankruptcy in US make someone on the other side of the world unemployed? The answer is Collateralized Debt Obligations (CDOs) and it all started by new innovations in the financial sector combinedRead MoreThe Financial Crisis Of 20081384 Words   |  6 PagesThe turmoil in the financial markets also known as the financial crisis of 2008 was considered the worst financial crisis since the Great Depression. 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Gramm-Leach-BlileyRead MoreFinancial Crisis 20085972 Words   |  24 PagesCORPORATE FINANCE THE GLOBAL FINANCIAL CRISIS 2008 Group’s member:Nguyá »â€¦n NhÆ ° Nam (C)Phan Thu AnNguyá »â€¦n Thà ¹y DungHoà  ng Bà ¡ SÆ ¡nNgà ´ Thá »â€¹ à nh Tuyá º ¿tDate: 28/11/2014 | AbstractIn 2008 the world was fell into the worst financial crisis since the Great Depression of 1929-1933. Although this crisis has gone, however, its consequences for the economy of many countries is very serious, even now many nations are still struggling to escape difficulty. Just in a short period, the crisis originating from AmericaRead MoreThe Financial Crisis Of 2008 Essay2044 Words   |  9 PagesThe 2008 financial meltdown resulted in the most treacherous investment landscape observed since the great depression. The most notorious issue was the subprime mortgage crisis, which had a ripple effect felt through every market in the world. The banks, whose leverage rate should never have been higher than two times capitalization, surged as high as thirty to forty times market cap. With this level of exposure, any unforeseen market fluctuations could mean disaster. Lehman Brothers, the oldestRead MoreThe Financial Crisis Of 20081125 Words   |  5 PagesA mortgage meltdown and financial crisis of unbelievable magnitude was brewing and very few people, including politicians, the media, and the poor unsuspecting mortgage borrowers anticipated the ramifications that were about to occur. The financial crisis of 2008 was the worst financial crisis since the Great Depression; ultimately coalescing into the largest bankruptcies in world history--approximately 30 million people lost their jobs, trillions of dollars in wealth diminished, and millions ofRead MoreThe Financial Crisis Of 20081689 Words   |  7 PagesOur society seems to doing well since the financial crisis of 2008. The country is recovering from the Great Recession, unemployment is down and the global domestic product is up. People have jobs and are paying taxes. President Obama lowered our budget deficit and promised to make healthcare more available to all. On average, America is well on its way to recovery. But what about the people that slipped through the cracks of the financial stimulus pl an? These are the people that lost their jobsRead MoreThe Financial Crisis Of 2008 Essay2553 Words   |  11 PagesWhen you think of the 2008 financial crisis that affected not just the US economy, but the world as a whole, most average middle-class Americans won’t really know what triggered this economic disaster. Most will probably blame, and rightfully so, those large corporations on Wall Street. These corporations, which deal with insanely large amounts of money, will always be wary of their stocks decreasing. But they also know that 99% of the time, everything will go back to normal in the future. What theyRead MoreThe Financial Crisis Of 20082083 Words   |  9 PagesEver since the economic virus called â€Å"negative interest rates† scattered over European and later Japanese banks, our economic system has been the most unstable since the financial crisis of 2008. The virus, negative interest rates, is a concept in which the central bank charges interest in bor rowing money and holding an account. It was brought forth in efforts to increase economic growth by giving commercial banks a tax on the large amount of reserves they hold in the bank. In other words, commercial

Effectiveness Of Redefining Failure By Julia Baird

The Effectiveness of Redefining Failure The article, Redefining Failure by Julia Baird focuses on the development of failure throughout time. Her argument addresses that the definition of failure has evolved over the years because with time and events the word becomes classified differently. In her article, she offers examples of different circumstances to effectively portray her stance on the topic. In Julia Baird’s standpoint, a person’s economic standing is not the most effective way of measuring one’s success or failure. Redefining Failure is a persuasive and effective article because of the way it is organized, constructed, and the numerous examples that it provides. When evaluating the article Redefining Failure, it is important to†¦show more content†¦Initially, Baird introduces the idea that America’s beliefs about failure were formed in the 1800’s and progressed further into the 19th century. She brings up her opinion on how the 19th century was different from today because of the way that their society believed failure to be such a devastating occurrence. Additionally, the article explains how the people in these times believed that failure was a cause of a lack of ambition. She presents this idea by quoting another author, Scott Sandage, who wrote the novel, Born Losers: A History of Failure in America. She quotes Sandage by saying, â€Å"By the end of the 19th century, says Sandage, failure had gone from being a professional mishap to â€Å"a name for a deficient self, an identity in the red.†Ã¢â‚¬  (Baird, Redefining Failure). By quoting from another source who has a similar opinion, Baird is giving the rea der multiple references that represent her goal. This shows a competent understanding of the argument that she is providing. Additionally, at this point in Baird’s article, she reinstates why Willy from the Death of a Salesman is related to the changing definition of failure. She does this by quoting yet another source, saying, â€Å"By the middle of the last century, at the time Willy Loman was hawking his wares, Americans could not face â€Å"the possibility of defeat in one’s personal life or one’s work without being morally destroyed,† according to sociologist David Riesman.† (Baird, Redefining Failure). Baird uses thisShow MoreRelatedDeveloping Management Skills404131 Words   |  1617 PagesThe Pros and Cons of Each Strategy 300 Acting Assertively: Neutralizing Influence Attempts 304 SKILL ANALYSIS 310 Case Involving Power and Influence 310 River Woods Plant Manager 310 SKILL PRACTICE 311 Exercise for Gaining Power 311 Repairing Power Failur es in Management Circuits 311 Exercise for Using Influence Effectively 312 Ann Lyman’s Proposal 313 Exercises for Neutralizing Unwanted Influence Attempts 314 Cindy’s Fast Foods 314 9:00 to 7:30 315 x CONTENTS SKILL APPLICATION 317 Activities for

Principles of the Constitution Free Essays

Principles of the Constitution the Branches of the Federal Government Grand Canyon University: POS 301 10. 30. 12 We will write a custom essay sample on Principles of the Constitution or any similar topic only for you Order Now com/is-the-constitution-a-living-document/"Principles of the Constitution: A Chart The Effectiveness of Checks and Balances The founding fathers could see issues with giving too much power to any one part of the government. They had witnessed what ha happened in Pennsylvania when their legislature, uncheched by a judiciary or executive, ignored essential liberties which lead to the deprivation of rights to Quakers based on their religious beliefs. The fathers knew we had out not to make this mistake again. Patterson, 2011) Thus, a system where each branch shared in a bit of the others’ power was created to ensure there would exist no monopoly on political power. To analyze the effectiveness of this system, the motivations behind the system must be revisited. Checks and balances were a means for political moderation. This ensures that all change is well considered by all, and executed in a just manner. Considering issues in the nation’s history such as womens’ suf frage and other civil rights, the rate at which our nation has shifted policy has sometimes dragged its feet. Policy was well thought out, however at a slow rate. Specifically, there was nearly a century between the freeing of the slaves and the culmination of the Civil Rights movement. While it was a huge decision to be considered, the rights guaranteed to American citizens were being withheld or violated. If we are to consider the system in an international forum, we see that it comes down to the unique execution of the checks and balances. Again, considering the goal is political moderation, consider Mexico. Mexico has a similar institutional system of checks and balances, yet has an international reputation for being politically extreme. Considering Britain, a nation with unicameral legislature fused with the executive and no mechanism for judicial review, they still maintain a politically moderate reputation. (Patterson, 2011) There is no universal best system, at least thus far. Where there have been issues with the timeliness of our own system, change does eventually occur even while maintaining that moderation which was a goal of the framers. The Three Branches of Government Legislative |Executive |Judicial | |Consists of Senate and House of |Consists of President and the Cabinet. |Consists of the federal court system, highest | |Representatives |Commander of the armed forces. |of which is the Supreme Court of the United | |Draft and approve laws for proposal to the |Essentially the leader of the nation. |States (SCOtUS) | |executive. Can sign proposed legislation into law. |Respons ible for hearing cases of suit for | |Requires passing through both houses: the |Power to veto proposed legislation. |federal cases and cases where | |Senate and House of Representatives. |Appoints Supreme Court Judges and other |constitutionality may be in question. | |Have the power to overturn executive veto with|federal officials. |Review constitutionality of policy when | |2/3 majority vote. |The cabinet carries out and enforces laws. |brought in suit. |Have the power to amend the Constitution |Cabinet members: agriculture, commerce, |Nine justices ensures a decision. Each | |Power to coin monies. |defense, education, energy, health, homeland |decision will have Court’s Opinion, a | |Power to establish and maintain armed forces. |security, housing, interior, justice, labor, |commentary of the decision. | |Have the power to declare war. |state, transportation, treasury and veterans |Below the SCOtUS is the appellate court | | |affairs. system. Cases work up through the lo wer courts| | | |to the SCOtUS. | | | |Appellate court charged with hearing regional | | | |cases. | Branch Interaction The two bodies of Congress, the Senate and the House of Representatives, work together (sometimes with input from the President) to draft and discuss new policy. If after policy is written, voted upon and approved by both legislative bodies, that policy is given to the President (executive) to approve and write into law, or veto. After this the Supreme Court (judicial) has the power to review policy and weigh in on its constitutional legitimacy. A Bill Becoming a Law Following the skeleton of interaction between the branches of government previously discussed, the Bill starts as proposal from a legislative member. The bill is categorized and sent to the appropriate committee to be discussed, argued and tweaked. If the bill survives without being tabled, it is presented to both houses of Congress for debate and vote. If the bill passes these votes, it is presented to the President to either sign and enact the policy into law or to veto (deny) it. Effectiveness of the Process of Government There is a desire to have present a democracy, where the will of the majority will be driving force behind politics and policy change. To keep the majority in check, however, a republic is also in place. This puts into place the system of representation which will be accepting of the will of the majority (or its constituency) but not held captive by it. Patterson, 2011) The methods of selection also put varying degrees of separation between the masses and those governing, for example Representatives being elected by the people, the President being selected by the Electoral College, and Justices of the Supreme Court being nominated by the President confirmed by Congress. What must be considered is whether o r not the will and needs of the people are being represented in the making of policy. To be put in a position of representing people takes election from a particular geographic area. Those ho will be elected will, logically, be those individuals who hold and support the values of the majority of voting members of that constituency. That their job depends upon being elected initially, and then re-elected, it is in the politician’s best interest to hold his constituency’s interests at heart. Loosely, it is job security. Whether or not the agendas of the constituency or the politician’s personal agenda are more represented depends on the individual representative. The framers believed it would take a representing body that was virtuous for the republic to work well in execution. But it is the whim of the people who is elected to represent them, at least in terms of Congress. It takes individual citizens being learned of actions being levied by their representatives and the individuals’ duty to contact that representative or change voting habits. There is a tremendous amount of accountability on all sides to ensure the process represents the people as accurately as possible. References: Patterson, T. E. (2011). The american democracy (10th ed. ). New York, NY: McGraw Hill. ———————– Goals of the Framers -Establish a government which could be strong enough to meet the needs of the nation. –Maintain integrity of states’ rights –Maximize liberty and citizen influence Political Mechanics Installed –Specific granting and denial of power –Bill of Rights for personal liberties –Elections –Separation of Power and Checks and Balances Between Them: Legislative – Executive – Judicial To Accomplish This Executive (President and Cabinet) Legislative: Congress (Senate and House of Reps) Judicial (Supreme Court) Executive over Legislative -Power of veto -Recommendation of policy -Execution of policy Can call special sessions of Congress Legislative over Judicial -Dictates size and jurisdiction of courts -May rewrite judicially interpreted policy Judicial over Legislative -May interpret Constitutional legitimacy of policy -May declare policy unconstitutional Legislative over Executive -May overturn veto or impeach -Approves treaties and appointments -Enacts budget Judicial over Executive -May declare executive action unlawful, against policy or unconstitutional – Executive over Judicial -Nominates those to serve as judges. -Can pardon anyone tried within the system (Patterson, 2011) ———————– 8 How to cite Principles of the Constitution, Essay examples

Residency & Source of Income

Question: Discuss about the Residency Source of Income. Answer: Residency Source of Income In order to determine the assessability of income when income is derived from both domestic and foreign sources, tax residency tends to become a key determinant. This is primarily because in accordance with Section 6-5(3), ITAA 1997, with regards to foreign tax residents, only that portion of the income that would be derived from sources located in Australia would be assessable for tax as per the prevailing income tax laws in Australia. This is in stark contrast to the corresponding treatment for Australian tax residents highlighted in Section 6-5(2), ITAA 1997 which includes income generated from both domestic as well as foreign income sources[1]. As a result, tax residency becomes a vital link. With regards to tax residency ascertaining, Section 6(1), ITAA 1936[2] serves as the primary legislation. However, the matter has been discussed in detail in a number of case laws and tax rulings which have highlighted the relevant tests that could be deployed for the testing of tax residency status. One of the relevant tax rulings in this context is TR 98/17 which details the various tests that are available to perform the test for tax residency. It is noteworthy that satisfying of one of these tests would confer Australian tax residency to the concerned individual. Also, determination of tax residency must be done annually as the surrounding facts tend to keep on altering thus resulting in alternation of the underlying tax residency. The four tests available for determining of residency of individual taxpayers in Australia along with the relevant taxpayer who would apply the same are outlined below[3]. Domicile Test - Applicable only for Australian Residents !83 day Test Applicable only for Foreign Residents Resides Test - Applicable only for Foreign Residents Superannuation Test Applicable only for Federal government officers serving outside Australia In the given case, domicile test would be the applicable one considering that the relevant taxpayer is a Australian resident. As a result, the discussion of the applicable law would also tend to focus on only the domicile test. For the Australian tax residency to be granted in line with the domicile test, the concerned taxpayer needs to satisfy the below mentioned two conditions[4]. Valid domicile in accordance with Domicile Act 1982 must be possessed with the taxpayer during the assessment year The permanent adobe as outlined by the arguments in the Levene v. I.R.C.[5] must be located within Australia and not in any foreign place for any time during the assessment year If either of the conditions above remains unsatisfied or unfulfilled, then the taxpayer would fail the domicile test. The condition dealing with possession of Australian domicile is relatively easy because of the objectivity involved but the same cannot be concluded in relation to the verdict on the location of permanent abode which may or may not be different from the place of current residence or abode. For determining the permanent abode location, the tax ruling IT 2650[6] lists down the various factors that the tax authorities consider in order to reach a conclusion about the underlying location. The various factors are highlighted below[7]. Difference between the stay period originally intended when moving to a foreign location and the stay period in actuality along with analyzing the underlying reason for variation Intent on taxpayers part to return to Australia over a period of time Any action whereby the taxpayer set up a dwelling in the foreign location and uses it to dwell with family Fate of the residence in Australia i.e. rent, lease or liquidate Frequency of visits made to Australia during the period of foreign stay by the taxpayer The strength of relationships in the personal and professional domain that the taxpayer tends to keep in Australia during the residence period abroad Often the word permanent in the term permanent residence is confused to imply that unless the taxpayer does not intend to return to Australia ever, he/she would be recognised as an Australian tax resident irrespective of the period abroad. However, this understanding is incorrect as highlighted in the F.C. of T. v. Applegate[8] case. As per the relevant details, it involved a domicile holder or resident of Australia being sent to a foreign location to set up office. Considering the undefined scope of work, the intended duration of foreign stay was unclear even though it was apparent from the outset that it would be rather a long period spanning into years. But, it is decided at the outset only that after the accomplishment of the task, the taxpayer would again return to Australia on a permanent basis. The taxpayer owing to illness had to cut short his trip and returned to Australia permanently. Despite the fact that the taxpayer did return to Australia, the court opined that the taxp ayer for both the years would be a foreign tax resident[9]. Hence, it was indicated that for legal decision making, the word permanent implied a significant length and not indefinite period. This stance of the honourable court has also been reiterated in the decision given in the F.C. of T. v. Jenkins[10]. With regards to the determination of tax residency of Peter in accordance with the domicile test, the following facts are critical. Peter is an Australian resident and associated with a band as a bass guitarist. Owing to wider success possibilities in England, the band members decided to migrate to England on January 15, 2016 with Peter determined to return to Australia once the band has gained the requisite popularity. Peter had a residence in Australia which he leased out and further sold out his car and shares so as to fund the airfare and other early expenses in England. After moving to England, the band members took a house on lease for a period of 12 months. Over the next one year, the band did really well and earned a handsome amount from the album sales, associated royalties and also the prize money The band members made the decision to return to Australia in August 2017 and finally returned in October 2017. However, Peters house in Australia was on lease till the end of 2018 and therefore he had to reside in a rented house in Australia. It is evident from the above information that Peter possesses an Australian domicile and hence fulfils one of the conditions of the domicile test of tax residency. With regards to permanent abode, it is apparent that there is desire on Peters part of return to Australia once the band has become enough famous. But it is apparent that typically this would require a sizable time extending into years and hence there is no specific return date or year in mind when Peter migrated to England for professional purposes. Thus, it is evident that Peter shifted to England for a substantial period. Further, the Australian residence was leased. The fact that on return the lease on house was to continue will the end of 2018 is indicative that Peter did not expect to return to Australia by that time and certainty not as early as late 2017. All these factors coupled with understanding developed in F.C. of T. v. Applegate (1979) ATC 4307 indicate that there was a shift of permanent residence to Englan d for the period Peter was in England. Since a portion of this time was present in FY2016, FY2017 and also FY2018, thus for all the three years under assessment, Peter would be regarded as a foreign tax resident. Assessable Income For a foreign tax resident, only income obtained from Australian sources would be tax assessable (s. 6-5(3)). Thus, the relevant income sources for Peter from Australia during the given time period along with the applicable tax assessability is highlighted below. With regards to assessable income, it is noteworthy that there are primarily two components namely ordinary income (Section 6-5) and statutory income (Section 6-10)[11]. In accordance with s.6-5, ordinary income is defined as proceeds derived from ordinary concepts. While the relevant statute does not detail on the income sources contributing to ordinary income, but based on the various case laws and tax rulings, it would essentially compose of the following element[12]. Income from business, profession or employment Income from personal exertion Income from investment which would include rent (real estate), dividends (shares) and interest (bank, bonds) Income from prize that is obtained by means of profession as is apparent from the verdict of Scott v. Federal Commissioner of Taxation[13]. Also, any royalty payments which are derived on account of profession or business would also fall within the ambit or ordinary income a highlighted in the applicable tax ruling TR 98/1[14]. Further, with regards to statutory income, one of the key components is capital gains on which capital gains tax or CGT may be levied. As per s. 108-20(2), ITAA 1997[15], a car which is used to for recreation and personal enjoyment would be termed as a personal use asset and would be outside the ambit of CGT. Besides, on the sale of various capital assets, if the capital gain realised is long term, then 50% discount may be applicable for individual taxpayer (Australian tax residents only) as per Division 115 ITAA 1997[16]. The long term capital gains would be realised when the underlying capital asset is held for more than one year. FY2016 Sale of car Exempt from CGT as per s. 108-20(2) [Capital receipts from sale non-assessable) Sale of shares Long term capital gains of ($11000-$5000 = $ 6,000) would be contributed to assessable income for application of CGT. No 50% discount since Peter is a foreign tax resident. ARIA Award Assessable income under s.6-5 amounting to $ 20,000 Income for performances - Assessable income under s.6-5 amounting to $ 140,000 Lease income on house in Australia would be assessable income under s.6-5 FY2017 Royalties received from Australia to the tune of $ 30,000 would be assessable income under s.6-5 ARIA Award Assessable income under s.6-5 amounting to $ 10,000 Lease income on house in Australia would be assessable income under s.6-5 FY2018 Lease income on house in Australia would be assessable income under s.6-5 Royalty income of $ 4,000 received after coming back to Australia would be assessable income under s.6-5 Further, the other sources of income derived during the stay in Britain will not be assessable as it would be income from foreign sources. In the above evaluation, only income sources located in Australia have been considered for the purposes of tax. Reference Australian Taxation Office: Taxation Rulings: TR 98/17, (25 November 1998), https://www3.austlii.edu.au/au/other/rulings/ato/ATOTR/1998/tr1998-017/ Australian Taxation Office, Taxation Ruling No. IT 2650, (1991) https://www.ato.gov.au/Individuals/Income-and-deductions/Income-you-must-declare/ Commonwealth Consolidated Acts: Income Tax Assessment Act 1936SECT 6.https://www.austlii.edu.au/au/legis/cth/consol_act/itaa1936240/s6.html Barkoczy,Stephen, Foundation of Taxation Law 2015, (North Ryde, CCH, 2015) Deutsch, Robert, et. al., Australian tax handbook. (Pymont, Thomson Reuters, 2015) Gilders, Frank, et. al., Understanding taxation law 2015. (LexisNexis, Butterworths 2015) Sadiq, Kerrie, et. al., Principles of Taxation Law 2015, (Pymont,Thomson Reuters, 2015) Case Law F.C. of T. v. Applegate (1979) ATC 4307 F.C. of T. v. Jenkins 82 ATC 4098 Levene v. I.R.C. (1928) A.C.217 Scott v. Federal Commissioner of Taxation(1966) 117 CLR 514 Barkoczy,Stephen, Foundation of Taxation Law 2015, (North Ryde, CCH, 2015), p. 39 Commonwealth Consolidated Acts: Income Tax Assessment Act 1936SECT 6. https://www.austlii.edu.au/au/legis/cth/consol_act/itaa1936240/s6.html