Perspectives of Regulation of Complex Financial Institutes Essay

Perspectives of Regulation of Complex Financial Institutes - Essay Example General complaints about a â€Å"lack of regulatory aggressiveness† ignore the realities of actually bringing enforcement actions in a tough environment. Regulatory enforcement in the United States operates surprisingly well given the difficulties of this operating environment, and critics have not presented credible alternatives to the present system. A second perspective is that major financial institutions escape meaningful regulatory constraints because their power and influence overwhelm regulators and because individuals from regulatory institutions give too much deference to major financial institutions and their key executives and staff. This perspective suggests that financial regulation in the United States is broken largely because of this political dynamic and needs fundamental reform. This paper will examine and look into how regulators and firms deal with each other, how interdependent they are on each other and the outcome of such interdependency. What kind of b enefits and liabilities develop due to their strong ties. Financial institutes will be used as the premise of all discussion. Special attention will be given to potential benefits and risks of such cohesive regulatory networks. Regular dealings between regulators and financial institute beyond the regular rule making boost up co-operation. Ineffect transparency takes a toll. Information disparities also strengthen regulatory cultures and bring down the threshold of external pressure need to effect changes within firms. The conditions that bring this benefit impede flow of information and genuine criticism from outsider. As a result performance standards dip and various other problems crop up. The paper looks into various examples of such fraudulent activities and also the circumstances in which these tensions are more likely to manage without damage from these problems. Strong ties that encourage cooperation within insiders have a huge impact on the flow of information. Information disparity arises and outsiders are asked to stop criticism. A lot of problems shape up as a result. A very prominent example in this case would be the SEC, NASD and NYSE when they acted against conflicts of interests in investment banking and mutual funds, immediately after outsiders. In 2003, at a cost 1.4 billion dollars, regulator prosecutors and large securities firms settled charges. The firms had encouraged investment analysts to mask and exaggerate corporation’s investment value while misleading investors in order to win the corporation’s investment banking business. For many years, this was floating around as a secret in the industry while the press and various congressional hearings had focused on it. While the participants were aware of the ethical implications of such a business, they eventually came to terms with it and started living with it as if it was a normal part of the business. The Lehman Brothers came to the rescue and appealed for new synergy by a nnouncing a new model for dealing between analysts and investment banking. This was widely accepted new paradigm for synergy and stated that â€Å"The analyst is THE key driver of the firm relationship with its corporate client base. Analysts need to accept responsibility and use it to expand the franchise and DRIVE PROFITABILITY

Napoleonic Era Essay Example for Free

Napoleonic Era Essay Napoleon I is one of the most influential military and political leaders in the history of Europe. He led the French soldiers during the French Revolution in their invasion of Russia. Under his leadership, the French was able to defeat their opponents through employing Napoleons military innovations and tactics. During Napoleons reign, France turned into a nationalist power, extending their influence and territory over Italy and other states (â€Å"Napoleonic Europe†).   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Napoleon was able to develop a fair few number of tactics which highly influenced and modernized the French army. His tactics were proven to be among the most prominent, and as such, are being studied by scholar all over the world. Given Napoleons success in his endeavors, he is being regarded as one of the most successful and famous military commanders in the history.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   As Frances ruler, Napoleons one of the most important legacies in French history is the establishment of the Napoleonic Code or the French Civil Code, which became the foundation of the modern French state (Holtman, 1967). His achievements, policies and massive influence in the French history proclaimed him as one of the most famous tyrants by his opponents.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Even though the French Revolution failed, Napoleons leadership became strongly imbibed within the French system, thus his influences were difficult to eradicate totally. In addition, Napoleon instilled a distinct sense of nationalism towards the French. His example of nationalism meant that people must fight against their conquerors and oppressors even until defeat (â€Å"Napoleons Legacy†).   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   However, there were negative opinions generated by Napoleons autocratic leadership. While he was able to instill nationalism amongst the people, individual rights in Europe became suspended during his reign. Being an influential and powerful figure, he was able to impose his policies on the people. And as such, freedom became a rather limited right in France (â€Å"Napoleons Legacy†). References Holtman, R.B. (1967). The Napoleonic Revolution. Retrieved July 23, 2008, from http://mars.wnec.edu/~grempel/courses/wc2/lectures/napoleon.html Napoleonic Europe. (n.d). SparkNotes. Retrieved July 23, 2008, from http://www.sparknotes.com/history/european/napoleonic/summary.html Napoleons Legacy. History Wiz. (2005). Retrieved July 23, 2008, from   http://www.historywiz.com/legacy.htm

Use of Symbolism in The Rime of the Ancient Mariner Essay -- Samuel Ta

Samuel Taylor Coleridge’s use of symbolism in The Rime of the Ancient Mariner lends the work to adults as a complex web of representation, rather than a simple story about a sailor. The author uses the story of a sailor and his adventures to reveal aspects of life. This tale follows the Mariner and his crew as they travel between the equator and the South Pole, and then back to England. Without the symbols, The Rime of the Ancient Mariner would be simply a poem about an old mariner who is telling a story about killing a bird to a guest at a wedding. Of course, anyone who reads the poem can see that there is more to it than just a simple telling of a story. The first symbol in the poem is the wedding that the guest and the Mariner are at. This is a highly significant detail, because Coleridge could have made the story telling take place at any setting, but he chose a wedding. The reason for this was because a wedding is a very religious and very happy occasion. Weddings symbolize new beginnings and happiness. The reason that Coleridge decided to have this horrid tale told at a wedding could be for any number of reasons. I feel that the setting was chosen because of the new beginnings implied. As the Mariner tells his tale, the guest is held captive and when the story is done, the guest becomes essentially a new man and goes off to live the rest of his life. Had the tale taken place at a funeral, the heavy feeling of ending would have destroyed the symbolism of new beginnings. It could have been an ending for life, for happiness, and for everything else. If this had happened, then the fact that he rose the next day would not have been as significant. Therefore, the wedding is a very important symbol for this poem. Another significant symbol throughout the poem is the albatross. It first appears in the first section and it is a symbol of good omen for the sailors. The albatross is a white bird, which is probably the reason why many Christians of the time saw it as a holy symbol. Because it was a white bird, which was a sign of righteousness, it therefore was considered a good omen. In this poem, the albatross symbolizes good fortune. When the Mariner kills the albatross, for absolutely no reason, the good fortune that has come upon the ship leaves. Symbolically, the Mariner did not kill a simple seabird, but instead an omen of good fortune, which is why... ...riner took a gamble with his religion, and now the pair is taking a gamble for his life. Life-In-Death ultimately wins over Death in the game, and the Mariner’s shipmates die at his feet, yet he lives on. The Rime of the Ancient Mariner is a highly significant poem of a complex web of representation that is very dependent on symbolism. The symbols of the wedding, the albatross, the blood that the Mariner sucks in order to announce the ship and the game between Death and Life-In-Death are only a few of the symbols that add meaning and depth to the poem. If it were not for the symbols, the poem would simply be the story of a Mariner telling his tale to a wedding guest, and then the poem would have no meaning to anyone. When reading this poem, the reader can feel much like the wedding guest, entranced and hypnotized by the storyteller. This is because of the symbolism exhibited through the poem. Even if the reader of the poem does not fully understand the symbols in the verse, the intuitive mind will catch them and understand the detailed meaning. The symbols themselves in The Rime of the Ancient Mariner are therefore the part of the poem that makes it so intense and interesting.

The Bernard Lawrence “Bernie” Madoff Scandal

unethical in the conduct of business. A Ponzi scheme also known as a pyramid scheme is an illegal savings scheme where unwary savers are lured into putting their money into the fraudulent organization’s account with the promise of unusually high returns. On the surface this may look legitimate. But the problem is that unlike financial institutions who lend out or invest customer’s funds Ponzi schemes use funds received from newer entrants to pay out the earlier entrants exorbitant interest rates. They arouse others greed by enticing them with the prospect of high returns.They pretend and falsify their financial records to create a false sense of stability. No sane government can register such schemes. They therefore operate illegally. Mr. Madoff stands accused of nepotism. This is a business practice why by the owner employs relatives and close associates. Suffice it to say that Madoff had more than 25 employees. However those in key positions were family members most o f whom owned shares of the company. These included his wife Ruth Madoff, two sons Mark and Andrew Madoff, his brother Peter Madoff, Peter’s daughter Shana, and Madoff’s nephew Charles Weiner.It is unethical to use a well positioned family team to cover up illegal dealings. It is unethical to sent more than $250 million from his New York-based firm, Bernard L. Madoff Investment Securities obtained ripping off unsuspecting savers in a Ponzi scheme to Madoff Securities International Ltd in the UK, and then back to accounts in the U. S. Question 2: Name three types of parties who were impacted by the actions of Mr. Madoff, and describe how they were impacted. Madoff’s friends included business associates who knowingly or unknowingly served to lure customers into his business.While the going was good, they were well rewarded. They occupied positions in charitable organizations, and received hefty compensations for their services and cooperation. However when the sche me was busted they lost their positions, face, as well as their incomes. Some politically correct friends had to refund monies that had been given to them through Madoff sponsored organizations. The worst party hit was his customers. Many of them were ruined financially for life. The total loss to investors is reckoned to be somewhere between 12 to 20 million dollars. On the flip side, there are those who gained.According to minutes from the trustee about $36 billion was invested into the scam, returning $18 billion to investors, with $18 billion missing. This being a pyramid scheme about half of Madoff's investors were â€Å"net winners,† earning more than their investment. The extend of embarrassment Madoff’s family experienced can only be imagined. Apart from loosing face, they lost a lot of assets. Their bank accounts were frozen and property confisticated. They are also facing legal charges for negligence, and breach of fiduciary duty by virtue of being accomplice s with Madoff.Question 3: Describe three business safeguards (risk management) that may have prevented the harm caused by Mr. Madoff. Government regulations: The hedge funds industry is considered as low risk. While the law enforcers are very strict with the banking and insurance sectors, they do not pay much attention to hedge funds. This made it easy for a smooth operator like Madoff to receive money from investors and manage the same which is illegal. He achieved this through engaging various institutions who were themselves under government regulations. Stricter regulatory and standardizing approaches of the hedge fund industry need to be put in place.a ‘best practice’ charter should be drawn and implemented. Proper audit of the Madoff’s transactions would have revealed anomalies. Independent external auditors would have done the job sufficiently. Question 4: Describe three ways private investors might have better protected themselves from risk. Due diligence in this case is the process of monitoring and reviewing the operation and management of hedge funds and those managing them. The collapse of Madoff was an expensive lesson in the importance of investors and their advisors carrying out thorough due diligence and not relying on word of mouth endorsementDiversification of risk: the nature of a pyramid scheme is to so attractive that potential investors have no other option but put their money in there. With high returns and no fees charges investors were sold. It did not occur to them to avoid putting all their eggs in one basket. There are two types of investor’s risk: systematic risk and market risk. Systematic risk is associated with a single security and is reduced by diversifying or investing is other types of securities. Market risk is occasioned by economic forces and can not be wished away. (Petty 2007)Refraining from greed: The saying that ‘when the deal is too good, think twice came true for the victims of the M adoff scam. The profile of its victims is not simple individuals disconnected from the financial markets and its remote mechanisms but investors who presumably have an expert knowledge of the trade of financial investment: rich private individuals and large financial institutions. The deal was just too good that they closed their eyes to anything else. It is a lesson to all that when investing one has to be level headed and not let themselves be overtaken by greed.Question 5: Describe three legal actions that possibly may be brought against Mr. Madoff under criminal or civil law. Securities fraud: the SEC regulates against trading based on information that is not available to the public, Accounting fraud and misrepresentation (presenting misleading or untrue information about a company, or its securities, to an investor or the public). This crime earned him a maximum penalty of 20 years in prison; fine of the greatest of $5 million or twice the gross gain or loss from the offense; r estitution.International money laundering: In his book ‘Money Laundering’, Leonard Jason-Loyd describes it as a form of criminal activity where by money is placed in banks then passed through a number of transactions to act as a smoke screen in order to hide the origin of the cash and later returned to the launderer via the legitimate financial system. (p. 2). Madoff’s crime of transferring funds between his New York-based brokerage operation and the London trading desk earned him a maximum penalty of 20 years in prison, fine and restitution.False Statements: Making a false filing with the Securities and Exchange Commission including processed stock trades, use of client money as collateral to obtain loans. This earned him a maximum penalty of 20 years in prison, fine and restitution. References Caruso, D. B. , February (26, 2010) (2 June 2010). Former Madoff Aide Charged with Conspiracy, and Securities Fraud. The Associated Press Retrieved from www. law. com/jsp /article. jsp? id=1202444611999 – United States Lloyd L. J. (1997). The Law on Money-Laundering: Statutes and Commentary, London, Great Britain, Frank Cass & Co.Ltd ‘Madoff scandal poses challenges for directors’ (21 Dec 2009) (2 June 2010) Risk Management Lessons from Madoff Fraud Retrieved from www. lloyds. com †º Petty, w. , Keowon, A. J. , Scott JR, D. F. , Martin, O. N. , Burrow, M. , Martin, P. , Nguyen, H. (2006) Financial Management, Frenchs Forest, NSW, Australia, Pearson Education Australia. Silver, V. , Glovin, D. , (2009, 13 Feb), (2 June 2010). Madoff Scandal Ensnares Order of Patron Saint for Moralists. Bloomberg News, Retrieved from www. bloomberg. com/apps/news? pid=20601109& refer=home

The Secret of Ella and Micha Chapter 11

Ella The next morning Lila is feeling much better. It's like last night never happened, but I wonder if it's an act. â€Å"I have a feeling that today is going to be full of rainbows and sunshine,† Lila says cheerily as she applies her lipstick, using the mirror on the closet door. Against my protest, she took down some of my sketches, so she could see her reflection. â€Å"See what, though?† I'd asked and she laughed, totally confused. â€Å"Are you high?† I tease as I twist my hair onto the back of my head and secure it with a clip. She pauses, looking at me over her shoulder. â€Å"Why do you always ask questions like that?† I slip on my boots and tie up the laces. â€Å"What kinds of questions?† She blots her lips. â€Å"Every time I'm happy, you always ask if I'm drunk or on something. People can be happy without substances.† I clasp a watch around my wrist. â€Å"Most people can, but not all.† Lila clips a diamond earring in. â€Å"You look really nice today.† I glance down at the black and purple dress I have on and the boots on my feet. â€Å"I forgot to do laundry so I had to wear some of my old clothes, which don't match any of my new shoes.† â€Å"Well you look nice.† She gives an elongated pause. â€Å"So what's on the agenda for today?† â€Å"It depends on what you're doing?† I ask. â€Å"Are you†¦ where are you planning on staying?† She shuts off her phone and then discards it onto the bed. â€Å"I'd like to stick around with you for a while, if you don't mind. We could hang out. I don't have anything scheduled for the summer and I'm not going back home.† â€Å"Do you want to tell me what happened?† â€Å"No, not really.† â€Å"Okay†¦ well, I need to find a job,† I say. â€Å"I have to save up for the rest of my tuition since it doesn't look like I'll be getting that internship.† She puts a headband in her hair. â€Å"The one at that art museum.† â€Å"That's the one and it doesn't start until mid-June,† I explain. â€Å"But that's only five weeks away, so I figured they'd have notified me if I got it.† â€Å"You never know. Sometimes things like that move slow.† She folds up a shirt and packs it into her bag, then ties a ribbon on the back of her shirt. â€Å"Although, if you get it that'd mean you'd have to go back to Vegas, right?† Nodding, I head for the door. Two weeks ago the idea of returning to the desert would make me happy, but something's changed. I still want to go, though leaving will be a little bit harder. I collect my phone off the dresser, noting the flashing voicemail on the screen – Micha's unread message. My finger hovers above the button as I step into the hall. He told me I wasn't ready for what was on it? But am I ready for it now? â€Å"I don't know why you think it's so bad here.† Lila follows me. â€Å"Yeah, people are a little rough, but they're not all bad and everywhere has bad stuff. You can't hide from it.† â€Å"That's very insightful.† I close my phone and put it away. â€Å"Bad comes in different forms,† Lila continues. â€Å"Whether it's drug dealers on the corner or if it's corrupt rich people or just your run-of-the-mill douche bag.† I don't know much about Lila, other than she's rich, her dad works as a lawyer and her mom stays home. She likes clothes, is great with numbers and was the only reason I passed pre-calculus. My brother's door is open and he walks out as we're passing by. He has a black and red polo shirt on and a pair of cargo pants. There's some kind of gel in his hair and it looks shiny. â€Å"Hey, have you seen dad?† he asks, giving an acknowledging glance at Lila. I point at the shut door at the end of the hall. â€Å"I thought I heard him come in late last night and go into his room.† â€Å"He did, but he got up this morning.† He leans against the doorframe and crosses his arms. â€Å"I heard him stumbling around in that bathroom and crying all night, but now I can't find him and I didn't hear him leave. His work called the house, saying he didn't show up, so he's not there.† My fists clench so that my nails dig into my palms. â€Å"Did you check in the bathroom?† Dean's eyes travel down the hall to the bathroom door and he shakes his head. â€Å"I haven't and I don't want to.† â€Å"Hi, I'm Lila,† she introduces herself and offers her hand. â€Å"You must be Ella's brother, Dean.† Dean is vaguely amused and shakes her hand. â€Å"Yeah†¦ how do you know Ella?† â€Å"I was her roommate,† she responds, pressing her hand to her chest, faking being offended. â€Å"Didn't she ever mention me?† â€Å"We don't talk that much.† I eye the bathroom door again and my stomach twists. â€Å"We need to find Dad.† â€Å"I'm not looking in that bathroom, Ella, but if you want to, go ahead.† With legs flimsier than wet noodles, I walk down the dark hallway and stop in front of the door, having a flashback of the day my mom died. The door was closed and the house was soundless, except for the running of water. My hands tremble as I open the door. The room is bare, the tub empty, and the tile floor is clean, except for a small stain. There are no towels on the hooks and the mirror on the wall across from me shows my reflection. My auburn hair is curled perfectly in place, my lips are lined with gloss, and my green eyes are immense and reveal everything. â€Å"Dad isn't in here,† I tell him, unable to look away from the mirror. â€Å"Are you sure you didn't hear him leave the house?† â€Å"He could have left and I just didn't hear him,† he answers. â€Å"But when has he ever left the house quietly before?† I quickly slam the bathroom door, like I'm trying to put out a fire, and race back down the hall. â€Å"Someone needs to find him. Did you try and call him?† â€Å"Of course. I'm not a moron.† He rolls his eyes and nods. â€Å"And he didn't answer.† Lila shifts her weight and forces the uncomfortable conversation elsewhere. â€Å"So you play the drums, Dean?† He motions to his drum set in the middle of his small room with dark blue walls. The floor and bed are cluttered with boxes and the curtain is pulled back, letting the sunlight spill in. â€Å"I used to, but I don't much anymore. I have work and a fiance.† â€Å"Fiance?† Lila and I say simultaneously. â€Å"Yeah, as in we're engaged.† Dean rolls his eyes and goes back into his room. â€Å"It's what happens when two people date for a really long time.† â€Å"Why didn't you tell me?† I ask, following him into his room. He picks up a small box and drops it onto the floor. â€Å"Do you really care that I am?† I carefully nudge the box out of the way with my foot. â€Å"You're my brother. Of course I care.† â€Å"But it's not like we've ever really gotten along,† he points out. â€Å"I haven't even talked to you for a year. God, I didn't even know you went to college until a week ago.† He's right, which is sad. I barely know him, he barely knows me, and I'm starting to think I barely know me, too. â€Å"Does Dad know you're engaged?† I ask. â€Å"Were you at least planning on telling him?† â€Å"Even if I told him, he'd just forget the next day.† He empties a dresser drawer into a large open box and then aligns the drawer back into place. â€Å"You know how he is. Christ, I don't even think half the time he knows that you and I don't live here anymore.† â€Å"He still deserves to be told,† I say. â€Å"He's not a bad guy and you know it. He just has problems.† â€Å"Problems that fucked up our childhood.† He kicks a box out of the way with force and it crashes into the wall. â€Å"You do realize that how we grew up wasn't normal. God, even Micha had it easier and his dad bailed out on him, but at least he had a stable mom to take care of him.† â€Å"Umm†¦Ã¢â‚¬  Lila pokes her head in the room. â€Å"I think I'm going to wait outside for you, Ella.† God, I'd forgotten she was even there and she just heard all of that. â€Å"Okay, I'll be down in a second,† I tell her and she leaves readily. I wander around Dean's room, taking in the photos he has up. â€Å"I think we may have just scared her to death.† Dean picks up his drumsticks and places them into a large duffel bag. â€Å"Okay, I have to ask. How did you end up being friends with her?† â€Å"She was my roommate and we just sort of bonded.† I shrug, picking up a photo of Dean and his friends on a sunny beach. It was taken during his Senior Field Trip and he looks happy. â€Å"You bonded,† he accuses. â€Å"The girl looks like a spoiled princess.† I eye his preppy clothes. â€Å"So do you.† â€Å"First off, I'm not a princess and I've earned what I have,† he says. â€Å"It wasn't just handed to me.† â€Å"Maybe she did, too.† â€Å"Did she?† I hate to give him the benefit of being right. â€Å"No, her parents are pretty well off.† He looks at me with that stupid arrogant expression he gets when I admit he's right. â€Å"Well, there you have it then.† â€Å"She's nice,† I protest. â€Å"And she doesn't ask a lot of questions.† â€Å"It may seem like you need to keep things to yourself,† he says, putting a blanket into a box. â€Å"But it's not healthy. You need to find someone you can let it all out to. Otherwise you're going to lose it.† My eyes roam to the window where the edge of Micha's house is visible. â€Å"I think I already did.† Dean's forehead creases as he drops a handful of guitar picks into a trunk. â€Å"Lose it? Or talk to someone about it?† â€Å"Both.† I back toward the door. â€Å"When are you heading back to Chicago?† â€Å"Hopefully by tonight. No offense or anything, but this place brings back way too many unpleasant memories.† â€Å"Try to say good-bye before you leave.† He doesn't respond and I don't wait around for an answer. That was probably the longest conversation that we've ever had and I have a feeling it may be our last for a very long time.