During the economic crisis of 2008, many of the largest U.S. banks were accused of having provided mortgages to marginally qualified borrowers. Such loans, called 'sub-prime" and "Alt-A" loans, were made to earn mortgage fees. When the borrowers were unable to pay their mortgages, the banks incurred large losses on defaulted loans. These losses were so large that the U.S. government had to provide money (TARP funds) to many banks to bail them out of their financial distress. During the middle of the crisis, the FASB voted to provide banks more flexibility in applying fair value accounting for bank assets, such as defaulted loans. These FASB rule changes allowed banks to minimize the impact of their defaulted loan write-downs and improve their earnings. Some criticized the FASB as succumbing to political pressure and reducing overall financial statement fairness. Source: lan Katz, "FASB Eases Fair-Value Rules Amid Lawmaker Pressure," Bloomberg, April 2, 2009.

assess the growth of the leasing sub-sector of the financial sector in Zambia since the liberalisation of the sector in the 1990’s up to the end of 2019. Identify the trends and explain and discuss the factors that may have contributed to those trends. What challenges has the sub-sector faced and how has Government and its regulatory authorities tried to address these challenges? Highlight the measures taken.  Cite practical examples of major project financed projects in Zambia and the models used since the liberalisation of the economy in Zambia from the early 1990s to-date.

Freida, who lives in Covington, Louisiana purchased three bonds from a company based in Brazil that were yielding 9.75% and paid a 12% coupon, semi-annually. The company went bankrupt and Freida never received her money. What type of risk caused Freida's loss? Interest rate risk. Default risk. Exchange rate risk. Executive risk.

1) In the years that the Crazy Eddie story occurred, a large amount of retail transactions were conducted by cash or check, whereas today these retail sales would primarily be paid by debit or credit card. Also, during the Crazy Eddie years, internet shopping was not available. Explain why the Crazy Eddie story would be unlikely today.   2) Consider the difference between asset misappropriation crimes and financial statement fraud. List at least 6 different fraud schemes conducted at the Crazy Eddie business and identify whether each one is either asset misappropriation, financial statement fraud, or other fraud types.   3) Identify by year ranges three different time periods when the Crazy Eddie primary fraud strategy changed. A) What was the primary fraud strategy for each period you have identified. B) List whether the company was public (traded on a stock exchange) or private during each of the three periods you have identified. C) Describe the strategy employed when the “skim” was…

Which statement is true regarding the risk of Politically exposed persons (PEPs)? PEPs provides access to third parties on whom the financial institution has not conducted sufficient due diligence PEPs have significantly greater exposure to the politically corrupt funds,, including accepting bribes or misappropriating government funds PEPs are foreign customers who inherently present additional risk as they are engaged in cross border transctions PEPs generally do not pose enhance risks to an institution due to their political standing; rather, PEPs increase prestige of an institution

Diebold is a $3 billion company whose core products are ATMs, bank vaults, and security systems. Until the 1990s, it was a global market leader. Then, its rival NCR surpassed it in sales. As a result, Diebold began acquiring suppliers around the world. One company it purchased was a Brazilian manufacturer of ATMs. Around this time the Brazilian government was looking to fully automate its voting system, and Diebold got the contract through its Brazilian company. The Brazilian presidential election went off without a hitch with Diebold machines. Emboldened by this success, Diebold decided to enter the voting machine market. The U.S. seemed a likely market, especially after the passage of the Help America Vote Act when local governments were told to replace punch-card voting machines with touch-screen machines. The big contracts meant big problems for Diebold. Orders were lost, manufacturing fell way behind schedule, and its technical staff was overwhelmed by the demand. In addition,…

The Nova Scotia government passes a law creating the Nova Scotia Postal Service (NSPS). The premier explains that Canada Post is just not efficient enough and the Nova Scotia government feels it could make money offering a postal service to Nova Scotians. Is it likely that the Nova Scotia government has the jurisdiction to create the NSPS? Explain your answer

Explain the American Recovery and Reinvestment Act (2009).

To acquire a 400,000 square foot industrial park in Boca Raton, Florida at a purchase price of $40 million, an investor put down 40% and borrowed $24 million with a 30-year fully amortizing fixed rate mortgage loan at an annual contract interest rate of 5% payable monthly. The borrower was charged two points by the lender that was deducted from the loan amount at closing. If the monthly payments on the loan were paid on time each month and if the loan was fully repaid at the end of 10 years with no prepayment penalty, what was the effective annual yield on the loan to the payoff date? a.5.28% b.5.38% c.5.18% d.5.08%

Explain the purpose and methods used used for feasibility studies in healthcare loans