True Sale in Securitization Essay Example | Topics and Well Written Essays - 1000 words - 1

True Sale in Securitization - Essay Example The power to sell the receivables by the creditor stems from the concept of securitization, which is a â€Å"contractual right of a creditor to sell the goods of the debtor and apply the proceeds thereof in or towards the satisfaction of the debt.†1 There are three types of securitization currently used in the market. First, it could be treated as a â€Å"true sale† which is characterized by a transfer of all rights over the receivables to the SPV by the originator. Second is the synthetic securitization where the originator does not sell the accounts receivables but enters into a derivative transaction. Third, are the whole business securitizations, which a form of secured financing, and not a sale of the accounts receivables from the originator to the SPV. Of the three types of treatment, the rue sale may prove to be the safer ground for the seller. There are two points of view in true sale transactions namely the originator’s perspective and that of the SPV. Since Bank A falls under the category of an originator, we will then the originator’s perspectives. As earlier discussed, securitization is aimed at raising funds. For the originator, it is also a method of extracting profit. However, extraction of profit must be done with caution as it has the tendency to run foul with regulations and accounting principles. Under the rules and guidelines of the Securitisation and Asset Transfers (SE) as embodied in the FSA’s Interim Prudential Sourcebook for Banks, extraction of profits may be effected in the following manners, namely (a) as administration fees.

Factors that Medium-Sized Companies Need to Think Introducing ERP Research Paper

Factors that Medium-Sized Companies Need to Think Introducing ERP System - Research Paper Example Moreover, it has been found that many organizations that have implemented these systems have failed to materialize these systems set out benefits. In fact many organizations have shown results which are totally against the argument supporting the installation of ERP systems in an organization. Research findings have discovered many variables that are needed for the successful implementation of these systems in an organization. Amongst these variables are: top management support, organizational culture, sound implementation plan, user involvement, and etch. On the technical side, variables which are of prime importance are: sound system architecture, data integrity, system interface and etch. Researchers have also found that for the successful implementation of these systems, the top management of the organization needs to clarify the scope of these systems. This scope should be very clear and free from any kind of ambiguity. The importance of this finding stem from the fact that not every business process can be integrated with the ERP system, and in case an organization is unclear about this fact than there are likely chances that it will try to bring many undue processes into the relevant scope of the ERP project. This behavior or action will keep adding cost to the entire project’s cost, ultimately leading to the project getting over budget. This cost might be so high that it might not justify the value of the benefits derived from these systems. It is therefore of utmost importance that the project team is given a clear scope and vision for the entire project. It is also important that the project team place especial emphasis on the systems architecture, because too much customization of the system may render the system inefficient. It would be better that an organization implementing these systems, tailor its business processes according to the fields of the software. Since these software suits represent the best practices of the industry, therefore it would not be wrong to use these fields rather than tailoring them to correspond to the existing business processes of the organization. SMEs have to carefully consider all the intricacies involved with the implementation of these systems because they do not have the strong capital base to support any mishap encountered during the implementation of these systems. These companies need to be very clear about the objectives they seek to accomplish by installing ERP systems in their operations, because otherwise they would end upon incurring a capital outlay that would be difficult to replenish. INTRODUCTION: In order to respond to the needs of its marketplace, a business must have accurate and updated information about its suppliers, customers, employees, invoices and payment and most importantly about its own products and services. A business needs to organize its work activities which use this information to operate efficiently and enhance the overall performance of the firm. Info rmation systems are the means by which an organization can manage all its vital information and tailor this information in a manner that allows it to make better decisions and improve the execution of their business processes. Information systems are fundamentally aimed at improving the business process of a company. The manner, in which an organization’s work is organized, coordinated and focused to produce a

Adoption of Sarbanes-Oxley Act of 2002 as an Important Piece of Term Paper

Adoption of Sarbanes-Oxley Act of 2002 as an Important Piece of Legislation - Term Paper Example In the last section the report evaluates the costs and benefits of the changes ushered in by the Sarbanes-Oxley act of 2002. The Sarbanes-Oxley Act of 2002 was drafted by the senator Paul Sarbanes and representative Michael Oxley (SOX-online.com, 2006: Online). The primary objective of the Sarbanes-Oxley Act was to protect and safeguard the interests of the investors by assuring transparency, accuracy and reliability of the financial disclosures made by the corporations. It is a mandatory Act and all the large and small US organizations are required to abide by and follow the provisions and requirements of the Sarbanes-Oxley Act. This Act came into force in the year 2002 and brought in sweeping changes into the area of financial disclosure and corporate governance (Sarbanes-Oxley Act, 2006: Online). The Enhanced Standards Required by Sarbanes-Oxley Act The Sarbanes-Oxley Act not only established new standards of financial accounting and corporate governance but also made provisions f or the apt statutory penalties to be imposed in case of any wrongdoing not allowed for and sanctioned by this act. The Act made the corporate accounting system more transparent and responsible by formalizing and assuring the interaction between corporate auditors and corporate boards and executives . This totally obliterated the possibility of an excuse on the part of top executives in corporations regarding being unaware of the organizational accounting systems and the accompanying disclosures made by the auditors. To put it simply, the Sarbanes-Oxley Act made the top executives like CEOs and CFOs directly responsible for corporate accounting and subsequently culpable in case of any wrongdoing or misreporting in the organization’s financial reporting (US Securities and Exchange Commission 2010: Online). This act clearly specifies the responsibilities associated with the organizational financial accounting. Sarbanes-Oxley Act has also introduced a mechanism of internal contro ls and monitoring to assure the credibility of financial reporting (US Securities and Exchange Commission, 2010: Online). According to this act, the companies are required to tag an internal control report with every financial report (US Securities and Exchange Commission, 2010: Online). The yearly financial reports are also required to report on the reliability and effectiveness of the internal controls (US Securities and Exchange Commission, 2010: Online). Further, the concerned auditing firms are required to stand behind these reports (US Securities and Exchange Commission, 2010: Online). This places the onus on the auditing firms to review the associated procedures, controls and policies, besides conducting the regular financial audit (US Securities and Exchange Commission, 2010: Online). In case a company fails to abide by any requirement or section of the Sarbanes-Oxley Act, the act allows for a range of penalties for the culprit organization and executives, which include fine s amounting to

Sexual Harassment Essay Example | Topics and Well Written Essays - 750 words

Sexual Harassment - Essay Example In Vinson verses Meritor Savings Bank, 477 United States 57 in 1986: the United States Supreme Court acknowledged harassment lawsuits against firms for encouraging a sexually aggressive work setting. In 2006, United States’ Head of the state then, George W. Bush endorsed a law that banned the spread of irritating messages on the Internet (also known as spamming) with no discloser of the transmitter's identity. Harassment is unwelcome behavior that is centered on religion race, sex (including pregnancy), citizen origin, color, age (41 or older), and disability. Harassment becomes illegal where 1) stomaching the offensive behavior becomes a situation of sustained employment, or 2) the behavior is severe and persistent enough to make a work setting that a sensible person would ponder intimidating, hostile, and abusive. Anti-discrimination directives also forbid harassment against persons in retribution for filing a prejudice charge, attesting, or playing a part in any manner duri ng an investigation, lawsuit, or proceeding under these directives; or opposing occupation drills that they rationally believe victimize against persons, in defilement of these laws (Walsh 76).Annoyances, petty slights, and unrepeated incidents (unless very serious) will not amount to the point of criminality. To be illegal, the conduct has to create an employment setting which would be hostile, intimidating, or unpleasant to rational people (Walsh 78). Aggressive conduct may comprise, yet not restricted to, slurs, offensive jokes, epithets and name-calling, physical attacks and threats, bullying, ridicule and mockery, invectives and put-downs, invasive objects and pictures, in addition to meddling with work execution. Harassment can transpire in a range of situations, comprising, but not restricted to, the following: The harasser could be the victim's overseer, a boss in another area, a negotiator of the proprietor, a colleague, or even a non-worker. The victim does not need to be the individual harassed, however, can be anybody affected by the unpleasant conduct. Illegal harassment may arise with no economic damage to, or acquittal of, the victim (Walsh 78). Avoidance is the effective tool to eradicate harassment within the place of work. Employers are urged to take suitable steps to avert and correct illegal harassment. They ought to communicate to workers that undesirable harassing behavior will not be stomached. They can achieve this by forming an effective grievance process, offering anti-harassment coaching to their employees and managers, and taking instant and suitable action once a worker protests. Employers should endeavor to form a setting in which workers feel open to raise trepidations and are self-assured that those apprehensions will be tackled. Employees are urged to notify the harasser openly that the demeanor is undesirable and has to stop. Employees must also convey harassment to administration at a primary stage to inhibit its escalation ( Friedman 40). The company is inevitably accountable for harassment through an overseer whose harassment ensues in an undesirable employment deed such as dissolution, failure to hire and promote, in addition to loss of salaries. If the overseer's harassment ensues in an aggressive work setting, the manager can avoid legal responsibility only

Eassy Essay Example | Topics and Well Written Essays - 1000 words - 1

Eassy - Essay Example No wonder, the writer compared it to today’s terrorism rather than calling it a war. Since Warfare differs from terrorism in that the violent actions in the former are aimed at the combatants on each side and public generally is made aware that a war has erupted. Terrorist acts target innocent people deliberately. In warfare, innocents are not the primary targets. But this definition of war does not apply to Hiroshima bombing. Berger further proves his point as: â€Å"The two bombs dropped on Japan were terrorist actions. The calculation was terrorist. The discriminacy was terrorist. The small groups of terrorists operating today are, by comparison, humane killers" (273). The writer supports his comment by saying that terrorists also attack unaware common people at the railway station, in the market or people going home after the work. The war and terrorism are the evils and it is first duty of human kind to fight against evils and preserve life. This concept of ‘evil’, however, has been abandoned and it remains just an adjective today. The writer also discloses that today’s terrorists are from small nation who have dispute over large powers while Hiroshima atom bomb attack was made on a nation that had conceded defeat and was ready for negotiations (273). â€Å"While doctor and nurses at hospitals across the city tended to hundreds of damaged people, a disquieting sense grew throughout the day at other triage centers and emergency rooms that there, would, actually be less work: the morgues were going to be busiest.† (418) In the normal life, even a distant thought of a loved one’s death creates fear and we scold ourselves for such a thing, but seeing the gory dance of death and losing precious lives due to such outrageous and mindless violent act is unbelievable to most of us. A war without principles and terrorism are both extremely cowardly deeds. He continues: â€Å"But the real carnage was concealed for now by the twisted, smoking,

Cartel Behavior and Amateurism in College Sports Essay

Cartel Behavior and Amateurism in College Sports - Essay Example Surprisingly, those working hard to produce the rents are African-American athletes while the whites come out as the beneficiaries. This discourse takes an in-depth critique of Lawrence Kahn’s article and in the process evaluates facts that he outlines. The paper also separates facts from fictitious information in the article. Critique Lawrence Kahn explains that African-American athletes produce the rents benefited by white Americans. He mentions that the African-American sportspersons spent their rent on facilities, head coaches salaries, and nonrevenue sports. The football programs earn revenue from accounting profits. This also happens in the field of basketball. Evaluation of the role of NCAA appears at two levels. One extreme end is people who believe that efforts by NCAA to restrict payments to sportspeople enhance the value of sports by upholding amateurism. The other group holds that NCAA is a cartel that restricts compensation to sportsmen and women. Since its incept ion, the NCAA has been controlling the capacity for its members to access televised games. This started in 1984. This is a typical characteristic of a cartel where it prevents members from accessing and doing business with other competing firms in the industry. This is to avoid a share of the rents produced by sportsmen and women. The cartel wants to enjoy all the money. This is the reason that informed the formation of College Football Association (CFA). The behavior of NCAA towards is enough proof that it is a cartel. Cartels thrive on threats and sanctions. The NCAA threatened to expel any school and higher institution of learning that would sign a different contract following CFA’s readiness to negotiate a different and parallel contract with NBC. Threats by NCAA amounted to schools under CFA loosing on the revenue from the basketball tournament. This is total tyranny. In the modern liberal market, business associations and companies cannot thrive on threats and financial embargos. Finally, the NCAA succeeded in enjoying all the revenues generated from football television rents. The change in broadcasting rights appeared for the first time in college sports following a successful court petition by the University of Oklahoma and the University of Georgia. Cases in the judiciary point to the fact that indeed the NCAA is a cartel. Courts proved in 1995 that it was engaged in backroom dirty tricks to limit salaries for assistant coaches. An association existing for the welfare of members such as NCAA needs to engage making lives for their members. However, NCAA does the reverse. It is very difficult to comprehend what good is in limiting a pay for members and proudly claim to be generating a fair playground for your members. Lawrence Kahn cannot purport to justify the role of NCAA to limit compensation as efforts towards enhancing sports by maintaining amateurism. Kahn explains the value of amateurism by stating the large of members in NCAA makes it dif ficult for it to put ceilings on earnings of sportsmen and women. He holds that a possibility of NCAA failing to prevent a competitive market among players due to the high number of members is farfetched. This point by Lawrence Khan does not hold water. NCAA is cartel and members of such an association have to operate within the rules. Therefore, the rules apply to all irrespective of the size of membership.

Recession Essay Example | Topics and Well Written Essays - 1500 words

Recession - Essay Example The beginning and impacts of the 2008 recession in individual countries today remains a constant reminder of the policies and measures the governments and financial analysts in the financial institutions ought to address as priorities. Most economists and analysts tend to emphasis on the start and spread of the recession in 2008. While its spread is quite clear in the western countries during and after 2008, there is no doubt it began in the United States towards the end of 2007. The National Bureau of Economic Research (NBER) recognizes the global recession to have started in December 2007 in the US economy, when it was identified with the sliding of the labour market especially in the last quarter of the year (Borbely, 2009). However, it was only a hit for the national economy of the US until it spread to other linked economies in 2008. The cause of the recession is linked to the economic cyclic performance of the housing market in USA, which later affected the economic performances of other industries. The United Stated had been experiencing a steady economic growth, with a healthy labour market and a rapid growth in the housing market after 2001. In the housing sector, home prices increased and more construction took place, contributing to increased employment, mortgage financing and growth in real estates and generated a positive wealth effect that triggered higher spending vital for the overall economic growth (Goodman and Mance, 2011). All the housing price inflations in the USA tended to follow a particular pattern after WWWII. The 2001-2006 case was no exception, as it was a period marked with loose monetary policy. Two years prior to the 2007 recession, the US economy experienced expansion in credit and money supply. This fuelled excessive borrowing at low interest rates to finance housing purchases; this in turn increased aggregate demand for household products and other consumption (stlouisfed.org, 2010).