StudentShare solutions
Triangle menu

Mergers and Acquisition in Banking - Book Report/Review Example

Nobody downloaded yet

Extract of sample
Mergers and Acquisition in Banking

The recent financial crisis brought tsunami to banking industry globally resulting in the bankruptcy being filed by those who were considered as the leaders and looked upon by the world to make and formulate new banking strategies. The financial crisis also brought down the number of merger and acquisitions drastically from 15400 deals in 2007 to 9700 deals in the year 2009 amounting to approximately US $1800. Through review of various literatures, it has been found that merger and acquisitions has negative effect on deposit rates, net income rates, employment sector, top executives leaving their positions, economy, rate of growth, etc.
The recent financial crisis had tremendous effects on all forms of economies. Sunanda Sen (2008) states that current turmoil in the global financial market and its origin from the US financial markets from where it has spread to the whole world, has made it imperative to question the relevance and validity of the neo-liberal theory and policies relating to financial sector. The crisis which is also known as credit crisis and mortgage crisis was the result of deregulation and weak policies in the banking system. The impact of the economic crisis was such that international forum for discussions on the crisis had transformed from Group of Seven (G-7) to the Group of Twenty (G20) which included emerging market countries. (Dunaway, S. 2009) According to ILO Report (2009), the key contributor to the financial meltdown was the widespread use of leverage by financial institutions to pump up profits during the real estate boom. The leverage was considered to safe in rising markets and extremely profitable for the financial institutions as long as there were no problems underlying the MBS portfolios which started experiencing increasing delinquencies and foreclosures from early 2007. This resulted in decline of their values and prompted the banks that had leveraged earlier to ask their money back which gave rise to increasing losses, bankruptcy and were forced to merge with other institutions to survive. The financial crisis led to bankruptcy of those companies who were considered as market leaders in the industry like Lehmann Brothers, AIG, Merrill Lynch and also General Motors. Lamanda, C (2009) states that crisis has gripped the financial markets for two years exposing the inadequacy of the current regulatory and supervisory framework to deal with complex issues forcing many companies to merge with other companies in order to avoid bankruptcy whereas some companies that could not withhold the burden were taken over by the companies looking to enter in the market and expansion. Mody and Negishi (2000) stated that M&A activity is a market for corporate control which is motivated by private as well as regulatory incentives. Private incentives include imperfection and asymmetries in domestic products and capital markets, competitive environment of the market and differences in the tax system whereas regulatory incentives incluce variations in corporate governance and policy frameworks, towards foreign investment and ownership. The M&A's are further classified into two where the first type is mainly motivated by the past problems and ...Show more

Summary

The present study is a review of literature related to merger and acquisition taken place during the recent financial crisis and its role or impact on various factors and stakeholders related to it. The secondary data has been collected from books, journals and online articles for the purpose of analytical review to present the scenario in detail and scientific manner…
Author : ernserlilly
Mergers and Acquisition in Banking essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the book report/review on your topic
"Mergers and Acquisition in Banking"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

Money and banking
In addition to administrative and statutory regulatory provisions, the banking industry has been subject to pervasive “informal” regulation. The major argument against government’s involvement in this industry has been that the government interrupts private industries.
6 pages (1500 words) Book Report/Review
Second Language Acquisition Book Report/Review
The various arguments put forth by them and the factors affecting second language acquisition are discussed in the following paper. Walqui (2000) in her article on learning a second language emphasizes on "contextual factors - individual, social and societal - that effect students' learning" with a particular focus on adolescent learners of English as a second language.
2 pages (500 words) Book Report/Review
Banking Education
This form of narrative or banking education then becomes a system of oppression wherein the teacher holds all authority, and the student is the oppressed being that is considered to be iliterate and ignorant who need to ba taught, managed, and molded. This strips the students of their creative power.
5 pages (1250 words) Book Report/Review
Internet Banking Book Report/Review
We define and use seven complementary types of affordances in the context of interaction design and affordance: cognitive, functional, perceived, physical, reactive, directive and sensory affordances. The first 3 terms are Norman's perceived affordances and the next 3 terms are Norman's real affordances which refer to parallel and equally important usability concepts for interaction web design, to which sensory affordance plays a supporting role.
12 pages (3000 words) Book Report/Review
Mergers and Acquisitions in the Automotive Industry
The more important objectives of the Review of Literature are to find precedents that may be applied to the subject under discussion; to find theoretical precepts that coherently and satisfactorily analyse the subject that may be applied to the two organisations undertaking the merger process, formulating conclusions and suggest recommendations to make the processes work effectively.
18 pages (4500 words) Book Report/Review
Age and the Acquisition of English as a Foreign Language. Editied by Maria del Pilar Garcia Mayo and Maria Luisa Garcia Lecumberri, 2003
This has facilitated researchers and educationists to focus on the ‘age factor’ and analyze its significance and relevance in terms of acquiring foreign / second language skills. The book “Age and Acquisition of English as
14 pages (3500 words) Book Report/Review
Report
them to become more participative in the society where they work and as such the consumers tend to respond to such firms for their better management of the various corporate governance and environmental friendly practices. Making investments into firms which tend to adapt such
12 pages (3000 words) Book Report/Review
THE RISE OF BIG BUSINESS: TRUSTS, MERGERS, AND OLIGOPOLIES
s led to sophisticated methods of administration, and the target market of the produced goods and services were national and the international market. The importance of the article is further seen by the detailed discussion on the different views by analysts on whether it can be
1 pages (250 words) Book Report/Review
Money&Banking
article was officially published on March 19, 2015 and provides more insight into various issues of concerning Treasury Yield Curve Rates, investors and banks perceptions. The Wall Street Journal is published in the wake of (The Federal Reserve chairwoman) Janet Yellen’s
3 pages (750 words) Book Report/Review
Money&Banking
Alan S. Binder, who is an esteemed Princeton professor, also a Wall Street Journal Columnist, and having served as the vice chairman of the Federal Reserve Board under the Alan Greenspan, remains to be one of the widest and also the most
3 pages (750 words) Book Report/Review
Hire a pro to write
a paper under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT
Comments (0)
Click to create a comment
Contact Us