Assignment
Choose a company that has experienced negative press recently about its financial dealings.
Provide a financial summary of your selected company’s financial health, including a timeline of possible financial gains and losses.
Define 2 financial concepts and how they played a major part in the company’s negative financial press and possible downfall.
Discuss the following:
Based on your research of your company’s financial health, can the company recover?
What are two key ways you think the company can become financially strong again?
How would you like us to help you with this assignment?
The company I choose that has experienced negative press recently about its financial dealings; is Deutsche Bank A.G. home office is located in Germany; The Deutsche Bank opened its first branch in NY in 1979 and was the first German bank to list on the NYSE (in October 2001). Deutsche Bank is the only investment bank physically located on Wall Street and one of the largest foreign-based employers in New York City. In the United States, it has over 11,000 employees in 28 states and 90 cities.
In 2011 the United States prosecutors filed a civil suit against Deutsche Bank, alleging mortgage fraud, saying it repeatedly lied to the government and used shoddy lending standards that cost taxpayers hundreds of millions of dollars. In my opinion it’s too little too late; the gov't is leading from behind (their own it appears) as they try to get ahead of the next financial crisis that has already initiated. This suing of banks should have been done years ago! So when this new crisis is fully manifested they will have nothing to show that they're serious about reigning in the barons who robbed us in the first place; “Just my opinion, Good luck fellow Americans”.
Needless to say the Deutsche Bank A.G., received the same slap on the back of the hand as; Morgan Stanley, Merrill Lynch, Goldman Sachs, Bank of America, Wachovia/Wells Fargo, Citibank, Smith Barney, Lehman Bro’s etc., - They are all complicit in this mess. All made untold billions leading up to the mortgage debacle and then received billions more in TARP bailouts as a bonus for contributing to the financial collapse. In addition, all of their bad bets were forgiven and are still benefitting from huge tax breaks. Although, the Germany based company took a hit the recorders show that the parent company barely felt it, and if that isn’t enough punishment according to; (Reuters) - Private equity company Carlyle Group CYL.UL, which filed for an IPO last September, has added banks including, Barclays Plc, Morgan Stanley, and Deutsche Bank AG to help with the sale, Bloomberg said, citing people familiar with the matter. Bank of America Corp and UBS AG would also work on the offering; Bloomberg quoted the unidentified sources as saying. Carlyle Group has filed for an initial public offering with the U.S. Securities and Exchange Commission to raise up to $100 million, with JPMorgan, Citigroup and Credit Suisse as its underwriters. (Reuters, 2012)
Based on my research of Deutsche Bank A.G.’s; financial health, I would say there is no drought that they can recover. The question is can the people that lost everything recover.
To complete this assignment, follow these steps:
1. Select a company that has experienced negative press about its financial dealings. Examples include Enron, WorldCom, or Volkswagen (due to the Dieselgate scandal). Ensure that there is enough information available to conduct a financial analysis.
2. Gather financial information about the company. This can include financial statements such as balance sheets, income statements, and cash flow statements. You can find this information in the company's annual reports, SEC filings, or financial news outlets.
3. Prepare a financial summary of the company's financial health. Analyze the company's financial statements to assess its profitability, liquidity, solvency, and efficiency. Look for trends and indicators of financial performance over a period of time. Note any significant gains or losses the company may have experienced.
4. Create a timeline of the company's possible financial gains and losses. Identify significant events or decisions that contributed to the company's negative financial press. This could include incidents of fraud, mismanagement, unethical practices, or regulatory violations. Include any legal actions or settlements that negatively impacted the company's financial stability.
5. Define two financial concepts that played a major part in the company's negative financial press and possible downfall. These concepts could be related to accounting principles, financial ratios, or business practices. Examples include revenue recognition, corporate governance, debt leverage, or market manipulation. Explain how these concepts were misapplied, resulting in negative consequences for the company.
6. Evaluate whether the company can recover based on your research of its financial health. Consider factors such as the severity of the negative press, the company's available resources, management's response, and market conditions. Support your assessment with evidence from your financial analysis.
7. Propose two key ways the company can become financially strong again. Identify strategies or actions that the company can implement to improve its financial position. These could include cost-cutting measures, diversification, restructuring, improving corporate governance, restoring stakeholder trust, or strengthening internal controls. Explain how these actions can address the issues that led to the company's downfall and contribute to financial recovery.
Remember to provide evidence and supporting arguments for each point you make to substantiate your analysis and recommendations. Cite your sources appropriately using a consistent citation format, such as APA or MLA, to adhere to academic integrity guidelines.