Retrenchment Strategy Essay Example for Free

Retrenchment Strategy Essay Since the beginning of the US financial crisis in 2007, regulators in the United States and Europe have been frustrated by the difficulty in identifying the risk exposures at the largest and most levered financial institutions. Yet, at the time, it was unclear how such data might have been used to make the financial system safer. This paper is an attempt to show simple ways in which this information can be used to understand how deleveraging scenarios could play out. To do so the authors develop and test a model to analyze financial sector stability under different configurations of leverage and risk exposure across banks. They then apply the model to the largest financial institutions in Europe, focusing on banks exposure to sovereign bonds and using the model to evaluate a number of policy proposals to reduce systemic risk. When analyzing the European banks in 2011, they show how a policy of targeted equity injections, if distributed appropriately across the most systemic banks, can significantly reduce systemic risk. The approach in this paper fits into, and contributes to, a growing literature on systemic risk. Key concepts include: * This model can simulate the outcome of various policies to reduce fire sale spillovers in the midst of a crisis. * Size caps, or forced mergers among the most exposed banks, do not reduce systemic risk very much. * However, modest equity injections, if distributed appropriately between the most systemic banks, can cut the vulnerability of the banking sector to deleveraging by more than half. * The model can be adapted to monitor vulnerability on a dynamic basis using factor exposures. About Faculty in this Article: Robin Greenwood is a Professor in the Finance unit at Harvard Business School. * Author Abstract When a bank experiences a negative shock to its equity, one way to return to target leverage is to sell assets. If asset sales occur at depressed prices, then one banks sales may impact other banks with common exposures, resulting in contagion. We propose a simple framework that accounts for how this effect adds up across the banking sector. Our framework explains how the distribution of bank leverage and risk exposures contributes to a form of systemic risk. We compute bank exposures to system-wide deleveraging, as well as the spillover of a single banks deleveraging onto other banks. We show how our model can be used to evaluate a variety of crisis interventions, such as mergers of good and bad banks and equity injections. We apply the framework to European banks vulnerable to sovereign risk in 2010 and 2011.

Evolution -Them-to Us Essay -- essays research papers

Evolution The origins of mankind is an extremely controversial issue within today’s society. Scientists have a host of different theories pertaining to man’s inhabitance of earth. Many disagreements arise between scientists who have different beliefs pertaining to where and how mankind arose. One such argument is the conflict involving the theory of evolution versus the theory of creation. After extensive scientific research, it is apparent that the theory of evolution is correct. Evolution is the theory that life arose by natural processes at an early stage of the earth’s history and that complex organisms developed from simpler organisms by a process of slow change. It is the idea that new species rise from older species after thousands of years of gradual chemical, environmental, and genetic change. Evolution can be described as the complex processes by which living organisms originated on earth and have been diversified and modified through sustained changes in form an d function â€Å"Evolution†. Scientists, looking for an explanation to the origin of man and other organisms created this evolutionism theory, which also presented answers to the many asked questions dealing with similarities between species. Unlike the theory of creation, which states that the complexity of life and different species can only be explained in terms of a supernatural creator or god who placed life on earth, the theory of evolution has a plethora of evidence proving it to be true â€Å"Creation†. There are several different types of observations that support the theory of organic evolution as an explanation for the similarities and the differences among species. One such observation is in the geologic record. The geologic record is the rock scheme found within the earth’s outer crust. By means of radioactive dating, the ages of rocks in many places on earth have been determined. It is a timetable of the earth’s geologic history. This combin ed with the fossil record, another observation supporting the evolutionary hypothesis, has produced an apparent sequence of life forms from most simple to most complex during the history of the planet. Fossils are any remains or traces of a once-living organism, which are formed by preservation, petrifaction, or sedimentation. Organisms can be preserved and protected against decay by being trapped in amber, tar, or frozen in ice. The hard parts of ... ... the world could have been created in six days. Even though Scopes was found guilty of contradicting creationism and the Bible’s teachings, the persuasion of the defense’s case brought up the major question of evolution versus creation. In 1996, the issue was revisited and now teachers have the right to teach both theories. The Attorney General said the constitutional separation of church and state would be violated if both theories were not acceptable. This trial was a major step for those who believed in evolution. The outcome eventually allowed for people to open their eyes and accept new ideas. The theory of evolution proved to be true â€Å"Monkey†. The controversy over whether evolution or creation is the correct answer to human origins is a major topic of discussion and argument in today’s society. People are entitled to their beliefs, but a great deal of evidence and supporting information has confirmed the theory of evolution to be factual and accurate. By combining all of this information along with comparisons between man and ape and the discoveries of humanlike fossils, the truth is apparent. The theory of evolution in my opinion is correct.   Ã‚  Ã‚  Ã‚  Ã‚  

Morality of Drug Use

  In his book entitled â€Å"Thinking Critically About Ethical Issues,† Vincent Ryan Ruggiero formulated a criteria consisting of three elements, which criteria relates to respect for persons as a theoretical construct and a practical ethical standard for everyday decision making (Ruggiero, 78). These three criteria are obligations, moral ideals and consequences, which are all applicable to the determination of proper conduct in relation to drug use (Ruggiero, 79).Moral Ideals.Ruggiero explained his concept of moral ideals as distinct from obligations. For him, ideals are goals that characterize excellence, which goals are aimed at by different individuals (Ruggiero, 78). In particular, and in relation to respect for persons, he discussed that moral ideals assist a person in achieving respect for persons (Ruggiero, 80).He also explicated that moral ideals could be composed of various categories, such as the â€Å"cardinal virtues† of old and the theological virtues of religious thinkers. He likewise posited that moral ideals could vary from person to person, or from culture to culture (Ruggiero, 81). This is an important proposition, because the differences in moral ideals determine the differences in treatment given by each person on varying actions. Thus, one person could regard a moral ideal as more than just that, for example as an obligation that requires compliance.Applying this concept to the ethical issue of drug use, it would be concluded that the perspective could be viewed from a number of different perspectives, which also have varying moral ideals. This means that drug use could be viewed positively or negatively by different cultures or population, depending on their respective moral ideals.For example, a population of medical practitioners such as doctors would hold on to the ideal that drug use is necessary in certain cases, such as in situations of a disease or illness that could only be cured by the administration of particular drugs. On the other hand, a population consisting of the religious whose faith dictates the avoidance of drugs would hold on to the exact opposite moral ideal. Thus, an ethical decision hinges on the moral ideals to which the population concerned adhere, because such moral ideals determine the kind of ethical decision that would probably be made in any given situation.Obligations.Ruggiero also discussed the notion of obligations as a criterion for determining respect for persons. His concept of obligations refers to the element of compulsion into doing a certain act, as determined by the situation involved or the relationship between or among parties (Ruggiero, 80). He likewise explained that different kinds of situations and interpersonal relations dictate the kind of obligations that are imposed on a person.Viewing drug use in the light of Ruggiero’s concept of obligations, drug use could be ethically justified by formulating a situation such that the administration or pre scription of medicinal drugs and the corresponding use is seen as an obligation on the part of the doctor and the patient to maintain the latter’s good health and long life.Consequences.Finally, Ruggiero discussed the concept of consequences, which refer to the effects of an action on a person (Ruggiero, 81).   He states that the effects could be classified into beneficial or harmful effects, or grouped according to kind, such as whether they are physical or emotional (Ruggiero, 81).The most important aspect of Ruggiero’s discussion of the topic is his position that the benefit or harm caused by a specific act is determined by the impact of such an act on all persons involved, including the actor (Ruggiero, 81).This criterion is relevant in the issue of drug use, because ultimately, any ethical decision on this matter hinges on its effects on the user. Therefore, drug use could be ethically justified if it is shown that there are health benefits that could favor the user or his community. On the other hand, proof that drug use only leads to individual or collective harm would tilt the favor against drug use.In sum, Ruggiero’s three criteria are relevant in any discussion of the morality of drug use. These criteria provide practical knowledge with regard to the things that one should be looking at, prior to making an ethical decision.Works CitedRuggiero, Vincent Ryan. Thinking Critically About Ethical Issues. 6th ed.

Environmental Impacts on UNICEF - 1581 Words

Environmental impacts on UNICEF UNICEF is considered as an organization associated with g children and works for the protection, children development and protection in the world. It works in more than 155 countries and to improve vital elements such as, emergency relief, education HIV treatment, nutrition, immunization, and clean water and health systems. The main objective of UNICEF is to work together with communities to enhance children well being. It is a voluntary agency, which depends on well wishers contributions, governments donations, governments, private donors and corporations. Environmental impacts on UNICEF The poor people are excessively affected by ecological degradation and shortage of clean, cheap, energy services. UNICEF assist countries to strengthen their ability to address the challenges faced at the grassroots and national levels. The initiatives helps in sharing, evaluating best practices, which offer innovative policy and advice in linking partners by making use of pilot projects. Climate change seems to be a vital issue when dealing with environmental challenges. UNICEF as an organization has been tasked with the responsibility of coming up with mechanisms to deal with the environmental degradation (Black 1996). The evidence of climatic effects is on the increase with predictions of large scale impacts in the community around the world. 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This is significant because children representRead MoreThe People And Planet Positive Strategy For 20201318 Words   |  6 PagesParticularly, IKEA aims to reach the following environmental targets by 2020: †¢ sourcing 100% of our wood, paper and cardboard from more sustainable sources †¢ providing 90% of IKEA home furnishing products with documented environmental improvements, covering both resource use and product functionality according to our sustainability product scorecard. †¢ producing as much renewable energy as IKEA consume in its operations. †¢ evaluating the environmental impact of its products by using a tool - the e-WheelRead MorePreventing the Desertification of the Aral Sea Region Essay1563 Words   |  7 Pagesextensively academically regarding the situation in the Aral Sea, stated that the Soviet government attempted to make the entire region a â€Å"large-scale independent cotton producer† ultimately led to the Aral Sea to become a catastrophic experiment in environmental responsibility (Morris 1990). This production of cotton, which is seen as an economic product for many countries worldwide, would utilize a very harsh form of irrigation, which drew large amounts of water from the Aral Sea. To achieve theirRead MoreWhat Factors Influence the Individual Person and Businesses to Donate to Charities?1303 Words   |  6 Pagescharities that support people with disabilities as well as children and adults improving themselves. Again this group does not focus on international, or overseas work are not as popular with Outer-Directed people. They are also not as focused on environmental matters. Inner-Directed people give to totally different causes to the other two, Inner-Directed people are focused on the world as a whole. Meaning they support international charities, as they are interested in preserving the culture and heritage