Financial Crises in the United States Essay Example | Topics and Well Written Essays - 3500 words

Financial Crises in the United States - Essay Example These events have also led to major banks of the US creating an emergency package to rescue any ailing financial institution which is in need of assistance. The Federal government has also moved in to ensure that it has a bailout package to rescue financial institutions. The New York Times article expresses concern about the greater repercussions of these events. It worries that it would increase the unemployment rate (Sorkin, 2008). It also is concerned about the thousands of employees working at Merrill and Lehman Brothers. The precarious condition of these companies was because of their inadequate investments in real estate during an economic boom. These investments were not secure which weakened the financial conditions of both companies. Most banks did not want to purchase Lehman Brothers because of the essential risks associated with it. The article also expresses concern about the financial health of AIG (Sorkin, 2008). It can be concluded that these events have sent shockwave s throughout the American financial system. In this article, it is learned that the Federal Reserve has not reduced interest rates which has been demanded by Wall Street and financial institutions. But despite this, the Federal Reserve states in the article that it would closely monitor and observe the crisis. It has been investigating and analyzing the financial crisis which has slowed down economic growth in the United States of America (Reddy, 2008). Other major actions have included lending government support for troubled financial institutions. The main focus of the article is about whether further reducing the interest rates will have any impact on the economy or not. One school of thought believes that lowering the interest rates further would be risky and devastating for the US economy. Others blame the Federal Reserve for keeping low interest rates since 2001 (Reddy, 2008). They blame this for

Financial Information for CRODA International Plc Essay

Financial Information for CRODA International Plc - Essay Example Industrial specialties- which includes base chemicals, home care, polymers and coatings, additives for polymers, lubricant additives, lubricants and processed vegetable oils. (www. investing.businessweek.com). Consumer care division which includes international business in health care, personal care, and crop care – engaged in all markets throughout the world with a thumbing need for sustainable ingredients and innovations. Further, Croda has an enterprise technology division (R&D) which recognizes and assimilates new technology into Croda’s international business set up. (www.croda.com). Croda was able to post pre-tax profits of 10.5% during the year 2008 in spite of the serious international economic recession. However, due to stable focus on new markets, product innovation and recession mingled with the instant reduction in cost have facilitated Croda to accomplish one more year of pre-tax revenue growth in spite of the worst scenario in the international economy. (Chairman speech, AR 2009). The salient feature of the business model of Croda is the capacity to offer a variety of products to a variety of customers all over the globe. Croda’s persistent focus on originality in specialties has offered them the capacity to derive the true value for their products. (CEO Speech AR 2009). Croda is in a true sense a really global company as it is having only just 7% sales in the homeland of U.K. All of its subsidiary company around the world has targeted sales, operating margin, profit growth targets that form fundamental to their strategic plans and budgets. Croda’s report their progress annually against five major financial performance parameters. According to Croda’s annual report 2009, Croda International Plc has prepared its financial reports as demanded by the Companies Act, 2006 of U.K and as provided by the U.K accounting.