Examine the causes of failure based on one of given books

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Examine the causes of failure based on one of the following books. The paper is 8 to 10 pages, in good form, and focuses on aspects of asymmetric information and corporate performance.

R. Lowenstein, When Genius Failed (Long Term Capital Mgt failure)
W.D. Cohan, House of Cards (Wretched excess and Bear Stearns)
B. McLean, Smartest Guys in the Room (Rise and fall of Enron)
L. G. McDonald, Colossal Failure of Common Sense (Lehman Brothers collapse)
K. Grind, Lost Bank (Washington Mutual, biggest bank failure)
H. Markopolos No One Would Listen (Bernie Madoff)
G. Farrell, Crash of the Titans (Greed, hubris, Merrill Lynch, Bank of America)

Paper content

The focus is to determine the cause or causes of failure. Since no companies are formed with the objective of failing, the effects of asymmetric information will be fundamental. The paper should cover the following topics:

1. Brief company history; its development and importance; major products and markets; performance indicators; profitability and sales.

2. Factors causing failure: business cycle, major defaults, poor management; excessive risk; review the FDIC CAMELS regulatory criteria for ideas and applications; you views.

3. Could the failure have been avoided? provide details; speculate

4. Any lessons for the future or other companies?

The paper should be 8 to 10 pages; in good form; double spaced typed; 1 inch margins all around. Avoid quotes, especially long ones. Do not repeat the book nor cite page numbers. The paper should demonstrate reflection, thought and application of Money & Banking knowledge recently acquired; indicate what you have learned and the effects of asymmetric information where relevant. The paper is due the day of the final.

Reference no: EM131298201

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