General Electric CEO John Flannery is considering breaking up the company, via spinoffs or otherwise, in light of more than $11 billion in charges related to an insurance portfolio and the new tax law. Cowen analysts say GE's separate businesses are worth at most $15 per share, which could make a breakup financially unfeasible.
Plans to double the supply of US government bonds may cause demand to be exceeded and prompt adverse effects, such as wider credit spreads and falls in the dollar and stock market, warns Deutsche Bank economist Torsten Slok. Other market watchers do not share this view, pointing instead to numerous bullish indicators, including significant retail appetite for bonds.
Financial statements prepared in accordance with an AICPA financial-reporting framework give lenders nearly as much confidence to loan capital as generally accepted accounting principle-based financial statements for small and midsize businesses with low credit risk, a published study shows. An updated toolkit of resources, located at aicpa.org/frf-smes, helps stakeholders implement the framework.
The Tax Court has held for the taxpayer in upholding an ordinary-loss deduction for a business bad debt, finding the taxpayer was involved in the business of lending money in the year at issue, the loans were bona fide debt and the debt was worthless in the year the taxpayer claimed the loss.
Establishing shared norms can help members of an executive team work together productively. Choose norms that make sense based on previous experience, and convert norms into measurable behavior to ensure everyone is on the same page.
The European Court of Auditors says that the European Central Bank's framework for managing banks in crisis has flaws and that "there are some signs of inefficient implementation." The procedure used to identify banking trouble early on contains deficiency, auditors say.
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