Some Chinese state-owned entities, backed by the key government agency that oversees major state industrial companies, have adopted a controversial defense when they face U.S. lawsuits – we enjoy sovereign immunity. Questions: 1. The article says that this policy is an indication of something much deeper. What is that? 2. The article mentioned Chinese audit… Read more »
Posts Categorized: IFRS
I’ll have a Double Irish, Dutch Sandwich to go please
In a remarkable tax maneuver, Google moved 10.7 billion euros (or $12 billion) through the Netherlands to Bermuda in 2014. As a result of this structuring, Google will earn most of its foreign income tax-free. Questions: 1. What is this tax strategy called and why? Why Bermuda? 2. Why has corporate tax avoidance risen to… Read more »
Chinese Exodus of Capital
With the Chinese economy tanking, more and more wealthy families are trying to move large sums of money out of the country. As Mr. Bradsher notes in this article, “some methods are perfectly legal, like investing in real estate elsewhere, buying businesses overseas and paying off debts owed in dollars. Others, like Smurfing, are more… Read more »
Enormous Chinese Ponzi Scheme!
A criminal investigation by Chinese officials has found that the online company, Ezubao, once a dynamo of the financial industry, offered mostly fake investment products to its nearly one million investors. This has highlighted the urgent need for tougher supervision of online financing system in the world’s second largest economy. Questions: 1. What interest rate… Read more »
Lack Luster Gold
According to Ms. Pattanaik, GOLD is not the safe haven that it once was. In fact, she concludes that gold may only come back as a safe haven if the markets face even grimmer news than that of recent times. Questions: 1. According to the author, what are the reasons why investor panic is not… Read more »
The New Surge in Corporate Migrants: Is there an End?
The federal government gave Johnson Controls a bailout in 2008 to avoid certain bankruptcy, along with its customers, the large automakers – General Motors and Chrysler. This week, Johnson Controls renounced its United States corporate citizenship by selling itself to Tyco International, based in Ireland. This deal was struck, in large part, to reduce an… Read more »
Release Cards: Another High Interest Problem?
As this article points out, unlike consumer debit cards, prison-issued cards are unregulated and subject to exorbitant fees. Questions: 1. What are the typical charges for these cards? 2. For the person that had $120 and was able to use only $70, calculate the percentage of fees. 3. Who is making the money on these… Read more »
Litigation Finance
This article discusses the trend of litigation finance, where individuals and companies are turning to private companies to front the money for legal costs in expensive litigation. Despite having in-house counsel, even larger companies are selling off pieces of lawsuits to improve cash flow and reduce risk. Questions: 1. Between 2013 and 2014, how much… Read more »
To PIN or not to PIN?
Some big U.S. retailers are stepping up efforts to use personal identification numbers, or PINs, with new credit cards embedded with computer chips in a bid to prevent counterfeit card fraud. Questions: 1. Why is this being resisted by banks? 2. Which retailers are leading the movement? 3. Discuss the costs and benefits of the… Read more »
China Woes
This will be a make-or-break week for the Chinese stock market, after officials rolled out an unprecedented series of steps this weekend to prevent a stock market crash that would hurt the world’s second-largest economy. Questions: 1. What has the Chinese stock market done in the last 3 weeks? 2. What will the suspension of… Read more »