Financial service-Banking Essay Example | Topics and Well Written Essays - 500 words

Financial service-Banking - Essay Example The U.S and European market had enjoyed a lot of freedom thanks to deregulation and privatization in the financial industry. However, this trend was to be detrimental a decade later. According to Anne Khademian the government’s efforts to manage the financial crisis has been monumental (841). She continues to add that the congress made major reforms in the financial industry. First there was the Dodd-Frank Wall Street Reform and the Consumer Protection Act. These acts were aimed at regulating the unregulated financial industry, which had crippled the economy. This was an attempt by the government to reverse the actions of subprime lenders and investors, financial market intermediaries and credit rating agencies. Due to the unregulated nature of the financial and banking industry financial institutions were offering high interest rate mortgages. In sub-prime lending, banks were lending out higher interest rates to their customers without considering the risk of default rates of their customers. The banks were also fast to approve the loans because of the high interest rates charged on the loans. During the financial crisis, at least four million people faced foreclosure due to their inability to pay loans. Consequently the banks were late in receiving their payments and meeting their credit obligations. The government had to step in and bail out the banks in an attempt to end the financial crisis. The U.S treasury and E.U commission pumped in billions of dollars and Euros to the banks in order to save them from liquidity. The government plays an important role when it comes to stabilizing the economy. This is achieved by either lowering or increasing the lending bank rates. In the journal article, the author says, â€Å"the response to the crisis caused by too much debt and interest rates manipulated interest rates too low† (Khademian, 842). During the financial crisis, the government lowered the interests lending rates to

Company Law Essay Example | Topics and Well Written Essays - 1500 words - 5

Company Law - Essay Example A client and an auditor are usually in a contractual relationship thus meaning that the two parties are in agreement. The auditor thus have to perform their share of bargain carefully and appropriately as stipulated in the contract. If the auditor does not conform to the contract terms, the client can decide to sue based on the rounds of breach of contract. According Lacy, a client can sue the auditor first, due to the failure to accomplish specific performance, secondly, in the case where there is general monetary costs and damages for losses incurred due to the breach of that contract and lastly, any other consequential damages that as a result of negligence, have occurred (2002, p.78). Therefore, basing from these factors, Benard being the auditor of NASDAQ Composites Plc is highly liable. During auditing, before partaking any work for a client, the auditor or accountant should ensure that the particular duties to be executed, and in precise if there is need for any important matters to be excluded, have been discussed and harmoniously agreed with the client usually through written word or through a letter of engagement or otherwise (Delaney & Whittington 2010, p. 135). This therefore implies that before any of the undertakings is assumed, there is need for the auditor to ensure that there is special written evidence. In Re Thomas Gerrard & Son Ltd (1968) UK, the company’s auditors learned that there were various alteration to some of the invoice dates of the company. The company’s auditors then referred and consulted with the managing director of this corporation and accepted the director’s explanation although they did not scrutinize the statements of the related suppliers. As a result, there were loss of money to the company and it was thus ruled out that the auditors had breached their duty required by the company at the instance when they failed critically to examine the statements. The facts of the