We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

Toxic Asset (Business Law) - Essay Example

Comments (0)
Gordon (2010) asserts, “Toxic assets are, mostly, the investments backed by risky subprime mortgages that are held by the larger U.S. banks and that have lost value”…
Download full paper
Toxic Asset (Business Law)
Read TextPreview

Extract of sample
Toxic Asset (Business Law)

Download file to see previous pages... Toxic assets are also known as dead assets because they have been utilized in the past and they are of no more value at present. “Toxic assets had a value at some point in time” (Smith, 2010). Toxic assets do not have any present value whereas many people, who have such assets, believe that their toxic assets are still of the same value as they had in the past. However, the reality of the value of those toxic assets is quite different.
Toxic assets often result in minimizing the liquidity of the organizations that possess such assets. It is because of the fact that toxic assets have no clear value and if the financial organizations such as banks acquire a large number of toxic assets assuming them to be of great value, minimal liquidity occurs because the value of the assets does not increase in reality, rather it just increases in the bankbooks. The banks find it very difficult to sell the assets in order to get the blocked money back in hands. Toxic assets are neither good for financial organizations nor for the economy of a country. They are worthless for the banking institutions as it becomes difficult for the banks to sell them to some other person at a reasonable price. Even if the financial sector of a country attempts to cope with toxic assets, the result is most likely to be the radical freefall of the country’s economy.
Toxic asset is a form of Mortgage-Backed securities. Mortgage-Backed securities include loans that are given by a bank to a person to help the person build his own house. Banking institutions provide loan to the people, which is taken back from them along with interest on monthly basis. The repayment of loans to the banks is not an easy process for the people as the repayment is composed of high interest and the principal amount. When the people are not left with enough money to repay the loans to the banks due to increased sub-prime mortgage interest rates, the cycle stops and ...Download file to see next pagesRead More
Comments (0)
Click to create a comment or rate a document
According to Ray (2001) business forms are also based on the motives of the owners. He further points out that government regulations are the most significant factors that should be considered when creating business entities. Additionally, alternative business forms have increased making it easier for the business environment to incorporate many companies thus promoting the economy (Besley & Brigham, 2008).
12 Pages(3000 words)Essay
Business law
Public law on the other hand refers to the standards and rules specifying responsibilities and privileges among private individuals and the government. Public law is also regarded as the rules and regulations that control responsibilities and privileges in a situation between a member of the public and the government.
4 Pages(1000 words)Essay
Business Law
d, the company developed this Corporate Compliance Plan to set a standard and provide a guideline to overall corporate conduct to prevent instances of infringement of the corporate norm of sound ethical standards and violation of state and federal laws relative to corporate
9 Pages(2250 words)Essay
Business Law
o be considered as the first source of English Law because its decisions and case law conclusions are binding in all courts below it in the hierarchy (Kelley and Holmes, 1997). House of Lords is considered to be the last resort in the UK. Kelley and Holmes (1997) argued that it
4 Pages(1000 words)Essay
Business Law
siana, as much as 40,000 barrels or 1.7 million gallons of oil has been gushing out from a Gulf of Mexico well.1 The massive scale of the oil spill has caused deaths and damage that are far beyond the 11 workers who were killed when the rig exploded; the clogging of the water
4 Pages(1000 words)Essay
Why followers suport toxic leaders qualitative case study perspective
From executive suites to the religious pulpits, followers still demonstrate evident support of the toxic behaviors despite their negative consequences such as stress and demotivation in the workforce and lowered performance in the organization as a whole. How
32 Pages(8000 words)Essay
Toxic sugar
Having considered a long period of time, there is a high probability that changes in factors such as living standards that affect other factors to type two diabetes. The changes would therefore
2 Pages(500 words)Essay
Business Law
The name should also be appealing and attractive to the target market. The business name should be unique, one that isn’t being used online or offline by any other company. Before declaring a name the
2 Pages(500 words)Essay
Toxic Culture
From my understanding of leadership and organizational culture, leadership is responsible for setting up the organization culture, and in turn, the set culture influences the leadership (Malby, 2007). In the article Who’s to Blame for Creating a Toxic
1 Pages(250 words)Essay
To ensure a safe environment, the American companies can introduce incentives aimed at cleaning the rivers. Accordingly, the companies can also introduce ultimatum to the Chinese companies
4 Pages(1000 words)Essay
Let us find you another Essay on topic Toxic Asset (Business Law) for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us