News Update
*Accretive Health Defends Itself.
After weeks of critical analysis from the press, Accretive Health has decided to defend itself and its business practices. After allegations that Accretive Health shows no mercy to hospital patients, the field has been leveled to allow the truth to be understood. The allegations made Accretive Health look like a bully in the debt collection industry.
Once this information became mainstream, Accretive Health quickly lost value in its stock price." Since Accretive Health helped the public understand their company, they were able to recover the value lost. They even reported positive earnings this month. The media is quick to batter debt collection agencies without knowing the full extent of what it entails. It is no secret that unprofessional practices exist among some debt collection agencies. Those particular agencies typically do not stay in business. That is the beauty of the natural selection in the marketplace. To read the full article, click here...
http://www.huffingtonpost.com/2012/05/11/accretive-health-debt-collector-hospitals_n_1509329.html?ref=business
*J.P. Morgan Chase & Co Suffers Tremendous Losses.
The main fear of investing is the risk involved. This recent mistake by J.P. Morgan's hedging unit could cost shareholders over $3 billion dollars. Which has also greatly affected its shares outstanding. This is a bet that moved Chief Investment Officer Ina Drew to leave the firm. Quickly to fill the void was Matt Zames.
The root cause of the losses, stem from the bond portfolio. This has caused an outcry for yet more regulations in the financial industry. Other bank stocks were soon to follow considering J.P. Morgan Chase is the largest bank in the United States of America by assets. The White House and financial regulators are sure to critique what happened. More will be heard about this and we should see if effects reflected in the markets. To read the full article, click here...
http://www.reuters.com/article/2012/05/14/us-jpmorgan-departures-idUSBRE84C0EP20120514
*The European Crisis Looms.
Problems with the Euro have been going on for some time now. There have been talks about certain countries within the European Union breaking from its currency as a result of the European debt crisis. Each country in Europe is different in its own way. The Euro requires all participants to work in the best interest of the Union as a whole. Sharing the currency has been great for some countries and devastating for others in the European Union.
Great Britain does not use the Euro as its countries main currency. With the political turmoil, austerity, and debt that continue to sweep Europe, the pound has emerged as the safe haven currency. There has also been capital flows to the United States which has raised the value of the dollar. With both Europe and the United States in the election cycle, it should be interesting to see how the currencies and economies react. Read the full article here...
http://www.bloomberg.com/news/2012-05-14/pound-favored-as-haven-currency-amid-europe-debt-crisis.html
