Weekly Review Quiz as of 2012-12-13
Finance
Benefits Leader Reins In 401(k)s
by Kelly Greene
12/07/2012
http://online.wsj.com/article/SB10001424127887323316804578163722900112526.html
1. What change is International Business Machines making to its retirement program?
a) it will contribute a fixed percent of each employee’s salary without regard to how much the
employee has contributed
b) it will switch from a defined-benefit plan to a defined-contribution plan
c) it will switch from a defined-contribution plan to a defined-benefit plan
d) it will contribute the same amount to each employee’s 401(k) plan regardless of pay
* e) it will switch from monthly to annual contributions to 401(k) plans
Ex-Trader's Gambit Bites Goldman
by Jamila Trindle and Liz Moyer
12/08/2012
http://online.wsj.com/article/SB10001424127887324640104578165470462829516.html
2. Goldman Sachs Group Inc. became the latest top Wall Street bank to suffer a black eye,
agreeing to pay $1.5 million to settle civil charges that it
a) failed to reveal material information about a pool of mortgage-backed securities it issued
b) leaked information that contributed to the bankruptcy of Lehman Brothers
c) improperly disclosed executive compensation
* d) failed to supervise a former trader
e) did not pay bonuses according to the plan which stockholders had approved
Hostess Maneuver Deprived Pension
by Julie Jargon, Rachel Feintzeig and Mike Spector
12/10/2012
http://online.wsj.com/article/SB10001424127887323316804578165813739413332.html
3. The Wall Street Journal reports that Hostess Brands Inc. helped fund its operations as it sank
toward bankruptcy by
a) requiring its customers to pay upon delivery of goods
b) factoring almost all of its receivables
c) renegotiating repayment schedules with its lenders
* d) using wages that were supposed to help fund employee pensions
e) delaying payments to its suppliers
Insider-Trading Probe Widens
by Susan Pulliam, Jean Eaglesham and Rob Barry
12/11/2012
http://online.wsj.com/article/SB10001424127887323339704578171703191880378.html
4. After a recent Wall Street Journal article, federal prosecutors and securities regulators have
launched investigations into possible insider trading by
a) cleaning crews on Wall Street
b) editors at Wikipedia
c) bank examiners
* d) corporate executives
e) relatives of investment bankers
HSBC to Pay Record U.S. Penalty
by Devlin Barrett and Evan Perez
12/11/2012
http://online.wsj.com/article/SB10001424127887324478304578171650887467568.html
5. HSBC Holdings on Tuesday plans to acknowledge that for years it ___________, part of a
record $1.9 billion settlement with U.S. authorities that caps the bank's disastrous foray into the
U.S. market.
a) paid less interested to depositors than required given the APYs on the accounts
b) collected more interest from borrowers than allowed given the APRs on the loans
* c) ignored possible money laundering
d) failed to report to the U.S. government interest income on deposits held in the Cayman islands
e) all of the above