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Supplement to case UV7544. From 1721 to 1723, John Law hovered near to France, hoping to receive a message from the regent to return and repair his system. Throughout his exile, Law maintained an amicable relationship with the regent and always hoped to return to France. Meanwhile, the French political pendulum continued to swing to the right, in favor of the financial system of the ancient regime. In short, the new regime deconstructed Law's system: institutions closed, monopolies redistributed, and government debts renegotiated or repudiated. The government sharply limited the granting of corporate charters and development of the banking industry.

On April 21, 2014 two companies, Valeant Pharmaceuticals and Pershing Square, announced an unsolicited merger offer for Allergan Pharmaceuticals. The unsolicited offer quickly turned into a hostile acquisition. The following months saw a raging public debate over the future control of Allergan and its primary product, Botox, as well as the business strategies and philosophies of the two offering firms and their CEOs.

In October 1720, John Hanger, governor of the Bank of England (BoE), and his fellow directors confronted the imminent collapse of the South Sea Company (SSC). The SSC directors urgently appealed to the BoE for funds to prevent collapse. Should the bank rescue the SSC? The answer to this question hinges upon an assessment of the origins of the market bubble, Britain's strategy of creating trading monopolies, the development and role of the new BoE, and Britain's jockeying to be a major power.

Student spreadsheet for cases UV7532 and UV7536.

Supplement to case UV7532. In October 1720, John Hanger, governor of the Bank of England (BoE), and his fellow directors confronted the imminent collapse of the South Sea Company (SSC). The SSC directors urgently appealed to the BoE for funds to prevent collapse. Should the bank rescue the SSC? The answer to this question hinges upon an assessment of the origins of the market bubble, Britain's strategy of creating trading monopolies, the development and role of the new BoE, and Britain's jockeying to be a major power. The B case presents an epilogue.

In 1822, the directors of the Second Bank of the United States contemplated the election of a new president of the bank. The policies of the new president would either continue those of the retiring incumbent, which had contracted the nation's money supply, restoring the bank's stability after a panic but also stoking outrage across the United States, or deviate from them to support national economic development by providing more credit and a sound paper currency usable throughout the country. The case frames the contest for control of the Second Bank that would ultimately determine the bank's role in the American economy. The case presents opportunities for financial analysis of the health and performance of the Second Bank, for assessment of the governance and management of the bank, and for consideration of the timing of a change in strategy regarding the bank.

In April 2010, infrastructure fund Njord Gas Infrastructure AS bought ExxonMobil's 9.428% stake in Norwegian gas pipelines Gassled. Njord was interested in Gassled's steady returns and Norway's regulatory/political consistency and transparency. Once built, pipelines were seen as a relatively safe investment as tariffs to transport natural gas were usually fixed for many years (whether prices rose or fell) and bookings were made years in advance. Others followed Njord's lead in 2011 and 2012 to buy into Gassled - four infrastructure funds owned 44% of Gassled after the acquisitions. It came as a shock when a year after the transactions went through, the Norwegian government decided that returns were too high and decided to cut the tariffs charged by Gassled to transport gas by 90%.

Set in November 1896, the case describes the views of the two leading candidates for US president, William Jennings Bryan and William McKinley, along with those of three other figures: J. P. Morgan, Mary Elizabeth Lease, and Eugene Debs. The task for the student is to assess the role of money and financial crises in the evolving political landscape-these five people reflect policy positions across the political spectrum. The main controversy in the case is whether only gold, or both gold and silver, should back the dollar, an issue that has been simmering for about a quarter-century and that is resolved in the election of 1896.

Student spreadsheet for case UV7520.

Supplement to case UV7520. The A case describes the views of the two leading candidates for US President, William Jennings Bryan and William McKinley, along with those of three other figures: J. P. Morgan, Mary Elizabeth Lease, and Eugene Debs. The task for the student is to assess the role of money and financial crises in the evolving political landscape-these five people reflect policy positions across the political spectrum. The main controversy in the case is whether only gold, or both gold and silver, should back the dollar, an issue that has been simmering for about a quarter-century and that is resolved in the election of 1896. The B case serves as an epilogue, describing the results of the election of 1896 and its effects on US financial policy, as well as the later history of the Populist Party and the main figures in the case.

In 1878, President Rutherford B. Hayes must decide whether to sign the Bland-Allison Act and commit the United States to minting silver coins and thus return to a bimetal standard of currency. At issue is whether to grow the nation's money supply to sustain its galloping rate of economic development, or to constrain the money supply growth to enable the country to return to the international gold standard at the pre-Civil War parity to the British pound. National sentiment immediately after the war had been on the side of currency deflation, but the Panic of 1873 marked a turn in sentiment toward inflation. These cases focus on how and why that turn occurred, and its consequences.

Supplement to case UV7525. In 1878, President Rutherford B. Hayes must decide whether to sign the Bland-Allison Act and commit the United States to minting silver coins and thus return to a bimetal standard of currency. At issue is whether to grow the nation's money supply to sustain its galloping rate of economic development, or to constrain the money supply growth to enable the country to return to the international gold standard at the pre-Civil War parity to the British pound. National sentiment immediately after the war had been on the side of currency deflation, but the Panic of 1873 marked a turn in sentiment toward inflation. These cases focus on how and why that turn occurred, and its consequences. The B case provides an epilogue.

Set in the spring of 2018, the US Congress contemplated changes to the Dodd-Frank Act in an effort to improve financial regulation in the United States. The case offers details on the slow recovery from the financial crisis of 2008, on protest and political movements that ensued, on the Dodd-Frank Act of 2010, and on 14 proposals for new financial regulation. As of 2018, Senator Elizabeth Warren and Representative Jeb Hensarling offer differing regulatory agendas for the financial services industry in the United States.

Set in January 2009, this case summarizes the events surrounding the financial crisis of 2008 as well as leading theories of its origin. Treasury Secretary Henry Paulson must brief the incoming Obama administration on what initiatives have been taken to fight the financial crisis and on what remains to be done. This is an exercise in self-evaluation: What should he say? The case highlights eight notable departures (or "pivots") in public policy.

This note reviews seven recurrent factors in financial crises (runnable debt, rising leverage, financial innovation, complexity, contagion, cognitive bias, incompetence, and ethical violations) and some 17 responses aimed at preventing or mitigating crises.

This note shapes a framework of competing policy priorities for governments in responding to a financial crisis: rescue, relief, recovery, and reform. The dominant considerations are where, when, how, and why governments should choose the order of these policy priorities. The second part of the note highlights six hurdles to policy making: ideologies, interests, incentives, institutions, innovations, and infrastructure.

It was generally accepted that the weighted average cost of capital (WACC) for a company reflected an appropriate hurdle rate (minimum return or benchmark) for that company's investments. But a WACC for Langtry Falls could not be calculated because the company did not have publicly traded stock, a critical source of one input to the calculation. However, the benchmark for publicly traded competing companies would be meaningful to Langtry-these companies were facing the same underlying risks and competing under the same economic conditions. An average of the industry WACCs would be a defensible and informative benchmark for Langtry.

Spreadsheet supplement for case UV7508.

In August 1971, President Richard Nixon had to decide how to respond to a growing "run" on the US dollar. Declining confidence in the dollar had led some national trading partners to redeem dollars for gold at the US Treasury's gold window. In the Bretton Woods system, the US dollar was the world's reserve currency. To supply sufficient money to accommodate growth in the global economy, the United States would inevitably run deficits in its balance of payments-which would ultimately force it to devalue its currency. The Bretton Woods system seemed engineered to fail. Nixon's two dominant policy alternatives were (a) do nothing; and (b) devalue the dollar by abandoning the commitment under the Bretton Woods Agreement to convert dollars into gold at $35/ounce. Students must assess the situation and recommend a course of action. The A case describes the Bretton Woods system, the run on the dollar, and Nixon's policy dilemma. The B case gives the text of Nixon's 1971 address outlining his New Economic Policy. The A and B abridged case shortens the total presentation by eliminating some of the quoted material; the student task in this case is to analyze Nixon's decision and decide on next steps. The C case presents a brief epilogue.

In August 1971, President Richard Nixon had to decide how to respond to a growing "run" on the US dollar. Declining confidence in the dollar had led some national trading partners to redeem dollars for gold at the US Treasury's gold window. In the Bretton Woods system, the US dollar was the world's reserve currency. To supply sufficient money to accommodate growth in the global economy, the United States would inevitably run deficits in its balance of payments-which would ultimately force it to devalue its currency. The Bretton Woods system seemed engineered to fail. Nixon's two dominant policy alternatives were (a) do nothing; and (b) devalue the dollar by abandoning the commitment under the Bretton Woods Agreement to convert dollars into gold at $35/ounce. Students must assess the situation and recommend a course of action. The A case describes the Bretton Woods system, the run on the dollar, and Nixon's policy dilemma. The B case gives the text of Nixon's 1971 address outlining his New Economic Policy. The A and B abridged case shortens the total presentation by eliminating some of the quoted material; the student task in this case is to analyze Nixon's decision and decide on next steps. The C case presents a brief epilogue.