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I additionally take a detailed look at any risks particular to the enterprise the company operates in. Some examples of some of these risk include litigation danger for tobacco firms, or the risk of huge claims payouts for bond insurers that decided to insure CDOs.
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And on this case, the alleged misconduct went to the core of Johnson & Johnson’s status; it wasn’t about how the company marketed its merchandise, however about the fundamental care it took in making them. Last fall was precipitated in part by the refusal of life insurance coverage corporations to roll over the brokerage agency’s subordinated loans.