Download or read book The Financial Cesspools A Critical Analysis of Bad Banks as Financial Instruments written by Kaan Akkanat and published by GRIN Verlag. This book was released on 2015-03-09 with total page 12 pages. Available in PDF, EPUB and Kindle. Book excerpt: Essay from the year 2012 in the subject Business economics - Miscellaneous, grade: 1.67, Jacobs University Bremen gGmbH, course: Financial Constitution (in Time of Crisis), language: English, abstract: "The cardinal maxim is that any aid to a present bad bank is the surest mode of preventing the establishment of a future good bank" wrote the British economic journalist Walter Bagehot in 1873. In his evaluative analysis, Bagehot stretched the potential problems that may arise as a result of government's interventions. Although there has been more than a century since his comments on the pre-mature idea of a bad bank and interventions, the discussions on the utility of bad banks persists in today's financial spectrums. In economic terminology, bad banks are used to take risky assets from otherwise good banks. This essay will first address the idea of so-called bad banks as a new financial instrument and then will focus on the analysis of their impacts on crises development.
Download or read book Good Banks Bad Banks written by Richard Christopher Whalen and published by . This book was released on 2017 with total page 31 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the factors which contribute to banks being perceived as being “good” or “bad” in terms of their impact on the political economy and society as a whole. We first review some of the historical antecedents for public approbation against banks, then consider how changes in ownership affect bank behavior, then examine the financial performance of different sized banks, and then finally discuss the particular examples of off-balance sheet transactions and incomplete sales as indicia of cheating by “bad banks.” We conclude with a discussion of financial conflicts as prohibited by the Volcker Rule and the larger question of corruption and crony capitalism between the largest banks, elected officials and their regulators.
Download or read book Good Bank Bad Bank written by Anne Boden and published by Portfolio. This book was released on 2019-03-07 with total page 272 pages. Available in PDF, EPUB and Kindle. Book excerpt: 'I surprised myself the first time I fully articulated the words, "I'm starting a bank."' Good Bank, Bad Bank is the insider account of one woman's quest to revolutionize Britain's broken banking system. A career at the pinnacle of some of the UK's top banks had left Anne Boden disillusioned with the sector. The financial crash and emerging technologies presented vast opportunity for change, but change it would not. Increasingly frustrated, Anne decided to do something radical - set up her own bank. In this awe-inspiring story Anne reveals how she defied the odds to realize her vision for the future of consumer banking. She founded Starling Bank, the winner of Best British Bank at the British Bank Awards 2018, and in doing so has triggered a movement that is shaking up the entire banking system.
Download or read book Bad Banks written by Alex Brummer and published by Random House. This book was released on 2014-07-17 with total page 370 pages. Available in PDF, EPUB and Kindle. Book excerpt: Bad Banks is a gripping account of the problems and scandals that continue to bedevil the world's banking system some eight years after the credit crunch. It follows the fortunes and misfortunes of individual banks, from RBS to Lloyds. It exposes instances of mis-selling, money laundering, interest rate fixing and incompetence. And it considers the bigger picture: how the failings of the world's banking system are threatening to undermine our future economic security. Alex Brummer, the City Editor of the Daily Mail, has had access to all the major players, from HBOS's Andy Hornby, to former Governor of the Bank of England Sir Mervyn King, to the ex-Chief Executive of Barclays, Bob Diamond, to Lloyds' António Horta-Osório. His book is an insightful – and terrifying – account of institutions once renowned for their probity, but now all too often a byword for incompetence, and worse.
Download or read book Big Bad Banks written by C. R. Cloutier and published by . This book was released on 2009 with total page 128 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book How does the Bad Bank Concept Influence the Commercial Banks Ability and Willingness to Increase Commercial Lending in Germany written by Alexej Antropov and published by GRIN Verlag. This book was released on 2011-04-26 with total page 24 pages. Available in PDF, EPUB and Kindle. Book excerpt: Seminar paper from the year 2010 in the subject Business economics - Investment and Finance, grade: 1,3, University of applied sciences, Munich, course: International Finance & Accounting, language: English, abstract: During the Financial Crisis 2007-2010, which was the result of housing bubble in the United States in 2006, commercial banks rapidly decreased the amount of commercial lending worldwide. So called subprime credits made the assets of commercial banks less worth during a short period. It was the cause for the credit crunch in many economies. Because many enterprises have to rely on debt capital, which they lend from commercial banks to finance their investments, the credit crunch hit such enterprises very hard. The outcome is that the whole economy suffers. Many governments elaborated the bad bank concept to solve the problem of decreased commercial lending, also Germany. It means, that banks will be allowed to start special purpose vehicles (SPV) for holding the subprime credits and to bring such subprime credits out of the balance sheet of the bank. In Anglo-Saxon countries there are two other terms in use for SPV: (loan) recovery agency and asset management company. According to Homoelle, Ruff and Tuerr1 in theory and praxis there are many variants of bad bank models existing. Until now the question which model is most successful, became insufficient exploration. German government adopted two different models of bad banks and proposed the Financial Market Stabilisation Act (FMStFG), which became effective on July 22th 2009.2 After that some banks used this opportunity and transferred their subprime assets to such SPV. The scope of the work is first to evaluate why exactly commercial banks decreased the commercial lending, second to analyse German bad bank concept and then to work out the incentives of this concept for more commercial lending by commercial banks and to show some examples of implementation of bad bank concept by German banks. At the end the answer on the question, whether the bad bank concept increases the ability and willingness of German commercial banks to make more commercial credits available or not, will be given in this term paper.
Download or read book Banking Bad written by Adele Ferguson and published by HarperCollins Australia. This book was released on 2019-08-01 with total page 316 pages. Available in PDF, EPUB and Kindle. Book excerpt: Winner of the 2020 Davitt Award for True Crime/Non-fiction. Against all the odds, Australia held a royal commission into the banking and financial services industries. Its revelations rocked the nation. Even defenders of the banks were blindsided. Few people were more instrumental in bringing about the commission than journalist Adele Ferguson. Through her exposes in print and on television, she pursued the truth about funds mismanagement, fraud, lack of probity, and the hard-sell culture that took over the finance industry after deregulation in the 1980s. But it wasn't just light-touch regulators and crooked bankers growing fat on bonuses she put under the spotlight. It was also their victims - men and women who had lost everything, and had no recourse when they discovered empty accounts, egregious fees, forged documents and broken promises. Now in Banking Bad, Ferguson tells the full story of the power imbalance, toxic culture and cover-ups. She describes the long fight for justice by whistleblowers, victims and political mavericks, and she looks at the outcomes of the royal commission - the falls from grace, the damaging hubris, the scathing assessment of the regulators, and the colossal compensation bill - an estimated $10 billion. Finally, she asks whereto from here? In May 2019, the Coalition government, which resisted calls for a royal commission, was re-elected. Bank stocks surged and lending regulations were loosened. Will it all be business as usual from now on, or have our financial executives learned that their wealth cannot come at the expense of ordinary Australians? This is a book for every person with a bank account. PRAISE 'If you want a glimpse of the reality distortion that multi-millionaire bankers live in, you need to read Banking Bad.' - Scott Pape 'Ferguson's pacey writing style gives the book the air of a corporate thriller.' - Michael Rowland, ABC News Breakfast 'And for those of who anticipate that corporate Australia will lapse back into the state of complacency and misconduct revealed in the APRA CBA Report and the Hayne Royal Commission, ... should read the whole book for themselves - for no other reason than that it so clearly identifies the issues of governance and culture that seems to have escaped them for so long.' - Graeme Samuel, Professorial Fellow in the Monash Business School and former chairman of the ACCC '[Adele] recounts a colourful cast of bullies, thieves and crooks being rewarded extraordinary sums to rip off customers.' - Money Magazine
Download or read book Big Bad Banks written by Thorsten Beck and published by World Bank Publications. This book was released on 2007 with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt: Policymakers and economists disagree about the impact of bank regulations on the distribution of income. Exploiting cross-state and cross-time variation, we test whether liberalizing restrictions on intra-state branching in the United States intensified, ameliorated, or had no effect on income distribution. We find that branch deregulation lowered income inequality. Deregulation lowered income inequality by affecting labor market conditions, not by boosting the business income of the poor, nor by enhancing educational attainment. Reductions in the earnings gap between men and women and between skilled and unskilled workers account for the bulk of the explained drop in income inequality.
Download or read book Managing Banking Risks written by Eddie Cade and published by Routledge. This book was released on 2013-11-26 with total page 204 pages. Available in PDF, EPUB and Kindle. Book excerpt: Banking and financial services are some of the fastest-growing industries in the world's developed countries. As growth is spurred on by huge demand for new and improved services, bankers face the daunting and difficult challenges of reducing risks and uncertainty at a time of unprecedented innovation and prosperity. Managing Banking Risks fills a gap in banking literature by providing a professional and sophisticated risk planner--for bank directors, executives, and managers at every operational level. This important work covers the full range of banking risks that operation managers and executives need to understand--from liquidity risk to price risk to operating risk.
Download or read book The 99 Strongest Banks in America written by John Truman Wolfe and published by Lulu.com. This book was released on 2017-12-06 with total page 76 pages. Available in PDF, EPUB and Kindle. Book excerpt: Banking-in the U.S. and globally-has devolved into a colossal Vegas-like casino and bankers have become the ultimate "whale" gamblers. The global banking system today has an estimated $1.2 quadrillion dollars in a kind of monetary heroin called derivatives.* The figure is mind-numbing, but just to give you a sense of the size of this madness, here it is with the appropriate number of zeroes (15): $1,200,000,000,000,000. Or, it may be more entertaining if you think of it this way: If you had a job that paid you $1,000 per second, it would take more than 31 years for you to earn $1 trillion. A quadrillion is 1,000 trillion. It's a big number. And I repeat, there are now $1.2 quadrillion dollars in derivatives held by financial institutions in the U.S. and abroad.
Download or read book How Does the bad Bank Concept Influence the Commercial Banks Ability and Willingness to Increase Commercial Lending in Germany written by Alexej Antropov and published by GRIN Verlag. This book was released on 2011-04 with total page 29 pages. Available in PDF, EPUB and Kindle. Book excerpt: Seminar paper from the year 2010 in the subject Business economics - Investment and Finance, grade: 1,3, University of applied sciences, Munich, course: International Finance & Accounting, language: English, abstract: During the Financial Crisis 2007-2010, which was the result of housing bubble in the United States in 2006, commercial banks rapidly decreased the amount of commercial lending worldwide. So called subprime credits made the assets of commercial banks less worth during a short period. It was the cause for the credit crunch in many economies. Because many enterprises have to rely on debt capital, which they lend from commercial banks to finance their investments, the credit crunch hit such enterprises very hard. The outcome is that the whole economy suffers. Many governments elaborated the bad bank concept to solve the problem of decreased commercial lending, also Germany. It means, that banks will be allowed to start special purpose vehicles (SPV) for holding the subprime credits and to bring such subprime credits out of the balance sheet of the bank. In Anglo-Saxon countries there are two other terms in use for SPV: (loan) recovery agency and asset management company. According to Homoelle, Ruff and Tuerr1 in theory and praxis there are many variants of bad bank models existing. Until now the question which model is most successful, became insufficient exploration. German government adopted two different models of bad banks and proposed the Financial Market Stabilisation Act (FMStFG), which became effective on July 22th 2009.2 After that some banks used this opportunity and transferred their subprime assets to such SPV. The scope of the work is first to evaluate why exactly commercial banks decreased the commercial lending, second to analyse German bad bank concept and then to work out the incentives of this concept for more commercial lending by commercial banks and to show some examples of implementation of bad bank concept by German banks. At the
Download or read book Bad Bank s and Recapitalization of the Banking Sector written by Dorothea Schäfer and published by . This book was released on 2009 with total page 29 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Banks and Bad Debts written by Vivien A. Beattie and published by . This book was released on 1995-04-11 with total page 224 pages. Available in PDF, EPUB and Kindle. Book excerpt: Provides a self-contained, authoritative and coherent treatment of the issue of loan loss provisioning by banks in an international context. Examines the issue from a number of different perspectives - accounting, regulatory, taxation, finance and economic - and demonstrates that there are wide national differences in the accounting treatment of bank loan losses.
Download or read book Balancing the Banks written by Mathias Dewatripont and published by Princeton University Press. This book was released on 2015-09-22 with total page 148 pages. Available in PDF, EPUB and Kindle. Book excerpt: The financial crisis that began in 2007 in the US swept the world, producing substantial bank failures and forcing unprecedented state aid for the crippled global financial system. This book draws critical lessons from the causes of the crisis and proposes important regulatory reforms.
Download or read book Better Bankers Better Banks written by Claire A. Hill and published by University of Chicago Press. This book was released on 2015-10-19 with total page 288 pages. Available in PDF, EPUB and Kindle. Book excerpt: Taking financial risks is an essential part of what banks do, but there’s no clear sense of what constitutes responsible risk. Taking legal risks seems to have become part of what banks do as well. Since the financial crisis, Congress has passed copious amounts of legislation aimed at curbing banks’ risky behavior. Lawsuits against large banks have cost them billions. Yet bad behavior continues to plague the industry. Why isn’t there more change? In Better Bankers, Better Banks, Claire A. Hill and Richard W. Painter look back at the history of banking and show how the current culture of bad behavior—dramatized by the corrupt, cocaine-snorting bankers of The Wolf of Wall Street—came to be. In the early 1980s, banks went from partnerships whose partners had personal liability to corporations whose managers had no such liability and could take risks with other people’s money. A major reason bankers remain resistant to change, Hill and Painter argue, is that while banks have been faced with large fines, penalties, and legal fees—which have exceeded one hundred billion dollars since the onset of the crisis—the banks (which really means the banks’shareholders) have paid them, not the bankers themselves. The problem also extends well beyond the pursuit of profit to the issue of how success is defined within the banking industry, where highly paid bankers clamor for status and clients may regard as inevitable bankers who prioritize their own self-interest. While many solutions have been proposed, Hill and Painter show that a successful transformation of banker behavior must begin with the bankers themselves. Bankers must be personally liable from their own assets for some portion of the bank’s losses from excessive risk-taking and illegal behavior. This would instill a culture that discourages such behavior and in turn influence the sorts of behavior society celebrates or condemns. Despite many sensible proposals seeking to reign in excessive risk-taking, the continuing trajectory of scandals suggests that we’re far from ready to avert the next crisis. Better Bankers, Better Banks is a refreshing call for bankers to return to the idea that theirs is a noble profession.
Download or read book Holistic Active Management of Non Performing Loans written by Claudio Scardovi and published by Springer. This book was released on 2015-11-05 with total page 159 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book discusses the most critical issues relating to the recovery of bad loans – a major problem that European banks urgently need to address and resolve. The book describes, in an innovative but also pragmatic way, the new approaches, techniques, and models for optimal management of non-performing loans (NPLs) and the maximization of their recovery value. Drawing on a rigorous academic background and the latest real-life experiences of major European banks, it details a novel means of dealing with NPLs based on velocity, the holistic use of tools and “accelerators”, and the active management of collaterals. Also, there is a specific focus on the smart use of “big data” and on the development of “bad banks”, at both the single bank and the system-wide level. Ultimately, credit workout is defined as a core capability for any competitive bank – and as a quite interesting business opportunity for independent, specialized “alpha” players.
Download or read book How Big Banks Fail and What to Do about It written by Darrell Duffie and published by Princeton University Press. This book was released on 2010-10-18 with total page 108 pages. Available in PDF, EPUB and Kindle. Book excerpt: A leading finance expert explains how and why big banks fail—and what can be done to prevent it Dealer banks—that is, large banks that deal in securities and derivatives, such as J. P. Morgan and Goldman Sachs—are of a size and complexity that sharply distinguish them from typical commercial banks. When they fail, as we saw in the global financial crisis, they pose significant risks to our financial system and the world economy. How Big Banks Fail and What to Do about It examines how these banks collapse and how we can prevent the need to bail them out. In sharp, clinical detail, Darrell Duffie walks readers step-by-step through the mechanics of large-bank failures. He identifies where the cracks first appear when a dealer bank is weakened by severe trading losses, and demonstrates how the bank's relationships with its customers and business partners abruptly change when its solvency is threatened. As others seek to reduce their exposure to the dealer bank, the bank is forced to signal its strength by using up its slim stock of remaining liquid capital. Duffie shows how the key mechanisms in a dealer bank's collapse—such as Lehman Brothers' failure in 2008—derive from special institutional frameworks and regulations that influence the flight of short-term secured creditors, hedge-fund clients, derivatives counterparties, and most devastatingly, the loss of clearing and settlement services. How Big Banks Fail and What to Do about It reveals why today's regulatory and institutional frameworks for mitigating large-bank failures don't address the special risks to our financial system that are posed by dealer banks, and outlines the improvements in regulations and market institutions that are needed to address these systemic risks.
