by Ron Carleton | Dec 11, 2012
1) I will think like an equity analyst. In order to properly assess the credit risk of a company, you must understand what management is thinking. Since management works for the owners of the company, not its creditors, you must think like an owner. Is there a...
by Tim Delaney | Dec 3, 2012
Risk culture is the way people behave about risk. But people, organizations, and risk are all complex and dynamic. It’s important to have a formal concept of risk culture, but perhaps the best way to explain it is through examples. Dan Sparks at Goldman Sachs In...
by Tim Delaney | Nov 20, 2012
Consider the sad story of UBS. In 2007 it suffered $38 billion in losses on mortgage back securities, requiring a $60 billion capital infusion from the Swiss government to keep from going under. In 2008 it paid out $19 billion to clients it had duped into buying...
by Ron Carleton | Sep 26, 2012
The Background: I was a vice president at a global bank, responsible for a diverse group of clients in North America. One of my clients was considering a major reorganization of its business and restructuring of its balance sheet, and it hired my bank as financial...
by Tim Delaney | Dec 31, 2011
By the time they grew to $1.5 billion, Michael Roseman, MF Global’s Chief Risk Officer, was concerned about the firm’s positions in bonds of Italy, Spain, Portugal, Ireland and Belgium. He was worried the trade might endanger the entire firm if the financial problems...
