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Published byCuthbert Brooks Modified over 9 years ago
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The Challenges of Financial Management after the Financial Crisis 1 General Mgt Info-Session
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Does it create value? What are the functions expected from “Finance”? What is “Finance”? 2 General Mgt Info-Session
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4 «...Strikingly, however, all three approaches yield similar results: that mortgage-credit losses are likely to be around $400 billion. » « The indices' relentless fall (see chart) has added to pressure on banks, such as Merrill Lynch and Citigroup, with big mortgage-related holdings. Citi's shares slid to a nine-year low this week on talk of a further, $18 billion write- down. Banks that mark assets far from where the indices trade incur the ire of their auditors. » March 6, 2008 What happened?
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7 September 29: “We put forth a plan that was big because we’ve got a big problem”.
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Who’s to be blamed for the crisis? 9 General Mgt Info-Session
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11 Did you know about... »the « ninja bonds »? »the « teaser rates »? »and the « Pik toggles »?
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Risk Management Lessons? 14 General Mgt Info-Session
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15 A standard securitisation process... A CDO... AssetsLiabilities BANK AssetsLiabilities SPV Loans Highly Senior Senior Junior Equity Mezzanine tranches AssetsLiabilities BANK AssetsLiabilities SPV Loans Same claims
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“Credit risks and markets risks are two different notions” Measurement vs. management “Somebody knows” Restoring the truth on some myths... 17 General Mgt Info-Session
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