It was a few weeks since I had seen Jim, so I made the mistake of asking him what he had been doing. He replied that he had been thinking about bankruptcy.
I said that I didn’t know his financial situation was that bad. Jim replied that he wasn’t having too much trouble paying his own [...]

Some examples

Siemens Ltd. (14 Jan 2009) sold its IT division to its parent co. and came out with a matter of fact press release to the shareholders and the rest of the world saying it’s divesting a low-margin business. The consideration: Rs.449 crore, for a [...]

There is a somewhat cliched old diagram that shows what we’re supposed to do when a bank gets into trouble. There are some nervous questions about this these days, but I still think the essence holds:

Solvent but illiquid
When a bank gets into trouble, the first question to ask is: [...]

Regulators
We regulate any stealing of his property
And we damn good too
But you cant be any geek off the street,
Gotta be handy with the steel if you know what I mean, earn your keep!
Regulators!!! mount up!
The epic words of Warren G in many respects seem to sum up our government’s regulatory regime. [...]

Accurate, transparent, comparable and thorough financial statements are essential tools for performing mental calculations of value.  Being able to assess and weigh the performance of a going concern is vital for a holder of capital considering allocation to more productive uses which benefit humanity.  Trust in the accuracy, transparency, comparability and thoroughness of financial statements [...]

Amidst the madness (March and otherwise), around America we have been seeing signs of outrage at all sorts of characters, from our elected officials to AIG execs to foreclosure auctioneers. Indeed worldwide, the signs of growing unrest amongst the populace are beginning to spread. But while people are angered by all sorts of errors, [...]

Hank Paulson has an article in the Financial Times where he emphasises that a key part of fixing financial regulation in the US is the task of changing the architecture of financial regulation. This is essential for avoiding problems [...]

Governments running large welfare states have long resented tax havens, which reduce their tax take. In recent weeks, some people have managed to sell the idea that in response to the global financial crisis, governments need to crack down on tax havens. I, for one, don’t see any link between tax havens and the [...]

First let me state a few qualifiers when it comes to the Mets’ now infamous Citi Field. Citi Field is gorgeous. The team that will inhabit it is not as gorgeous. It is outrageous that the taxpayers are backstopping the bank which made the naming deal with the team. It is embarrassing to [...]

The Securities and Exchange Commission (SEC) was set up as a reaction to the stock market crash of 1929 to provide oversight of brokerage firms and protect investors. Last month, Morgan Stanley and Goldman Sachs Group, Inc., filed to become bank holding companies. Now with the sale of Bear Stearns, the bankruptcy of Lehman Brothers [...]