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Bank Profitability: Decoding the Income Statement

Tom Spencer

Firstly, by outlining the major items on a bank’s income statement, and then by discussing key ratios that are commonly used to measure profitability and to estimate the market value for banks. Banks typically adjust their lending rates based on the central bank’s policy rate. the spread).

Banking 88
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M&A deals – benefits and drawbacks

Tom Spencer

Depending on the firm and specific role this case could be very strategic and operational like doing a market entry/growth-type case or very technical (i.e. Acquisitions occur when one company buys another company and folds it into its operations. Let’s say Company A doesn’t have an official dress code policy.

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The age old tale of financial crises

Tom Spencer

The 2008 financial crisis saw Ben Bernanke, the then chairman of the Federal Reserve, providing money to banks across the United States following the collapse of the housing market and subsequent defaults of mortgage backed securities. Will humanity ever learn its lesson? The US Federal Reserve spent around 3.7

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2008 Financial Crisis – Causes and historical context

Tom Spencer

The MBS market boomed due to a general consensus that property prices would always go up, mortgages were extremely unlikely to fail on a large scale, and the fact that credit rating agencies were willing to give AAA-ratings to the senior slices of CDOs even if the underlying pool of mortgages were all “subprime”.

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Maximum Overweight High Yield?

MishTalk

Corporate balance sheets are in excellent shape, and there is still an ample cash cushion available to fund operations in the event of a growth setback. We continue to monitor three key factors for evidence of a turn in default risk: our Corporate Health monitor, bank lending standards, and Fed policy.

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BIS Slams the Fed; Ridiculous Question of the Day: "Is The Fed Going To Attempt A Controlled Collapse?"

MishTalk

The BIS slam, coupled with a recent stock market selloff, brought up debate on a " controlled collapse ". Monetary policy is testing its outer limits. The normalisation of the policy stance has hardly started. Increased risk-taking also manifested itself in other credit market segments.

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ECB's Targeted Lending Spree Starts Out As Flop; Modern Monetary Insanity

MishTalk

Following on the "success" of the ECB''s LTRO (Long Term Refinance Operation) which did nothing to spur lending and everything to create the biggest sovereign bond bubble the world has ever seen, ECB president Mario Draghi announced a TLTRO or Targeted LTRO on September 4. The ECB''s intent is to spur lending.