Banks that anticipate stress and build up financial cushions to deal with it will fare better than others. The game will not be won by the most profitable, but by the most prudent.
Why did PricewaterhouseCoopers allow MF Global financial statements to be issued with a clean audit opinion? Why wasn't there a "going concern" warning?
Expect more debt exchanges and cash tender offers in the coming months. The strategy is rational and the alternatives for generating equity are limited at best.
The FDIC has authorized suits in connection with more than 30 failed banks against approximately 300 individuals to recoup damages of more than $7 billion.
Jon Corzine led the trend of large institutions placing more focus on their own accounts than their clients, while heading Goldman Sachs in the 1990s. It's time to find a new model.
