Examining the 34 main banks that failed during the recent financial crisis, the Financial Times has concluded the reasons for failure within each entity. The causes of failure were divided into five categories: low capital, weak funding structures, poor lending, poor trading investments, and misguided mergers and acquisitions.
Many banks landed into several categories, with Royal Bank of Scotland somehow failing on all five metrics. It’s also notable that no bank failed due to either low capital or a risky funding structure alone.
Jim Chanos At Invest For Kids: Short This Tech Company As Profits Slump
At this year's Invest For Kids conference, hedge fund manager Jim Chanos pitched a tech giant as his favorite short idea. Jim Chanos is a Wall Street legend. The president and founder of Kynikos Associates made his name shorting Enron in the 1990s. He has since identified some of the most profitable shorts in the Read More