Why Your Bank May Cut You Loose

Everybody needs to make money, but CFOs may chafe if their bank puts its own profitability needs first. Here’s how to obtain the banking services you need with reasonable terms and conditions.

Compromising Positions

Will credit derivatives encourage more lending, or will they harm the interests of borrowers?

A Non-Random Walk Through Financial Innovation: Four Titans Explain How It Occurs

In 1986 Merton Miller, a Chicago economist and an eventual Nobel laureate in economic sciences, asked if any 20-year period in history had resulted in a tenth as much financial innovation as the previous two-decade span. His own answer was a resounding ‘no’. He then went on to argue that innovation was flagging. Four titans from that period addressed Miller’s question at the Milken Institute’s … [ Read more ]

David Pottruck

chief executive officer of Charles Schwab Corp.

Asset-Based Financing Gains Ground

CFOs in search of working capital are borrowing on assets — and discovering that doing so can offer more flexibility than bank financing.

Unite And Conquer

Financial-services firms have had lots of practice at integration; here’s what some of the biggest have learned from their mergers.

Customer Relationship Management at Capital One (UK)

In the beginning, all credit cards were the same. Same interest rates, same annual fee, same processes for deciding who to lend to and how much to lend. Then, as in all industries, an innovator came along and determined that a one-size-fits-all approach left room for improvement. In this Case Study by Professor Werner J. Reinartz and Ulrike Wiehr, Capital One is … [ Read more ]

Stock Option Repricing: Employees Benefit But What about Investors?

When the stock price of computer networking equipment maker Brocade Communications Systems skidded in late 2002, the pain was widespread. But it did not fall equally on all investors. Like other companies in similar situations, Brocade protected one class of investors – employees with stock options whose strike, or exercise price, had fallen below the market value – by simply issuing new stock options at … [ Read more ]