Part I United States, 3 Lehman’s Derivative Portfolio: A Chapter 11 Perspective

2017 ◽  
Author(s):  
Lubben Stephen J
Keyword(s):  
United States ◽  
Financial Institutions ◽  
Financial Institution ◽  
Systemic Risks ◽  
Increased Risk ◽  
Will Force ◽  
Derivatives Markets ◽  
Safe Harbours

This chapter looks at the immediate cause of Lehman’s failure, which it argues was the repo market and the company’s inability to access funding for its operations at that time. Lehman’s derivatives were not the direct cause of its failure, but its derivatives, and the growth of the derivatives markets in general, led to the assumption of outsized risks and systemic weaknesses that facilitated the crisis. This chapter suggests that the continuation of the safe harbours ‘as is’ renders chapter 11 nonviable for larger financial institutions, and recent contractual attempts to work around the safe harbors are insufficient to solve the problem, while the increased role of clearinghouses in financial institution failures will force regulators to confront difficult choices. In short, the regulators will have to balance two competing systemic risks: the risk of an unruly resolution of the financial institution, balanced against increased risk to the clearinghouse.

The rise of electronic nicotine delivery systems and the emergence of electronic-cigarette-driven disease

2020 ◽  
Vol 319 (4) ◽  
pp. L585-L595 ◽  
Author(s):  
Kielan Darcy McAlinden ◽  
Mathew Suji Eapen ◽  
Wenying Lu ◽  
Pawan Sharma ◽  
Sukhwinder Singh Sohal
Keyword(s):  
United States ◽  
Cigarette Smoking ◽  
Electronic Cigarettes ◽  
Scientific Evidence ◽  
The United States ◽  
Chronic Obstructive ◽  
Obstructive Pulmonary Disease ◽  
Cellular Processes ◽  
Increased Risk

In 2019, the United States experienced the emergence of the vaping-associated lung injury (VALI) epidemic. Vaping is now known to result in the development and progression of severe lung disease in the young and healthy. Lack of regulation on electronic cigarettes in the United States has resulted in over 2,000 patients and 68 deaths. We examine the clinical representation of VALI and the delve into the scientific evidence of how deadly exposure to electronic cigarettes can be. E-cigarette vapor is shown to affect numerous cellular processes, cellular metabolism, and cause DNA damage (which has implications for cancer). E-cigarette use is associated with a higher risk of developing crippling lung conditions such as chronic obstructive pulmonary disease (COPD), which would develop several years from now, increasing the already existent smoking-related burden. The role of vaping and virus susceptibility is yet to be determined; however, vaping can increase the virulence and inflammatory potential of several lung pathogens and is also linked to an increased risk of pneumonia. As it has emerged for cigarette smoking, great caution should also be given to vaping in relation to SARS-CoV-2 infection and the COVID-19 pandemic. Sadly, e-cigarettes are continually promoted and perceived as a safer alternative to cigarette smoking. E-cigarettes and their modifiable nature are harmful, as the lungs are not designed for the chronic inhalation of e-cigarette vapor. It is of interest that e-cigarettes have been shown to be of no help with smoking cessation. A true danger lies in vaping, which, if ignored, will lead to disastrous future costs.

scholarly journals Effects of Shareholder Groups on the Factoring Institutions Profitability: Evidence from Germany

2015 ◽  
Vol 7 (11) ◽  
pp. 39 ◽  
Author(s):  
Sven Koch
Keyword(s):  
Financial Institutions ◽  
Trade Credit ◽  
Financial Institution ◽  
Growth Potential ◽  
Balance Sheets ◽  
Capital Financing ◽  
Financial Holding ◽  
Administrative Expenses ◽  
Market Consolidation

<p>The significant role of trade credit in financing large companies and small and medium-sized enterprises leads to high stocks of account receivables within the balance sheets of German firms. As a result the importance of working capital financing is growing and the demand for accounts receivables financing (factoring) increases. The German factoring industry is dominated by banks. In addition to bank-owned financial institutions, many non-bank financial institutions are represented on the market. In a context of a continuing market consolidation, it is of interest whether there are differences in terms of profitability depending on shareholder groups (financial institution, non-financial institution, non holding). The German factoring market is an extremely growing market with further growth potential in an ongoing market consolidation. A further market consolidation is probable because the administrative expenses of small financial institutions and institutions without any holding are high. However, subsidiaries of a financial holding or non-financial holding show significantly lower administrative expenses. The results show that the profitability of the financial institutions is significantly influenced by the shareholders and the size of the institution. Financial institutions of a financial holding (bank-owned) are significantly less profitable than institutions without any holding or institutions of a non-financial holding. A similar picture emerges in the achieved margins of factors.</p>

Corporate Rescue and Reorganization

2016 ◽  
Author(s):  
Michael Schillig
Keyword(s):  
Financial Institutions ◽  
Financial Institution ◽  
Investment Bank ◽  
The Past ◽  
The Us ◽  
Lehman Brothers ◽  
Bankruptcy Code ◽  
Corporate Rescue ◽  
Administration Procedure

The jurisdictions under consideration provide a range of options for effectuating corporate rescue or reorganization. Some of these procedures are long-standing and applicable across the board; others are new and financial institution-specific. In England and Wales, administration has been used successfully to restructure financial institutions in the past; the bank administration procedure is new and largely untested, whereas the investment bank special administration regime (SAR) has already been applied in several cases. Germany’s brand-new pre-insolvency procedures apply to credit institutions only, but do not look very promising when it comes to the restructuring of large, systemically important financial institutions. Chapter 11 of the US Bankruptcy Code is regarded as very effective. It was put to the test when Lehman Brothers filed for bankruptcy in the autumn of 2008. Many commentators believe that it has coped well. However, there is always room for improvement and an exciting reform debate is underway.

Implications of the Opioid Crisis for the American Disability Community

2020 ◽  
Vol 34 (4) ◽  
pp. 265-274
Author(s):  
Mykal J. Leslie ◽  
Kathleen Sheppard-Jones ◽  
Malachy L. Bishop
Keyword(s):  
United States ◽  
Rehabilitation Counseling ◽  
The United States ◽  
Opioid Use Disorder ◽  
Opioid Use ◽  
Research Education ◽  
Opioid Crisis ◽  
Increased Risk ◽  
The Relationship

PurposeThe profession of rehabilitation counseling has long been responsive to emerging disabilities. To date, however, the profession's attention and response to the ongoing opioid crisis in the United States has been incommensurate with the scope and detriment of opioids and opioid use disorder (OUD) on Americans with disabilities. The opioid crisis, including the overuse, abuse, and overdose rates associated with prescription and illegal opioids, affects people of all ages and backgrounds. However, people with disabilities are at increased risk for developing OUDs, and they experience greater barriers to OUD treatment than people without disabilities.MethodThis article describes the origins and development of this crisis, the relationship between disability and increased risk for OUD, and the barriers to treatment that exist. We then evaluate the role of rehabilitation counseling, including the need for further action in advocacy, research, education, and policy.Results and ConclusionsThroughout this article, we encourage a more urgent and concerted response than seems to be the case presently.

Regulatory relationships and incentives: from Riggs Bank to HSBC

2017 ◽  
Vol 59 (5) ◽  
pp. 729-739 ◽  
Author(s):  
Patrick John O’Sullivan
Keyword(s):  
United States ◽  
Financial Institutions ◽  
Banking Sector ◽  
Financial Institution ◽  
Academic Research ◽  
Regulatory Relationship ◽  
Content Type ◽  
The Usa ◽  
The One ◽  
The Relationship

Purpose The aim of the paper is to examine what type of relationship existed between the Office of the Comptroller of the Currency (OCC) and Riggs Bank in respect of anti-money laundering (AML) compliance. Different commentators have established certain trends in the interaction between a regulator and a regulated entity, and this paper seeks to apply these findings to the relationship between the OCC and Riggs Bank and ascertain where this example lies in the wider domain of regulatory relationships. The paper then examines whether the relationship between the OCC and HSBC United States was similar to the one between the OCC and Riggs Bank or did the regulator adopt a more aggressive supervisory stance. Throughout this work, there is also a focus on the underlying incentives which may adversely affect how a financial institution interacts with a financial regulator and possible solutions to this problem proposed. Design/methodology/approach Research undertaken by commentators was assessed and their findings as the different regulatory relationships that may develop between a regulator and a regulated entity were applied to the interactions between the OCC and two different financial institutions, namely, Riggs Bank and HSBC United States. Examples from the Senate Subcommittee Reports into the AML failings into these financial institutions were examined through the prism of pre-existing regulatory relationship categories. Findings The paper ultimately concludes that the OCC was far too passive in its interactions with both Riggs Bank and HSBC United States and that the primary underlying motivations for both institutions were profit- rather than compliance-led. Research limitations/implications One of the main limitations to this research was the absence of direct input from either personnel from the banking sector in the USA or of regulators from the same jurisdiction. Practical implications This paper proposes a number of practical solutions to recast the relationship between financial regulators and regulated institutions away from the former deferring to the latter to one where the former dictates to the latter. Originality/value This paper seeks to examine an actual regulatory relationship between a financial regulator and two different institutions that is reported in the public domain by applying pre-existing academic research on question of regulatory relationships and see how the practice differs or corresponds with the theory.

THE ROLE OF FINANCIAL INSTITUTION MARKETIZATION IN CHINA’S INDUSTRIAL CONTESTABILITY

2018 ◽  
Vol 63 (05) ◽  
pp. 1245-1261
Author(s):  
XIAOHUI HOU ◽  
CHENG LI ◽  
QING WANG
Keyword(s):  
Financial Institutions ◽  
Firm Size ◽  
Conditional Distribution ◽  
Positive Impact ◽  
Financial Institution ◽  
Negative Effect ◽  
Size Of Firms ◽  
Average Size ◽  
Number Of Firms

In this paper, we investigate how the marketization of financial institutions affects China’s industrial contestability. Our empirical results show that a higher degree of marketization of financial institutions is significantly associated with both the operation of more firms and the smaller average size of firms. Moreover, the lower and upper quartiles of the conditional distribution of firm size are all significantly negatively associated with the higher marketization degree of financial institutions, whereas increased financial institution competition and market-oriented allocation of credit funds have greater negative effect on the average size of larger firms, relative to smaller firms. In sum, improvements on the degree of marketization of financial institutions lead to an increase in the number of firms and a reduction in the average size of firms in China’s industry. Therefore, the marketization of financial institutions has a significant positive impact on China’s industrial contestability.

Going from Regulation to Supervision: Support for Paradigm Shift from an Efficiency Study of the Merchant Banking Industry In Singapore

2002 ◽  
Vol 05 (01) ◽  
pp. 31-51 ◽  
Author(s):  
Guan Hua Lim
Keyword(s):  
Financial Institutions ◽  
Paradigm Shift ◽  
Banking Industry ◽  
Financial Institution ◽  
Reliable Indicator ◽  
New Paradigm ◽  
Financial Strength ◽  
Cost Efficiencies ◽  
Over Time

Increasingly we are witnessing a paradigm shift from checklist style regulations of financial institutions to one that emphasizes supervision and the role of the marketplace. Advocates of this new paradigm argue that the size and financial strength of a financial institution does not necessarily equate to excellence and efficiency. This paper offers as evidence from an efficiency study of the merchant banking industry in Singapore that such a paradigm shift is appropriate. The findings of the study indicate that the efficiencies of the merchant banks do not appear to change much over time, profit and cost efficiencies are un-correlated, and that size is not a reliable indicator of efficiency.

scholarly journals PERAN ACCOUNT OFFICER DI LEMBAGA KEUANGAN SYARI’AH (Studi Kasus di BMT Citra Mandiri Syari’ah Jepara)

2018 ◽  
Vol 1 (1) ◽  
Author(s):  
Fuad Riyadi ◽  
Sri Wahyuni
Keyword(s):  
Financial Institutions ◽  
Financial Institution ◽  
Research Data ◽  
Long Run ◽  
Financing Problem

<p> Account officer has a very important role. This role will affect the level of profit earned by a financial institution. This is because the handler of transactions that occur between the customer and the Financial Institution is in the hands of the account officer. This study aims to analyze the role of account officer in BMT Citra Mandiri Syariah in Jepara. The research data were collected through interviews with the respondents. The results of this study indicate that the role of account officer especially in BMT Citra Mandiri Syariah Jepara is very important. This role can ultimately affect the level of profit to be gained. This is because the role of account officer who handles transactions between customers with financial institutions, including the process of financing problem settlement. In the long run the role of account officer can affect the level of cutomer loyalty.</p><p>Keywords:role,account officer,loyalty<br /><br /></p>

scholarly journals Investigating the Influence of E-HRM Practices on Organizational Performance: The Mediating Role of Organizational Agility (With Special Reference to Financial Institution)

2021 ◽  
Vol 11 (1) ◽  
pp. 1-8
Author(s):  
A .D .S .Thathsara ◽  
Jayaranjani Sutha
Keyword(s):  
Organizational Performance ◽  
Financial Institutions ◽  
Financial Stability ◽  
Financial Institution ◽  
Pearson Correlation ◽  
Organizational Agility ◽  
Mediating Role ◽  
Hrm Practices ◽  
The Impact

Electronic Human Resource Management (E-HRM) came into existence as a result of the evolution of new technology and it leads to eliminating the administrative burden on HR professionals. Financial institutions are the heart of the financial stability of the economy. Nowadays most financial institutions are widely adopting E-HRM practices in order to achieve sustainable competitive advantage. However, it has been observed that there is a lack of empirical studies regarding this phenomenon in the Sri Lankan context. The main contribution of this study is to enrich the knowledge and investigate the impact of E-HRM practices on organizational performance under the mediation role of organizational agility. Thus, the study focusses on to examine how E-HRM impacts organizational performance, and to determine the mediating role of organizational agility between E-HRM and OP. Questionnaires were distributed by using a convenience sampling method to collect primary data from 40 financial institutions in Sri Lanka. Data analysis was performed using Pearson correlation analysis, regression analysis, descriptive statistics, Baron and Kenny mediator analysis method, and Sobel test. Results of the analysis indicated that E-HRM practices significantly and positively impact organizational performance while organizational agility mediates the relationship between E-HRM practices and OP. Outcomes of this study provided implications like enhancing available literature, to understand the real impact of E-HRM on organizational performance to HR managers. This study also suggests some further research areas for future research.

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