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Q&A: Recent Bank Failures Do Not Mean It’s 2008 All Over Again

UVA Darden

The federal takeover has fueled fear among some that the failures are precursors to something akin to the Great Recession, when 450 banks failed between 2008 and 2012. Smith: The Silicon Valley Bank, or SVB, invested heavily in relatively “safe” assets, in that the investments had little or no likelihood of default.

Banking 52
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Q&A: Recent Bank Failures Do Not Mean It’s 2008 All Over Again

UVA Darden

The federal takeover has fueled fear among some that the failures are precursors to something akin to the Great Recession, when 450 banks failed between 2008 and 2012. Smith: The Silicon Valley Bank, or SVB, invested heavily in relatively “safe” assets, in that the investments had little or no likelihood of default.

Banking 45
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Spain Is Now Making Ireland's Mistakes

Harvard Business Review

Just like Ireland, Spain had a credit boom financed mostly with external debt, which meant that the balance sheets of their banks are now stuffed with bad debts as asset values collapse. And yet in the run up to the collapse in 2007, the combined asset footprint of the three main Irish banks was around 400 percent of GDP.

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Old Management Systems Stifle New Business Models

Harvard Business Review

The Challenge of Investing in Digital Assets. That fact becomes apparent when you juxtapose the balance sheet of a company like Microsoft with the balance sheet of a company like Siemens. Unlike their industrial peers, managers of asset-light businesses focus little on the balance sheet.

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The Problem with the Profit Motive in Finance

Harvard Business Review

has a new "white paper" out with the rah rah title, " Financial Services: Safer & Stronger in 2012." Banks have developed fortress balance sheets, improving credit quality by 54 percent, increasing net income and, restoring aggregate lending to pre-crisis levels of nearly $7 trillion. . • The largest U.S. The largest U.S.

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What the Companies That Predict the Future Do Differently

Harvard Business Review

No wonder, then, that executives have placed predictive analytics at the top of the executive agenda since 2012, according to a recent Accenture survey. Financially, organizations require new models to account for information assets beyond treating them as intangibles. The future is already here, it’s just unevenly distributed.”

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Midsize Cities Are Entrepreneurship’s Real Test

Harvard Business Review

Located in the heart of Colombia’s coffee region, in 2012 Manizales was a good place to grow up and get an education, and an even better place to retire, safe and surrounded by beautiful scenery. We believe that it is not the age of the asset that is important, but rather, the value infused into that asset that drives scale.

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