Corporate Accountability: With Case Studies in Pension Funds and in the Banking Industry

Cover......Page 1
Contents......Page 6
Preface......Page 10
Part One. Corporate Governance and its Responsibilities......Page 14
1. Introduction......Page 16
2. Corporate governance and its challenges......Page 18
3. Taking a leadership position......Page 21
4. Corporate governance and business risk......Page 24
5. Targeting a high grade by rating agencies......Page 28
6. Risk-based pricing as senior management tool......Page 31
1. Introduction......Page 36
2. The global sense of financial markets......Page 39
3. Distortions in financial markets......Page 42
4. Leveraging, derivatives risks, and Warren Buffett\'s opinion......Page 44
5. Regulatory action for better corporate governance: Basle II......Page 48
6. Is diversification a fact or an illusion?......Page 51
7. Dangerous bank-to-bank trades are no sign of good governance......Page 54
1. Introduction......Page 59
2. Accountability for the safety net. A case study in the auto industry......Page 62
3. Pension plan blues and the impact on households......Page 65
4. Privately funded pensions have been damaged by the scandals......Page 68
5. State and private pensions in Britain......Page 71
6. State and private pensions in the United States......Page 75
7. UBS advises that \'pension funds should not invest in equities\'......Page 77
8. The many aspects of mismanagement of pensions......Page 80
9. Legal action against pension fund managers......Page 83
1. Introduction......Page 86
2. Corporate governance and internal control......Page 87
3. Establishing a sound internal control environment......Page 91
4. Accountability of independent directors......Page 94
5. Responsibilities of the board go beyond solvency and liquidity......Page 98
6. Mizuho: woes of the world\'s largest bank......Page 101
7. Resona and the oracle of deferred tax assets (DTAs)......Page 104
1. Introduction......Page 108
2. Scams: from Banco InterContinental to IPOs of the dot-coms......Page 110
3. The Alpha Plus Fund in the UK......Page 112
4. Gambling with gold derivatives and the carry trade......Page 114
5. The Bre-X gold scam......Page 117
6. Copper bloodbath of Sumitomo Corporation......Page 119
7. Searching for a scapegoat for the copper scandal......Page 122
8. Diffused watchdog responsibilities at metals exchanges......Page 125
Part Two. Case Studies on Corporate Governance in the Finance Industry......Page 130
1. Introduction......Page 132
2. Lender of last resort and salvage of bankrupt entities......Page 134
3. Bank default and deposit insurance......Page 137
4. Protection from creditors under Chapter 11......Page 141
5. US-style personal bankruptcy and credit risk......Page 144
6. Legislators, regulators, depositors, bondholders and shareholders......Page 146
7. The law of unexpected consequences applies to both engineering and banking......Page 149
1. Introduction......Page 152
2. New laws do not change human nature......Page 153
3. Frauds which can kill the goose that lays the golden eggs......Page 156
4. Penalty and disgorgement hitting ten Wall Street banks......Page 160
5. Is there a massive litigation pending on Wall Street?......Page 164
6. Challenges faced by JP Morgan Chase and other big banks......Page 166
7. Corporate governance and payouts at NYSE......Page 169
1. Introduction......Page 171
2. Appreciating household debt and its consequences......Page 172
3. Freddie Mac and Fannie Mae......Page 176
4. Financial troubles don\'t go away by denying them......Page 179
5. Government-sponsored entities need rigorous supervision......Page 181
6. Who might be the lender of last resort?......Page 184
1. Introduction......Page 189
2. High leveraging led to collapse of the Japanese economy......Page 191
3. A bird\'s-eye view of the status of Japanese banks in 2003......Page 194
4. The Bank of Japan takes inordinate risks......Page 197
5. Assets on paper are not the same as those in real life......Page 199
6. Changed fortunes of Nomura Securities......Page 201
7. A lesson on good governance: rise, fall and rebirth of the Long-Term Credit Bank of Japan......Page 204
8. Why a system run on leverage and \'faith\' cannot last......Page 208
9. All nations must learn a lesson from Japan\'s chronically ailing economy......Page 211
1. Introduction......Page 215
2. Violations of corporate accountability don\'t stay secret......Page 216
3. Poor governance at German state banks could lead to \'German premium\'......Page 220
4. The crisis of German commercial banks is just as deep......Page 224
5. Bringing Crédit Suisse all the way to the abyss......Page 227
6. Change in management is important, but it takes time to turn around a big company......Page 232
7. Runaway compensation and trading tricks can kill a firm......Page 234
8. Beware of mismanagement; it can become endemic......Page 237
Appendix......Page 242
Notes......Page 244
C......Page 249
F......Page 250
M......Page 251
S......Page 252
Z......Page 253