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My guess is that while a poor balancesheet might cause restless sleep, it’s the thought of an incorrectly reported balancesheet that brings on night terrors. I’m not against benchmarking and norming. While benchmarks are useful inputs for compensation decisions, they shouldn’t be a straitjacket.
In the previous article , we looked at how banks make money and how they must meet capital requirements. However, P/B has generally become a measure that is less useful than it was in the past since banks’ balancesheets are not as important as they used to be in determining earnings power. We will examine each in turn.
Rates continued to surge on Monday, however, in China’s money markets — a key source of short-term funding for commercial banks and also for financial institutions engaged in risky, off-balance-sheet shadow lending. China’s banks are scrambling for short-term cash to meet month-, quarter- and year-end regulatory requirements.
By 2025, smart workflows and seamless interactions among humans and machines will be as standard as the corporate balancesheet, and most employees will use data to optimize nearly every aspect of their work, predicts McKinsey & Company.
Had I suggested in 2007 that the Fed balancesheet expansion of $75 billion a month would have been considered "tightening" people would have thought I was nuts. For example, Meet "Baxter" the Robot Out to Get Your Minimum-Wage, No Benefits, Part-Time Job. At long last, the Fed has finally started to taper. Here we are.
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