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Index
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- Additional Information
143 Index ABCP. See Asset-backed commercial paper Accounting: accounting standards, 68; fair value accounting, 59, 106–07; international reporting standards, 65–66; off-balance-sheet entities, 68 After the Credit Crash: The Future of Finance (conference; 2009), vii, 1–2 AIG, 2, 70, 127 AlphaClone, 100 Arbitrage: convertible arbitrage, 94, 95; fixed-income arbitrage, 88, 95; merger arbitrage, 94, 99; regulatory arbitrage, 4, 64, 65–66, 78 Asia, 67 Asset-backed commercial paper (ABCP), 56 Assets: asset levels, 106; bank trading-book holdings, 64–65; fair-market accounting and, 59; fair value of, 106; long-term assets, 16, 25, 56, 60, 66; marking to market of, 106; price effects and margin spirals, 58–59; risk-weighted assets, 65; strategic asset allocation, 104; value of, 57. See also Banks and banking; Hedge funds; Statement of Financial Accounting Standards Auction settlement, 72 Bank of America, 2, 4, 40, 42, 127 Bank of China, 78 Banks and banking: assets of, 55–56, 57, 58, 59, 64, 65, 66; bailouts and, 12; bank branches, 21, 26, 47, 48; bank failures, 49; bank holding companies, 4, 27; banking crisis of 1930s, 14; borrowing by, 57, 66; business models of, 14–15, 27, 28, 47–48, 49, 79; capital levels and, 30, 32, 43, 44, 47, 54–61; cash, checks, and debit cards, 21, 22, 23, 31; CEO compensation in, 120–25; changing environment for U.S. commercial banking, 29–51; competition, 32–33; cost efficiency and cost control, 47–49; definition of, 120; deposits, 18, 20–21, 26–27, 33, 44–47, 66–67; deterioration of performance of, 2–3, 11; in emerging market economies, 67; equity levels, 15; financial crisis of 2004–09, 24–27, 28, 54, 56, 61–62; funding of bank positions, 56, 66; future scenarios of, 3, 11, 12–13, 28–51; “gap” investments and earnings, 18, 24, 42; golden era of (1993–2003), 2, 11, 12, 16–24, 30, 42, 45, 48; growth rates of, 26–27; historical 06-0404-1 bm.indd 143 7/12/10 6:09 PM 144 index performance of, 13–27; human capital in, 49–50; institutional positioning of, 39–42; investment banks and banking, 3–4; management execution by, 42–51; mergers and acquisitions, 21, 22, 49; purchase of Treasuries, 30; recession of 1981 and, 15; regulation of, 12, 13, 15, 18, 21, 28, 30–32, 33, 35, 37, 40; regulatory arbitrage by, 64; revenues of, 13, 15, 19, 40, 41; risks of, 42–44; S&Ls/ thrifts (savings and loan banks), 16, 17, 27, 28, 49; shadow banking sector, 12, 27, 30, 32; targeted asset growth, 43–44; value at risk, 62–64. See also Economic issues; Loans and lending; Nonbanks; Securities and securitization; individual banks by name Banks and banking—fees: commercial banking revenues and, 13, 25–26, 40; deposit fees, 23–24, 30–31, 33, 42; financial crisis and, 11–12; free checking and, 21; during the golden era, 18, 19, 23; penalty fees, 23–24; role in banking industry business model, 14–15, 16; transaction account fees, 45 Banks and banking—profitability: analysis of scenarios, 33–37, 38–39; during the financial crisis, 2004–09, 27; future profitability, 28; during the golden era 1993–2003, 16–18; during the period 1980–92, 15–16; range of industry profitability, 13; rate-sensitive funding and, 42; regulation and, 12, 30, 32; service charges/fees on deposit accounts and, 23–24 Banks and banking—recommendations for: compensation and human capital, 50; cost controls, 49; country-specific leverage, capital requirements, 4; general description of, 4, 78; higher capital charges, 4; higher capital standards, 4, 60–61; innovation, 50–51; leverage quality, 66–67; limitation of kinds of assets, 4; management of deposits business, 46–47; mergers and acquisitions, 49; risk management, 4, 42, 62–64; targeted asset growth, 44; tradingbook assets, 64 Barclays (Lehman) aggregate bond index, 88 Basel I, 61 Basel II: capital framework, 4; in China, 78–79; framework for market risk, 61–62; regulatory arbitrage and, 65; Basel III funding rules, 32, 46 Basel Accord of 1988, 61 Basel Committee on Banking Supervision (BCBS), 61, 62, 64, 78, 79 Bear markets, 91–92 Bear Sterns, 3–4, 24, 106 Bond indexes, 95 Bond markets, 54–55, 92. See also Treasury, Department of the Brazil, 79 Broadmarket Prime, 108–09. See also Madoff, Bernard Brokers, 58 Brookings Institution, vii–viii, 2 Bull markets, 90–91, 92 BXM index, 94 Capital: asset prices and, 58; capital adequacy rules, 65–66, 77; capital markets, 67...