– How passing on risk without client permission increases insolvency risk -. Alternative to expensive supplier credit The retail trade often makes use of so-called supplier credit, i.e. agrees a payment term, and has then sometimes long since sold on the goods purchased by the time the actual payment is made. The supplier can […]
Three people are affected by ratings or analyses – the person being assessed (e.g. an initiator) with the subject of the rating (e.g. the current account), the assessor (the rating agency) and the readers/users of the rating or analysis. A subset are rankings in which, as a rule, only one criterion is examined at a […]
A variety of insurance products that is difficult for consumers to understand encourages them to make a choice only after consulting a market observer. However, the involvement of experts in investment decisions raises the question of responsibility for their actions. What possibilities of recourse to liability have those seeking advice or otherwise turned to, what […]
When maybe only 100,000 euros are secured and the rest becomes a restructuring profit for the bank…. The Financial Market Authority cannot prevent the insolvency of credit institutions, securities trading houses or insurance companies. For securities trading companies, the maximum compensation obligation is 90% of up to EUR 20,000. In the past, there was […]
Or rating liability when applying the capital commitment method? In our analysis of the internal rate of return (IRR) method, we found that the central IRR rate is determined using the discounting method. Here, one looks for the interest rate that makes the balance of the discounted return flows (usually the return flows are positive) […]
In our analysis of the internal rate of return (IRR) method, we found that the central IRR rate is determined using the discounting method. Here, one looks for the interest rate that makes the balance of the discounted return flows (usually the return flows are positive) with the IRR investment expenditure (usually equity and […]
Returns are of central importance in the professional life of a banker. Other financial service providers, such as pension funds, financial and investment advisors and credit intermediaries are also affected. The circle of affected professions also includes the rating agency and many a tax consultant/auditor (StB/WP) who is active in connection with Basel II. Often […]
– A “simultaneous” activity as agent and insurance broker is no longer permitted by law since 22.05.2007 -. In the case of a valve solution in insurance distribution, a credit institution acts as (multiple) agent as agreed with one or more insurers. If the customer’s needs cannot be met through this (these) product provider(s), […]
Three persons are affected by ratings: the party to be rated (e.g. an initiator) with the rating subject (e.g. the performance record), the assessor (the rating agency) and the readers/users of the rating. The resulting question of the rating agency’s liability is clarified by Johannes Fiala, lawyer (Munich), M.B.A. (Univ. Wales), M.M. (Univ.), certified financial […]
Liability of the Bank for the disclosure of incorrect information Two examples: A company is seeking cooperation with a corporate group: The buyer obtains information about the company, and also about all the shareholders personally. In the end, the company can’t even explain why it didn’t win the bid. An investor discovers that his bank […]
