Cheap money, an uncontrollable appetite for multi-leveraged, risky debt -- both corporate and mortgage-related -- hedge funds built around exotic financial instruments and financial institutions that eschewed reliable credit standards in a seemingly unquenchable thirst for growth are the elements that have worked in concert to create a level of credit market turmoil not seen since the Great Depression. Even more remarkable is how some of the most respected names in banking and finance fell prey to poor credit judgement. CreditPulse will take a closer look at some of the fundamental mistakes that created this crisis and how they can be avoided in the future.
How Important is Credit Management? Ask These Guys.
Revised Oct. 28, 2008
Stanley O'Neal former CEO of Merrill Lynch, James Cayne former CEO of Bear Stearns and Charles Prince former CEO of Citigroup all lost their jobs within a two and a half month period between October 30, 2007 and January 8, 2008 as the result of overwhelming losses suffered by their respective firms, basically, due to poor credit decisions. Since their departures, Merrill Lynch has been taken over by Bank of America, Bear Stearns by JP Morgan Chase and Citigroup, though still independent, continues to struggle with write-offs and liquidity shortages.
