In this section, we will discuss about “Bank Run” or “Run on a Bank” which is an important topic related to Banking Industry. Looking back in most recent case, when famous Investment bank Lehman Brothers filed bankruptcy in September 2008, ICICI Bank UK Plc held exposure of 57 million Euros in the Senior Bonds of […]Continue Reading... Comments Off on Bank Run (Run on a Bank)
A bridge loan (also known as “Swing loan” or “Caveat loan”) mortgage is an interest only loan, secured on your current property, to allow the proceeds to be used for buying new property, before selling the existing property. A bridge loan is. It is a short-term loan typically taken out for a timeframe of 1 […]Continue Reading... Comments Off on Bridge Loan
Leveraged Buyout (LBO) is a term which is used to indicate the leverage or loan taken to buy out a company by the current management or employees or any other private equity firm. The key idea is to fund the cost of acquisition mainly by taking loans from other financial institutions rather than using own […]Continue Reading... Comments Off on Leveraged Buyout (LBO)
Nowadays we heard a lot about Bitcoin currency which was recently banned by the Reserve Bank of India. This is a peer-to-peer payment system network and digital currency which was not used throughout the world and not regulated by any Central Bank. As it is used across all the countries in the same form, it […]Continue Reading... Comments Off on What is Bitcoin
Long term effect and recession After incurring huge losses in the sub prime mortgage lending section, Government has bailed out AIG and the bigUSbanks with the tax payer’s money. Merrill Lynch was sold to Bank of America at throw away price of USD 50 million and Lehman Brothers’ collapse wiping out whopping USD 700 billion […]Continue Reading... No Comments.