The failure of Wall Street : how and why Wall Street fails--and what can be done about it / Erik Banks.

Format:

Book

Author/Creator:

Banks, Erik.

Language:

English

Subjects (All):

Securities industry--United States.

Securities industry.

Wall Street (New York, N.Y.).

United States.

Securities--United States.

Securities.

Stock exchanges--United States.

Stock exchanges.

Investments--United States.

Investments.

Physical Description:

292 pages ; 25 cm

Edition:

First edition.

Place of Publication:

New York : Palgrave Macmillan, 2004.

Summary:

Wall Street, the World's primary financial marketplace and middleman, is in many ways a success. It raises, brings together, and places capital for companies; creates new and innovative financial products; buys and sells physical and financial assets; and provides investment and financial advice. Its role in global economic growth has been, and remains, unique and vital. In spite of its importance and strengths, however, Wall Street repeatedly fails. At all levels, Wall Street makes serious mistakes in its core areas of expertise -- falling short of its potential when raising capital, giving advice, or managing risk, and demonstrating vulnerabilities when carrying out its fiduciary responsibilities. These failures, which damage both finances and reputations, often affect a broad range of insiders and outsiders: employees and managers, personal and corporate clients, investors, creditors, and regulators. In some cases they destabilize entire sectors and economies. Worse, many of these failures are likely to plague Wall Street for years to come, until there is greater willingness to recognize and resolve the underlying problems.

The Failure of Wall Street analyzes how and why Wall Street fails, and what can be done to rectify the failures. After a short discussion of Wall Street's role in raising capital, granting corporate and personal advice, managing risk, and acting as a trusted fiduciary financial analyst, Erik Banks explores the dramatic failures that have occurred in each of these areas, using case studies and examples to illustrate the nature and extent of the problems. Next, he demonstrates why Wall Street fails in each area of supposed "expertise," focusing on shortcomings in governance, management, skills/controls, and transparency. Finally, Banks proposes a framework for addressing the shortfalls that continue to plague Wall Street. He argues that these solutions, while not necessarily quick, easy, or cheap to implement, can help make Wall Street become the sound, consistent, and efficient financial expert it is meant to be.

Contents:

Part I How Wall Street Fails

Chapter 1 Wall Street and Its Role 3

Chapter 2 When the Intended Role Fails 17

Chapter 3 Problems Raising Capital 29

Chapter 4 Bad Corporate Advice 51

Chapter 5 Bad Personal Financial Advice 87

Chapter 6 Breaching Trust 111

Chapter 7 Bad Risk Management 165

Part II Why Wall Street Fails

Chapter 8 Internal Breakdown 203

Chapter 9 External Weakness 229

Part III Overcoming Failure

Chapter 10 Getting the House in Order 247

Chapter 11 Shoring Up the Defenses 265.

Notes:

Includes bibliographical references (pages [285]-287) and index.

ISBN:

1403964025

OCLC:

54686156