…dicing and recombining risk. This “cure” is another one of these rearrangements: somehow, by stripping out the bad assets from the banks and paying fair market value for them, the…

The Cactus Bail-Out Plan: Cheaper, Better, Faster One of the goals of Paulson’s Bad Joke seems to be to deal with “counterparty risk.” That is, if Bank A can’t find…

…of the banks runs and financial crises that we are now seeing in the cases of Bear Stearns, Lehman and Fannie and Freddie. Since government bailouts put at risk public…

…As the quote above notes the government assumes all the risk in cost plus, but the contractors do not get much profit since for the contractor there is no risk….

…their total risk-based capital, a red flag to regulators, although it doesn’t mean the bank is in danger of failing. Risk-based capital is a cushion that banks can dig into…

…and unnecessary risks and ultimately cost growth and schedule delays. At the same time, frequent turnover of program managers and an increased reliance on contractors increases the government’s risk of…

…costs in that deal, but no more. Nineteen Massachusetts municipal governments and public agencies will recover more than $35 million from UBS in the settlement over risky investments that turned…

…at considerable risk of needing help in avoiding default, but the help is going to come, just going to, so that the risk of actual default is too low to…

…Chairman Alan Greenspan, a couple of years ago he called credit default swaps “probably the most important instrument in finance,” because they were supposed to spread risk around and stabilize…

…funds at risk of breaching the $1 NAV requirement. What this article tells us, in effect, is that investors weren’t completely nuts to have dumped money market funds for Treasuries…