Links for Business Law

Links for Business Law - B usiness Law Notes for Midterm F...

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Business Law – Notes for Midterm Financial Meltdown from a Legal/Regulatory Perspective http://www.nytimes.com/2009/01/04/magazine/04risk-t.html?pagewanted=9 Made popular in the early 90’s the use of a risk analysis formula was developed and used by most major Wall Street firms called Value at Risk formula (VaR). This formula took just about any portfolio and calculated the risk in the form of a dollar amount. One major flaw of this calculation is that it didn’t measure liquidity risk. It was because of risk calculations made by such formulas that lead large firms such as Bear Sterns and Morgan Stanley into the depth of the recent financial meltdown. In the late 90’s the Securities and Exchange Commission made it an obligation to include a quantitative figure for their market risk in their financial statements for the convenience of their investors, therefore making the VaR even more popular. Even further, the Basel Committee on Banking Supervision (an important international regulation-making body) even allowed firms and
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This note was uploaded on 03/07/2010 for the course FIN 3403 taught by Professor Keys during the Spring '10 term at Florida Southern College.

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Links for Business Law - B usiness Law Notes for Midterm F...

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