The "better" the asset is perceived by management, the less capital relative to a stressful outcome that company has.
American Express. NYSE: AXP.
Ok, name TWO companies that have had that "mindset"?
Hint: Their names both begin with an F.
Three rings for the elves.
Five rings for the dwarves.
Nine rings to rule the men.
Well, let's cut to the chase. I have reason to believe that the "men" are FHLB governors and all of them are meeting with Bernanke asking him to guarantee $1.5T of FHLB advances/papers etc. See what happens to you Ben when you started handing out "rings"?
The right enemy
11 months ago