Commercial Lending Review articles from May 2002

Commercial Lending Review archives from May 2002

Accounting upheaval demands a skeptic's mindset.(Brief Article)(Column)
May 1, 2002... "There's no such thing as a dumb question." Your mother said it. Your father said it. All your schoolteachers said it. And now, credit experts are saying it. In the wake of high-profile bankruptcy filings, many experts are stressing a...

Single-purpose entities in bankruptcy: strategies for lenders.
May 1, 2002... Single-purpose entities (SPEs) roared into the headlines in the aftermath of the Enron collapse as tools used by managers to conceal financial information from investors. Despite the new tarnish on their reputation, however, there is nothing...

The apparent failure of credit methods in the Enron case.
May 1, 2002... While Enron's employees and investors have received much of the media attention, a number of large banks were also losers in the collapse of the seventh-largest US corporation in fall 2001. The American Banker estimated exposure in loans in the...

SFAS No. 142's effect on 2002 earnings.(Statement of Financial Accounting Standards)
May 1, 2002... If Dominion Resources Inc., an energy provider based in Richmond, VA, exactly repeats its fiscal year 2000 operation results in fiscal year 2002, its accounting earnings could look much better. At this writing in early March 2002, the actual...

Moving wholesale lockbox to electronic payments: evolution or revolution?
May 1, 2002... The paper-based lockbox is cumbersome and prone to error but is the standard of the industry. However, wholesale lockbox processing is slowly evolving from customized, paper-based, and labor-intensive systems to electronic processing. At...

A practitioner's view of current default risk models.
May 1, 2002... In the lending and investment worlds, competitive, legal, and regulatory (1) pressures are continuously demanding more sophisticated and integrated decision-making approaches to managing credit risk. Quantitative credit-risk models that can...

Twenty-five red flags of troubled borrowers. (Credit Quality).
May 1, 2002... If there is one unwavering fact of life in commercial lending it is that there will always be troubled accounts. The recent economic recession, combined with the dot-com collapse and the terrorist acts of September 11, has produced a business...

Lender strategies in bankruptcy asset sales. (Legal Remedies).
May 1, 2002... Commercial lenders often are inclined to think of the bankruptcy process as an unfriendly, alien legal system. This article discusses strategies for commercial lenders to use in order to maximize recovery of collateral value, with particular...