Community
On 5th March 1995 Dutch banking and insurance group ING bought Barings for £1 and assumed liabilities of over $600m.
According to some McKinsey research presented by Mark Lawrence at a PRMIA event I attended in London on 18th December 2006, based on a sample of more than 350 operational loss events, normalized for industry performance, the decline in market capitalisation that can be expected after an actual loss is 12x the actual loss after 120 days.
This would mean that in about 4 months SocGen's market cap, currently c. €32.641bn, will have declined by 12x €4.9bn, or €58.8bn - which, oh dear, isn't possible.
So, in the meantime, anyone got €1 to spare?
This content is provided by an external author without editing by Finextra. It expresses the views and opinions of the author.
Bo Harald Chairman/Founding member, board member at Trust Infra for Real Time Economy Prgrm & MyData,
24 October
Muhammad Qasim Senior Software Developer at PSPC
22 October
Mete Feridun Chair at EMU Centre for Financial Regulation and Risk
John Reese Business Analyst | Platform Growth Expert at Hashcodex
Welcome to Finextra. We use cookies to help us to deliver our services. You may change your preferences at our Cookie Centre.
Please read our Privacy Policy.