Abu Yahya's definitions
(FINANCE) a company that exists for the sole purpose of owning a controlling interest in the several branches of a bank.
Owing to the interplay of US federal and state banking laws, it is often necessary for a bank to incorporate itself as a separate and distinct company in different states, or for different business functions (e.g., capital management, underwriting/investment banking, savings banking, etc.).
One of the exasperating benefits that bank holding companies get is a further limitation of liability. Often, the structure of the bank holding company is such that one of the firms owned (like Washington Mutual Bank, Inc.) can be insolvent, without resulting in the liquidation of the holding company.
Owing to the interplay of US federal and state banking laws, it is often necessary for a bank to incorporate itself as a separate and distinct company in different states, or for different business functions (e.g., capital management, underwriting/investment banking, savings banking, etc.).
One of the exasperating benefits that bank holding companies get is a further limitation of liability. Often, the structure of the bank holding company is such that one of the firms owned (like Washington Mutual Bank, Inc.) can be insolvent, without resulting in the liquidation of the holding company.
Practically every financial intermediary in the USA is now owned by a bank holding company. They're totally insidious!
by Abu Yahya May 5, 2010
Get the bank holding companymug. phenomenon in which greater input of effort, money, etc. yields smaller results. Crucial part of the idea is that if you're using x to get y results (where y is the thing you want). then additional input a will yield additional results b, but not in the same proportion as before.
On average, before, you put in x to get y, so your yield was y/x. But if you increase x by amount a, then your results will be y + b, where
(y + b)/(x + a) < y/x
and this will only get worse.
Diminishing marginal returns (DMR) is used to explain why the supply curve in economics slopes upward, i.e., increasing the quantity supplied requires an increased price of most things.
Sometimes DMR is more than offset by "economies of scale," which allows more of a thing to be supplied more cheaply than a small amount.
On average, before, you put in x to get y, so your yield was y/x. But if you increase x by amount a, then your results will be y + b, where
(y + b)/(x + a) < y/x
and this will only get worse.
Diminishing marginal returns (DMR) is used to explain why the supply curve in economics slopes upward, i.e., increasing the quantity supplied requires an increased price of most things.
Sometimes DMR is more than offset by "economies of scale," which allows more of a thing to be supplied more cheaply than a small amount.
At first his flowers and treats swept her off her feet, but then he had to do more and more lavish things to please her. It was a classic case of diminishing marginal returns.
by Abu Yahya June 3, 2009
Get the diminishing marginal returnsmug. a type of shantytown whose buildings are made with mud brick, mortar, or found materials.
Prior to the 1950's, a "hutment" could mean any sort of temporary barracks.
Prior to the 1950's, a "hutment" could mean any sort of temporary barracks.
These hutment colonies consist of hovels made of a variety of hard and soft materials like pieces of wood, rags, tin sheets, mud, bricks and any such thing that comes in handy.
Pushpa Agnihotri, *Poverty amidst prosperity: survey of slums* (1994), p.44
Pushpa Agnihotri, *Poverty amidst prosperity: survey of slums* (1994), p.44
by Abu Yahya April 10, 2010
Get the hutmentmug. the net purchase of financial assets in a country by foreigners. Put another way, the capital account balance is the net influx of money from overseas investors. It includes net purchases of domestic financial assets by foreigners minus net purchases of foreign financial assets by domestic citizens.
The capital account balance over short periods of time (e.g., a fortnight) is extremely volatile; over a period of a year, however, it usually offsets the current account balance. For example, in all years since 1980, the USA has run a large-to-huge current account deficit, but in most years it has run a capital account surplus that is almost as big as the current account deficit.
The capital account balance over short periods of time (e.g., a fortnight) is extremely volatile; over a period of a year, however, it usually offsets the current account balance. For example, in all years since 1980, the USA has run a large-to-huge current account deficit, but in most years it has run a capital account surplus that is almost as big as the current account deficit.
The capital account balance often permits a huge trade deficit to persist over several decades without a significant fall in the exchange rate of a nation's currency.
by Abu Yahya February 14, 2009
Get the capital account balancemug. (US GOVERNMENT) one of two governing boards of the US Federal Reserve System (the Usonian Central Bank). The FRB consists of seven governors appointed by the White House to staggered terms of 14 years.
Governor appointments are subject to Senate confirmation.
The FRB sets monetary policy. Its seven members also serve on the other governing board of the Fed, the FOMC. However, the FRB has sole responsibility for discount rates and reserve requirements, and it is also responsible for enforcement of banking regulation.
Governor appointments are subject to Senate confirmation.
The FRB sets monetary policy. Its seven members also serve on the other governing board of the Fed, the FOMC. However, the FRB has sole responsibility for discount rates and reserve requirements, and it is also responsible for enforcement of banking regulation.
Despite the fact that the Chairman of the Federal Reserve Board has the same power as the other six governors, most people have only heard of Alan Greenspan (1987-2006) or Ben Bernanke (2006-present). About the same time, Susan M. Phillips (1991-1998) held approximately equal power on the Board; so did Roger W. Ferguson, Jr. (1997-2006).
Because governors almost never serve their full terms, there are currently only five governors on the board. The two longest-serving members, Bernanke and Vice Chair Donald Kohn, have only been there since August 2002.
Because governors almost never serve their full terms, there are currently only five governors on the board. The two longest-serving members, Bernanke and Vice Chair Donald Kohn, have only been there since August 2002.
by Abu Yahya June 17, 2010
Get the Federal Reserve Boardmug. (US ECONOMY) One of the 12 district Federal Reserve Banks. Based in New York (2nd FR district). Along with members of the Federal Reserve Board, enjoys a permanent seat on the FOMC (other district banks only get to rotate).
Main job is to regulate banks and administer monetary policy through open market operations. Former New York Fed president Tim Geithner is now Secretary of the US Treasury Department (as of early 2009).
Main job is to regulate banks and administer monetary policy through open market operations. Former New York Fed president Tim Geithner is now Secretary of the US Treasury Department (as of early 2009).
Prior to 1928, the President of the Federal Reserve Bank of New York was the de facto leader of the entire system. This was because of the powerful personality and connections of Benjamin Strong, a former J.P. Morgan partner.
by Abu Yahya September 10, 2010
Get the Federal Reserve Bank of New Yorkmug. (FINANCE) the widely-held belief by most traders or speculators that Federal Reserve Chairman Alan Greenspan (s.1987 to 2006) would use monetary policy to ensure that asset prices would not fall below a certain level.
A "put" here refers to the put option, a financial derivative that allows the owner the guaranteed right to sell a fixed amount of the underlying asset for a fixed strike price. A person who has a put for the assets she owns therefore is immune from the risk of those assets falling below a particular floor.
In the case of the Greenspan put, it was widely observed that Greenspan intervened in order to protect gains in asset values; this tended to guarantee that purchases of financial assets during Greenspan's tenure were very unlikely to be mistakes. This, of course, created conditions of moral hazard in the asset markets. particularly in financial stocks and in housing prices.
A "put" here refers to the put option, a financial derivative that allows the owner the guaranteed right to sell a fixed amount of the underlying asset for a fixed strike price. A person who has a put for the assets she owns therefore is immune from the risk of those assets falling below a particular floor.
In the case of the Greenspan put, it was widely observed that Greenspan intervened in order to protect gains in asset values; this tended to guarantee that purchases of financial assets during Greenspan's tenure were very unlikely to be mistakes. This, of course, created conditions of moral hazard in the asset markets. particularly in financial stocks and in housing prices.
The outcome of that (October 1994) rate cut turned out to be far worse, as the committee's actions came to be viewed as the Greenspan Put, meaning speculators could take enormous amounts of risk trusting that Greenspan would do anything to stop the market from a serious decline.
William A. Fleckenstein & Frederick Sheehan, *Greenspan's bubbles* (2008), p.61
William A. Fleckenstein & Frederick Sheehan, *Greenspan's bubbles* (2008), p.61
by Abu Yahya April 15, 2010
Get the Greenspan putmug.