Industries
Financial Services
It is a fiscal tsunami. The unprecedented disruptions, write-downs, consolidation, and regulatory intervention will forever change the way banks, insurance companies and other firms in the financial sector operate.
Working Within New Regulations and High Expecations
Gone are the days of deregulation and minimal governmental interference. With the passing of the Emergency Economic Stabilization Act (EESA) and the Troubled Assets Relief Program (TARP) greater federal regulatory involvement is a reality. Enter the executive salary cap and government's vested interest. Banks, financial service firms and insurers will need to maintain the systems and processes, policies, controls and discipline to maintain sufficient capital requirements and to satisfy federal regulators, and shareholders.
Managing Troubled Investments
The continuing economic crisis is putting significant pressure on the values of loans from all sectors of the economy. Default management skills are no longer a nice-to-have. Assets must be managed tightly and the need for good asset management is crucial. Government intervention in asset management will also drive the sector to adopt new practices to better manage risks related to restricted credit markets.
Managing Risk in Volatile Credit Markets
Enterprises are cutting spending, cutting costs and trimming operations. However, investment in managing risk through improved process controls and utilization of technology can not be jeopardized. Identifying good hedging strategies and monitoring them, careful focus on projections for any ventures or merger opportunities are important. The challenge today is that it is no longer so easy to decide what is safe and what is risky. Assumptions as to stability of large institutions have dissolved as some of the so-called are no longer with us or have been forced to survive via the TARP program.
Industry Consolidation
Consolidation is likely to increase. For many the market will present opportunities to pick up inexpensive assets, to reduce operating costs, to lower risks and to diversify offerings. Acquisitions will require quick and efficient consolidation of operations in order to capture value and minimize long term costs. Consolidation will also have a big impact on accounting and reporting as impairment and valuation issues become more complex.
How Can MorganFranklin Help?
MorganFranklin has experience advising a variety of financial service clients. Our breadth of experience ranges from aiding in mergers and acquisitions; developing world-class security technology; advising global clients on process and control improvements; as well as managing risk and dealing with current accounting issues as to fair value measurement, impairment and streamlined financial reporting. We have the experience to help you overcome some of today's biggest challenges and capture unique opportunities created by a challenging new environment.Explore our capabilities
