Open Daily: 10am - 10pm | Alley door pickup 10am - 7pm 3038 Hennepin Ave Minneapolis, MN
612-822-4611

  • Open Daily: 10am - 10pm
    Alley-side Pickup: 10am - 7pm

    3038 Hennepin Ave Minneapolis, MN
    612-822-4611

Open Daily: 10am - 10pm | Alley-side Pickup: 10am - 7pm
3038 Hennepin Ave Minneapolis, MN
612-822-4611
International Finance Discussion Papers: The Management of Financial Risks at German Nonfinancial Firms: The Case of Metallgesellschaft

International Finance Discussion Papers: The Management of Financial Risks at German Nonfinancial Firms: The Case of Metallgesellschaft

Frankel, Allen B.
Palmer, David E.
United States Federal Reserve Board

Paperback

General Political Science

ISBN10: 1288734239
ISBN13: 9781288734238
Publisher: Bibliogov
Published: Feb 8 2013
Pages: 48
Weight: 0.23
Height: 0.10 Width: 7.44 Depth: 9.69
Language: English
In late 1993 and early 1994, the wholly-owned U.S. subsidiary of a German conglomerate experienced substantial losses in connection with the implementation of a petroleum marketing strategy, triggering an emergency recapitalization of the German parent company. The rescue was overseen by the firm's supervisory board, which was chaired by a member of the senior management of the largest German bank. This paper draws on a special auditor's report that examined the near-bankruptcy of the firm, as well as other sources. We develop a case study which finds that the German bank was not well informed as to the formulation and execution of the client firm's risk management strategy that was to be implemented through the large-scale use of financial derivatives. The analysis in the paper raises questions as to whether private information is transmitted efficiently within the bank-based German system of corporate governance.

23 different editions

Also available

Also in

General Political Science

View All