The rules that affect financial management are evolving and maturing, providing a substantial amount of work for financial consultancy practices, writes Jordan Bintcliffe
A troubled global market has seen the introduction of new regulations intended to better protect companies in the financial consultancy industry against the possibility of future downturns. The resulting changes are arguably the most substantial sinconlin...
Ortec Finance specialises in financial advice and technology for improving investors’ decision making and decision monitoring, with a specialisation in pensions and wealth management
In 1985, Ortec Finance created its first mathematical models for the financial world. Over the years we have perfected our technology and developed into an independent specialist measuring and managing financial risk and return. Based on the latest icheap...
The new Basel III liquidity requirements have been criticised in some quarters. Understanding them, and the framework that has been put in place to ensure stability, requires a little new understanding
Liquidity risk has been studied for a long time. Gap analysis, for example, goes back more than 50 years. Many different ratios and indices have also been used in time, without any of them having been set as an industry standard. Liquidity is one of the m...
A CEO’s guide to building competitive advantage through enterprise risk management, by Robert Wyle, Senior Director, Moody’s Analytics, Enterprise Risk Solutions
Firms that persevered through the crisis had one thing in common: they had a robust risk management infrastructure. It wasn’t a turn-the-crank, back-office risk management – nor was it silo-based. It was the kind of risk management that permeated an e...
US consultancy firm to carry out operations of World Cup campaign in Qatar
CH2M Hill and it will co-operate closely with the Qatar 2022 Supreme Committee to help ensure that all projects related to the World Cup, including a new international airport, 12 stadiums and a metro network, are all completed on time. The consultants wi...
The private equity picture becomes clearer. Selwyn Parker speaks to Kirk Radke
Private equity is turning into a sellers’ market – sellers of capital, that is. Burned by the financial recession, as some were, the usual investors in private equity are taking longer than they once did before allocating capital to firms, because ...
Mexican insolvency law isn’t for the faint-hearted. There is still inadequate bankruptcy protection, and mutual harmonisation is still some way off; despite efforts to improve investor protection. Darío Oscós is your guide to Mexico’s insolvency maze
Despite the economic gains made by the world’s 11th-largest economy – the World Bank predicted Mexico to expand four percent in 2011 – its insolvency culture remains worryingly fragile and ineffective.The issue is pressing because the US...
As the European Parliament debates the best way to produce growth, hands have been forced to constrict accountancy firms
It is no secret that new regulations are under consideration in a number of countries that will change the way auditing and consultancy firms operate. Proposals for change currently under consideration by the European Union are excellent examples. One of ...
Indian firms such as Tata and Mafoi expand into global markets with the helping hand of technology
Consultancy has been a part of the business landscape for as long as anyone cares to remember. From small businesses that need help positioning themselves in the market to large corporations needing to revamp their finances and even government entities th...
PwC, Ernst & Young, KPMG, and Deloitte look to have extended their market dominance following the sheer number of insolvencies in recent years
The Big 4 is composed of companies that operate around the world. Two of them, Price Waterhouse Coopers and Ernst & Young, are headquartered in the United Kingdom. Deloitte Touche Tohmatsu is also part of this elite group and is based in the United St...
As larger international consultancy firms – such as McKinsey & Company, PwC or Deloitte – press for more and more of the market share, smaller organisations and self-employed consultancies are being forced to better their game
Working as an independent or self-employed consultant is the career choice for many professionals today. The option has much going for it, including the ability to provide specialised services while also handpicking clients. A successful independent consu...
Kirk Radke on euro stability and how private equity houses are motivating global competition
The world listens when Kirk Radke shares insights on key trends and developments within the private equity industry. The New York-based partner at Kirkland & Ellis can boast 27 years of solid experience as one of the globe’s leading lawyers for corp...
Strategic corporate partnerships and close customer focus are driving solid commercial growth despite a far-reaching restructuring process
Key changes are afoot at ING Chile as it braces itself to become a major pawn in its mother company’s Latin American restructuring strategy. The Chilean division leverages the vast network of its global 107,000 strong workforce and available resourc...
Kirk Radke on the globalisation of private equity. He spoke to Eleni Chalkidou
International law firm Kirkland & Ellis has a 100-year history of offering outstanding legal services to its clientele globally. The firm is widely celebrated for providing high quality counsel in areas such as IP, litigation, tax, restructuring and c...
Overlay management systems have proven their worth and can provide a cushion against new risk factors, says Alexander Preininger
The management of institutional portfolios is becoming more and more complex: on the one hand investors increasingly seek broader diversification for their investments, while on the other they are confronted with a growing range of highly specialised asse...
European countries are scrambling to raise every last penny of funds through taxes. But some countries may have gone too far...
Though all business taxes in Belgium can be paid online with little effort and preparation, the rates are still sky-high at 57.7 percent, including a staggering 50.8 percent total rate on profits only in social security contributions.
In Belarus, a company spends up to 338 hours annually preparing for and paying ten different taxes and duties. The total tax rate has incredibly been lowered to 60.7 percent, from 117.5 percent in 2008.
A company in France pays seven different taxes and duties, the sum of which can amount to 65.7 percent of profits; though President François Hollande has announced a wave of business tax rate cuts coming up.
A business in Estonia pays 67.3 percent of profits in tax, 37.2 percent exclusively in social security contributions. The country has gone against the grain in Europe by raising businesses taxes from 48.6 percent in 2008 to the current rates.
While corporate income tax (IRES) in Italy is limited to 38 percent of taxable profit, a company operating in Italy can expect to pay 14 other taxes and duties, including social security contributions, bringing their total payable tax to 68.7 percent of profits, according to the World Bank.
Norway taxes motor fuels twice, with a road use tax and a CO2 emissions tax. Combined with strikes in the energy sector that have curbed output, the price of gas at a local pump has soared to $10.12 per gallon.
Though Turkey sits on the Suez Canal and neighbours many oil rich countries, the price of a gallon of average gas clocks in at $9.41 in Turkish pumps, because of a 60 percent share of taxes.
Like Turkey, Israel is surrounded by oil-rich neighbours, but drills very little itself. Gas prices are controlled by the government, so about half of the $9.28 per gallon goes to taxes.
There are few gas stations in Hong Kong, but the ones available charge up to 76 percent more per gallon than mainland China, where the government caps the cost of fuel. A gallon at the pumps will cost around $8.61 on the island.
Expensive labour costs make the Dutch petrol prices the dearest in Europe, at $8.26 per gallon; though the 57 percent tax add-ons don’t help.
8 February 2007
HSBC warns of subprime mortgage losses
2 April 2007
New Century goes bus
14 September 2007
Wholesale markets have dried up
17 March 2008
Rescue of Bear Stearns
7 September 2008
Rescue of Fannie Mae
15 September 2008
Lehman Brothers file for bankruptcy
3 October 2008
US congress approves $700bn bailout
14 February 2009
$787bn stimulus approved by congress
The effects of the current financial crisis are global and irrefutable. With the collapse of Lehman Brothers, the domino effect of irresponsible public monetary policies, huge levels of unsustainable debt, and a deregulated financial sector, has escalated to the point where no corner of the globe has been left untouched.
Syria and Egypt launch an attack on Israel on Yom Kippur and set off a twenty day war;
US President Carter creates Department of Energy, which develops the US strategic petroleum reserve
The Organisation of Petroleum Exporting Countries (OPEC) used their oil reserves as a weapon with the Arab Oil Embargo against those who supported Israel. By January 1974, world oil prices were four times higher than they were at the start of the crisis, especially in the US, and the shock led to a huge drop in the stock market with NYSE losing $97bn in just six weeks. The embargo lasted five months, and the effects are still seen today.
1923 – 1924
The trouble began when Germany missed a repatriation payment, worth about one third of the German deficit in this period. Inflation was already high but by 1923 it was raging. Prices doubled within hours, and by late 1923, it cost 200bn marks to buy a single loaf of bread. People burned money as it was cheaper than buying firewood. Germany eventually regained control of its economy when it introduced the Rentenmark into circulation in 1923, and then the Reichmark in 1924.
The Great Crash
Recovery and Recession
After the decadence of the Roaring Twenties, the 1930s saw the biggest economic slump of all time. The stock market crashed on 29 October 1929, and optimism and decadent living tumbled along with the figures. The GDP fell from $103.6bn in 1929, to $66bn in 1934 and the subsequent years of recovery were the most dramatic in US history.
Otto Heinze and his brother Augustus Heinze bought shares of United Copper.
The stock market was already cautious over the tight money supply, but the US was thrown into a depression after the stock market fell nearly 50 percent from its peak in 1906. The Heinze brothers thought they could influence market shares but ended up bankrupting lenders that provided the financing to buy the stock. A chain reaction left nine institutions bankrupt. By February 1908, the panic was over and the government created the Federal Reserve system, to prevent banks from exercising too much control over the economy.