Dangerous Markets: Managing
in Financial Crises
"Financial crises
are hardly limited to the purview of central bankers and regulators. The authors
skillfully demonstrate that financial crises offer both peril and promise. A 'must-read'
for top management of any global company, whether a financial or a nonfinancial
institution." Ronald P. OHanley, Vice Chairman, Mellon Financial Corp.
"Based on their vast
experience in financial crises around the world during recent years, the authors have
developed an impressive review of the origins of and solutions to financial crises. The
cost of such crises can be minimized and the path to recovery established earlier if
bankers, other corporate executives, and public finance officials take advantage of this
effort and apply the lessons learned from their significant work." Charles H.
Dallara, Managing Director, Institute of International Finance, Inc.
"Dangerous Markets
is a 'must-read' in the current global environment for all serious investors and senior
executives. The McKinsey authors bring a unique practitioners' perspective to the
challenges of anticipating, managing, and succeeding in financial crises, and close with
an intriguing call for leading private sector players to step up their role in promoting
new market standards and structures to help avoid future financial crises and minimize
their potential impact." Robert R. Glauber, Chairman and CEO, NASD; former Under
Secretary of the U.S. Treasury Department and former Harvard Business School professor
Don't get caught off-guard by
the next financial crisis. Pick up Dangerous Markets and be prepared to act, rather than
react.
Table of Contents:
Preface.
Why Manage Financial Crises
Proactively?
Why We Wrote Dangerous
Markets.
Acknowledgments.
CHAPTER 1: Introduction to
Dangerous Markets.
Financial Storms Are
Destabilizing.
Financial Crises Can Be
Understood, Anticipated, Managed, and Prevented.
What This Book Is and Is Not.
Who Needs to Read Dangerous
Markets?
Part I: Understanding
Financial Crises.
Part II: Earning the Right to
Win.
Part III: Managing Unique
Banking Risks.
Part IV: Building for the
Future.
PART I: Understanding
Financial Crises.
CHAPTER 2: Recognizing New
Global Market Realities.
Increasing Risk of Financial
Crises.
Why Financial Crises Are on
the Rise.
You Can Run, But You Can't
Hide From Crises.
Looking Ahead.
CHAPTER 3: Using Crisis
Dynamics to See Growing Risks.
The Chronology of a Crisis.
The Dynamics of a Financial
Crisis.
The Corporate Sector:
Assessing Value Destruction.
The Financial Sector: Banks
in Distress.
Understanding the Impact of
Macroeconomic Catalysts, Foreign Funding, and Asset Bubbles.
Conclusions and Outlook for
Future Crises.
Appendix 3.1: Ten Warning
Signs of a Financial Crisis.
Appendix 3.2: Estimating
Value Destruction in the Economy.
Appendix 3.3: Why Corporate
Sectors Underperform in Crisis Economies.
PART II: Earning the Right to
Win.
CHAPTER 4: Managing the First
Hundred Days.
Taking Five Tactical Steps
When a Crisis Hits.
Developing a Crisis
Management Approach.
Managing the CEO Agenda.
Appendix 4.1: Painting the
Picture of a Financial Crisis.
Appendix 4.2: How Companies
Can Strengthen Funding Before a Crisis.
Appendix 4.3: Using Scenario
Planning in Financial Crises.
CHAPTER 5: Capturing
Strategic Opportunities After the Storm.
Recognizing Significant
Opportunities in a Crisis.
Moving from Boundaries to
Greater Degrees of Freedom.
Executing Successfully to
Capture Crisis Opportunities.
Appendix 5.1: Leveraging
Strategic Opportunities in Financial Crises: The Successful Story of NCNB.
PART III: Managing Unique
Banking Risks.
CHAPTER 6: Driving Successful
Bank Turnarounds.
Ensuring Turnaround Success:
Seven Management Actions.
Mellon Bank's Successful
Turnaround.
Christiana Bank's Successful
Turnaround.
Filanbanco's Failed
Turnaround.
Government Stewardship of
Troubled Banks.
Government's Role in Bank
Turnaround Strategies.
Appendix 6.1: Building a
Rationale for Official Support in a Financial Crisis.
CHAPTER 7: Minimizing Costs
Through NPL Recovery Excellence.
Developing World-Class NPL
Recovery Capabilities.
Special Issues Raised When
NPLs Are Managed by Governments.
Management Lessons: Good
Banks/Bad Banks in Scandinavia.
PART IV: Building for the
Future.
CHAPTER 8: Strengthening
System Safeguards.
Moving to Global Standards
for Corporate Governance.
Adopting Better Accounting
Standards.
Developing Capital Markets.
Resetting Regulatory Regimes.
Building an Effective Legal
Foundation.
Appendix 8.1: Sixteen
Elements of Good Corporate Governance.
Appendix 8.2: Singapore's
Development as an International Financial Center.
Appendix 8.3: The Discipline
of the Market for Corporate Control: Issues for CEOs.
CHAPTER 9: Designing a New,
Market-Driven Financial Architecture.
Recognizing the Limitations
of Current Standards and Approaches.
Enhancing the Private
Sector's Role in Setting Standards to Reduce the Risk of Future Crises.
Appendix 9.1: FSF Compendium
of Standards.
Endnotes.
Glossary.
Index.
300 pages